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2.5: Organizational (corporate) culture (Elements of Organizational…
2.5: Organizational (corporate) culture
organizational culture
: shared values, attitudes & beliefs of workers that control interaction
Elements of Organizational Culture
Mission & Vision
what the business wants to achieve
Record of Senior Staff
directors & senior management main influence in organization´s culture
Organization´s Ethical Code of Conduct
lists dos :check: and don´ts :forbidden: when dealing with external stakeholders
Strategies on Social & Environmental Issues
guide to social & environmental values & beliefs
Examples by Senior Managers
how they treat subordinates
how they make decisons
what establishes the culture inside an organization
Types of Organizational Culture
Power Culture
concentrate power among few people
associated to
autocratic leadership
decisions made quickly
managers judged by results; means don´t matter
hierarchical structure
focus on
financial incentives & bonuses
:spider_web:
based on Charles Handy
Role Culture
each member has a defined job title & role
associated to
bureaucratic organizations
staff operates within rules; :forbidden: crativity
well defined organization with clear authority
power & influence comes from position
decisions make slowly; :forbidden: risk-taking
tall hierarchical strucure
:classical_building:
Task Culture
based on cooperation & teamwork
form groups to solve particular problems
communication similar to
matrix structure
teams empowered to take decisions
:check: creativity & strong team spirit
meet workers
intrinsic needs
:goal_net:
Person Culture
individuals have freedom to express & make decisions
:check: creativity (most creative)
:forbidden: teamwork
EX: scientific environment, lawyers & architects
:night_with_stars:
Enterpreneurial Culture
encourages risks to come up with new ideas & test new ventures
succes rewarded & failure not criticised
found in
flexible organizational structures
high motivation
:new:
Reasons for and Consequences of Cultural Clashes
existing culture can clash with new objectives
Conflict Causes
fast business growth
conflict between established employees & new managers/employers
EX. family business
business merge OR aquisition
new leader OR new leadership style
values & beliefs may differ from former leader
How Leaders Can Influence & Change Organizational Structure
Key Elements
Concentrate on Positive Aspects
Commit People at Top of Business & Key Personnel
Establish New Objectives & Mission
Engourage "Bottom-Up" Participation
Train Staff in New Procedures
Change Staff Reward System
change the way poeple think & react
changes of personnel, job descriptions, communication methods & working practices
How Organizational Culture Influences Individuals
structure supports & reinforces culture
culture should reduce "behavoural variability"
Behavioural Control
prevent conflicting decisions
ensure ethical code is observed by all staff in the same way
set up rules, procesdures & standards along with consequences
corporate culture provides informal direction
Encourages Stability
despite changes businesses maintain certain characteristics
culture passed on from "generation" to "generation" of employees
Source of Identity
individual identity defined by role or profession
pride of long-serving employees when business is recognized
culture helps define the people who work there
Evaluating Organizational Culture
Values of a Business
establish norms of behaviour of staff
what's acceptable & what´s not
Treatment
between managers & workers
Brand Image & Relationships with Customers
distinctive culture can support image & customer realtionships
Decision-Making
determine type of strategic decisions taken
Economic Performance & Long-Term Success
continueous improvement with staff involvement more profitable on the long-term
Cecilia Martínez A01197738