Corporate Culture

Business Management

AOS 2: Internal Environments of LSOs

Corporate Culture

• Definition• Elements of

corporate culture• Real vs. Official• Management’s

role in developing• How can it be

changed or improved?

Management Structures

• Definition• Bureaucracy

definition• Changes in

organisational structure (flat)

• Horizontal vs. Vertical structure

• Functional, divisional and matrix structures

• Representing structures in diagrams

• Pros & Cons of each structure

• Organic Structures

Management Roles, Skills & Styles

• Definitions• Planning• SWOT Analysis• Good leadership• Controlling• Management Styles:

definitions, pros, cons, example

• Situational Approach• Management skills:

delegation, communication etc

• Competencies• Skills & Styles

Policy Development& Ethics

• Definition• Macro pressures

on policy• Operating

pressures on policy• Internal pressures

on policy• Steps in policy

development• Policy evaluation• Ethics & CSR

AREA OF STUDY 2 – Internal Environments of LSOs

☐ ☐ ☐☐

Corporate Culture

Corporate Culture – the shared values and beliefs of an organisation which can influence the actions and decision-making style of managers and employees. It is their idea of what is important and how things are done in their organisation.

Official Corporate Culture – The set of values and beliefs an organisation wishes to present to the public. It can be found in a businesses corporate slogans and serves as a PR purpose.

Real Corporate Culture – The set of beliefs and values actually prevailing within an organisation. It is best identified by observing the relationships among the people in the organisation.

Corporate culture can be expressed as official corporate

culture and real corporate culture.

Official corporate culture can often be expressed as written slogans or statements.

Eg: McDonald’s slogan “Quality, Service, Cleanliness and Value”

Corporate Culture

Real corporate culture is the official (unwritten) culture of the organisation. It will be found among the following indicators:

1. Management style2. Attitudes of staff to management3. Relations between staff4. Style of dress and language within the organisation5. Employee morale6. Divisions of departments7. Physical environment

Corporate Culture

1. Behaviour or approach taken by management sets an example. Employees at lower levels of an organisation look to senior staff to see how to treat other employees and customers, standard of dress and how to communicate.

2. Management can recognise and reward appropriate action, eg: employee of the month.

3. Management influences culture by communicating aspects of desired culture in company magazines, bulletins, memos

4. Management recruitment, selection and training of staff in line with desired culture

Despite the above it does not mean that corporate culture within an organisation can easily be changed or adhered too.

WHY DOES MANAGEMENT HAVE A LARGE INFLUENCE ON CORPORATE CULTURE?

Corporate culture can also be influenced by such things as:

• The length of time any previous managing director or management team has been running an organisation.

• The type of organisation. E.g. private or public sector

• The continuing privatisation of many public sector organisations have required changes in CC’s, from traditional public sector values such as prudence, bureaucracy, conformity, to the values of competition, strategy, and creativity.

Corporate Culture

Homework CheckDelayed till Wednesday……………………..