Study Notes
What is Organisational Culture?
- Level:
- AS, A-Level
- Board:
- AQA, Edexcel, OCR, IB
Last updated 22 Mar 2021
Although most of us understand in our own minds what is meant by , it is a slightly woolly concept that is hard to define precisely. We know (and can often sense) a "culture" exists when we visit a business as a customer or work there, but how can this be explained?
A great way to describe business or corporate culture is:
"The way we do things around here"
Culture consists of factors such as:
- The shared values of a business
- The beliefs and norms that affect every aspect of work life
- The behaviours typical of day-to-day behaviour
- The strength of a culture determines how difficult or easy it is to know how to behave in the business
The culture of a business is reflected in many ways – including the following:
- How employees are recruited – the cultural factors that make one applicant more suitable than another
- The way that visitors and guests are looked after
- How the working space is organised
- The degree of delegation & individual responsibility
- How long new employees stay in a business
- How contracts are negotiated and agreed
- The personality and style of the sales force
- The responsiveness of communication
- The methods used for communication
- How staff call each other (e.g. first name)
- The nature and style of marketing materials
- The speed with which decisions are taken
- The number of layers in the management hierarchy
Strong v Weak Culture
When you visit a range of businesses you soon get a sense of the strength of the business culture. If a culture can be measured as then how might this show itself?
Signs of a strong organisational culture include:
- Staff understand and respond to culture
- Little need for policies and procedures
- Consistent behaviour
- Culture is embedded
Evidence that points to a weak organisational culture include:
- Little alignment with business values
- Inconsistent behaviour
- A need for extensive bureaucracy & procedures
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