Corporate culture 3.4.2 Flashcards
1
Q
What is corporate culture?
A
It reflects the firm’s values and is an important way to shape the expectations and attitudes of staff and managers
2
Q
What is a strong culture?
A
It exists where attitudes and beliefs are easily recognised and embedded into the way the business operates
3
Q
Features of strong corporate culture
A
- less supervision
- staff loyalty - lower staff turnover
- increased motivation and productivity
4
Q
Power culture
A
- decision-making is centralised to one person or a small number of powerful individuals
- struggle as business grows
- decisions quick
- employees are more resistant to change as they don’t have a say and may not have faith
5
Q
Role culture
A
- key decisions are made by those with specific job roles
- employees are expected to adhere to rules and understand their place - clear hierarchical structure
- find it difficult to adapt to change as communication is poor between departments - lose out to competitors
- avoid risk as fear of failure
- changes are resisted by staff
6
Q
Person culture
A
- individuals have the freedom to act independently - specialist skill
- decisions made jointly so more likely to be accepted
- decisions on change can be difficult to make as individuals think of what is best for themselves
7
Q
Task culture
A
- small teams get together to work on a specific project
- cross-function communication
- respond well to management objectives
- less resistance as staff are used to change
8
Q
How are corporate cultures formed?
A
- business’s founders - set the tone and if they stay involved their vision will be passed to employees
- history of the business
- nature of business and its products
- business environment - PESTLE
- working conditions and rewards
- attitudes to customer service
9
Q
Difficulties in changing corporate culture
A
- employees usually resist change - might not think it is necessary
- changing attitudes of staff is complicated
- difficult if culture is strong
- expensive
