Organisational culture and corporate responsibility

Question 1

What factors are in the general (macro) environment?

Answer 1

PESTAL

Question 2

What factors are in the competitive (micro) environment?

Answer 2

• Suppliers
• Buyers
• Substitutes
• Competitors
• potential entrants

Question 3

What factors are in the internal environment?

Answer 3

• Business processes
• People
• Structure
• Objectives
• Finance
• Power
• Culture

Question 4

What was Hofstede’s research process?

Answer 4

• Research at IMB employing over 100,000 workers
• Aim to categorize cultures in nations where IBM operated
• ## Found 5 categories of national culture

Question 5

What is Hofstede’s definition of ‘power distance’?

Answer 5

“The extent to which the less powerful members of… organisation within a country expect and accept that power is distributed unevenly”

Question 6

Compare high/lower power distance

Answer 6

High power distance: hierarchy (acceptance of boss/subordinate inequality), authority, control
Low power distance: flat organisational structure, empowerment of people, autonomy

Question 7

What countries have high power distance?

Answer 7

• Russia
• China

Question 8

Analyse individualism Vs Collectivism

Answer 8

Individualism: emphasises the individual, workers take initiative and assume responsibility.

Reward systems:
- Individual bonus… or:
- Reward based on team performance

Question 9

Analyse masculinity Vs femininity

Answer 9

Masculine: countries where gender roles are clearly distinct
Feminine: Countries where gender roles swap

Question 10

Analyse Long Term Vs short term orientation

Answer 10

• Long term: value virtues such as perseverance and thrift
• Short-term: value tradition and preservation of face

Question 11

Define shared values and common beliefs

Answer 11

Shared values: what is considered important
Common beliefs: expected appropriate behaviours and attitudes

Question 12

What are basic, underlying assumptions?

Answer 12

Basic underlying assumptions are deeply held by group members as being the way to work together.

Question 13

In terms of the 1bis competing values framework, describe ‘Rational Goal’

Answer 13

• Values: rationality and efficiency
• Motivation: competition and achieving goals

Question 14

In terms of the 1bis competing values framework, describe ‘internal process’

Answer 14

Values: stability and control
Motivation: security, stability, order

Question 15

In terms of the 1bis competing values framework, describe ‘Human relations’

Answer 15

Values: informal and interpersonal relations
Motivation: cohesiveness, membership

Question 16

In terms of the 1bis competing values framework, describe ‘open systems’

Answer 16

Values: external ideas
Motivation: creativity, variety

Question 17

What are Charles Handy’s Types of culture

Answer 17

• Power
• Role
• Task
• Person

Question 18

Describe Handy’s power culture

Answer 18

A culture that is primarily influenced by a dominant central figure

Question 19

Describe Handy’s role culture

Answer 19

Activities are influenced by clear and detailed job descriptions and procedures

Question 20

Describe Handy’s task culture

Answer 20

The focus is on completing the task and not formal roles

Question 21

Describe Handy’s person culture

Answer 21

Activities are influenced by the wishes of the individual who are at the centre of the system: the system works to support them

Question 22

What are the benefits of a strong organisational culture?

Answer 22

• 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

Question 23

What are the key concepts of corporate responsibility?

Answer 23

• Corporate malpractice
• Philanthropy
• Enlightened self interest
• Corporate responsibility (CR)

Question 24

Define corporate malpractice

Answer 24

Corporate activities that are harmful, erode trust and damage reputation

Question 25

Define philanthropy

Answer 25

Supporting charitable or socially beneficial causes

Question 26

define Enlightened self-interest

Answer 26

Acting in a costly or inconvenient way for the present to fulfill long-term goals

Question 27

Define corporate responsibility

Answer 27

management reflecting an understanding of the broader implications of corporate decisions

Question 28

What are the benefits of corporate responsibility?

Answer 28

• Economic: Friedman argued that managers provide social benefit by creating wealth or employment
• Legal: companies must follow the law
• Societal: moral responsibility within social contract
• Philanthropic: recognizing societal responsibilities for enlightened self-interest