Unit 2.5 - (HL Only) Flashcards
Organizational (Corporate) Culture
is based on the beliefs, values and attitudes of the management and employees. It represents the character or ‘personality’ of an organization
N- Nature of the Business
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.
NORMS acronym
to describe corporate culture
O- Organizational Structure
think of everything we studied in chapter 2.2.
R- Rewards
Chapter 2.4. Rewards = motivation, Motivation = a productive workforce who strives to succeed in organizational objectives. No rewards and motivation? Much different culture!
M- Management Styles
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.”
S- Sanctions
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 !
Influences of Organizational Culture
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’.
Handy’s Gods of Management
Power / Zeus
Role / Apollo
Task / Athena
Person / Dionysus
Role / Apollo
- 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
Power / Zeus
- 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.
Task / Athena
- 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.
Person / Dionysus
- 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.
Individualism vs Collectivism (Hofstede’s Cultural Dimensions)
I work for me and I care about my personal advancement VS. I care about work harmony and being a part of the team.
Short-termism vs. Long-Termism
(Hofstede’s Cultural Dimensions)
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.
Power Distance
(Hofstede’s Cultural Dimensions)
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
Schein’s Model of Organizational Culture
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.
Masculinity vs. Femininity
(Hofstede’s Cultural Dimensions)
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.
Uncertainty Avoidance
(Hofstede’s Cultural Dimensions)
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.
Indulgence vs Restraint
(Hofstede’s Cultural Dimensions)
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.
Evaluating Hofstede
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).
Cultural Clashes
exist within an organization when two or more cultures are incompatible
Mergers & Acquisitions
(Cultural Clashes)
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’.
Change in Leadership
(Cultural Clashes)
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.
Poor Business Performance
(Cultural Clashes)
usually means a business is not meeting its goals and this often leads to pressure for leadership and shareholders to do better.
High Labour Turnover
(Cultural Clashes)
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.
