Organisational Culture

• What is organisational culture?

  Refers to the shared values, beliefs and behaviours that define how employees interact and how decisions are made within a business
• What does organisational culture influence?

  • Employee motivation
  • Decision-making
  • Innovation
  • Overall business performance
• Why is a strong organisational culture important to businesses?

  • Increase employee motivation and job satisfaction
  • Improve efficiency
  • Enhance brand reputation
  • Reduce labour turnover
• How can a weak or toxic culture damage a business?

  • Creats low morale and job dissatisfaction
  • Reduces productivity and efficiency
  • Increase labour turnover
  • Damage a company's reputation and public image
• Why does a weak or toxic culture lead to lower productivity, low morale, job dissatisfaction, etc.?

  • Lack of clear direction and vision - no strong leadership
  • Poor communication and mistrust
  • Lack of recognition and rewards
  • Discourages employees from sharing ideas - lack of innovation - less likely for a competitive advantage
• The culture of an organisation influences how open it is to change, new ideas, and technological advancements
• A culture that embraces innovation (e.g. task culture) encourages employees to experiement, think creatively and take risks without fear of failure
• What is an example of a business that embraces a culture of innovation?

  Tesla
• How does Tesla or Apple foster a culture of innovation?

  Promoting autonomy and collaboration
• What type of culture would be less adaptable, especially in fast-changing industries? And what Handy's model of culture does it relate to the most?

  A rigid culture with strict hierarchy and control (e.g. Role culture)
• What culture model is least adaptable, especially in fast-changing markets?

  Role culture
• What is an example of a model of culture that fosters innovation?

  Task culture
• The impact of culture on adaptability can determine a business’s long-term survival, especially in industries such as technology and fashion.
• If a business uses power culture, would employee engagement be usually high or low? And why?

  Low because employees may feel undervalued
• If a business uses person culture, would employee engagement usually be high or low? And why?

  High because the business values each employee's contributions
• If a business fosters a culture of CSR then what benefits would this bring?

  • Enhanced brand reputation
  • Increased customer loyalty
• If a business fosters a culture of cost-cutting and efficiency then what impacts would this bring?

  • Negatively impact customer service
  • Could attract price-sensitive customers
• What is a real-life business that experienced a scandal for poor organsiational culture and what were the implications?

  Uber - accused of sexual harrasment and discrimination - this led to a damaged brand reputation and customer trust