Business Management 2.5 – ORGANISATIONAL (CORPORATE) CULTURE
ORGANISATIONAL CULTURE – The shared values, attitudes and beliefs of the people working in an
organisation that control the way they interact with each other and with external stakeholder
groups. How people within the organization view the world and respond to it.
ELEMENTS OF ORGANISATIONAL CULTURE
Mission and vision statements
Record of senior staff, directors and senior managers will influence organisation’s culture
Ethical code of conduct
Strategies on social and environmental issues
Example set by senior managers
TYPES OF ORGANISATIONAL CULTURE
Power culture: concentrating power among a few people (who take decisions). Autocratic
leadership and hierarchical structure. Focus on financial incentives and bonuses to exceptional.
Spider’s web
Role culture: each member has a clearly defined job title and role. Bureaucratic organisations,
with little creativity. Slow decision-making and no risk-taking. Tall hierarchical structure.
Substantial building.
Task culture: based on cooperation and teamwork to solve particular problems. Similar to
matrix structure. Creativity and strong team spirit. Motivation. Net made from many strains
Person culture: individuals have freedom to express themselves and make decisions. Most
creative. Difficult to work in a more structured organization. Constellation of stars
Entrepreneurial culture: encourage people to take risks, to come up with new ideas and test
out new business ventures. Failure is not criticized. Flexible organizational structures.
Motivation
REASONS FOR AND CONSEQUENCES OF NATURAL CLASHES
Rapid growth of a business with conflict between established employees vs new managers or
new employees
A business merger
New leader or style of leadership
HOW LEADERS INFLUENCE CHANGE AND ORGANISATIONAL CULTURE
Converting requires changing the way people think and react to problem situations. Elements in
effective cultural change:
Concentrate on positive aspects of the business and how it currently operates and enlarge on
these.
Obtain full commitment of people and key personnel model the behaviour they expect to see in
others in other to achieve change
Establish new objectives and a mission statement
Encourage “bottom-up” (give them the opportunity to propose alternative ways of working)
Train staff in new procedure and new ways of working
Change staff reward system. If people adjust to the new approach, they will gain from it.
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ORGANISATIONAL CULTURE – The shared values, attitudes and beliefs of the people working in an
organisation that control the way they interact with each other and with external stakeholder
groups. How people within the organization view the world and respond to it.
ELEMENTS OF ORGANISATIONAL CULTURE
Mission and vision statements
Record of senior staff, directors and senior managers will influence organisation’s culture
Ethical code of conduct
Strategies on social and environmental issues
Example set by senior managers
TYPES OF ORGANISATIONAL CULTURE
Power culture: concentrating power among a few people (who take decisions). Autocratic
leadership and hierarchical structure. Focus on financial incentives and bonuses to exceptional.
Spider’s web
Role culture: each member has a clearly defined job title and role. Bureaucratic organisations,
with little creativity. Slow decision-making and no risk-taking. Tall hierarchical structure.
Substantial building.
Task culture: based on cooperation and teamwork to solve particular problems. Similar to
matrix structure. Creativity and strong team spirit. Motivation. Net made from many strains
Person culture: individuals have freedom to express themselves and make decisions. Most
creative. Difficult to work in a more structured organization. Constellation of stars
Entrepreneurial culture: encourage people to take risks, to come up with new ideas and test
out new business ventures. Failure is not criticized. Flexible organizational structures.
Motivation
REASONS FOR AND CONSEQUENCES OF NATURAL CLASHES
Rapid growth of a business with conflict between established employees vs new managers or
new employees
A business merger
New leader or style of leadership
HOW LEADERS INFLUENCE CHANGE AND ORGANISATIONAL CULTURE
Converting requires changing the way people think and react to problem situations. Elements in
effective cultural change:
Concentrate on positive aspects of the business and how it currently operates and enlarge on
these.
Obtain full commitment of people and key personnel model the behaviour they expect to see in
others in other to achieve change
Establish new objectives and a mission statement
Encourage “bottom-up” (give them the opportunity to propose alternative ways of working)
Train staff in new procedure and new ways of working
Change staff reward system. If people adjust to the new approach, they will gain from it.
1
