Title: Corporate Culture
1- Corporate Culture
- (The attitudes and approaches and beliefs shared
by people and groups in an organisation)
2Types of Corporate Culture
- Adaptive cultures
- Mercenary organisations
- Fragmented organisations
- Communal organisations
- Networked organisations
- Inert cultures
3Bureaucratic Organisation
- Bureaucracy the way that the administrative
execution and enforcement of legal rules are
socially organized. - e.g.
- Governments, armed forces, corporations,
hospitals, courts, ministries, schools
4Innovative Organisation
- Place where people are able to participate in
- problem solving and where creativity is part
- of the culture.
- Building such an organisation depends on
- - auditing the present position
- - developing strengths
- - improving areas of weakness
5- How culture makes a business successful
- Improves a sense of employee identity
- Assists with teamwork
- Helps management set strategy policies
- Reinforces the organisations values
- Increases employee commitment
- Motivates employees
6Groupthink A term coined by social psychologist
Irving Janis (1972), occurs when a group makes
faulty decisions because group pressures lead to
a deterioration of mental efficiency, reality
testing, and moral judgment.
7- Groupthink members
-
- Ignore alternatives
- Tend to take irrational actions that dehumanize
other - groups.
- A group is especially vulnerable to groupthink
when its members are -
- - similar in background
- - insulated from outside opinions
- - when there are no clear rules for decision
making
8Hofstede (types of culture)
- Power distance - The degree to which a society
expects there to be differences in the levels of
power. - Uncertainty avoidance reflects the extent to
which a society accepts uncertainty and risk. - Individualism vs. collectivism refers to the
extent to which people are expected to stand up
for themselves, or alternatively act
predominantly as a member of the group or
organization. - Masculinity vs. femininity - refers to the value
placed on traditionally male or female values. - Long vs. short term orientation - describes a
society's "time horizon," or the importance
attached to the future versus the past and
present.
9Deal and Kennedy (types of culture)as the way
things get done due to risk and feedback
The Tough-Guy Macho Culture. Feedback is quick
and the rewards are high. The Work Hard/Play
Hard Culture Few risks being taken, all with
rapid feedback. The Bet your Company
Culture Big stakes decisions are taken, but it
may be years before the results are known. The
Process Culture There is little or no feedback.
10Charles Handy (types of culture)
- Power Culture
- Power among a few. Control radiates from the
centre like a web. - Role Culture
- People have clearly delegated authorities within
a highly defined structure. - Task Culture
- Teams are formed to solve particular problems.
Power derives from expertise as long as a team
requires expertise. - Person Culture
- Exists where all individuals believe themselves
superior to the organisation.
11Edgar Schein(types of culture)
- Organisational attributes that can be seen, felt
and heard by the uninitiated observer. - The professed culture of an organisation's
members. - The organisation's tacit assumptions. These are
the elements of culture that are unseen and not
cognitively identified in everyday interactions
between organisational members.
12Influences on Organisational Culture
- The Paradigm What the organisation is about
what it does its mission its values. - Control Systems in place.
- Organisational Structures e.g. Reporting lines,
hierarchies, and the way that work flows through
the business. - Power Structures Who makes the decisions, how
widely spread is power, and on what is power
based? - Symbols e.g car parking tickets, logos etc
- Rituals and Routines Management meetings, board
reports - Stories and Myths build up about people and
events, and convey a message about what is valued
within the organisation.
13Developing a strong corporate culture
- Share values
- Share beliefs
- Share norms
14Organisational Culture (corporate culture)
beliefs
experiences
attitudes
values
15Weak Cultures
- Occur where there is heavy reliance on a central
charismatic figure in the organisation - Occur where there is an evangelical belief in the
organisations values - Occur where a friendly climate is at the base of
their identity (avoidance of conflict) - Bureaucratic organisations
- Miss opportunities for innovation, through
reliance on established procedures. - Innovative organisations
- Need individuals who are prepared to challenge
the status quobe it groupthink or bureaucracy,
and also need procedures to implement new ideas
effectively.