What Influences the Business Culture?

Culture Definition

Cultures in organisation is defined by how the organisation is run, how the personalities within the organisation interact with each other and also how the structure of the company is set out.

  • Many different factors influence what type of culture an organisation will be, such as;
  • The History
  • The Technology
  • The Size
  • The Environment
  • The Owners
  • The Employees

I will be going over a brief overview of the factors here, but as most are pretty obvious, I won’t go into too much detail.

The History

Age of company – Older companies will tend to be more power oriented, due to a stricter view on work back in the day, when newer companies tend to think about employees more.

Technology

Technology companies tend to be smaller and work in an innovation culture, meaning that they need to be more team orientated, showing a task culture.

Size

As stated in the power culture, when companies are small it is more under one person to control it. However, it can also mean that more people are involved, making it a person culture. Normally bigger companies are role or task.

Environment

This means the market they are in and the competition around them. If it is a quick changing market, then the organisation needs to keep up, so must have a culture which allows this.

Owners

The way the owners want to run the organisation is also a big point, if they want to have all the power then a power culture will be create, if they want to have teams and groups then a task culture will be used.

Employees

People want different things when at work, and this is shown in most of the articles for the different cultures. People who are risk takers will want to work in a power culture, people who just want to get to work and get on with it will work in a role culture.

Key Learning Points

  1. How do you Define Culture?
  2. What are the Four Main Culture Types?
  3. Describe the other Cultures?
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