Factors Influencing Culture and Cultural Differences Within an Organisation
Business: Factors influencing culture and cultural differences within an organisation
Definitions
* Culture: ‘Way we do things’ * Sub-culture: Group of people within culture which have something which differentiates them from the rest of the culture. * Mission: Statement of business’ fundamental purposes * Core Values: Essential guiding principles of a business * Vision Statement: Picture of organisation in the future. * Paradigm: Assumptions held in common and taken for granted in an organisation.
Theories
Charles Handy – Four Types of culture: * Power: Focus on personal charisma and risk taking * Role: Focus on position, bureaucracy, hierarchy * Task: Focus on problem-solving, teamwork and creativity. * Person: Focus on individual needs, independence
Edgar Schein: 4 layers of organisational structure: Values, Beliefs, Behaviours, Paradigm
Johnson & Scholes – Cultural Web: Structure, rituals, control systems, symbols
Factors influencing culture * Influence of founder * Size and development stage of business * Leadership style * Organisational structure, policies * Employee + management rewards eg bonuses * Market which it operates * Working environment eg office * External environment eg economy * Attitude to risk taking and innovation
Cultural Differences * Subcultures develop based on occupations, product lines, geography eg Samsung in US and in S.Korea * Managing subcultures has become more difficult: Mergers, takeover, joint ventures are more common. Many firms now multinational, language barriers. More remote/specialised workers.
Research
Barclays Investment Banking: Aggressive and self-serving culture in order to get big bonuses was led by former boss Bob Diamond. He received a 2.7 million bonus. Forced to pay £500m in tax they attempted to avoid, shows a culture of greed. Barclays was most complained about bank. Fined £290m for fixing the libor
Definitions
* Culture: ‘Way we do things’ * Sub-culture: Group of people within culture which have something which differentiates them from the rest of the culture. * Mission: Statement of business’ fundamental purposes * Core Values: Essential guiding principles of a business * Vision Statement: Picture of organisation in the future. * Paradigm: Assumptions held in common and taken for granted in an organisation.
Theories
Charles Handy – Four Types of culture: * Power: Focus on personal charisma and risk taking * Role: Focus on position, bureaucracy, hierarchy * Task: Focus on problem-solving, teamwork and creativity. * Person: Focus on individual needs, independence
Edgar Schein: 4 layers of organisational structure: Values, Beliefs, Behaviours, Paradigm
Johnson & Scholes – Cultural Web: Structure, rituals, control systems, symbols
Factors influencing culture * Influence of founder * Size and development stage of business * Leadership style * Organisational structure, policies * Employee + management rewards eg bonuses * Market which it operates * Working environment eg office * External environment eg economy * Attitude to risk taking and innovation
Cultural Differences * Subcultures develop based on occupations, product lines, geography eg Samsung in US and in S.Korea * Managing subcultures has become more difficult: Mergers, takeover, joint ventures are more common. Many firms now multinational, language barriers. More remote/specialised workers.
Research
Barclays Investment Banking: Aggressive and self-serving culture in order to get big bonuses was led by former boss Bob Diamond. He received a 2.7 million bonus. Forced to pay £500m in tax they attempted to avoid, shows a culture of greed. Barclays was most complained about bank. Fined £290m for fixing the libor