3.4.2 Corporate culture Flashcards

1
Q

Organisational culture

A

the norms and values of a business that are seen throughout the business

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2
Q

Charles Hardy’s corporate culture definition

A

the way we do things round here

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3
Q

How is corporate culture formed?

A
  • artefacts - uniforms
  • company song
  • heroes/founders
  • rituals
  • language
  • mottos
  • norms
  • symbols
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4
Q

Factors that influence culture of an organisation

A
  • influence of the founder
  • size and development stage of the business (start up, multisite, multinational)
  • leadership and management style
  • organisational structure, policies and practices
  • employee and management reward structures (pay, bonuses, individual v team rewards)
  • market/industries in which it operates
  • working environment and nature of tasks (physical, office, remote working, flexible working)
  • attitude of an organisation to risk taking and innovation
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5
Q

Strong culture

A

strong values and beliefs that are widely shared and significantly influences people’s behaviour

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6
Q

Weak culture

A

weak values and beliefs either don’t exist or are not widely shared so do not significantly influence people’s behaviour

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7
Q

Features of a strong culture

A
  • good internal communication with their employees
  • clear, core values, missions and goals
  • the culture is usually based around the history, tradition and founders of the business
  • encourages risk taking and innovation
  • engaged and loyal staff
  • not easily copied
  • strong networks elf departments and divisions - good communication between departments
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8
Q

Features of a weak culture

A
  • can often read to business failure
  • it will exhibit a demotivated workforce
  • little alignment with values
  • inconsistent behaviours
  • it may be poorly managed
  • it will be very bureaucratic and lack of flexibility to respond to dynamic markets
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9
Q

Handy’s 4 classes of culture

A
  • power
  • role
  • task
  • person
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10
Q

Handy’s 4 classes of culture - power culture

A
  • power concentrated at the centre with just a few people
  • only a few people have decision making power
  • authoritarian leadership
  • few rules and little bureaucracy
  • quick decisions are possible
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11
Q

Handy’s 4 classes of culture - role culture

A
  • employees have clearly defined roles within a formal structure and high control
  • power derives from someones role in the business
  • links to a tall structure with long chains of command
  • decision making can be slow
  • autocratic leadership
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12
Q

Handy’s 4 classes of culture - task culture

A
  • matrix organisation where teams are formed to solve problems/work on projects
  • power comes from expertise within a project team
  • dynamic culture - organisation structure changes depending on the project
  • democratic leadership style
  • flat structure - short chain of command
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13
Q

Handy’s 4 classes of culture - person culture

A
  • individual employees believe themselves to be superior to the business
  • employees are highly skilled, professional qualifications, training and experience
  • e.g. solicitors, management consultants
  • lassiez fair leadership style
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14
Q

barriers to cultural change - tradition and set in ways

A
  • loyalty to existing products
  • failure to accept the need for change
  • insecurity
  • preference for the existing arrangements
  • different personal ambitions
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15
Q

barriers to cultural change - fear of

A
  • loss of power
  • loss of skills
  • loss of income
  • the unknown
  • inability to perform as well in the new situation
  • break up of work groups
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16
Q

Strategies to manage cultural change

A
  • start with the vision - ensure it is dear and consistent
  • communicated at every layer of hierarchy
  • get staff to buy in - involve them in the change
  • requires a clear business strategy
  • takes time