Mind map chapter 15

Organizational and corporate cultures

- It is the way we do things

- It is the attitudes, values and beliefs of the people who work in a organization that control the way
people interact with each other

Influences

senior manager may influence the culture of the organization throught:

1) the example they set: how they treat subordinates and take decisions
2) mission and vision: inform the staff about what the business is trying to achieve
3) the appointment of senior staff: they are likely to share the same values, beliefs, attitudes as the
dirtector of the business
4) the organization ethicals code of conduct: this lists the dos and the dont that must be seen by
staff when dealing with external stakeholders
5) strategies on social and environmental issues: these will provide a clear guide to the organisations
social and environmental values and beliefs

types of organizational culture

1) entrepreneurial culture: success is rewarded and failure is not necessarily criticized because it is
considered a consequence of enterprise and risk taking. This culture has flexible organizational
strategies
2) power culture: concentrating power among few people. This culture has aautocratic styke of
leadership
3) role culture: associated with bureaucratic organizations where staff only follow rules and dont
have creativity.
4) Task culture: co-operations and team work and lines are similar to matrix structure
5) Person culture: most creative type of culture where individuals have the freedom to express
themselves and make decisions so there is no emphasis on teamwork

Consequences of culture clashes

- A traditional family fimr that had success converts to a public limited company
- Encouraging more staff involvement may lead to adopt a team or a task culture
- Recently privatized business, formely run with bureaucratic principles need to become more profit
orientated and customer focused so and entrepreuneurial culture may need to be introduced
- Mergers or takeovers may result in a business that is trying to adopt its culture
- Declining profits and market share are the consequence of poorly motivated staff and a lack of
interest in quality and customer service. A person culure may be introduced

Changing organizational cultures

- Focus on the positive aspects of the businesses because it would be much easier than trying to
change the negative ones
- Obtain full commitment of people at the top of the business and all key personal
- Train staff in new procedures and new ways of working so they believe in and understand the
change
- Change the staff reward system to ensure that appropriate behavior receives recognition
- Put new objectives and a mission statement that accurately shows what the company whats to
achieved
- Encourage bottom up participation of workers when defining existing problems or when devising
new solutions

Evaluating organizational culture

- the values of a business establish the norms of behavior of staff

- culture determines the way in which company managers and workers treat each other
- a distinctive organizational culture can support a businesss brand image and relationships with the
customers
- culture determines the type of strategic decisions that are taken
- organizational culture has been clearly linked to the economic performance and long term success
of organizations ex: toyota