Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

What is Corporate Culture?
Corporate
Culture

…and what determines it?

ITC

M1:U3:3
...

M1:U3:3
...
familiarity
 Concept of time & punctuality
 Degree of directness
 Attitude to risk & risk-taking
 Importance of continuity vs
...
long term
ITC

M1:U3:3
...


age & size

nature of the work
the types of power…
...
2-4

What do we mean by

Power? (I)


...
2-5

What do we mean by

Power? (II)

Types of power:



by position (title, number of support staff,
privilegies…)

 by influence (representation on committees,
special responsibilities, reputation…
 by control of valued resources (staff and
financial resources)
ITC

M1:U3:3
...
2-1

Indicators of power
1
...
Power by Influence:
3
...
2-7

Types of corporate culture
 Power culture
 Role culture
 Task culture
 Independency culture

ITC

M1:U3:3
...
2-9

Types of corporate culture
Role culture
Relies on sets of rules and procedures
Specialised and compartmentalised
Slow but predictable career path
Inertia, slow to react, reluctance to accept change
Appropriate in :
 Stable environment, e
...
public administration
 Where work is routine or foreseeable
 Where reliability and quality are important

ITC

M1:U3:3
...
2-11

Types of corporate culture
Independency culture
No overriding corporate goal
Individuals have significant “expert power”
Individuals pursue their own activities and
are only loosely bound to the organisation
Examples = management consultancy firms,
law firms and architects’ partnerships

ITC

M1:U3:3
...
-making
Where is it
appropriate?

Disadvantages

Power
Culture

Power by
influence

Suitable
individual
ITC

Task Culture

Power by position
In the hierarchy

Power by expertise
& capacity to bring
people together

Leaders’ orders
Rules & procedures
and commands
Fast changing
environments
Small companies
Vulnerable if
key staff lack
competence or
leave
Risk of
in-fighting

Individualist/
collectivist?

Role Culture

Individualist
Ambitious /
power oriented

Project managers &
project groups

Stable environment
with routine tasks

Significant inertia
to change

Collectivist
One who values
security and
predictability

Independency
Culture
Expert power

Individuals

Project environments

Partnerships of
professionals

Can fail if people don’t
work well together

Can be difficult to
control

Where quality is
critical
Stifles creativity

Figure 3
...
2-13

Action Point

3
...

Give the reasons for your classification
...
2-13a

Corporate culture must
be taken into account when:
Considering new strategies, strategies, initiatives,
practices and procedures
Developing partnerships with suppliers
An organisation deals with one in another country
Recruiting

ITC

M1:U3:3
...
2-3

The impact of corporate culture on recruiting
A project manager in a task culture
An administrative position in a role culture
A key player in a power culture

ITC

M1:U3:3
...

Many factors cannot be controlled but
desirable aspects can be reinforced through
deliberate actions !

Actions to promote & reward teamwork and innovation
Bonuses could improve individual contributions
Sanctioning & punishment
Re-organisation and creation of new departments
Aspects of culture which cannot be changed
should be respected by management
Attempts to force an incompatible new
culture onto an organisation normally fail
ITC

M1:U3:3
...
3-1

Vision, Mission, Goals…
...
e
...
Vision is broad & general
...
Mission is more concrete
...

Strategy is the way of achieving the goals
...


ITC

M1:U3:3
...


Mission: To provide the widest range of hand tools for home
use in our country
...

Strategy: - Launch three new hand tools over the next year
...

- Development of strategic partnerships with
suppliers of key inputs
...

- Offer a good working environment and working
conditions…
...
3-3

Levels of mission, goals & policy
CORPORATE
Aligned with

ITC

• Mission
• Goals
• Policies

FUNCTION /
OPERATING UNIT 1

FUNCTION /
OPERATING UNIT 2

FUNCTION /
OPERATING UNIT 3

• Mission
• Goals
• Policies

• Mission
• Goals
• Policies

• Mission
• Goals
• Policies

M1:U3:3
...
3-5

Action Point

3
...
3-6

Figure 3
...
The market segments targeted

“To provide the widest range of power tools
for home use in our country”
...


Basis of competitive advantage and/or of
achieving customer satisfaction

“To build upon our reputation for
excellent customer service”
...


Attitude to customers

“We will seek to delight the customer”
...


Core values

“To exceed environmental legislation
requirements”
...


The mission provides a framework against which goals and
policies are set, and strategies are defined
...
3-7

Types of Goals

Examples

Financial

“To achieve a return on capital employed of 18%”
...


Efficiency / productivity

“To increase productivity by 3% per year”
...

ITC

M1:U3:3
...
3-9

Action Point

3
...
3-10

Action Point

3
...
3-11

Policies
Principles and guidelines to be complied with in
conducting the firm’s work, in order to:
Avoid the need to take decisions on a case-by-case basis
Ensure consistency of approach
...
g
...

Some enterprises choose to go beyond legislative
requirements for a variety of reasons:
Concern for public opinion
To differentiate themselves from other firms
Desire to support certain non-monetary goals
and ideals
ITC

M1:U3:3
...

ITC

M1:U3:3
...

M1:U3:3
...
4-4

Action Point

3
...
4-5

Conclusion
Understanding the corporate culture:
 Allows you to develop strategies that are more likely to succeed
 Helps to establish the best way to influence the organisation,
or to seek approval for a new project or development activity
 Helps to establish the appropriate culture for your function
 Helps to establish which types of individuals to recruit
The culture of an organisation shapes its mission, goals and
policies
The mission, goals & policies guide you in establishing what is
important and the way in which goals should be achieved

ITC

M1:U3:3

---