Unit 2.5 culture

corporate culture

norms of an organisation

reasons for business culture

belonging, cohesiveness, less misunderstandings, reduced conflicts

what does NORMS stand for

Nature of the business
Organisations structure
Rewards
Management styles
Sanctions

whos theory was the gods of management

charles handy

zeus

power culture - dominant individual, formal job titles, centralised

Apollo

Role cultures - highly structured organisations with formal rules and policies, job roles celar, everyone is accountable

Athena

Task cultures - focus is on results and getting work done, teamwork + cohesiveness, no single decision maker

Dionysian

Person cultures - large number of workers feel they are more important than the firm itself, no loyalty to the firm

Power distance - Hofstede

How much people accept inequality and hierarchy

High PD - respect authority, top-down management
Low PD - equality, employees expect involvement

Individualism vs Collectivism (IDV) - Hofstede

Do people focus on individual success or group success?

Individualist - personal goals, independence (high score)
Collectivist - teamwork, loyalty (low score)

Long term vs short term orientation (LTO) - Hofstede

Focus on the future vs present

Long-term - persistence, planning, tradition, loyalty, teamwork
Short-term - quick results, individualism

masculinity vs femininity (MAS) - Hofstede

extent to which culture values traditional male/female roles

high score - men are expected to work, be ‘tough’ and there is a difference in ‘men’s’ and ‘women’s’ jobs
low score - equality and respect to any given role

Uncertainty avoidance (UA) - Hofstede

How comfortable people are with risk and uncertainty

High UA - prefer rules, structure, anxious in high pressure situations, avoid uncertainty
Low UA - more flexible, open to change, risk takers, less stress in high pressure

Indulgence vs restraint (IVR) - Hofstede

Attitude toward enjoyment and self-control

high score - freedom, fun is valued
low score - strict social norms