Identify the main types of organisational culture and discuss, with reference to a business you know or have worked for.

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Rachel Frances Lloyd HND MCA1 ‘People in Organisations 2’ Business Management 1 ~ R Wheeler

TASK 1

Identify the main types of organisational culture and discuss, with reference to a business you know or have worked for. Discuss the impact of corporate culture on the individual and/or team within that organisation. You should explain how you perceive cultures are formed, discuss whether or not cultures change or can be changed and why this might in some, if not all cases, be desirable.

Cultures of organisations are the patterns or behaviour and value systems that characterise an organisation. It refers to the shared beliefs and written and unwritten policies and procedures that determine ways in which organisations solve business problems. The Organisation’s culture is wholly concerned with the way in which people within the organisation interact with each other and the typical patterns of interactions that develop over time. All organisations have cultures to some extent, although only a small number have a strong culture that is highly visible and which affects the behaviour of employees and other shareholders. Buchanan and Huczenski (1991) suggested that firms with a strong culture and a small or no ‘culture gap’ are most likely to perform effectively as this means that the difference between the culture the company possesses and the kind Senior Management would like is of a lesser degree.

Different organisations have different corporate cultures which can change with differing research and outside influences. The organisation ‘IKEA’, is a perfect example of a very democratic culture, as being: “A community of professionals, constantly developing the skills necessary to create a better everyday life at home for the many people.” (Needham et al. 2000). This is inherited downwards as a personal vision for all the business’s employees: “I, as an employee at IKEA, can make a difference. I am able to help to create something for the benefit of everybody, a better everyday life at home.” (Needham et al. 2000). For this reason, people are therefore encouraged to participate fully in the life of the company. This involves teamwork in which they meet frequently to discuss work issues. IKEA aim to produce products for the public, but they also seek to care for their employees whilst still making a profit.

Corporate cultures are founded and built over time by the dominant groups in an organisation, although in the modern business world organisations can be rapidly transformed by a process of management change. Four main types of culture are as follows:

POWER

The main feature of this type of organisation is the centralisation of power. This is frequently found in small business’s where the control lies with a single individual or a small group of people. Its structure is often described as being ‘web-like’ with the power radiating out from the centre. A possible advantage to this culture is that the emphasis is placed on individuals rather than group decision-making, therefore enabling decisions to be made quickly. However, an obvious disadvantage to this style is that because it is autocratic, people are likely to feel de-motivated by the lack of challenge, and to feel suppressed by the more powerful individuals. Power cultures tend to suffer from high staff turnover and low morale in the middle management layers.

ROLE

The role culture is typical of bureaucratic organisations which are divided into layers of offices and officials with sets of functions which are determined by rules and procedures. These organisations operate by using logic and reason.

A bureaucracy is usually split up into a number of functions and arranged accordingly, e.g. Marketing, Finance, Human Resources, etc. These functionally distinct spheres of operations focus on specific areas of competence.

Power is hierarchical and is derived from the employees position in the organisation. The relationship between the various roles is set out by job description and company procedures, ensuring that the employee carries out the task allocated to them. Position is the main source of power and procedures and rules are the main sources of influence.

TASK

In a task culture, emphasis is placed on the completion of a specific task or tasks. This determines the way work is organised, rather than the individual or rules of the organisation. Teams may work together to complete a particular project, therefore the success of the team depends on the unifying power of the group to complete a specific task. Team members need to share values and aspirations and to feel valued by the organisation.

The advantage to this culture is that employees may have considerable freedom, in which case this flexibility can make rewarding work environments. However, the lack of formal authority can make controlling a task-orientated culture difficult.

PERSON

In a person culture, the individual is central, the organisation exists only to serve the interests of those within it. For this reason, this culture is often only found in places such as charity and voluntary organisations, rather than profit-motivated enterprises.

In this culture, hierarchies are impossible unless there is mutual consent. An individual may leave the group but the organisation does not have the power to evict people. It is likely that given a choice, most people would opt for this type of culture.

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Organisations can and do change their cultures, and most organisations begin with power cultures. As they mature they become less dependent and develop into role cultures. Soon, this may need greater flexibility, furthering the change towards a task culture to fit the requirements and needs of the organisation. To ensure the cultural change of the organisation is carried out smoothly and successfully, it is important to involve all individuals and to listen to their ideas. In this way they will feel committed rather than resisting the change. Problems may arise when changing corporate culture such as:

  • Structural and ...

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