Factors Influencing Culture and Cultural Differences Within an Organisation

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Business: Factors influencing culture and cultural differences within an organisation Definitions
* Culture: ‘Way we do things’
* Sub-culture: Group of people within culture which have something which differentiates them from the rest of the culture. * Mission: Statement of business’ fundamental purposes
* Core Values: Essential guiding principles of a business * Vision Statement: Picture of organisation in the future. * Paradigm: Assumptions held in common and taken for granted in an organisation.

Theories
Charles Handy – Four Types of culture:
* Power: Focus on personal charisma and risk taking
* Role: Focus on position, bureaucracy, hierarchy
* Task: Focus on problem-solving, teamwork and creativity. * Person: Focus on individual needs, independence
Edgar Schein: 4 layers of organisational structure: Values, Beliefs, Behaviours, Paradigm Johnson & Scholes – Cultural Web: Structure, rituals, control systems, symbols Factors influencing culture

* Influence of founder
* Size and development stage of business
* Leadership style
* Organisational structure, policies
* Employee + management rewards eg bonuses
* Market which it operates
* Working environment eg office
* External environment eg economy
* Attitude to risk taking and innovation

Cultural Differences
* Subcultures develop based on occupations, product lines, geography eg Samsung in US and in S.Korea * Managing subcultures has become more difficult: Mergers, takeover, joint ventures are more common. Many firms now multinational, language barriers. More remote/specialised workers.

Research
Barclays Investment Banking: Aggressive and self-serving culture in order to get big bonuses was led by former boss Bob Diamond. He received a 2.7 million bonus. Forced to pay £500m in tax they attempted to avoid, shows a culture of greed. Barclays was most complained about bank. Fined £290m for fixing the libor rates...
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