3.10.2 Managing organisational culture

Question 1

Culture?

Answer 1

The way things are done in a business

Question 2

2 factors that make up the culture?

Answer 2

• Values

- Day-to-day behaviours

Question 3

4 ways the culture is reflected?

Answer 3

• How working space is organised
• Layers in hierarchy
• Communication methods
• Delegation

Question 4

4 reasons a business changes organisational culture?

Answer 4

• Performance
• Location change
• Motivation
• Competitiveness

Question 5

3 factors influencing culture?

Answer 5

• Leadership
• Organisational structure
• Attitude to risk and innovation

Question 6

4 kinds of culture according to Handy?

Answer 6

• Power
• Role
• Task
• Person

Question 7

2 features of a power culture?

Answer 7

• Power held by individuals at the top

- What those in power decide is what happens

Question 8

2 drawbacks of being a power culture?

Answer 8

• Can quickly turn toxic

- Short-termism

Question 9

3 key features of a role culture?

Answer 9

• Decision making takes place at role
• Power held by those with a certain job title (very hierarchalP)
• Defined rules and responsibilities

Question 10

3 drawbacks of role culture?

Answer 10

• Decision making is slow
• Risk averse
• Very bureaucratic

Question 11

2 features of task culture?

Answer 11

• Team is formed to address specific problems/ progress projects
• Task is the most important thing- power switched in the team depending on expertise

Question 12

1 benefit of task culture?

Answer 12

More innovative

Question 13

3 features of person culture?

Answer 13

• Individuals see themselves as unique and superior to the organisation
• Organisation simply exists for them to work
• Employees have similar training, background and expertise

Question 14

2 theories for culture?

Answer 14

• Handy’s Model of Culture

- Hofstede’s National cultures

Question 15

What does Hofstede’s National Cultures do?

Answer 15

Distinguishes the way business is conducted between different nations

Question 16

6 dimensions of Hofstede’s National Cultures?

Answer 16

1) Individualism v collectivism
2) Power distance
3) Short-terminism v long-terminism
4) Masculine v feminine
5) Uncertainty avoidance
6) Indulgence v restraint

Question 17

What is individualism v collectivism and what does this determine? How does the scoring system work for this?

Answer 17

Valuing the performance of an individual v valuing the performance of the team

• Affects financial rewards given (e.g. individual bonuses v profit sharing)
• Collective = 100

Question 18

What does power distance encourage? what does low PD score suggest? High PD score suggests? e.g. of country

Answer 18

• Strong sense of position and status
• High = national culture accepts bureaucracy and respect for authority
• Low PD = national culture encourages flatter organisational structures and autonomy
• High PD e.g.= Saudi Arabia

Question 19

What would suggest a country is short termism? scale for scoring? and what 2 things does this implicate? 1 e.g. of country

Answer 19

• Short termism = gear financial and other rewards toward the short period
• Long termism = 100
• Implicates investment decision making and risk taking
• Germany is long-termism - innovative

Question 20

Masculine decision making? feminine decision making? scored?

Answer 20

• Masculine = fact-based, aggressive decision making
• Feminine = consultative analysis before decision making
• Masculine = 100

Question 21

Uncertainty avoidance scale and what does it influence?

Answer 21

• 100 = uncertainty averse

- Implicates entrepreneurial culture

Question 22

What does indulgence mean? what does restraint mean? scale? e.g.?

Answer 22

• Indulgence = society allows desires of having fun and enjoying life to be met
• Restraint = gratification of needs is suppressed via social norms
• Restraint = 100
• Japan is restrained

Question 23

2 benefits of hofstede’s national cultures?

Answer 23

• Plans for communication issues with internationalisation

- Good for MNC’s- assess implications of changes on employees

Question 24

3 signs that organisational culture may need changing?

Answer 24

• High labour turnover and unable to retain talent
• Bureaucracy
• Closed communication

Question 25

Changing culture is harder when? (2)

Answer 25

• Short-termism shareholders

- Large business