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Corporate culture and strategic implementation (Types of culture (Task…
Corporate culture and strategic implementation
Types of culture
Task culture
is focused on team working, and power is located in what people contribute, not their formal position. Typically:
leadership is democratic and empowering
decision making is delegated
organizational structure is flat, wide or a matrix
communication channels are informal
Entrepreneurial culture
is focused on generating ideas from all levels. Change and risk taking are encouraged. Typically:
leadership is democratic or laissez-faire and empowering
decision making is delegated
organizational structure is flat, wide or a matrix (flexible)
communication channels are informal and fast
Power culture
is located in the center or at the top, with small numbers of people responsible for decisions. Typically:
leadership is autocratic
decision making is centralized
organization structure is narrow and tall
communication channels are defined in a hierarchy
Person culture
is when individuals are given the freedom to express themselves fully and make decisions for themselves
Role culture
is when each member of staff has a clearly defined job title and role. This is most associated with bureaucratic organization.
Advantages of each culture
Task Culture
High creativity
Employees are motivated by responsibility and team working
Entrepreneurial culture
Flexible to changes
More ideas
Highly motivated employees
Power Culture
Decisions are made quickly, clearly and put into practice exactly
The importance of corporate culture
Task corporate culture
may be appropriate for markets that have emphasis on high and new technology or new products. It would be less suitable for markets that are similar to power corporate culture’s.
Entrepreneurial corporate culture
may be very appropriate for markets that have
emphasis on high and new technology for new products
high growth
a great deal of competition
and may be less suitable for products that have a long life.
Power corporate culture
may be very appropriate for markets that have
products with a long life
prospects for expanding internationally
a great deal of competition
Corporate culture
is the values and behaviors shown by employees as they work to get tasks done. These can also be determined by the attitude of managers and owners
Culture Strength
Weak cultures
are ones in which employees do not fully understand the culture and need detailed procedures and rules. They also have different ideas about the culture and this may lead to conflict.
Strong cultures
are ones in which employees all understand, agree on and conform to the values and culture of the business
Disadvantages of each culture
Entrepreneurial Culture
Time and resources are wasted in inviable ideas
Little control over employees
Task Culture
Slow decision making
Changing teams is costly and disruptive
Unnecessary team rivalry
Power Culture
Limited creativity
Little control, which leads to demotivation
Limited group or teamwork