Question 1

a) Just like humans, organisations are said to have cultures. Describe what is
an organisations culture? (5 marks)
Edgar Schein say that the collection of relatively uniform and enduring
values, beliefs, customs, traditions and practices that are shared by an
organisations members, learned by the new recruits and transmitted from one
generation of employees to the next.
Organizational

culture

includes

an

organization's

expectations,

experiences, philosophy, and values that hold it together, and is expressed in

its self-image, inner workings, interactions with the outside world, and future
expectations. It is based on shared attitudes, beliefs, customs, and written
and unwritten rules that have been developed over time and are considered
valid. Also called corporate culture, it's shown in
1) the ways the organization conducts its business, treats its employees,
customers, and the wider community,
2) the extent to which freedom is allowed in decision making, developing
new ideas, and personal expression,
3) how power and information flow through its hierarchy, and
4) how committed employees are towards collective objectives.
It affects the organization's productivity and performance, and provides
guidelines on customer care and service, product quality and safety,
attendance and punctuality, and concern for the environment. It also extends
to production-methods, marketing and advertising practices, and to new
product creation. Organizational culture is unique for every organization and
one of the hardest things to change.

b) According to the course material, an organisations culture is said to have

seven dimensions. In an organisation of your choice, relate how any FIVE

of these dimensions affect management practices with supporting
examples.(20marks)
The Seven Dimensions of Culture were identified by management
consultants Fons Trompenaars and Charles Hampden-Turner, and the model
was published in their 1997 book, "Riding the Waves of Culture."
Trompenaars and Hampden-Turner developed the model after
spending 10 years researching the preferences and values of people in
dozens of cultures around the world. As part of this, they sent questionnaires
to more than 46,000 managers in 40 countries.
They found that people from different cultures aren't just randomly
different from one another; they differ in very specific, even predictable, ways.
This is because each culture has its own way of thinking, its own values and
beliefs, and different preferences placed on a variety of different factors.
Trompenaars and Hampden-Turner concluded that what distinguishes
people from one culture compared with another is where these preferences
fall in one of the following seven dimensions:
1.

Universalism versus particularism.

2.

Individualism versus communitarianism.

3.

Specific versus diffuse.

4.

Neutral versus emotional.

5.

Achievement versus ascription.

6.

Sequential time versus synchronous time.

7.

Internal direction versus outer direction.

1. Universalism Versus Particularism (Rules Versus Relationships)

Dimension
Universalism

Characteristics
Strategies
People place a high
Help
importance on laws,
rules,

values,

deal

people

fairly

with

based

on

values and beliefs.

Provide clear instructions,

processes, and procedures.

these rules, but rules

come

understand

how their work ties into their

and

obligations. They try

to

people

before

relationships.

Keep

promises

and

be

consistent.

Give people time to make

decisions.

Use an objective process to

make decisions yourself, and
explain your decisions if others
are involved.

Particularism

People believe that

each

circumstance,

and

make their own decisions.

each

relationship, dictates
the rules that they
live

by.

response
situation
change,

based

a
may

moment,

others'

needs

Be flexible in how you

make decisions.

on

what's happening in
the

Respect

when you make decisions.

Their
to

Give people autonomy to

and

Take

time

to

build

relationships and get to know

who's involved.

people so that you can better

understand their needs.

Highlight

important

rules

and policies that need to be

followed.
Typical universalist cultures include the U.S., Canada, the U.K, the
Netherlands,

Germany,

Scandinavia,

New

Zealand,

Australia,

and

Switzerland.
Typical particularistic cultures include Russia, Latin-America, and China.
2. Individualism Versus Communitarianism

(The Individual Versus The

Group)
Dimension
Individualism

Characteristics
People
believe
personal

freedom

achievement.

Strategies
in
and

your own decisions, and

and

reward

individual performance.

They

believe that you make

Praise

Give people autonomy

to

that you must take care

make

their

own

decisions and to use their

of yourself.

initiative.

Link people's needs

with those of the group or
organization.

Allow people to be
creative

and to learn

from their mistakes.

Communitarianis

People believe that the

group is more important

safety, in exchange for

loyalty. The group always

comes

before

and

reward

group performance.

than the individual. The

group provides help and

Praise

the

Don't

praise

individuals publically.
Allow

people

to

individual.
involve others in decision
making.

Avoid

showing

favoritism.
Typical individualist cultures include the U.S., Canada, the U.K,
Scandinavia, New Zealand, Australia, and Switzerland.
Typical communitarian cultures include countries in Latin-America, Africa,
and Japan.
3. Specific Versus Diffuse (How Far People Get Involved)
Dimensio

Characteristics

n
Specific

People

keep

Strategies
work

and

personal lives separate. As

a result, they believe that
relationships

don't

have

are

on

people's

strengthening relationships.

objectives, and, although

relationships

Focus

objectives before you focus on

much of an impact on work

good

Be direct and to the point.

important, they believe that

Provide clear instructions,

processes, and procedures.

people can work together

without
Diffuse

having

relationship.
People see

good

Allow people to keep their

work and home lives separate.

an

overlap

between their work and

Focus on building a good

personal life. They believe

relationship

that good relationships are

on business objectives.

vital to meeting business

objectives, and that their
relationships with others will
be the same, whether they
are at work or meeting

before you focus

Find out as much as you

can about the people that you
work

with

organizations

and
that

you

the
do

socially. People spend time

business with.

outside work hours with

colleagues and clients.

Be

prepared

to

discuss

business on social occasions,

and

to

have

personal

discussions at work.

Try to avoid turning down

invitations to social functions.

Typical specific cultures include the U.S., the U.K., Switzerland, Germany,
Scandinavia, and the Netherlands.
Typical diffuse cultures include Argentina, Spain, Russia, India, and China.
4. Neutral Versus Emotional (How People Express Emotions)
Dimensio

Characteristics

Strategies

n
Neutral

People make a great

effort to control their
emotions.
far

more

than

their

what

Watch

that

language

feelings. People don't

reveal

your

emotions

effectively.

Reason

influences their actions

Manage

your

doesn't

body
convey

negative emotions.

they're

thinking or how they're

feeling.

"Stick to the point" in meetings

and interactions.
Watch

people's

reactions

carefully, as they may be reluctant

to show their true emotions.
Emotional

People

want

to

find

ways to express their

emotions,

trust and rapport .

even

spontaneously, at work.

Open up to people to build

Use emotion to communicate

In these cultures, it's

your objectives.

welcome and accepted

to show emotion.

Learn to manage conflict

effectively,

before

it

becomes

personal.

Use positive body language .

Have a positive attitude .

Typical neutral cultures include the U.K., Sweden, the Netherlands, Finland,
and Germany.
Typical emotional cultures include Poland, Italy, France, Spain, and
countries in Latin-America.

5. Achievement Versus Ascription (How People View Status)

Dimension
Achievemen
t

Characteristics
Strategies
People believe that
Reward
you are what you
worth

accordingly. These
cultures

value

performance,
matter
Ascription

who

recognize

good

performance appropriately.

do, and they base

your

and

Use titles only when relevant.

Be

no

good

role

model .

you

are.
People believe that
you

should

be

Use titles, especially when these

valued for who you

clarify

are.

organization.

Power, title,

and position matter

people's

status

in

an

in these cultures,
and

these

roles

Show
authority,

define behavior.

respect

to

especially

people

in

when

challenging decisions.

Don't

"show

up"

people

in

authority.

Don't let your authority prevent

you from performing well in your role.

Typical achievement cultures include the U.S., Canada, Australia, and
Scandinavia.
Typical ascription cultures include France, Italy, Japan, and Saudi Arabia.

Question 2
a)

Differentiate between entrepreneurs and intrapreneurs. (5 marks)

1. The Work Environment

One of the biggest differences between being an entrepreneur and
intrapreneur is going to be your place of business and its culture.
In 2012, 52 percent of entrepreneurs decided to make their venture a
home-based businesssomething many agree is a very attractive aspect of
entrepreneurship. Meanwhile just 10 percent of internal employees spent at
least one day a week working from homesomething you probably wish you
could do more often.

But work environment is about more than just locationits also about
company culture. As an entrepreneur youll shape the culture that surrounds
your business. Meanwhile intrapreneurs often join a preexisting culture that
requires acclimation. Its important to remember that an organizations culture
is something that can make you love or hate your job.
It doesnt matter if its your home, a small shop or even a large
corporate office, entrepreneurs and intrapreneurs need to be comfortable with
their work environment and company culture. Start thinking about which
environment and culture bests fits your interests as you consider your
entrepreneurial or intrapreneurial career path.
2. The Responsibilities
Becoming an entrepreneur puts the responsibility clearly on your
shoulders. From accounting and marketing to customer service and social
media, you are solely responsible for getting things donea reality that is
sometimes difficult to manage with only so many hours in a day. As an
intrapreneur however youre often tasked to work in one specialized area.
That might mean working in accounting, marketing, customer service or social
media, but rarely will an intrapreneur be assigned to all four departments.
Start thinking about if you would prefer to take ownership by juggling
many different balls at the same time or simply focusing on a single set of
responsibilities.
3. The Risks & Rewards
The fact is that both entrepreneurs and intrapreneurs face risks. But,
not all risks are equal. Entrepreneurs need to embrace the financial risk of
forming their own businesses, but the potential for financial gain may offset
that risk. On the other hand, intrapreneurs enjoy the perks of a steady
paycheck and health benefits but their employment is generally considered "at
will, which means the organization can terminate their employment at any
time.

The difference between entrepreneurs and intrapreneurs, as it relates

to risks versus rewards, is always going to be a personal decision. And they
are most certainly not always financially driven. Be honest with yourself about
how much risk you are comfortable with and which rewards you value the
most.
4. The Motivation
Deep down, both entrepreneurs and intrapreneurs are motivated to
make an impact on their businesses or organizations. But motivation comes in
many forms for many people.
If you see yourself as someone who is motivated by things such as
money, personal achievement or fulfilling a lifelong dream, you might be fit to
be an entrepreneur. But if your primary motivation is financial stability, love of
what you are doing and putting others ahead of you, perhaps becoming an
intrapreneur is a better fit.

a) Describe how managers can encourage and promote entrepreneurship or

entrepreneurial culture in their organisations. (20 marks)

Question 3
a) Explain why strategic planning is necessary for long term organisational
success. (10 marks)
Strategic planning is an organizational management activity that is used to set
priorities, focus energy and resources, strengthen operations, ensure

that employees and other stakeholders are working toward common goals,
establish agreement around intended outcomes/results, and assess and
adjust the organization's direction in response to a changing environment. It is
a disciplined effort that produces fundamental decisions and actions that
shape and guide what an organization is, who it serves, what it does, and why
it does it, with a focus on the future. Effective strategic planning articulates not
only where an organization is going and the actions needed to make
progress, but also how it will know if it is successful.

b) Outline the steps a manager usually takes in the strategic planning

process.
(15 marks)
Step One - Getting Ready
To get ready for strategic planning, an organization must first assess if it is
ready. While a number of issues must be addressed in assessing readiness,
the determination essentially comes down to whether an organization=CDs
leaders are truly committed to the effort, and whether they are able to devote
the necessary attention to the "big picture".
For example, if a funding crisis looms, the founder is about to depart, or the
environment is turbulent, then it does not make sense to take time out for
strategic planning effort at that time.
An organization that determines it is indeed ready to begin strategic planning
must perform five tasks to pave the way for an organized process:

identify specific issues or choices that the planning process should

address

clarify roles (who does what in the process)

create a Planning Committee

develop an organizational profile

identify the information that must be collected to help make sound

decisions.

The product developed at the end of the Step One is a Workplan.

Step Two - Articulating Mission and Vision
A mission statement is like an introductory paragraph: it lets the reader
know where the writer is going, and it also shows that the writer knows where
he or she is going. Likewise, a mission statement must communicates the
essence of an organization to the reader. An organization's ability to articulate
its mission indicates its focus and purposefulness. A mission statement
typically describes an organization in terms of its:

Purpose - why the organization exists, and what it seeks to accomplis=

h

Business - the main method or activity through which the organization

tries it fulfill this purpose

Values - the principles or beliefs that guide an organization's membe=

rs as they pursue the organization's purpose
Whereas the mission statement summarizes the what, how, and why of

an organization=CDs work, a vision statement presents an image of what

success will look like. For example, the mission statement of the Support
Centers of America is as follows:
The mission of the Support Centers of America is to increase the
effectiveness of the nonprofit sector by providing management consulting,
training

and

research.

Our

guiding

principles

are:

promote

client

independence, expand cultural proficiency, collaborate with others, ensure our

own competence, act as one organization.

We envision an ever increasing global movement to restore and

revitalize the quality of life in local communities. The Support Centers of
America will be a recognized contributor and leader in that movement.
With mission and vision statements in hand, an organization has taken
an important step towards creating a shared, coherent idea of what it is
strategically planning for.
At the end of Step Two, a draft mission statement and a draft vision
statement is developed.
Step Three - Assessing the Situation
Once an organization has committed to why it exists and what it does,
it must take a clear-eyed look at its current situation. Remember, that part of
strategic planning, thinking, and management is an awareness of resources
and an eye to the future environment, so that an organization can successfully
respond to changes in the environment. Situation assessment, therefore,
means obtaining current information about the organization=CDs strengths,
weaknesses, and performance - information tha= t will highlight the critical
issues that the organization faces and that its strategic plan must address.
These could include a variety of primary concerns, such as funding issues,
new program opportunities, changing regulations or changing needs in the
client population, and so on. The point is to choose the most important issues
to address. The Planning Committee should agree on no more than five to ten
critical issues around which to organize the strategic plan.
The products of Step Three include: a data base of quality information
that can be used to make decisions; and a list of critical issues which demand
a response from the organization - the most important issues the organization
needs to deal with.
Step Four - Developing Strategies, Goals, and Objectives
Once an organization's mission has been affirmed and its critical issues
identified, it is time to figure out what to do about them: the broad approaches

to be taken (strategies), and the general and specific results to be sought (the
goals and objectives). Strategies, goals, and objectives may come from
individual inspiration, group discussion, formal decision-making techniques,
and so on - but the bottom line is that, in the end, the leadership agrees on
how to address the critical issues.
This can take considerable time and flexibility: discussions at this stage
frequently will require additional information or a reevaluation of conclusions
reached during the situation assessment. It is even possible that new insights
will emerge which change the thrust of the mission statement. It is important
that planners are not afraid to go back to an earlier step in the process and
take advantage of available information to create the best possible plan.
The product of Step Four is an outline of the organization's strategic
directions - the general strategies, long-range goals, and specific objectives of
its response to critical issues.
Step Five - Completing the Written Plan
The mission has been articulated, the critical issues identified, and the
goals and strategies agreed upon. This step essentially involves putting all
that down on paper. Usually one member of the Planning Committee, the
executive director, or even a planning consultant will draft a final planning
document and submit it for review to all key decision makers (usually the
board and senior staff). This is also the time to consult with senior staff to
determine whether the document can be translated into operating plans (the
subsequent detailed action plans for accomplishing the goals proposed by the
strategic plan) and to ensure that the plan answers key questions about
priorities and directions in sufficient detail to serve as a guide. Revisions
should not be dragged out for months, but action should be taken to answer
any important questions that are raised at this step. It would certainly be a
mistake to bury conflict at this step just to wrap up the process more quickly,
because the conflict, if serious, will inevitably undermine the potency of the
strategic directions chosen by the planning committee.

Question 4
a) State the difference between mechanistic organization and organic
organization. (10 marks)
Organizational Structure
The organizational structure refers to the type of framework a
company uses to distinguish power and authority, roles and responsibilities,
and the manner in which information flows through the organization. An
organization must choose a structure that is appropriate for its individual
needs and allows for the company to react and adapt to uncertainties and
changes in the internal and external environments. Having a suitable
organizational structure will allow a company to implement proper operating
procedures and decision-making processes that will aid the organization in
accomplishing its goals. Tom Burns and G. M. Stalker identified two basic
forms of organizational structure: mechanistic and organic structures. This
lesson describes the differences between the two types of organizational
structures.
Mechanistic Structure
A mechanistic structure, also known as a bureaucratic structure,
describes an organizational structure that is based on a formal, centralized
network. The mechanistic structure is best suited for companies that operate
in a stable and certain environment. In general, a mechanistic structure is
easy to maintain and rarely needs to be changed when an organization
operates in a stable environment.
In mechanistic organizations, authority reflects a well-defined
hierarchy where top-level managers make the majority of the decisions.
Because the environment is relatively stable, complex decision-making
processes that involve multiple parties are not required. Subordinates are
expected to follow the directions of management and not question their

rationale. Communication, much like decisions, also flows through

hierarchical routes, or from the top down.
Individualized job specialization is used to place employees into
designated tasks. In mechanistic organizations, it is typical for each person
to be assigned one task that is relatively stable and easy to control. As a
result of the stability of tasks, there tends to be low integration between
functional areas or departments in organizations that use a mechanistic
structure. Likewise, this creates a situation where, for the most part,
functional areas are not dependent on each other.
Think of a mechanistic structure as a well-oiled machine that, once
functioning properly, continues to work efficiently with little need for
maintenance. Simply envision an organization where management makes
most of the decisions, information is communicated based on chain of
command, tasks are highly specialized, departments stand alone and
operate as their own entity, and change is, for the most part, uncommon.
Examples of mechanistic structures include healthcare, universities, and
governmental organizations.

b)

In what ways do you think organic organizations suit better than

mechanistic organizations in todays working environment? (15 marks)