6.4 The importance of culture

Question 1

It is sometimes possible to identify a dominant culture within an organisation. What is this?

Answer 1

A culture whereby most employees or the core focus of the organisation is driven by an overriding, unchallenged set of values.

Question 2

A strong culture is defined by the core values being widely shared and held by the majority of ______ in the organisation.

Answer 2

people

Question 3

In a weak culture, ____________ will always be trying to get their views and values heard within the overall operational culture

Answer 3

individuals

Question 4

Give some reasons why a weak culture may occur.

Answer 4

Individual entrepreneurship
An over-dominant market position
A lack of appropriately qualified managers
Increasing bureaucracy
Ignoring external factors
Management becoming insular
An arrogant approach

Question 5

Which business leader said “culture eats strategy for breakfast”?

Answer 5

Mark Fields, President of Ford Motor Company

Question 6

The FRC’s Culture Coalition Project had a major impact on which 2018 Governance Publication?

Answer 6

The UK Corporate Governance Code

Question 7

The FRC’s “Corporate Culture and the Role of Boards” says that constant vigilance is required in the following areas:

• s___ thinking
• d______ chief executive
• leadership ar_______
• lack of openness to c________
• lack of d_______
• hierarchical a_________

Answer 7

• silo thinking
• dominant chief executive
• leadership arrogance
• lack of openness to challenge
• lack of diversity
• hierarchical attitude