1. HL 2.6 Organizational and Corporate Cultures
Chapter 15

2. HL-Organization Culture
The values, attitudes, and beliefs of the people working in an organization that control the way they interact with each other and with external stakeholder groups.

3. How can management influence corporate culture?
Mission and vision statements
Who is appointed to senior staff . (They are likely to share the same values and beliefs as the directors.)
The organization’s ethical code of conduct
Established strategies on social and environmental issues.
The example upper management sets in how they treat employees and make decisions.

4. Types of Organizational Culture (As identified by Charles Handy)
Power Culture
Role Culture
Task Culture
Person Culture
Entrepreneurial Culture

5. Power Culture Concentrating power among a few people
Usually is associated with autocratic leadership.
Decisions are made quickly
Managers are judged on results rather than how they obtain them.
Usually a hierarchical organization structure
Motivation is likely to focus on financial rewards like bonuses.
Analogy of spider web: there is no purpose without the spider.

6. Role Culture
Each member of staff has a clearly defined job title and role
Usually associated with bureaucratic organizations like government.
The structure of the organization is clearly defined with clear delegated authority.
Power comes from a person’s position
Decision-making and risk taking are frowned upon.
Tall hierarchical organization structures
Analogy big building: Solid and dependable – not going anywhere fast

7. Task Culture Based on cooperation and team work
Groups are formed to solve problems
Communication may follow a matrix structure
Creative & problem-solving spirit
Very motivating environment that meets worker’s intrinsic needs
Analogy of a NET: the strength is derived from the many strands

8. Person Culture
Individuals are given the freedom to express themselves and make decisions
Most creative type of culture
No emphasis on teamwork
People who thrive here may find it difficult to work in a structured environment
Analogy of a STARS: each person is different and operates alone

9. Entrepreneurial Culture
Encourages management and workers to take risks and encourage new ideas and business ventures.
Success is rewarded but failure is not automatically criticized
Motivation can be high among people who like a challenge and risk taking

10. Culture Clash
Corporate culture may clash with the needs of the organization hindering growth.
A traditional family company converts to a public limited company
A product-led business needs to change based upon desires of the market
A private company may not be responding to customer needs
A merger may occur with a other firm with a different culture
Declining market share may be the consequence of an unmotivated staff

11. Changing Culture NOT EASY
Concentrate on the positive aspects of change
Obtain the full commitment of all levels of the business: managers to lowest level employees
Establish new objectives and communicate them
Encourage bottom-up participation
Train staff on the new value system
Change the staff reward system; quit rewarding “the old way”

12. Impact of Culture
Values of business: what is and what is NOT acceptable
Determines managers and employees treat each other
A distinctive culture can support a brand – think GOOGLE
Positive organizational culture has been clearly linked to long-term business success.

13. Best Companies to Work For
Whole Foods Video Clip
Whole Foods