Organisational and

Corporate Culture

• HL – Explain the influences on organisational and corporate culture

• HL – Describe different types of culture and analyse their effects on motivation and organisational structures

• HL – Analyse the consequences of culture clashes within and between organisations

Learning Objectives

Consequences of culture clashes

• Many businesses have turned themselves around from potential bankruptcy to success

• Very often this is achieved by changing the culture of the business

• The existing culture may be inappropriate and clash with new objectives

• http://www.forbes.com/sites/stevedenning/2011/07/23/how-do-you-change-an-organizational-culture/ - Read the article and pick out what was done in order to change the culture of the organisation

Consequences of culture clashes

• A merger or takeover may result in one of the businesses having to adapt its culture to ensure consistency

• http://www.guardian.co.uk/business/2009/oct/21/cadbury-kraft-sales-profits-job-losses - Read the article and explain the culture clash

• What impact may this have on employees and the business in general?

Changing Organisational Culture

• Changing the value system of a business and attitudes of all staff is never easy

• Process can take several years• It means changing the way people

think and act

Changing Organisational

Culture

Key common elements in

effective cultural

change are

Concentrate on positive aspects of

the business Obtain full commitment of people on the top and personnel

Establish new objectives and

mission statement which

accurately reflects new culture

Encourage bottom up

participation

Train staff in new

procedures

Change the staff reward

system

Evaluating Organisational Culture

• Significance and power of an organisation’s culture to drive peoples behaviour and attitudes shouldn’t be underestimated

• The impact of culture goes beyond the desire of most people to conform with accepted values