IB Business Management 2.5.2 Individuals and Organizational Culture Notes

Businesses Shape and Are Shaped by People

1. Organizational culture is often unwritten but deeply influential.
2. It shapes how employees behave and how the company is perceived internally and externally.

How Organizational Culture Forms and Evolves

1. Leadership Influence: Business leaders set the tone by establishing values and expectations.
2. Employee Behavior: Over time, employees reinforce or challenge these values through their daily actions.
3. Company Policies and Traditions: Formal policies, rituals, and social norms shape the overall work environment.
4. External Factors: Industry trends, customer expectations, and societal norms also play a role in shaping culture.

The Role of Individuals in Organizational Culture

1. Adapting to Culture: New employees often adjust their behavior to align with existing norms.
2. Challenging the Status Quo: Some employees push for cultural change, whether through innovation or questioning outdated practices.
3. Reinforcing Norms: Long-standing employees and managers help sustain the company's traditions and values.

Hofstede’s Cultural Dimensions: Understanding Business Across Borders

1. Dutch social psychologist Geert Hofstede studied how national cultures impact workplaces.
2. He identified six key dimensions that shape how people communicate, work, and make decisions in different cultures.

Hofstede’s Six Cultural Dimensions

1. Individualism vs. Collectivism

1. Some cultures emphasize personal achievement (individualism), while others prioritize group success (collectivism).
2. Individualistic cultures (e.g., USA, UK) value independence, personal rewards, and competition.