CAT / FIA FBT Syllabus B. Business Organisation Structure, Functions - Factors that shape Culture of Organisation - Notes
THE FACTORS THAT SHAPE THE CULTURE OF THE ORGANISATION
The six major influences on the culture of an organisation
Size
– how large is the organisation in terms of turnover, physical size and employee numbers
Technology
– how technologically advanced is the organisation either in terms of its products, or its productive processes
Diversity
– how diverse is the company either in terms of product range, geographical spread or cultural make-up of its stakeholders
Age
– how old is the business or the managers of the business – how experienced are the strategic level decision makers
History
– what worked in the past? Do decision makers have past successes to draw upon; are they willing to learn from their mistakes?
Ownership
– is the organisation owned by a sole trader? Are there a small number of institutional shareholders or are there large numbers of small shareholders?