Task 1

Different Theories of Organizational Culture

Bellot (2011) discusses the following organizational cultural theories.

Edgar Schein Organizational Culture Model – According to this model of organizational culture,

the culture of an organization has three distinct levels which are artifacts and behaviors,

espoused values, assumptions embedded and taken for granted.

Deal & Kennedy Organizational Culture Model – This organizational culture model suggests that

none of the cultural types is superior to others since all the types are consequences of

circumstances. The significance lies with the understanding of how it evolves as well as

managing various elements influenced by it.

Different Types of Organizational Culture

According to Cameron & Freeman Model, four types of organizational cultures are defined here

as under (Prajogo, and McDermott, 2011):

Hierarchy – different stages or hierarchies of management in the organization. It is process-

oriented with a control structure.

Market – taking care of the macro environment of the market and the transaction cost of the

business. It is results-oriented with a competitive culture.

Clan – focus on team and its flexibility to carry out activities. There will be no strict rules and

regulations. It is people-oriented with friendly collaboration.

Adhocracy – offering more flexibility for boosting up as well as being more adaptive towards

success. It is a dynamic and entrepreneurial create culture.

How Culture is Manifested Within an Organization

Tesla depicts its organizational culture through its customs and values that represent its

employees' conduct and decisions. It does it by empowering them to seek ideal solutions that can

aid the organization in standing out not only in the automotive industry but also in generating the

energy and storage industry. The organization also encourages its workforce's innovative

practices to bring persistent improvement in the organization and its business. Tesla also

optimizes employees through various training and development programs to achieve creative and

innovative behavior in its workforce as these behaviors are essential for the organization in

maintaining its basis of technological innovation (Meyer, 2019).

 Task 2

Cultural Values in Operation in an Organization

Tesla sits at the helm of innovation in clean energy and electric vehicle markets. Accordingly,

the company has developed an innovative culture to train the employees to innovate processes

and technologies following the changes in the technological environment and internal need for

change. Tesla also has a huge focus to align business and its team. It trains its employees in a

way that the goals of its teams are aligned with the goals of the organization. For this, it ensures

that the training program and organizational goals are organized around the different departments

of the organization (Joshbersin, 2018).

Influence of Cultural Values on Leadership Style & Business Structure

Tesla’s organizational culture and its values surround innovation because its strategies and

organizational goals stick around innovating people, processes, and technology. So, to respond to

the dynamic environment, HR leaders in the organization regularly arrange various training

programs. This enables Tesla to adapt to the new changes fast. Leaders of an organization embed

immersive learning experiences with the help of training and development into the chief

moments of an employee’s work, career, and life (Davies, 2017). This helps its business grow

successfully and be more profit-oriented.

Influence of Cultural Values on Productivity

Tesla’s organizational culture has been developed considering the core human resource values

along with the innovation through which the company aims at improving performance based on

mutual collaboration and effective communication. The company strives to promote relevance in
the skill development and professional development of employees with organizational strategy to

achieve certain objectives (Kelly, 2020). Thus, building the human resources and training them

at par with the organizational goals sets a parameter for the company to achieve these goals using

the potential human resources. This not only improves the productivity of employees in the

organization but also the productivity of the organization itself.

 Task 3

Effect of Organizational Culture on Business

Organizational culture is a collection of organizational values as well as shared beliefs to be

practiced in an organization by all the team members. It is a pool of traits that define what a

company is. Organizational culture and its underlying values have a huge influence on the

behavior and expectations of employees and managers in the business. Since the organizational

culture of Walmart is not very productive for its employees, there are lawsuits and criticisms

against poor working conditions, low wage rates, and long working hours (Raulpin, 2020). While

Tesla has implemented an open culture to boost creativity and continuous flow of new ideas

throughout the organization at all levels from management to production and development of

new products (Dobbs, 2016). Tesla values and cares for its employees.

Variation of Management Style in Power, Role, Task, & Person Culture

Cacciattolo (2014) describes how management style varies according to power, role, task, and

personal culture in the following table.

Role Culture Task Culture Power Culture Person Culture

High formalization Low formalization High formalization Low formalization

High centralization High centralization Low centralization Low centralization

Rules, procedure, & Flexible, task & result Personal power & Individual talent &

hierarchy oriented charisma ambition

Formal roles & status Cooperative teams & Short lines of Status based on

expertise communication profession

Stable environment Competitive Turbulent Predictable

 environment environment environment

Example: Example: Service Example: Example: Professional

Bureaucracies & big organizations & Entrepreneurs & small service firms

businesses adhocracies businesses

Type of Culture I would Prefer to Work in

Bellot (2011) emphasizes that the ideal workplace culture is the one that supports involvement

and provides positive, fun ways to its employees to allow them to get together for not just their

professional development activities but also their personal development. And it is not just within

the organization but also outside the organization in regular hours of the company. An

organization with positive culture is valued by all the employees by heart. And I would also

prefer to work in such an organization with a positive and ethical work culture.

Benefits to Organizations Behaving Ethically

Business ethics are responsible for executing the significant role of managing the organizations

to fulfill the essentials of the corporation in addition to fulfilling the duties of the public from

which they gain various resources for day-to-day operations of the organization (Kancharla, and

Dadhich, 2020). The staff and managers of the corporations that depict moral conduct are

proficient enough of making those conclusions that are measured to be publicly adequate.

Business ethics increases employee retention. Ethics rehearses play a vital part in constructing as

well as upholding character. Ethical performance does not lead the corporations to get hooked on

misconduct; as an alternative they let the clienteles choose as per their taste.
References

Bellot, J., 2011, January. Defining and assessing organizational culture. In Nursing forum (Vol.

46, No. 1, pp. 29-37). Malden, USA: Blackwell Publishing Inc.

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pp.1-7.

Davies, B., 2017. Tesla Employee Training Evolution. Rallyware. Retrieved 13 February 2022,

from https://www.rallyware.com/training-and-auto-technology-evolving-together-in-the-

industry.

Dobbs, M. E., 2016. Book Review: Tesla, SpaceX, and the Quest for a Fantastic Future. The

Journal of Applied Management and Entrepreneurship, 21(1), 83–85.

https://doi.org/10.9774/gleaf.3709.2016.ja.00009.

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mediating role of perceived ethical culture. European Journal of Training and Development.

Kelly, J., 2020. Tesla’s Leaked Employee Handbook Is As Unconventional As Founder Elon

Musk. Forbes. https://www.forbes.com/sites/jackkelly/2020/02/14/teslasleaked-employee-

handbook-is-as-unconventional-as-its-founder-elon-musk/?sh=54a9a2537ec2

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