Unit 2.5 - (HL Only)

Question 1

Organizational (Corporate) Culture

Answer 1

is based on the beliefs, values and attitudes of the management and employees. It represents the character or ‘personality’ of an organization

Question 2

N- Nature of the Business

Answer 2

shaped by the purpose and direction of the organization, typically taken from the mission, aims, and vision of a business. Is additionally important to Service-based businesses.

Question 3

NORMS acronym

Answer 3

to describe corporate culture

Question 4

O- Organizational Structure

Answer 4

think of everything we studied in chapter 2.2.

Question 5

R- Rewards

Answer 5

Chapter 2.4. Rewards = motivation, Motivation = a productive workforce who strives to succeed in organizational objectives. No rewards and motivation? Much different culture!

Question 6

M- Management Styles

Answer 6

Chapter 2.3. Different cultures are built around leadership styles. Think how different a company would be with a boss who reads your emails and constantly monitors your work… over a boss who gives you a task and says, “Finish this by the end of the month.”

Question 7

S- Sanctions

Answer 7

the rules in place for an organization. If too loose, people will be late and provide poor customer service. If too rigid and with harsh reprimands, staff may feel resentful towards management. Find that happy medium !

Question 8

Influences of Organizational Culture

Answer 8

History of the Business: the past shapes the current day

Present Leadership & Ownership: shapes the current goals of the business and sets the ‘tone’ of the organization

Society in General: the dominant social culture (Japan for example) shapes the day-to-day dealings in a business but also social trends, such as environmentalism, shapes a culture

Experience & Performance: a new business has a unique ‘take on the world culture’ while an established business has a ‘we know what we’re doing attitude’.

Question 9

Handy’s Gods of Management

Answer 9

Power / Zeus
Role / Apollo
Task / Athena
Person / Dionysus

Question 10

Role / Apollo

Answer 10

• Becomes more common as businesses grow in size
• Relies heavily on rules and clear procedures
• Employees who can follow rules have the most success
• Communication channels are clear
• Predictable outcomes but are inflexible to changes

Question 11

Power / Zeus

Answer 11

• Most common
• Has a dominant leader or group
• Success is often based on the quality of leadership
• Quick decisions and efficiency
• Can have slow downs if a leader is away or weak.

Question 12

Task / Athena

Answer 12

• Most common in project based businesses (design, marketing, etc.)
• Expertise and skills often solve problems more so than leadership.
• Employee’s value is based on what they can contribute to the team/project, more so than length of employment.

Question 13

Person / Dionysus

Answer 13

• Not common but does occur in businesses where groups of well-qualified people respect each other equally. University faculties or specialized medical facilities (surgery) are examples.
• Employees are self-reliant and have decision making power.
• Work culture is mostly collaborative but can lack consistency and communication as a result.

Question 14

Individualism vs Collectivism (Hofstede’s Cultural Dimensions)

Answer 14

I work for me and I care about my personal advancement VS. I care about work harmony and being a part of the team.

Question 15

Short-termism vs. Long-Termism
(Hofstede’s Cultural Dimensions)

Answer 15

Countries that have a long cultural history (China, India, Egypt) or a history of turmoil (Russia, Afghanistan) tend to have a Long-Termism outlook on business. They are more likely to accept long-term investments and wait for returns.

Question 16

Power Distance
(Hofstede’s Cultural Dimensions)

Answer 16

I care about the hierarchical status of my elders/superiors/seniors in a workplace = High Power Distance
VS
I will challenge those above me when I think it is logical to do so = Low Power Distance

Question 16

Schein’s Model of Organizational Culture

Answer 16

the belief that organizations develop their culture over time as the employees change and adapt to the external environment and the problems encountered by the organization. As new employees come in, they learn the corporate culture and also have an effect on it, over time.

Question 17

Masculinity vs. Femininity
(Hofstede’s Cultural Dimensions)

Answer 17

Masculine decision-making often focuses on the self, winning, being competitive, and material rewards.

Feminine decision-making often focuses on caring, group-based decisions, and consultation.

Question 18

Uncertainty Avoidance
(Hofstede’s Cultural Dimensions)

Answer 18

Tell me exactly what to do and how to do it vs. Give me a task, a goal, and let me adapt to it and find success.

In some cultures, individuals are comfortable with a level of uncertainty. In others, they want precise instructions and when and how to do everything.

Question 18

Indulgence vs Restraint
(Hofstede’s Cultural Dimensions)

Answer 18

I will seek out my own needs and desires to ‘have fun’ vs. Duty and following the order of things is the proper way to go.

Indulgent cultures often have employees who are more willing to give their opinions, leave on time/resist overtime, and always take their break time. Restraint Cultures put a higher value on duty and sacrificing their own health and happiness to achieve work goals.

Question 19

Evaluating Hofstede

Answer 19

Clearly the biggest drawback of Hofstede’s belief is that it is based on generalisations, and even stereotypes, of whole cultures. Individuals from a specific culture (international school students being a prime example) might not fit these cultural norms.

However, it does give HRM managers a place to start in understanding employees from diverse backgrounds and can be helpful in easing transitions during expansions to new regions (internal growth) or during Mergers/Takeovers (external growth).

Question 20

Cultural Clashes

Answer 20

exist within an organization when two or more cultures are incompatible

Question 21

Mergers & Acquisitions
(Cultural Clashes)

Answer 21

naturally, there can be cultural clashes when a Merger/Acquisition/ Take-Over occurs. Depending on the nature of the External Growth Strategy (1.6) taking place, there can be resentment for the expansion or when the more dominant firm’s culture prevails over the ‘old way of doing things’.

Question 22

Change in Leadership
(Cultural Clashes)

Answer 22

Leadership style (2.3) strongly affects corporate culture. Think of how our school has changed with the different principals/coordinators we have had or when you have a different teacher than usual.

Question 23

Poor Business Performance
(Cultural Clashes)

Answer 23

usually means a business is not meeting its goals and this often leads to pressure for leadership and shareholders to do better.

Question 24

High Labour Turnover
(Cultural Clashes)

Answer 24

often means that there is something wrong within the organisation. Employees leaving shows lacks of loyalty and motivation. New people are always coming in and a standard culture cannot be built.