Business Culture Flashcards
Business Culture
A business’ distinct personality
The style and way things are done within a company based on its values , beliefs and attitudes. It influences all business decisions and functions and how the company is managed.
Vision, mission and values
A business will have an ideal view of what it wants to achieve and how it wants to achieve it - Vision
This can be found clearly expressed in a mission statement.
The business will also have a set of values or ethos - how it intends to do business and what it stands for
Management practices
The business culture influences how the organisation is managed. Decisions will be made in line with the culture that has been created E.g. a business that values ethical behaviour would always make management decisions to avoid situations where it’s activities could be considered unethical
Policies and procedures
The day to day decisions and activities of an organisation will reflect the business culture. Ways of handling problems or situations will also take this culture into account.
Management Styles
Certain management and leadership types suit some business cultures better than others, E.g. an authoritarian manager would not work well in an organisation that values democracy and participation of the workforce.
Structure of the workforce
Some organisations have very rigid structures with several layers of management. Power and authority filters down the organisation to order and instruct those lower down
Smaller and more modern organisations have flatter structures. Much of the work is carried out in teams and the distance between an employee and the owners may not be great as they probably work together every day.
How people work
Business culture determines how people work.
Some organisations offer flexibility - Staff will be able to work flexible hours, job share, work from home or work as a member of a team rather than on their own.
Others will have a more rigid existence - Staff will have their own desks. They will be required to work certain hours and their views and opinions may not be valued.
