N5 Corporate Culture
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Mod 1: Organisational
CommunicationChapter 1 in textbook
Combination of short and long questionsNormally question 1 in the Exam
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1. Corporate Culture p.2 (1.1)
2. External communication p.10 (1.4)
3. Internal communication p.11 (1.5)
4. Organisational hierarchy p.13 (1.6)
5. Formal Communication Channels p.15 (1.7)
6. Briefing p.18 (1.8)
7. Interventions p.18 (1.9)
8. Informal communication channels p.21 (1.10)
9. Work ethics p.23 (1.11)
What do we cover?
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1.Corporate CultureSee p.2 (1.1)
Definition: a system of beliefs (or convictions), values, customs and traditions shared by members of an organisation, and from which a particular code of conduct for the organisation in question evolves. By adhering to this code of conduct, members create a particular perception or image of the organisation which is unique and distinguishes it from other organisations.
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The CC evolves from an organisation – it’s◦ History◦ System of values by members
Examples of CC (see p.6)1. Old Mutual2. Checkers3. Toyota4. Woolworths5. Kentucky6. Chicken Licken
Corporate Culture (CC)
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1.2 Means of consolidating corporate culture Symbols (externally & internally)
External: logo, colour scheme, architecture/design Internal: physical arrangement of offices, allocation
of parking facilities, dress code. Rituals
Internal: welcoming, farewell parties, duration of coffee breaks.
External: degree of politeness (courtesy) shown when addressing clients, welcoming applicants for vacant positions, efficiency of service to clients.
CORPORATE CULTURE (CC)
See summary 1.1.3 on p.4
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Language – official language, tone, advertising slogans. Companies with mostly Afrikaans, English or Zulu-speaking employees would have different value systems. Sanlam and Old Mutual serves as example.
CORPORATE CULTURE (CC)
SLOGANS
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Anecdotes: stories regarding equal treatment, security, management, control within organisation. Threats, unfair treatment, way internal and external problems are managed.
Relationships: with members and non-members of organisation.◦ Managers and sub-ordinates◦ Managers of various departments◦ Members of different departments◦ Members of a particular departments◦ Members and non-members of the organisation.
Humour: Jokes involving “outsiders”
CORPORATE CULTURE (CC)
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CORPORATE SUBCULTURE◦ Creative subculture◦ High quality subculture◦ Productive subculture◦ Supportive subculture
Remember: the management has the task of creating and consolidating a climate or CC which is conducive to activities and well-being of all its members.
CORPORATE CULTURE (CC)
See summary 1.1.3 on p.4
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Leadership StylesSee p.5 (1.2)
Definitions: Leadership is the “process of influencing people to achieve certain objectives.Management is the “working with individuals and groups to accomplish organizational goals. It involves the coordination of human and material resources toward objective accomplishment.
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1. Autocratic (authoritarian)◦ They attempt to retain authority.◦ The make a decision and announce it.◦ They show little concern for opinions of sub-
ordinates.◦ They are inflexible, rigid and demanding◦ Task-orientated, do not concentrate on feelings.When is it good to have this leadership style?◦ In war or a crisis situation◦ Remember these leaders are extremely effective.KNOW THE DIFFERENCES – exploitive authoritative and benevolent authoritative. See p.7
Leadership Styles
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Authoritative Leadership Style
Benevolent authoritative Exploitive authoritative
Patronising and condescending
Members behave cautiously
More decision-making is allowed in group
Greater degree of cooperation amongst members
Task orientated whose efforts benefit people in the long run.
Shows no regard for group members
Threatening and exploitive
Members have no part in decision making
Bullies members to perform tasks
Exploits members for the purposes of the task
Little trust amongst members.
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Muammar Gadaffi- Libya
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McDonalds restaurant chain:Q – QualityS - ServiceC - Cleanliness
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2. Democratic (Participative / Consultative)◦ Share decision-making with members◦ Time-consuming and unfit for certain situations
3. Laissez faire (free rein)◦ Informal type of leadership◦ General goals and guidelines, no further
involvement◦ Seldom seen – but suitable in certain situations for
example group of engineers solving a problem◦ Can leave sub-ordinates frustrated.◦ These leaders can be seen as weak and inefficient
Leadership Styles
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Democratic Leadership Style
Consultive-democraticSuggestive-democratic
Participative-democratic
Allows maximum participation from members.
Facilitates discussions High level of trust Leaves final decision to
the group Help group to
accomplish what they want and abide by their decision
Allows group to make practical decisions
He/she still retains authority to make major decisions
Members discuss freely, but leader can veto.
High degree of involvement from sub-ordinates
He presents problem, asks suggestions, and then make a decision
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Leadership styles
Task-oriented Employee-oriented
Leader wants task to be performed as quickly as possible
Little concern for employees and feelings
Regard people as lazy and untrustworthy
Closely linked to authorotative and autocratic
Believe in people Their feelings, needs
and opinions need to be taken into account
Low in task-orientation
Resemblance to laissez faire or participative-democratic leader
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The following aspects are unique to each organisation and can help develop a unique corporate culture:
◦ Goals◦ Structure◦ Cultural background of each member◦ Leadership style of management◦ Way in which members communicate
CORPORATE CULTURE (SUMMARY)
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2. External Communication
See p.10 (1.4)
Definition: Members on all levels communicate verbally (orally or in writing) or non-verbally (gestures, appearance, attitude) with individuals or groups outside the organisation.This can be formal or informal. Every individual has a reference group of at least 100 people, the message he conveys have a profound influence on the image of the organisation.
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AIMS OF EXTERNAL COMMUNICATION◦ Marketing
Process of assessing or creating a consumer or user demand for a product of service within a particular section of the population
Surveys, market research finds out what public need Merchandising (presentation), advertising,
exhibitions, press releases.◦ Public relations
Deliberate, planned and sustained effort to establish and maintain mutual understanding between an organisation and its public.
Press releases, AGM’s, correspondence
External Communication
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Means (or ways) of external communication◦ Interpersonal communication (member&public)
Oral: telephone, face-to-face, meeting, interview Written: letter, fax, telegram, contract
◦ Non-verbal (means other than words) Polite, purposeful, business-like, correct, clear, neat
◦ Communication in the mass media When message is conveyed virtually at same time.
◦ Oral communication Written – Press releases, advertisements, televised
messages, sales promotion letters, circulars, catalogue
Non-verbal – poor printing quality, bad tv lighting
EXTERNAL COMMUNICATION
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3. Internal Communication
p.11 (1.5)
Definition: Each organisational structure has a system of superiors and subordinates (leaders and followers) who communicate or interact with one another at all levels in order that the organisation may reach its goals.
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The command function: to give and obey instructions
Task leadership The relational function: pursuit of sound
interpersonal relations People-oriented leadership
The ambiguity-management function: refers to a combination of command and relational functions
The superior gives instructions but also look after the emotional needs of his subordinates.
Functions of internal comm
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Oral communication Formal / less formal meetings, discussion groups,
lectures, talks, interviews, announcements, interpersonal conversations
Written communication Personal letters, circulars, memorandums, telephone
messages, reports, minutes, staff magazine, notices, electronically
Non-verbal communication Facial expressions, tone of voice, personal
appearance, appearance of one’s work
Media used for internal comm
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4. Organisational Hierarchy
See p.13 (1.6)
Definition: The logical structure (organisational hierarchy) of an organisation is indicated graphically in a diagram called the organigram or organisational chart.As an organisation develops, so does the complexity of its pyramid of head, senior and middle and junior staff. The size (so-called “span of control”) should be limited and should be granted reasonable authority, otherwise communicative and administrative problems could arise.
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Line vs Staff authority
Line authority Staff authority
Aimed at achieving special goals
Managers derive line authority from hierarchical position over sub-ordinates
Functional approach Product approach Geographical approach Matrix approach
Based on the expert knowledge of its incumbents
Have the same legitimate power as line authority, but derives power from expert advice.
The lawyer as legal advisor earns less than manager, but he is invincible.
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Example of both …
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5. Formal Comm Channels
See p.15 (1.7)
Definition: Information in an organisation flows down, up, across the organisational pyramid, from boardroom to shop-floor, from one department to another. Information is based on certain communication routs or channelsThey can be vertical, horizontal (lateral) or diagonal.
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Vertical communication Principal channel for routing policy, decisions and
instructions from top management downwards to personnel at various levels; it also describes the upward channels through which suggestions, criticism and queries flow from lower levels to top levels.
Horizontal communication Comm between people at the same or similar levels
within organisation (so-called peer groups) Diagonal communication
Comm across hierarchy within organisation. Accountant using GM’s secretary to help him.
Formal Comm Channels
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6. BriefingSee p.18 (1.8)
Definition: The divulging of information and issuing of instructions of work to be done. It could occur internally, or externally. Any brief should be in writing, prepared before the briefing meeting. Copies should be handed out at the beginning of the meeting.
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Tell the group what the brief is about Example: a new beauty soap
Tell the group what the brief is for Television advert for the new soap
Summarise the main points of the brief Ask the group to repeat the main points Agree on changes to the brief Send the group a copy of the revised brief
Only if brief is clearly formulated and understood can the task be classified as satisfactory performed
Briefing – Procedure followed
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7.InterventionSee p.18 (1.9)
Definition: Technique or procedure designed to interrupt, interfere with or modify an on-going process. An intervention is a conscious effort to solve problems, neutralise competition, or end conflict.This could involve internal or external communication. It can also use means of non-verbal, oral, written or a combination of the three.
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1. Solving less serious or routine problems Can be done by a disapproving glance, a timeous
gesture from a colleague.
2. Solving more serious problems Disciplinary interview Consultation
3. Solving conflict Solving a state of tension between two or more
individuals or groups because the desired outcomes are mutually incompatible.
Causes: faulty communication, negative criticism Make use of bargaining and 3rd-party interventions
Types of interventions
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8.Informal Comm Channels
See p.21 (1.10)
Definition: Information which is conveyed by routs or channels other than those indicated on the formal organisational chart (organigram). It involves oral, written and non-verbal comm through which messages, moods and attitudes are conveyed either consciously or unconsciously.
Group D
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1. Grapevine Unofficial system of comm where info is based on
rumour or hearsay. Messages orginate from confidential letters left unattended, voices behind closed doors etc. It is faceless but powerful.
It sometimes conveys info which is incorrect Cannot eradicate the grapevine, but negative effects
can be minimilised through good communication.
2. Job and social discussions Phatic comm: use of words in order to establish
rapport or good social relations rather than to convey meaning. See example 1.10.2.2
Informal Comm Channels
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Informal Comm – pos and neg
Advantages Disadvantages
Quicker than formal Warn management of
problems Give opportunity to
investigate problems Barometer for staff
moral Only negative when
staff is unhappy
Waste time Breed inappropriate
familiarity between jr and sr staff.
Low moral = gossip, personal slurs and unethical staff behaviour.
Reduce staff moral Organisation becomes
ineffective
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9.Work EthicsSee p.23 (1.11)
Definition: Behaviour which is acceptable in the pursuit of the organisation’s aims and objectives.
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An employee owes the employer: A honest day’s work for an honest day’s pay Obedience to the rules One’s best efforts and a positive attitude Integrity and professional conduct towards superiors,
sub-ordinates and peers Respect for the employer’s property A professional appearance
A secretary should subscribe to the following work ethics:
Punctuality, Neatness, Confidentiality, Professionalism, Consideration for others
Work ethics
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