2.5 Org/Corporate Culture

An American company known for taking big risks in its product line and promotions, and which encourages intrapreneurship and individual risk-taking, opens an office in Japan. You can expect there to be significant adjustments to maintaining the same corporate culture in Japan. This is because, according to Hofstede’s cultural dimensions, Japanese culture is: 

• High on teamwork and low in entrepreneurship

• Low on individualism and high on uncertainty avoidance

• Low on individualism and high on risk-taking

• High on entrepreneurship and low on uncertainty avoidance

Answer explanation

Japanese business culture is known for its collectivist approach, relying heavily on group decision-making and for maintaining traditions as opposed to encouraging individual risk-taking. For this reason, according to Hofstede’s cultural dimensions, the new overseas office would experience a slight culture clash in Japan since the culture there is low on individualism and high on uncertainty avoidance.

Organisations that are highly structured, paying special attention to rules and procedures, with very specific job descriptions, deliniation of duties and accountability, have a type of culture known as:

• Role Culture

• Task Culture

• Person Culture

• Power Culture

Answer explanation

Role cultures exist in organisations that have a strong organisational structure with very specific rules and procedures, detailed job descriptions, deliniation of duties and accountability. 

Which of the following cannot be claimed as an advantage to a business that has a strong organizational culture

• It minimizes misunderstandings and miscommunications in the workplace

• It creates a sense of belonging for both management and employees

• It eliminates mistakes being made by the workforce

• It fosters team cohesiveness

Answer explanation

Whilst a strong organizational culture can minimise misunderstandings and miscommunications, it does not eliminate mistakes from being made by workers.

Which term describes a difference between the desired culture of an organization and the actual culture that exists?

• Culture gap

• Power culture

• Cultural quotient

• Cultural norm

Answer explanation

A culture gap exists when there is a difference between the desired culture (e.g. innovative and risk-orientated) of an organization and its actual culture (e.g. inward-looking and risk-adverse).

It is common for some top-paid professional footballers (soccer players) to break their employment contracts if a rival football club is willing to pay them a higher salary. This is an example of which type of organizational culture?

• Person culture

• Task culture

• Power culture

• Role culture

Answer explanation

According to Charles Handy, a person culture exists when people see themselves (or their skills set) as being more important than the organization.

Who created the "Gods of Management" - a theory of the different types of organizational culture. His theory identified four ‘gods’ or types of culture: power, task, role, and person cultures.

• Frederick Taylor

• Abraham Maslow

• Charles Handy

• Paul Hoang

• - TRUE OR FALSE =

• Different leadership styles within an organization is likely to be a source of corporate culture clash.

• True

• False

• - TRUE OR FALSE -

• Centralized decision-making is likely to be a source of culture clash in a relatively small business organization.

• True

• False

Answer explanation

What is centralized decision making? Decisions are predominantly made by a very small group of senior managers at the top of the organizational hierarchy.