Organisational Culture In The Aspect Of Companies Commerce Essay

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Organisational culture is the way a company is run or how you feel when you walk into an organisation, weather it is fast moving and responsive or whether it feels old and backward looking, this feeling is referred to organisational culture.

Culture is about how the organisation organises itself, its rules, procedures and beliefs make up the culture of the company. It consists of basic behavioural norms, values and beliefs of the organisation.

[1]There are six types of organisational cultures.

Power Culture

With power culture, control is the key. Power cultures are usually found within a small or medium size organisation. Decisions in an organisation that display a power culture are centralised around one key individual. That person likes control and the power behind it. As group work is not evident in a power culture, the organisation can react quickly to dangers around it as no consultation is involved. However this culture has its problems, lack of consultation can lead to staff feeling undervalued and de-motivated, which can also lead to high staff turnover.

Role Culture

Common in most organisations today is a role culture. In a role culture, organisations are split into various functions and each individual within the function is assigned a particular role. The role culture has the benefit of specialisation. Employees focus on their particular role as assigned to them by their job description and this should increase productivity for the company. This culture is quite logical to organise in a large organisation.

Task Culture

A task culture refers to a team based approach to complete a particular task. They are popular in today's modern business society where the organisation will establish particular project teams to complete a task to date. A task culture clearly offers some benefits. Staffs feels motivated because they are empowered to make decisions within their team, they will also feel valued because they may have been selected within that team and given the responsibility to bring the task to a successful end.

Person culture

Person cultures are commonly found in charities or non-profit organisations. The focus of the organisation is the individual or a particular aim.

Forward and backward looking cultures.

Organisations that have an entrepreneurial spirit always embrace change and listen to staff and customers are said to be forward looking. Forward looking organisations are risk takers and do well because of it. A backward looking culture does not embrace change and is led by systems and procedures. They do not take risk and because of it are usually left with a business not doing so well.

Diagram: Forms of organisational culture.


Ethnic Culture in an organisation is a big group of people sharing a common skin colour, national, religious, language or cultural heritage. Ethnic culture is the way of life of a particular society of group of people including patterns of thoughts beliefs, behaviour, customs, traditions, rituals, dress, language and art. Ethnic culture is everywhere even at schools and universities.

Difference between ethnic and organisational culture

Common values and beliefs of an organization's culture can be used to control employee behaviour. However, the use of organizational culture to control behaviour assumes that employees either already have, or can be taught with common values and beliefs. The flow of immigrants across national borders increases the diversity of organization workforces. This diversity may include employees who hold values and beliefs associated with their membership in different ethnic cultures. It may be difficult or impossible to infuse common values and beliefs in such a diverse workforce. A bureaucratic form of organizational governance, in which rules and expectations are made explicit, may be more appropriate when organizations' employees are members of diverse ethnic cultures.

The other differences are:



Attachments of individual

Effect of culture

Variety and diversity in culture

Flexibility in culture

No of people in culture

Question 2A

I'm working for a contractor who is contracted to Icon security he is a pacific islander. During my employ with him I noticed his leadership as Democratic Style.

He is a democratic leader who sees himself as equal to everyone. My boss has a democratic personality and looks after everyone as one and does not play any favouritism.

He's an honest and open person who discusses everything with his employees before reaching to a decision in his business and everyone has a chance to express their views on decision made.

This is uplifting to the staff members and it motivates us to do the work on time and try to do our best at work because in the security field time is of the essence because we work with a roster of companies to patrol and each company has a specific time frame of which we have to get to work done

He has great communication skills and is very good at creating a positive environment for the workers, every few months we have a BBQ at his premises in order to get to know each other's culture and beliefs better.

This has turned our team and his company into a professional work force. The leadership style has an impact on the leaders cultural aspects because I think Islanders are quite polite and are very soft spoken yet others may be very aggressive and have a harsh tone of speaking.

The leaders' perception I would say is not an adaptation of his cultural background but of the way he was brought up. He is very professional at what he does.

Question 2B

If I was the boss of a security company who was contracted to another larger security company I would put my own cultural beliefs beside and be as one that is equal to all of my co-workers at Icon Security and help each other be a democratic person. I would move freely between the groups and not just hang out with Indian people. I will give each person a seat at the table and will view their thoughts and opinion and take it into considerations to make the culture within my company more relaxed and to put their ideas on the board. The democratic leadership style thrives when all the considerations are put out for everyone to observe.

My team and I may not agree with every idea, which is ok but it is very important to create a healthy environment were ideas are heard and considered.

As a democratic leader I will participate in the decision making process but I will have the final say on all decision regarding my company but will still allow insights and ideas to be heard.

As a democratic leader I would need to acquire some qualities of the autocratic or bureaucratic leaders and use some of the styles as required.

As a democratic leader I have to see a balance in decision-making process.

Question 3

A multicultural organization is where employees of varied backgrounds, cultures, ethnicities, and experiences can contribute freely and achieve their individual potentials for their own and their organisations benefit. Due to globalisation and massive migration of people diversity is increasing at the workplace, leaders has to learn to work with multicultural group of employees and customers.


Developing new skills - taking time to train and develop staff.

Learning new culture and their traditions - getting to know each other's culture and tradition.

Learning new languages - take an effort to learn a new language even if its few word a day.

Adaption of new culture - learning to adapt to cultural change in the work place.

Creative problem solving - get together and start storming with problems.


Can create conflicts - cultural discrimination may cause problems.

Difficult to manage - it can be hard to cater for everyone's culture.

Communication and understanding problems - language and accent can cause a barrier in communication.

Less social interaction - people from same culture or country tends to clan together with their own kind and do not feel comfortable with people not like them.

More interpersonal problems - bickering and back stabbing amongst working can cause problems.

Various aspects of culture and leadership structure:

Power distance short or long, it's the desire of a leader to hold power. A long power distance means inequalities are clear and obvious and less social interactions, eg...

Scandinavia - very short power distance

America - relatively short power distance

China & Arab Culture - Long power distance. They are rank conscious, respect seniority, status symbols.

Japan - Short power distance & more participation

The culture affects leadership as much as leadership affects culture, a strong organisational culture with values and internal guides for more autonomy at lower levels can prevent top admin from increasing its personal power. The culture can affect how decisions are made with respect to such areas as recruitment, selection and placement within the organisation.

Consideration of culture in leadership is growing due to globalization and interdependence with people of other culture. Leaders who understand culture and its impact can adjust their leadership style to be more effective with people of different cultural backgrounds. Leaders need to be attentive to the conservativeness reflected in beliefs, values, assumptions, rights and ceremonies embedded in the culture that can hinder efforts to change the organisations. Different culture clusters had different leadership profiles, but can certain features were valued across culture like honesty, planning, optimism, dynamism, confidence, motivation, intelligence, decisiveness and foresight.