Podcast
Questions and Answers
Which type of corporate culture prioritizes hierarchical structures and defined roles within the organization?
Which type of corporate culture prioritizes hierarchical structures and defined roles within the organization?
- Task culture
- Power culture
- Person culture
- Role culture (correct)
What is a major challenge companies face when attempting to change an established corporate culture?
What is a major challenge companies face when attempting to change an established corporate culture?
- Alignment with market trends
- Sustaining customer loyalty
- Resistance from employees (correct)
- Increased employee communication
How can the founder of a company significantly influence its corporate culture?
How can the founder of a company significantly influence its corporate culture?
- By focusing only on profit-driven goals
- By outsourcing cultural development to HR professionals
- By completely separating personal values from business practices
- By establishing core values and traditions early on (correct)
What impact does a strong corporate culture have on business success?
What impact does a strong corporate culture have on business success?
Which of the following is NOT a common characteristic of strong corporate cultures?
Which of the following is NOT a common characteristic of strong corporate cultures?
What is a characteristic of a power culture according to Charles Handy's categorization?
What is a characteristic of a power culture according to Charles Handy's categorization?
Which consequence is typically associated with a weak organizational culture?
Which consequence is typically associated with a weak organizational culture?
What role do founders play in establishing a company's culture?
What role do founders play in establishing a company's culture?
Which of the following constitutes a challenge in changing an established corporate culture?
Which of the following constitutes a challenge in changing an established corporate culture?
What impact does a strong organizational culture have on a business’s success?
What impact does a strong organizational culture have on a business’s success?
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Study Notes
Corporate Culture
- Definition: Corporate culture is "the way we do things round here" as described by Charles Handy. It encompasses the values, beliefs, and norms of a company.
- Strong vs. Weak Culture:
- Strong Culture: Possesses clear communication, a focus on core values, and a recruitment process to find individuals aligned with the business culture. Often built upon history, tradition, and the influence of founders.
- Weak Culture: Often leads to business failure, demonstrates a demotivated workforce, inconsistent customer service, poor management, bureaucracy, and lacks flexibility to respond to dynamic markets.
- Company Culture Classification (Handy):
- Power Culture: Centralized power structure with a strong leader at the core of the business, making most decisions.
- Role Culture: Hierarchical structure with clear roles and responsibilities. Decision-making follows established lines of authority.
- Task Culture: Focuses on completing tasks efficiently and effectively. Teams are formed to address specific projects.
- Person Culture: Emphasizes individual expertise and knowledge. Experts work together on a client-by-client basis.
- How Culture Is Formed:
- Influenced by key factors:
- The founders' or owners' ethos and influence
- The nature and products of the business
- The degree of change in the products offered
- The business environment at its inception
- Recruitment and key staff appointment practices
- Working hours
- Attitude towards customer service
- Influenced by key factors:
- Difficulties in Changing Established Culture:
- Strong cultures are hard to change due to the interconnected nature of its components (goals, roles, processes, values, communication practices, attitudes, and assumptions).
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