2. Corperate Culture

Question 1

Corporate Culture definition?

Answer 1

The shared values and beliefs of the people in an organization which can influence the actions and decision making styles of managers and employees. It is a term used to describe the shared values and beliefs of the people in an organisation.

 A certain culture is present in all organisations guiding the activities of members of the organisation.

 Corporate culture is especially significant in large and complex organisations that have many separate divisions. It is corporate culture that connects the organisation’s objectives to the values of each member of the organisation.

Question 2

The real corporate culture ?

Answer 2

The real corporate culture (usually unwritten) will be found among the following indicators:
■ The prevailing management style in the organization
■ Attitudes of management to staff and staff to management
■ Relations among staff
■ Budgets and other statements of the organization priorities
■ Customer relations
■ Style of dress and language within the organization.

 Corporate culture is closely linked to ethical behaviour.
The values carried by an organisation’s culture set the scene for people’s ideas of what is right and wrong at work

Question 3

A strong and special culture?

Answer 3

• Modern management theory puts great store in an organisation having a strong and special culture.
• Management needs to have an understanding of an organisation’s culture and of the ways it is maintained or changed.

A desired culture can be cultivated by:
■ Management providing an example of the culture in action
■ Management recognising and rewarding appropriate action
■ Management communicating aspects of the desired culture
■ Recruitment and selection practices in line with the desired culture
■ Training in line with the desired culture.

• Because it is largely based on people’s values and beliefs, corporate culture can be difficult to change.
• Corporate culture can also be moulded to emphasise strategies and objectives such as customer service, innovation, ethical behaviour.

Question 4

Learning Culture?

Answer 4

Managers who are aiming to develop a learning culture in their organization
should:
■ make use of a team structure (see section 2.5) to encourage the sharing of information and ideas for improvement
■ communicate significant information throughout the organization
■ encourage staff to take on new tasks and responsibilities
■ support staff with realistic training opportunities
■ employ other managers who are capable of exploring their own values and beliefs
■ employ staff who show they are open to learning.

• The development of a strong and special corporate culture can be fast-tracked if an organization employees are open to learning and personal change; that is, if there is something of a learning culture in the organisation.

Question 5

Types of corporate culture: ?

Answer 5

Teamwork, equal opportunities/non-discrimination, socially environment, corporate responsibility, mutual respect, hard work, productive/efficient and creative.

Question 6

Why is corporate culture important?

Answer 6

i) Unites workforce, promotes creativity, boosts morale, guides recruitment,
ii) staff retention/absenteeism, customer service
iii) respond to change and improves worker productivity.

Question 7

What determines corporate culture?

Answer 7

Management style, product or area of business, morale of employees, recruitment strategy, mission statements, communication, standard of dress, working environment, extent that teamwork is used and flexible hours.

Question 8

How to change culture of an LSO?

Answer 8

By structure, training, recruitment and policies.

Question 9

Corporate culture can be learnt or observed through:?

Answer 9

i) Practices
ii) material symbols
iii) behavior of management
iv) staff empowerment
v) language used
vi) training methods
vii) And what skills are trained.

Question 10

Pressures to change corporate culture?

Answer 10

Corporate culture is an important influence on the likelihood of an organizational success.

A positive corporate culture will have the following beneficial effects:

• Increased productivity
• Greater employee work ethic
• Reduced staff absenteeism and turnover
• Reduced cost of recruitment and training
• Greater profitability
• Positive public perception

It is important that management is able to recognize and rectify negative aspects of the organization’s corporate culture in other to improve their competitiveness.

Question 11

Indicators of corporate culture?

Answer 11

1. Communication channels:
2. Dress code:
3. The willingness to achieve:
4. Socialization:

Question 12

Causes of change of culture?

Answer 12

1. Time: over time the culture of a LSO will evolve as change happens.
2. New managers: the way that managers act and interact with their staff will affect the culture of a LSO.
3. New employees: employees who come from other organizations may have different approaches and attitudes.
4. Merges: with other businesses could impact the culture, LSO’s develop different ways of doing things
5. Macro factors: laws, economic conditions etc. change the culture as work practices change. So might the way the staff go about dealing with the changes.

Question 13

Benefits of Corporate culture?

Answer 13

• Better staff retention rates
• The LSO can become attractive to new employees, better staff selection
• Greater productivity and more success

Question 14

Official v Real Culture?

Answer 14

Official or formal Culture - The corporate culture expressed in LSO’s internal and external documentation presented to stakeholders. It is the culture displayed to the public.

Real or unofficial Corporate Culture – The corporate culture that actually exists within an organization as felt by the employees and other stakeholders day to day, it is their actual culture.

 This can be seen through direct contact with the organisation, dress code, customer relations, staff to staff relations, structure of management and priorities of the organisation/objectives.