Managing ChangeAQA A2 BUSINESS

Teaser

Write down the factors which lead to China’s rise in the emerging markets

What do you believe to be the most important factor in the role of China in the world economy today.

Lesson Objectives

1. To be able to define the term ‘Organizational Culture’ (KNOWLEDGE)

2. To be able to recognise the impact of different Organizational Structures in businesses (APPLICATION)

3. To begin to be able to consider the importance of a given structure for the success of a given business (ANALYSIS)

Definition

Organizational culture is the behavior of humans who are part of an organization and the meanings that the people attach to their actions.

Culture includes the organization values, visions, norms, working language, systems, symbols, beliefs and habits.

It is also the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving, and even thinking and feeling. Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders.

Considering two Organisations

Harrods

Poundland

Power Culture

Power - For a Power Culture firm control is the key element, decisions are made by one or a small number of people.

Power cultures are usually found within small organisations or a section/department belonging to a large organisation. This is because it would be difficult to run a large organisation where only a small number of people were allowed to make decisions.

In a power culture organisation, decisions can be made quickly as there is little consultation.

Entrepreneurial Culture

Organisations that have an entrepreneurial spirit, embrace change and take risks, are said to be forward looking.

Entrepreneurial businesses can have short life span because they take risks but they can also expand rapidly if their innovative approach is successful.

Entrepreneurial businesses are centred around profit and make the most of their staff through a task culture approach

Task Culture

Task culture refers to the use of teams to complete tasks especially if the task/objective has a number of steps. The establishment of project teams for the completion of specific objectives/plans is an example of task culture.

Project teams will be set specific tasks to complete within a set timescale and budget.

A task culture has a number of benefits; staff feel motivated because they are empowered to make decisions within their team

Other Types of Culture

Role Culture -In a Role Culture organisation, individuals are assigned a specific role or job. They may have a job description listing the tasks they are responsible for.

Person Culture - Person culture organisations focus on the people working within the organisation as they rely on the specialist knowledge of the workforce. Person cultures are found in organisations where there is an opportunity for employees to develop their career and skills.

The Impact of Culture

The Culture is a shared belief and as such drives the behaviour of an organisation.

Creates potential Crunch Points when trying new products or approaches

Eg Changes in Business Teachers

From a business point of view, which type of business would be most affected by changes to the external environment?

Practice Exam Question

From Module 4 June 2012 Attempt Section B Question 5

40 Minutes

Homework

Review the lesson and rework examples.

Note any questions for the next lesson.