Understanding Business- Corporate Culture Flashcards Preview

Higher Business Managment (Prelim) ✍🏼️ > Understanding Business- Corporate Culture > Flashcards

Flashcards in Understanding Business- Corporate Culture Deck (6)
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What is corporate culture?

The values, beliefs and norms relating to the organisation that are shared by all staff.
This is an internal factor


What impact does corporate culture have on an organisation?

It creates the idea that the business and its employees are all part of one social group, giving a sense of belonging and identity. It will impact on the thinking and decision making of the management and employees.
A positive culture will bring advantages
A negative one will reveal set backs


What are benefits of corporate culture?

Employees feel part of the organisation
It is motivational to staff
It improves employee relationships
It increases employee loyalty
It gives customers a sense of efficiency
It may attract new workers
It improves the business image


What are drawbacks of corporate culture?

It may stifle creative thinking
Some essential staff might find it difficult to fit in
Time and effort are required to maintain the culture and for new staff to adapt
Change may be more difficult to implement


How could a business create a corporate culture?

Introduce standardised working practices and systems
Have uniforms for staff
Organise staff training on culture
Keep layout and design of all offices/ outlets the same
Create a mission statement which sets out the business' goals and ideas


How will corporate culture impact on the decision making process of the business?

Managers have to take it into account when setting out future aims for the business. The policies may restrict managers from doing what they feel is necessary for the business