2.5 Organisational (Corporate) Culture (DP IB Business Management)

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  • What is corporate culture?

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  • What is corporate culture?

    Corporate culture is the personality of an organisation, including shared values, beliefs, attitudes and practices that shape how people work together.

  • True or False?

    A strong organisational culture is easily recognised and embedded in how a business operates.

    True.

    A strong organisational culture is easily recognised and embedded in how a business operates.

  • Give two common visual features of a strong organisational culture.

    Common visual features of a strong organisational culture include:

    • Business-specific artifacts like uniforms

    • Ceremonies and rituals like awards evenings

    • A well-known figurehead as a role model

    • Layout of business premises, e.g. open plan offices

    • The training culture, e.g induction and on-going training

  • True or False?

    In businesses with a weak culture, employees are likely to have a 'can do' attitude.

    False.

    In businesses with a strong culture, employees are likely to have a 'can do' attitude, be united and support the mission of the business.

  • What is a subculture?

    A subculture is a culture within an organisation that may differ from the official culture. It often forms the day-to-day working experiences of employees.

  • True or False?

    Subcultures in an organisation are always negative.

    False.

    Subcultures can be positive and their importance should not be ignored.

  • State two signs of a weak organisational culture.

    Signs of a weak organizational culture include

    • A 'them and us' attitude between workers and management

    • Employees that doubt the sincerity of the corporate mission

    • High staff turnover.

  • What is a corporate mission?

    A corporate mission is the overall purpose and values of an organisation that guides its actions and approach to decision-making.

  • What are Charles Handy's four Gods of Management?

    Charles Handy's four Gods of Management are:

    • Zeus (Power Culture)

    • Apollo (Role Culture)

    • Athena (Task Culture)

    • Dionysus (Person Culture)

  • What is a power culture, according to Charles Handy?

    A power culture is one where decision-making is carried out by one or a small number of powerful individuals, usually at the top of the business hierarchy.

  • In a role culture, where does power lie?

    In a role culture, power lies with those with particular job titles rather than those with desirable skills.

  • True or False?

    In a task culture, individuals with extensive experience and skills are loosely brought together.

    False.

    It is in a person culture that individuals with extensive experience and skills are loosely brought together.

  • True or False?

    In a power culture there are many rules to determine decision-making procedures.

    False.

    In a power culture, few rules exist to determine decision-making procedures.

  • In which of Handy's cultures are teams created and dissolved as projects are started and completed?

    Teams are created and dissolved as projects are started and completed in a task culture.

  • In which of Handy's cultures do individuals often work autonomously?

    In a person culture individuals often work autonomously.

  • What is a culture clash?

    A culture clash is when people from different backgrounds come together in the workplace, leading to misunderstandings due to diverse values, communication styles or work habits.

  • Define the term culture gap.

    A culture gap is when a business's actual culture is not aligned with management's desired culture.

  • True or False?

    Organic growth in a business often leads to a more hierarchical structure.

    True.

    Organic growth in a business often leads to a more hierarchical structure.

  • True or False?

    Following a merger of two businesses, the dominant firm's culture often prevails.

    True.

    Following a merger of two businesses, the dominant firm's culture often prevails, though a hybrid culture may emerge.

  • Why might culture clashes affect employee motivation?

    Culture clashes can lead to demotivation if employees' cultural values are not respected or understood, resulting in low morale and reduced productivity.

  • What is a potential impact of culture clashes on team spirit?

    Culture clashes can lead to the formation of subgroups within an organisation. This may result in a lack of cohesion within teams, affecting collaboration.