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Organisation culture HL (Types of culture (Power (Power is concentrated in…
Organisation culture HL
The shared values, attitudes and beliefs of the people working in an organisation that controls the way they interact with each other and external stakeholders
Types of culture
Power
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Spider web - Handy analogy = The spider at the center of the web has all the power and the web has no purpose without the spider
Motivational methods include financial incentives and bonuses = can encourage risky and even inappropriate decisions
Role
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Bureaucratic, tall hierarchical structures
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Person
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Most creative, no structure
Workers work individually, no teamwork = lawyers, architects
Entrepreneurial
Encourages management and workers to take risks, come up with new ideas and test new business ventures
Success is rewarded and failure is not necessarily criticised as it is considered a consequence of entreprise and risk taking
Flexible, organisational structures
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Cultural clashes
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Causes
Mergers and acquisitions: When this occurs there is often more than 1 culture shared between both organisations, thus, the same jobs with existing employees is competed for, language barriers etc.
Growth: A firm will grow and expand nationally when this occurs differing cultures in different areas causes clashes. e.g. importance in religion, different expectations
Change in leadership: A new leader introduces new ideas that can entirely change the culture of the business
Influences
Individuals on culture
E.g. After introduction of the 'new approach', introduce a new reward system in order to reassure employees that the new way of action also has a positive outcome for them.
When people believe the change and understand it it will become more acceptable for them thus, initiate training programs and new ways of working to adapt to the new change
Establish new mission and vision statements that reflect the new values and attitudes that are to be adopted.
Expand and concentrate on the positive aspects of the business rather than directly tackling the negative aspects. This will be more popular and easier with staff.
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Culture on individuals
Behaviour control: In order to avoid conflict and present a united front to the external perspective, a business must control behaviour, encourage certain types and limit others - ensure the ethical code is observed in the same way by all employees, rules and sanctions.
Encourages stability: The culture is often passed on from generation to generation of employees despite labour turnover and recruitment. Problems are essentially handled in the same way and responses to situations also.
Source of identity: The culture of an organisation helps define the people who work for it. Employees after working long years or being apart of an organisation feel part of it. e.g. when the organisation gets good press thus, the employees are happy.
Changing it could mean directly challenging the way things have been done for years, changing the way people think and react in situations
Elements
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The idea about similar culture in the organisation is that when faced with a decision employees and managers will both have the same reaction or plan of action
If a culture is strong, idea is that all individuals in the business would react in the same way to the issue or decision -making process.
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