Sessions 13/14- Organisational & National Culture

Question 1

Organisational Structure

Answer 1

the formal system of tasks and authority relationships that control how people coordinate their actions and use resources to achieve organisational goals

Question 2

Organisational Design

Answer 2

the process by which managers select and organise the organisation’s structure and culture so that an org can control the activities necessary for it to reach its goals

Question 3

Organisational culture

Answer 3

the set of shared values and norms within that control the org members’ interactions with each other and with its stakeholders.

Question 4

Culture benefits

Answer 4

1. Control:
2. Motivation: generate inexpensive but highly valued rewards
3. Capabilities: create core competencies/abilities, enable coordination, collaborative skills

Question 5

Culture Cons

Answer 5

1. Inertia: can be a source of inflexibility

2. Incongruence: can undermine incentive systems and formal structure

Question 6

Strong vs Weak Culture

Answer 6

Strong= consistency across the firm and over time
Weak = wide differences across the firm and over time

The stronger the culture the greater the benefits and dangers (aka cons)

Question 7

Cultural Dimensions

Answer 7

1. Power distance: extent to which members of an institution and organisation within a country expect and accept that power is distributed unequally
2. Uncertainty avoidance: extent to which uncertainty and ambiguity are seen negatively. Rules and structures to reduce them are welcomed
3. Individualism: extent to which people expect that individuals are supposed to take care of themselves and remain emotionally independent from groups
4. Masculinity: extent to which assertive behaviour and attempts to excel are encouraged