Organizational & Corporate

Culture – HL only

IB Business Management

Mr MC
 LEARNING OUTCOMES
 Explain the influences on organizational culture.
 Describe different corporate/organizational cultures and analyze
their effects on, for example, motivation and organizational
structures.
 Analyze the consequences of cultural clashes within and
between organizations, for example, when organizations merge
and leadership styles change.

Mr MC
 LEARNING OBJECTIVES
 We will Learn about and Learn to: -
- new business ‘organisational culture’

- terminology, match and apply in sentences

- commence a 2.6 worksheet based upon ppt

- read various types of culture and apply in a

role play
- attempt Activity questions
Reading focus

 Paul Hoang 3rd Edition

Business Management
 Unit 2.5
 Pages 192 – 203

 Paul Hoang 2nd Edition

Business and Management
 Chapter 2 Unit 2.6
 Pages 258-267

Mr MC
 WHAT IS ORGANIZATIONAL
How people within an organization view
CULTURE?
the world and respond to it in trying to
achieve certain goals
Culture is:
 Normal to the business

 Guides worker’s behavior

 Based on beliefs or values

 Established over long period of time

 Character or personality of the

organization Describe the organizational
 Mission statement culture at JDFZIB

Mr MC
 ELEMENTS OF CORPORATE CULTURE
WHAT DETERMINES CULTURE?

 Nature of business
 Organization structure
 Rewards
 Management styles
 Sanctions (threats)

Be Reflective and a communicator

Write down 3 words that best
describe you as an individual and
your culture.
Explain to your classmates why you
chose those words.

Page 192
Mr MC
 ELEMENTS OF ORGANIZATIONAL CULTURE
 Strength determined by staff unity
 Staff are aligned with corporate value and beliefs
 Weak cultures require management to impose values

THE GOOGLE CASE

Do you think Google has a strong
corporate culture?
Why?
Mr MC
THEORISTS – CHARLES HANDY

Power Person
Task Role

Page 194
Mr MC
Power culture
One dominant individual or group
holding all the decision making
power
Usually
 have flat organisational structures
 wide spans of control
 formal titles or roles are not emphasized
 has swift decision making
 less bureaucracy

Mr MC
Person culture
Staff in similar departments or with similar skills work in
groups and share ideas. Sometimes workers in different
departments can work together on certain projects
Such culture works best…
 in large organizations
 in service businesses like accounting, medical or retailing
 with creative work environment

Mr MC
 Role culture
Use of formal rules and procedures. Job roles are clearly
stated in official job descriptions. Workers strictly carry out
those tasks/roles that they are appointed to do
Usually
 found in schools, colleges and universities
 also in government departments

Mr MC
Task culture
The focus is on getting the work/task
done. Individuals or teams are
empowered to take decisions that
help get job done.
In such a culture there is;
 delegation and empowerment
 synergy and problem-solving
 flexibility and dynamism
 work teams
-departmental teams
-cross department teams
 less bureaucracy

Mr MC
 THEORISTS – EDGAR H. SCHEIN

Basic
assumptions
Artifacts & values

Espoused
Values
Page 194
Mr MC
Artefacts
Superficial and behavioural aspects of an
organization
Examples
 History of organization
 Design of buildings
 Internal layouts
 Dress code
 Social interaction of workers

Mr MC
 THEORISTS - SCHEIN

The values and statements that are perceived as important to the

organization. They can be shown through the use of
• metaphors
• slogans
• mission statements

Espoused
Values

Mr MC
THEORISTS - SCHEIN

Basic
The unseen culture and values of an
assumptions organization. It shows the real values
& values of an organization shown through
daily behaviour of workers and
managers

Identify the unseen values of your school

Mr MC
THEORISTS – KOTTER & HESKETT

Adaptive

Inert
Page 195
Mr MC
THEORISTS – KOTTER & HESKETT

Adaptive
A culture that is receptive to change. It is
characterized by
•A high degree of adaptability
•Risk taking
•High innovative abilities
It is not a blame culture

Mr MC
THEORISTS – KOTTER & HESKETT

A culture that is resistant to change. It is

characterized by
•Bureaucracy
•Conservatism
•Less innovation
It is usually a blame culture

Inert
Mr MC
 Class assignment
 Paul Hoang 2nd Edition
 Page 260

 Question 2.6.1

 All parts (a,b)

Or
Paul Hoang 3rd Edition
Question 2.5.1
Page 196
All questions

Mr MC
 THEORISTS – HOFSTEDE
 Studied link between
international culture and
corporate culture
 5 Dimensions
 Power distance (high vs low)
 Individualism vs Collectivism
 Masculinity vs Femininity
 Uncertainty Avoidance
 Long vs Short term
 National culture will have direct
influence over corporate culture
Discuss Deal/Kennedy’s and Goffee/Jones’ theories in
groups (Page 194-195)

Mr MC
 DEAL AND KENNEDY

 Two dimension framework

 Feedback and Reward
 Rapid feedback: If feedback is rapid, any slacking is not tolerated (usually works in
stock brokerage firms and investment firms). However, if a business is exploring new
technology, then feedback is likely to be slow.
 Risk:The degree of uncertainty (risk taking) in an
organization.

Four culture dimensions were suggested

Mr MC
Abass Mugabe
 GOFFEE AND JONES

 The double S model of organizational culture

 Sociability
 Extend to which people have concern for others.
 Solidarity
 Degree of unity in an organization

Four culture dimensions were suggested too

Mr MC
Mr MC
Culture Impacts on…
Organizational
Structures

Motivation

Mr MC
 REASONS FOR CULTURE CLASHES

 Conflict between cultures

within an organization
 Change in leadership
 Mergers/takeovers
 Overseas Expansion(more formal
hierarchies)

Why is leadership so important

during culture clashes?

Mr MC
 EFFECTS OF CULTURE CLASHES
 Misunderstandings and miscommunication
 Demotivation (unhappy employees)
 Can causes resistances to change
 High costs of training and implementing new cultures
 May cause industrial action (due to disputes)

Compromises must be reached to solve cultural

conflicts

Mr MC
 EXERCISE
• Paul Hoang 2nd Edition

• Page 263

• Question 2.6.2

• All parts

Or
• Paul Hoang 3rd Edition

• Page 199

• Questions 2.5.2

Mr MC
INDIVIDUALS AND CORPORATE
CULTURE
Senior management usually have a strong impact on corporate culture. Managers
can influence culture through the M.O.V.E.R strategies

Mentoring (guide and share knowledge with workers)

Outreaching (communicating the desired vision and culture)
Vision (formulating the long term values and ideals of the firm)
Engaging the workers and challenging them to embrace the culture
Role modelling the culture

You must be the change that you want others to be. Gandhi

Mr MC
 End of unit

Mr MC