hl 2.6 organizational and corporate cultures chapter 15
TRANSCRIPT
HLHL2.6 Organizational and 2.6 Organizational and
Corporate CulturesCorporate Cultures
Chapter 15Chapter 15
HL-Organization CultureHL-Organization Culture
The values, attitudes, and beliefs of the The values, attitudes, and beliefs of the people working in an organization that people working in an organization that control the way they interact with each control the way they interact with each other and with external stakeholder other and with external stakeholder groups.groups.
How can management influence How can management influence corporate culture?corporate culture?
Mission and vision statementsMission and vision statements Who is appointed to senior staff .Who is appointed to senior staff .
(They are likely to share the same values and beliefs as the directors.)(They are likely to share the same values and beliefs as the directors.)
The organization’s ethical code of conductThe organization’s ethical code of conduct Established strategies on social and Established strategies on social and
environmental issues.environmental issues. The example upper management sets in how they The example upper management sets in how they
treat employees and make decisions.treat employees and make decisions.
Types of Organizational CultureTypes of Organizational Culture(As identified by Charles Handy)(As identified by Charles Handy)
Power CulturePower Culture Role CultureRole Culture Task CultureTask Culture Person CulturePerson Culture Entrepreneurial CultureEntrepreneurial Culture
Power CulturePower Culture
Concentrating power among a few peopleConcentrating power among a few people
Usually is associated withUsually is associated with autocratic leadership. autocratic leadership.
Decisions are made quicklyDecisions are made quickly Managers are judged on Managers are judged on
results rather than how they results rather than how they obtain them.obtain them.
Usually a hierarchical organization structureUsually a hierarchical organization structure Motivation is likely to focus on financial Motivation is likely to focus on financial
rewards like bonuses.rewards like bonuses.
Analogy of spider web: there is no purpose without the spider.
Role CultureRole Culture
Each member of staff has a clearly defined job Each member of staff has a clearly defined job title and roletitle and role
Usually associated with bureaucratic Usually associated with bureaucratic organizations like government.organizations like government.
The structure of the organization is The structure of the organization is clearly defined with clear delegated clearly defined with clear delegated authority.authority.
Power comes from a person’s positionPower comes from a person’s position Decision-making and risk taking are frowned upon.Decision-making and risk taking are frowned upon. Tall hierarchical organization structuresTall hierarchical organization structures
Analogy big building: Solid and dependable – not going anywhere fast
Task CultureTask Culture
Based on cooperation and team workBased on cooperation and team work
Groups are formed to Groups are formed to solve problemssolve problems
Communication may followCommunication may follow a matrix structure a matrix structure
Creative & problem-solving spiritCreative & problem-solving spirit Very motivating environment Very motivating environment
that meets worker’s intrinsic needsthat meets worker’s intrinsic needs
Analogy of a NET: the strength is derived from the many strands
Person CulturePerson Culture
Individuals are given the freedom to Individuals are given the freedom to express themselves and make decisionsexpress themselves and make decisions
Most creative type of cultureMost creative type of culture No emphasis on teamworkNo emphasis on teamwork People who thrive here may find it difficult to People who thrive here may find it difficult to
work in a structured environmentwork in a structured environment
Analogy of a STARS: each person is different and operates alone
Entrepreneurial CultureEntrepreneurial Culture
Encourages management and workers to Encourages management and workers to take risks and encourage new ideas and take risks and encourage new ideas and business ventures.business ventures.
Success is rewarded but failure is not Success is rewarded but failure is not automatically criticizedautomatically criticized
Motivation can be high among people who like Motivation can be high among people who like a challenge and risk takinga challenge and risk taking
Culture ClashCulture Clash
Corporate culture may clash with the needs of Corporate culture may clash with the needs of the organization hindering growth.the organization hindering growth. A traditional family company converts to a public A traditional family company converts to a public
limited companylimited company A product-led business needs to change based upon A product-led business needs to change based upon
desires of the marketdesires of the market A private company may not be responding to A private company may not be responding to
customer needscustomer needs A merger may occur with a other firm with a different A merger may occur with a other firm with a different
cultureculture Declining market share may be the consequence of Declining market share may be the consequence of
an unmotivated staffan unmotivated staff
Changing CultureChanging Culture
NOT EASYNOT EASY Concentrate on the positive aspects of changeConcentrate on the positive aspects of change Obtain the full commitment of all levels of the Obtain the full commitment of all levels of the
business: managers to lowest level employeesbusiness: managers to lowest level employees Establish new objectives and communicate themEstablish new objectives and communicate them Encourage bottom-up participationEncourage bottom-up participation Train staff on the new value systemTrain staff on the new value system Change the staff reward system; quit rewarding “the Change the staff reward system; quit rewarding “the
old way”old way”
Impact of CultureImpact of Culture
Values of business: what is and what is Values of business: what is and what is NOT acceptableNOT acceptable
Determines managers and employees Determines managers and employees treat each othertreat each other
A distinctive culture can support a brand – A distinctive culture can support a brand – think GOOGLEthink GOOGLE
Positive organizational culture has been Positive organizational culture has been clearly linked to long-term business clearly linked to long-term business success.success.