4 Main Types of Organisational Culture

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  • 4 Main Types of Organisational Culture
    • Power Culture
      • Have centralised structures
        • Decision making authority limited to small number of people
          • Maybe just one person in the centre (e.g. the owner)
      • May begin to struggle if business grows and can't be run from the centre
      • Employees likely to be more resistant to change
        • Don't have opportunity to give opinions on changes to be made and not made
        • Feel they don't have enough faith in senior managers who they feel are out of touch with day-to-day business
    • Role Culture
      • Common in bureacratic firms where authority defined by job title
        • Decisions come from senior managers, so employees don't have opportunity to get involved in decision making
      • Organisation tends to have poor communication between departments
        • Respond slowly to change
          • Could result in them losing out to competitors in new/exapanding markets where strategies need to be developed / implemented quickly
      • Organisation tends to avoid risk for fear of failure
        • Change is quite rare
      • Any changes brought in will meet resistance as employees not used to doing things differently
    • Person Culture
      • Common in loose organisations of individual workers
        • Usually professional partnerships
          • Solicitors
          • Accountants
          • Doctors etc.
      • Firm's objectives defined by personal ambitions of individuals involved
        • Firms have to make sure these individuals do have common goals
      • Decisions made jointly, so all employees likely to be comfortable and accepting of any changes as they have agreed to them
      • Decisions on change can be difficult to make
        • Individuals often think about what is best for themselves rather than what is best for the whole organisation
    • Task Culture
      • Organisation places emphasis on getting specific tasks done
      • Gets small teams together to work on a project, then disbands them
        • May be conflict between teams for products, resources and budgets
        • Can be confusing if a firm has too many products or projects
      • Supports objectives based around the products (e.g. make X the market leader etc.)
      • Responds well to management by objectives
        • Translates corporate objectives into specific targets for each department and individual employee
      • Staff likely to think change is normal from changing teams often and working with a variety of people
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