IBBusiness ManagementHLRevision Notes2. Human Resource Management2.5 Organisational (Corporate) CultureTypes of Culture

Types of Culture (HL IB Business Management)

Revision Note

Lisa Eades

An Introduction to Corporate Culture

  • Culture refers to the personality of an organisation 
    • This includes shared values, beliefs, attitudes and practices that shape the way people work together within an organisation
    • A strong organisational culture exists where these factors are easily recognised and embedded into the way that a business operates
    • Businesses with strong cultures are likely to possess a range of visual and operational features

  

Visual and Operational Features in a Business with a Strong Culture


Visual Features
Operational Features

  • Business specific artefacts e.g. uniforms
  • A well know figurehead as a role model
  • Ceremonies, rituals and customs e.g. awards evenings
  • Layout of business premises e.g. open plan offices
  • The training culture e.g induction and on-going

  • Core organisational values e.g. staff wellbeing
  • Workplace procedures e.g meeting etiquette
  • Business specific language e.g. calling workers 'team members' or 'partners'
  • Repeating stories that focus on business values and history

  

  • In businesses with a strong culture it is likely that employees
    • Are united and support the mission of the business 
    • Have a 'can do' attitude and are enthused by their work
    • Have a strong belief that the business is a force for good

  • In a business with a weak culture, these signs may be difficult to identify
    • A 'them and us' attitude may exist between workers and management
    • Employees may doubt the sincerity of the corporate mission
    • High levels of staff turnover and low commitment amongst staff may exist

Exam Tip

It is possible for a business to have an official culture, indicated by visual signs such as mission statements, as well as one or more subcultures that form the day to day working experiences of employees

Subcultures can be equally positive and their importance should not be ignored 

Charles Handy's Gods of Management

  • Handy argued that different cultures are needed are needed for different businesses and different situations
  • He identified four types of organisational culture in his book The Gods of Management
     

Charles Handy's 'Gods of Management' Classification of Organisational Cultures 

Zeus

Power Culture

Apollo

Role Culture
In a Power Culture decision-making is carried out by one or a small number of powerful individuals usually at the top of the business In a role culture key decisions are made by those with specific job roles

  • Decision-making is carried out by one or a small number of powerful individuals usually at the top of the business hierarchy
    • Few rules exist to determine decision-making procedure
    • A competitive atmosphere between workers vying for power
    • Most communication is by personal contact
    • It is argued that Alan Sugar's Amstrad adopted a power culture with Sugar as its powerful decision-maker

  • Key decisions are made by those with specific job roles
    • Power lies with those with particular job titles rather than those with desirable skills
    • There is usually a very clear hierarchical structure
    • Employees are expected to adhere to rules and understand their place in the hierarchy
    • It may be difficult to adapt to rapidly changing market conditions
    • Large public sector organisations such as the NHS are considered to have highly structured role cultures

Athena

Task Culture

Dionysus

Person Culture
In a task culture decisions are made by teams made up of employees with specific skills In a person culture individuals with extensive experience and skills are loosely brought together

 

  • In a task culture decisions are made by teams made up of employees with specific skills
    • Power lies with those with task-related skills (e.g. a finance specialist may make decisions related to funding within the group)
    • Teams are created and dissolved as projects are started and completed
    • There is an emphasis on adaptability and team-working
    • PepsiCo is in example of a business that has a task culture

 

  • In a person culture individuals with extensive experience and skills are loosely brought together
    • These individuals have significant levels of power to determine their own decision-making procedures and often work autonomously
    • Organisations with person cultures are very common in professional services such as accountancy and law

Exam Tip

Case studies contain lots of clues about a firm's culture

Look for signs of a strong or weak culture. For example

  • Does the business have a clear figurehead?
  • Is there a particular way that the business carries out its activities?
  • Are there obvious guiding principles?
  • Are there visible signs of a culture - e.g branding, uniforms?

The more clues you can identify, the more likely the business has a strong culture - but

  • Do negative subcultures exist?
  • Is communication effective?
  • Is everyone 'on board'?

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    Lisa Eades

    Author: Lisa Eades

    Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.