THE IMPORTANCE OF UNDERSTANDING ORGANIZATIONAL CULTURE  Cultural intelligence: is the ability of an individual to mix occupational, corporate and national cultures. It is important in a business context as it measures the ability of workers to understand and adjust to unfamiliar situations  Businesses are exposed to constant forces of change, then this could harm the business succes if they don´t want that change

THE IMPORTANCE OF UNDERSTANDING ORGANIZATIONAL CULTURE  A negative and undesirable culture can lead to increase ansenteeism and lateness, thereby escalating the costs for the business. By contrast, a culture of acceptance to change and cooperation with management will aid a business in responding to the changing needs of the market

Influences on organizational culture  Nature of the business: The nature of an organization is dependent on its mission, aims and objectives  Organization structure: A firm with tall structures will tend to have small teams that work well independly. By contrast, flatter structures are more likely to benefit from collaborative team working  Rewards: if employees are appropiately remunerated for their efforts, the organization is more likely to develop a strong culture.

Influences on organizational culture  Management styles: Firms that adopt a Theory Y management style will experience a completely different culture from those that use a Theory X. The culture in firms that have theory Y, managers will tend to benefit from workers being able to deal with most problems themselves, rather than taking their problems to management. On the other hand, in firms where managers use a theory X style, the use of threats and sanctions is the norm

Influences on organizational culture  Sanctions: For example: to be late at work, or miss work and to deliver poor customer service. However, if an organization is too rigid in its policies and is extremely harsh in reprimanding workers, the staff may feel resentful of management