2.5 Culture (HL)

Organisational Culture

The set of values, attitudes, beliefs, expectations, and assumptions of an organisation; "the way we do things around here."

Culture as a Hygiene Factor

The concept (linked to Herzberg) that a toxic culture causes extreme dissatisfaction and high labour turnover, while a positive culture prevents dissatisfaction.

Guiding Statements

The combination of an organisation's Vision, Mission, and Core Values that frame its culture and direction.

Hiring for Cultural Fit

The practice of recruiting individuals whose values align with the company's, though critics argue this can lead to a lack of diversity and innovation.

Power Culture (Handy)

Represented by a spider’s web; power is centralised with an individual or small group (e.g., Zeus).

Role Culture (Handy)

Represented by a Greek temple; power is derived from an individual's position and hierarchy rather than personal qualities (e.g., Apollo).

Task Culture (Handy)

Represented by a net; power is given to experts and teams focused on specific projects or problems (e.g., Athena).

Person Culture (Handy)

Represented by a constellation of stars; the organisation exists purely for the individuals within it to do their work (e.g., Dionysus).

Teal Organisation (Laloux)

The most evolved culture level where the organisation acts like a living organism with self-management and decentralised power.

Holacracy

A flat organisational structure often found in "Teal" organisations where authority and decision-making are distributed among autonomous teams.

Cultural Clash

Occurs when two or more cultures compete for dominance within a business, often leading to conflict, low motivation, and productivity falls.

Power Distance (Hofstede)

The extent to which subordinates accept that power is distributed unequally; high distance means more hierarchy and autocratic leadership.

Uncertainty Avoidance (Hofstede)

The degree to which a society feels threatened by ambiguity and risk; high avoidance leads to strict rules and formal chains of command.

Individualism vs. Collectivism (Hofstede)

Whether a society values personal achievement (Individualism) or the interests of the group and common good (Collectivism).

Masculinity vs. Femininity (Hofstede)

Masculine cultures value competition, ego, and financial reward; Feminine cultures value quality of life, relationships, and wellbeing.

Long-term vs. Short-term Orientation (Hofstede)

Whether a culture focuses on patient, future-oriented strategies (Long-term) or immediate results and quarterly profits (Short-term).

Indulgence vs. Restraint (Hofstede)

The extent to which a society allows for the free gratification of basic human drives related to enjoying life and having fun.