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Unit 11: Organisational (Corporate) Culture - Coggle Diagram
Unit 11: Organisational (Corporate) Culture
11.1: Organisational Culture
the way we do things around here
gives an organisation sense of identity
elements:
mission and vision statements
the record of senior managers
organisation's ethical code of conduct
do's and don'ts must be seen by employees
dealing with external stakeholders
strategies on social/environmental issues
example set by senior managers
how they treat subordinates
how they take decisions
industry the business operates
legal constraints/social norms/cultural values of the country
11.2: Types of Organisational Culture
1. Power
associated with autocratic leadership/hierarchical structure
power is centre of the organisation
managers are judges by results
analogy: a spider's web
motivational methods:
financial incentives
bonuses
may encourage risky/inappropriate decisions
2. Role
associated with bureaucratic organisations, tall hierarchical structures
employees operate within rules, show little creativity
each individual has clear delegated authority
decision-making slow/risk-taking
analogy: tall substantial building
3. Task
use groups to solve particular problems
similar to matrix structure
workers encouraged to be creative
strong team spirit, motivating environment
analogy: net, derived from many strands
4. Person
most creative type of culture
no emphasis on teamwork
individual on own tasks/projects
usually scientific/professional partnership
eg. lawyers/architects
for those who find it difficult to thrive in structured organisations
analogy: constellation of stars
11.3: Reasons For and Consequences of Cultural Clashes
Reasons for Cultural Clashes
a business changes rapidly
conflict between old and new employees
eg. family businesses recruiting professional managers
business merges/acquires another business
prevailing cultures of 2 organisations
synergy is unlikely to be achieved
new leadership is appointed
new style of leadership is adopted
values/beliefs differ from former boss
Consequences of Cultural Clashes
disagreements over business objectives
ways to minimise clashes:
concentrate on the positive aspects of business
obtain full commitment from higher-ups
establish new obejctives/mission statements
encourage participation of workers
train employees in new procedure
change employee reward system