Corporate culture

• Corporate culture = the values and standards shared by people and groups within an organisation
• Strong culture:

  • Employees agree with the corporate values of the company
  • Employees need less supervision
  • Staff are loyal
  • Employees are more motivated
• Weak culture:

  • Employees don’t share the company's values
  • Employees are forced to comply through policies and increased levels of bureaucracy
• power culture = decision-making is carried out by one or a small number of powerful individuals usually at the top of the business hierarchy

  • Few rules exist to determine decision-making procedure
  • A competitive atmosphere between workers vying for power
• role culture key decisions are made by those with specific job roles

  • Power lies with those with particular job titles rather than those with desirable skills
  • There is usually a very clear hierarchical structure
  • Employees are expected to adhere to rules and understand their place in the hierarchy
• task culture decisions are made by teams made up of employees with specific skills

  • Power lies with those with task-related skills (e.g. a finance specialist may make decisions related to funding within the group)
  • Teams are created and dissolved as projects are started and completed
  • There is an emphasis on adaptability and team-working
• person culture individuals with extensive experience and skills are loosely brought together

  • These individuals have significant levels of power to determine their own decision-making procedures and often work autonomously
  • Organisations with person cultures are very common in professional services such as accountancy and law
• How corporate culture Is formed:

  • Leadership style
  • type of ownership
  • HR policies
• Difficulties in changing established culture:

  • Identifying contributing factors
  • The existence of sub cultures
  • Overcoming resistance to change