Organisational and Corporate Culture

Learning Objectives HL – Explain the influences on organisational and corporate culture HL – Describe different types of culture and analyse their effects on motivation and organisational structures HL – Analyse the consequences of culture clashes within and between organisations

Organisational and corporate culture Values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with external stakeholders Exam Tip Culture is a powerful force in any organisation Take every opportunity in your answers to make reference to it as a factor for decision making and behaviour Theorist – Charles Handy

Go through each one briefly Influences on organisational culture The appointment of senior staff Mission and vision statements The ethical code of conduct Strategies on corporate social responsibility Examples they set The industry the business operates in Legal constraints Go through each one briefly

Types of organisational culture Power Culture – Concentrating power among a few people Associated with autocratic leadership Decisions can be made swiftly because few people are involved Encourages risky decisions and long term inappropriate decision making Motivational methods are likely to be monetary

Power Culture – Concentrating power among a few people Handy says its like a spiders web, everything controlled by the spider (manager) without the spider the web is useless

Which types of business / industries would use Power Culture and why?

Types of organisational culture Role Culture – Clearly defined job titles and roles Associated with bureaucratic organisations Staff operate within rules and show little creativity Tall hierarchical structures with powerful role culture Structure is well defined and authority delegated clearly Decision making slow and risk taking frowned upon Power and influence come from position

Role Culture – Clearly defined job titles and roles Handy says these types of organisations are solid and dependable but they are not going anywhere fast

Which types of business / industries would use Role Culture and why?

Types of organisational structure Task Culture – Co-operation and team work Groups are formed to solve problems and matrix structure Motivating environment – intrinsic needs Employees feel empowered, encouraged to be creative, strong team spirit

Co-operation and team work Handy says these types of organisations are like a net, the net’s strength is derived from the many strands Task Culture – Co-operation and team work

Which types of business / industries would use Task Culture and why?

Types of organisational structure Person Culture – Individuals are given the freedom to express themselves May be some conflict individual goals and organisational goals Most creative type of culture, no emphasis on teamwork

Handy says the employees of an organisation are like a constellation Handy says the employees of an organisation are like a constellation. Each person is different from everyone else and they operate alone Person Culture – Individuals are given the freedom to express themselves

Which types of business / industries would use Person Culture and why?

Types of organisational culture Entrepreneurial Culture – Encourages management and workers to take risks, come up with new ideas and test out new business ventures Success is rewarded but failure is not necessarily criticised Usually found in flexible organisational structures Motivation levels tend to be high as work is challenging, innovating and risk taking

Which types of business / industries would use Entrepreneurial Culture and why?