2.

5 ORGANIZATIONAL
CULTURE
“Culture is the programming of the human mind by which one
group of people distinguishes itself from another group.”
- Geert H. Hofstede (1928 - 2020), Dutch social psychologist
 WHAT IS ORGANIZATIONAL CULTURE?

Organizational culture or (corporate culture) is all about:

1. What is deemed to be normal to the business organization.

2. The guiding principles of the attitudes and behavior at work

3. The set of beliefs or values in an organization

4. The norms at work that have been established over a long period of time

5. The character or personality of the organization.

ORGANIZATIONAL CULTURE

• The term corporate culture (or organizational culture) refers to an organization’s

set of core values and beliefs. It shapes the firm’s attitudes and norms.
• A clear and consistent organizational culture helps to create cohesiveness and
purpose. This helps to minimize misunderstandings and miscommunications,
thereby reducing the chances of conflict in the workplace.
ORGANIZATIONAL CULTURE VARIABLES
• Organizational culture is influenced by numerous factors, including:
• The size of the organization – larger organizations tend to have more formal policies,
procedures and bureaucratic processes.
• Traditions and values of the organization –  for example, a small charity will have a different
organizational culture from a large multinational fast-food restaurant chain.
• Attitudes and traits of senior managers – for example, organizational culture is shaped by
the personalities and traits of senior managers, such as their approach to risk-taking and risk
management.
• Societal and cultural norms in the region or country
ATL ACTIVITY – ORGANIZATIONAL CULTURE INVESTIGATION
Presentation to the
class.

1) Answer to question 1
and 2.
2) Insert the references
that you used to
answer the
questions

04.10 Upload the

presentation to Canvas
TYPES OF ORGANIZATIONAL CULTURE
TYPES OF ORGANIZATIONAL CULTURE
• Vision
• Values
• Practices
• People
• Traditions
• Leadership style
CHARLES HANDY ‘’GODS OF MANAGEMENT’’

• Zeus, Apollo, Athena, and Dionysus.

‘’GODS OF MANAGEMENT’’ - ZEUS

• Zeus was the first of the Greek gods, and extremely powerful as the god of thunder
and lightening. In a power culture (also known as a club culture), an individual
(such as the founder or a figurehead like Zeus), or a small group of senior staff,
makes decisions for the organization.
• Power and authority are concentrated in the hands of the elite few at the top of the
organization, who strive to maintain absolute control over their employees, i.e.
leaders are autocratic.
• Communication is also highly centralized, so procedures and formal rules do not
matter so much as decisions are made quickly, without bureaucratic processes to
slow things down.
STEVE JOBS – CORPORATE CULTURE
Following his death in 2011, aged just 56, Steve Jobs was acknowledged by political and business leaders across the world as
one of the most innovative, influential, and iconic entrepreneurs of modern times, who helped to transform the daily habits of
millions of people across the planet. Apple, under the leadership of Steve Jobs, gave the world new products and vocabulary
such as mouse, icon, and desktop. Despite his humble beginnings, Steve Jobs has gone down in history for being the visionary
who reinvented computing, music, and mobile phones during what he called the “post-PC era”. Just a couple of months before
his death, Apple had become the world’s most valuable company.

Steve Jobs led Apple in a power-culture way. Zeus was the first of the Greek gods, and extremely powerful as the god of
thunder and lightning. In a power culture, an individual (such as the founder or a figurehead like Zeus), or a small group of senior
staff, makes decisions for the organisation. Power and authority are concentrated in the hands of the elite few at the top of the
organization, who strive to maintain absolute control over their employees, i.e. leaders tend to be autocratic. Communication is
also highly centralized, so procedures and formal rules do not matter so much as decisions are made quickly, without
bureaucratic processes to slow things down.

Organizations with a power culture, such as Apple under the leadership of Steve Jobs, are driven by results, which act as the
best indicator of the value each and every employee. Due to centralized decision-making, organizations with a power culture are
relatively straightforward to operate, and decisions can be made quickly.

However, a power culture can have negative effects on staff morale and labour productivity. It can also limit the level of staff
loyalty, thus cause higher rates of labour turnover. The professional and personal sacrifices that Jobs made in creating such a
culture but one of the world’s most admired brands are depicted in two Hollywood movies - Jobs (2013), starring Ashton Kutcher,
and Steve Jobs (2015), starring Michael Fassbender.
‘’GODS OF MANAGEMENT’’ – APOLLO
• In a role culture, operations and organizational
norms are underpinned by formal structures and
procedures. Clear policies and hierarchies exist in
order to facilitate the smooth running of the
business. Workers have clearly defined roles and
responsibilities and operate within clear rules and
guidelines.
• This culture is common in bureaucratic
organizations with tall organizational structures
and long chains of command, e.g. the civil service,
public sector organizations, local government and
central government.
• A worker’s responsibilities and authority are
determined by their respective level in the
organizational hierarchy
‘’GODS OF MANAGEMENT’’ – ATHENA

• In a task culture, teams of experts are empowered

to complete a project or tackle a problem with their
skills.
• The role of senior managers in such a culture is to
ensure the team consists of the best mix of
people, and that they are supported to achieve their
objectives.
• The success of organizations with a task culture
depends largely on group dynamics, team
cohesiveness, and interpersonal skills in the
workplace.
‘’GODS OF MANAGEMENT’’ – DIONYSUS
•  In a Dionysian person culture, people regard themselves or their skills set as
being more important than the organization itself.
• Effectively, this means the organization only exists in order to help individuals to
achieve their personal and professional goals.
• Such a culture values each person as an expert and relies on their skills and
experiences for the organization to thrive.
• The organization employs a cluster of individuals with similar skills, qualifications
and expertise. 
ATL ACTIVITY – FORUM

• Search for a film/trailer/story that represent:

• Power culture
• Role culture
• Task culture
• Person culture
EDGAR SCHEIN – ORGANIZATIONAL CULTURE PARAMETERS

• Organizational attributes: what you feel when you walk into an organization.

• Professed culture: slogans, statements, or images.

• Organizational assumptions: people who have been in an organization for a long time will
often talk about ‘’how things are really done’’
GROWTH

• When organizations grow internally (organically), there is often a disconnect

between junior staff members and senior managers in very large organizations, i.e.
workers may feel 'out of touch' with senior management. This might result in the
beliefs and values of employees being different from those of senior managers,
thereby leading to a culture clash.
MERGERS

• When organizations merge or are taken over by another company, a culture clash
often results.
• Inorganic growth usually results in one culture being more dominant than the other,
so conflict is likely to occur (at least in the short term). This is particularly the case
when a hostile takeover occurs, against the wishes of the target company, or when
the two organizations are from vastly different regional cultures.
CULTURE

• Culture is can be described as the unseen and intangible aspects of an

organization that influences employees and managers in the workplace. The extent
to which an individual exerts influence on the organizational culture depends on
their position and level of skills or expertise within the firm.
• When leadership styles change, perhaps as a result of a new CEO being appointed
or a new board of directors being elected, this can cause a culture clash as views,
approaches, and priorities may conflict. Employees, especially the longer serving
members of the workforce, can often find it difficult to adapt and conform to a
different leader and the subsequent new vision for the organization.
CULTURE CLASH – AMERICAN FACTORY

Make an essay covering the following points

while watching the documentary ‘’American
Factory’’
1. Relationship between organization and
individuals
2. Reasons of culture clashes
3. Consequences of culture clashes
4. Strategy of solving culture clashes
ATL ACTIVITY

• Research the impact of culture on the use of brand names in different parts of the
world.
• For example, investigate why Diet Coke is branded as Coca-Cola Light in many
parts of the world. Or why do some brands not translate well in other parts of the
world?
HOFSTEDE’S CULTURAL DIMENSIONS

• Why the understanding of cultural dimensions across the world is so important for
businesses?
HOFSTEDE’S CULTURAL DIMENSIONS

• Culture influences everything in a business, from how meetings are conducted to

how decisions are made. Culture influences individuals, and can be influenced
by individuals.
• Culture impacts all aspects of an organization. Essentially, culture is about:
• People (relationships between employees and managers)
• Processes (how things are done)
• Policies (what is important to the organization), and
• Past experiences (institutional knowledge).
HOFSTEDE’S CULTURAL DIMENSIONS

• Fables
• Faiths
• Famous people
• Fashion
• Festivals
• Filmography
• Flags
• Foods
HOFSTEDE’S CULTURAL DIMENSIONS

Geert H. Hofstede’s cultural dimensions is a situational tool used by managers to

understand the various aspects of cultures within and between organizations. It
helps managers to recognize what motivates the workforce, how and why employees
behave in the way they do, what they value, and how they make certain decisions.
• Power distance
• Individualism vs collectivism
• Masculinity vs femininity
• Uncertainty avoidance
• Long-term vs short-term orientation, and
• Indulgence vs restraint
H.C.D – POWER DISTANCE

• Power distance refers to the extent to which a culture accepts and respects

authority and status. A high degree of power distance exists if an organization has
centralized decision-making, hierarchical structures, and high regard for position or
ranking within the organization, such as in the military (the Army, Navy, Air Force,
Marines, and Coast Guard). 
• Organizations with a high or strong degree of power distance are suitable for
people who want to avoid conflict at all costs and do not  like to engage in
unproductive competition. However, such a culture can be frustrating for younger
and ambitious workers who strive to get promoted quickly within an organization.

The extent to which the less powerful members of institutions and organisations within a
country expect and accept that power is distributed unequally.
H.C.D – INDIVIDUALISM AND COLLECTIVISM

• Individualism refers to cultures that emphasise the needs of the individual over the
needs of the group as a whole. In individualistic cultures, people do not take
responsibility for others’ actions beyond themselves and their direct family. Instead,
such individuals focus on their own personal goals and achievements.
• Collectivism emphasises the importance of the group and social cooperation over
the needs of any individual. Collectivist cultures integrate relationships in a
community or society. From birth onwards, people in such cultures are integrated
into strong and cohesive groups, such as extended families (with uncles, aunties,
and grandparents), providing each other with support and protection. People are
loyal to their designated group and take responsibility and accountability for one
another, providing support to all members and acting in the best interest of the
group
H.C.D – INDIVIDUALISM AND COLLECTIVISM

• Can you think of five or more different sports that do not rely on teamwork, i.e., the
success depends purely on the individual? And can you think of sports that rely on
teamwork for success?
According to 
Hofstede Insights,
individualism is high
in Australia, Italy, the
US, and the UK.
Contrarily, Costa
Rica, Guatemala,
Malaysia,  Portugal,
Serbia, Taiwan, and
Venezuela are
considered to be
collectivist societies.
ATL ACTIVITY – (RESEARCH AND THINKING SKILLS) –
CULTURE AND INTERNATIONAL MINDEDNESS
• Often, when people in "Western cultures" talk about "Eastern cultures", the role of
“saving face” is seen as a key difference between the two cultures. The importance
is placed on not lowering one’s status, and not being embarrassed by failure.
• 1. Is the fear of “losing face” exclusively an Eastern trait? Does it ever appear in
Western culture?
• 2. How could the need not to lose face affect an individual’s behaviour?
H.C.D – MASCULINITY VS FEMINITY

• Masculinity vs femininity is Hofstede's third cultural dimension, focusing on

stereotypical male and female traits and the roles they play in communities. In
Hofstede's model, a masculine community exists when men are assertive and
competitive while women are caring and nurturing.
H.C.D – MASCULINITY VS FEMINITY

• Masculinity refers to societies or cultures defined by a focus on achievement,

competition, status, power, and wealth. Society is generally more competitive and
driven by material rewards. Such cultures are highly competitive and may come
across as overly aggressive by others.
• On the other hand, femininity refers to societies or cultures that focus on
cooperation, relationships, modesty, cooperation, and overall quality of life. Society
is generally more consensus-oriented and driven by intrinsic rewards.
Femininity is extremely high in
Nordic countries, like Denmark,
Iceland, Norway, and Sweden. In
contrast, masculinity is very high in
Japan, Venezuela, and in some
European countries like Austria,
Hungary, and Switzerland.
UNCERTAINTY AVOIDANCE

• The uncertainty avoidance cultural dimension of Hofstede's model refers to the

rating or index of a society’s tolerance for ambiguity, i.e. whether the community is
generally comfortable with uncertainty and ambiguity. It is about whether a society
feels its should try to control the future or just let it happen. Essentially, uncertainty
avoidance measures society’s tolerance for uncertainty or vagueness.
• As an example, if a car manufacturer wants to expand into a country that has a
high uncertainty avoidance index (those that tend to be risk-adverse), then its
production and marketing teams will need to focus on aspects of safety. This will
help to reassure customers in these countries that the manufacturer's motor
vehicles are of a high quality and safety standard.
INDULGENCE VS RESTRAINT

• An indulgent culture refers to a society or organization that fosters the natural

human drive to be free, to have fun, and to generally enjoy life. By contrast,
a restraining culture means there is a tendency for society to suppress people's
personal needs and desires by a system of strict social norms and self-regulation. 
CULTURE AND BUSINESS
ATL ACTIVITY – H.C.D

• Use the Hofstede Insight website to discover the six cultural dimension and

compare them between two countries of your choice/interest.
• Prepare a poster to present it. Are there any surprises and what might be the
reasons behind these numbers?