Organisational culture and corporate responsibility Flashcards
What factors are in the general (macro) environment?
PESTAL
What factors are in the competitive (micro) environment?
- Suppliers
- Buyers
- Substitutes
- Competitors
- potential entrants
What factors are in the internal environment?
- Business processes
- People
- Structure
- Objectives
- Finance
- Power
- Culture
What was Hofstede’s research process?
- Research at IMB employing over 100,000 workers
- Aim to categorize cultures in nations where IBM operated
- ## Found 5 categories of national culture
What is Hofstede’s definition of ‘power distance’?
“The extent to which the less powerful members of… organisation within a country expect and accept that power is distributed unevenly”
Compare high/lower power distance
High power distance: hierarchy (acceptance of boss/subordinate inequality), authority, control
Low power distance: flat organisational structure, empowerment of people, autonomy
What countries have high power distance?
- Russia
- China
Analyse individualism Vs Collectivism
Individualism: emphasises the individual, workers take initiative and assume responsibility.
Reward systems:
- Individual bonus… or:
- Reward based on team performance
Analyse masculinity Vs femininity
Masculine: countries where gender roles are clearly distinct
Feminine: Countries where gender roles swap
Analyse Long Term Vs short term orientation
- Long term: value virtues such as perseverance and thrift
- Short-term: value tradition and preservation of face
Define shared values and common beliefs
Shared values: what is considered important
Common beliefs: expected appropriate behaviours and attitudes
What are basic, underlying assumptions?
Basic underlying assumptions are deeply held by group members as being the way to work together.
In terms of the 1bis competing values framework, describe ‘Rational Goal’
- Values: rationality and efficiency
- Motivation: competition and achieving goals
In terms of the 1bis competing values framework, describe ‘internal process’
Values: stability and control
Motivation: security, stability, order
In terms of the 1bis competing values framework, describe ‘Human relations’
Values: informal and interpersonal relations
Motivation: cohesiveness, membership
In terms of the 1bis competing values framework, describe ‘open systems’
Values: external ideas
Motivation: creativity, variety
What are Charles Handy’s Types of culture
- Power
- Role
- Task
- Person
Describe Handy’s power culture
A culture that is primarily influenced by a dominant central figure
Describe Handy’s role culture
Activities are influenced by clear and detailed job descriptions and procedures
Describe Handy’s task culture
The focus is on completing the task and not formal roles
Describe Handy’s person culture
Activities are influenced by the wishes of the individual who are at the centre of the system: the system works to support them
What are the benefits of a strong organisational culture?
- Attracts the best talents, builds a reputation for caring about employees
- A means to retain employees
- Contributes to job satisfaction
- Fosters collaboration
- Contributes to better productivity
What are the key concepts of corporate responsibility?
- Corporate malpractice
- Philanthropy
- Enlightened self interest
- Corporate responsibility (CR)
Define corporate malpractice
Corporate activities that are harmful, erode trust and damage reputation
