Business Cultures - Essay Example

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This idea of a business having a culture was first developed by Hofstede (1980), in his work Cultures Consequences, where he suggests that the way businesses are operated and organized within a country reflects its national culture. Gareth Morgan (1986), in his Images of…
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Download file to see previous pages These beliefs and expectations produce norms that powerfully shape the behaviour of individuals and groups within the organization” (Schwartz and Davis 33).2 From an employee’s standpoint it would simply be “the way we see and do things around here.”3
In 1985, noted writer Charles Handy, in his book Understanding Organizations, drew inspiration from Roger Harrison’s (1972) work to link organizational structure to business culture and elucidated Harrison’s four types of business cultures.
This culture is centered around a strong leader, who wields all the power and influences the company culture with his personality. For example, Jack Welch (former CEO of General Electric) and Rupert Murdoch (News Corporation). At times businesses are dominated by the owner/founder, for example, Michael O’Leary (Ryanair) and Richard Branson (Virgin). Its structure is usually represented by a web.
Dramatic changes can be made to make the business successful as the leader has no opposition. Fair and firm leaders distribute resources equally and are generous to loyalists. As there is no need for consultation and few rules, quick decision making is possible helping businesses react fast to fluid market situations.
Fear rules, and there is abuse of power and political intrigue. As only one individual is making decisions, he could make an error in judgment affecting the organization’s success. There is low motivation, high turnover, and poor loyalty among staff, who feel undervalued because of the prevalent inequality. Subordinates work to patronizing their managers to get rewarded. The second level of management is underdeveloped since powers are not delegated. The web can break if the organization becomes too complex and big.
In role culture (previously termed “bureaucracy”), businesses are split into various functions, and every individual has predetermined roles, with a clear reward system. Usually found in large hierarchical organizations with ...Download file to see next pagesRead More
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