Syllabus: International Baccalaureate - Individuals and Societies - Business management (Higher Level)
Module: Unit 2: Human Resource Management
Lesson: 2.5 Organizational (Corporate) Culture (HL Only)

Introduction

This topic, “Organisational (Corporate) Culture,” is a Higher Level-only component within Unit 2 of the International Baccalaureate (IB) Business Management course. Aligned to the “Individuals and Societies” subject group, this unit focuses on the internal environment of businesses and how cultural frameworks shape behaviour, strategy, and performance.

The exploration of organisational culture is essential for understanding how values, assumptions, and shared beliefs influence decisions, employee engagement, leadership effectiveness, and ultimately, the success of a business. With increasing emphasis in the IB on global contexts and real-world application, this topic lends itself to rich discussion, case analysis, and workplace relevance.

Key Concepts

Students studying this HL-only subtopic are expected to:

• Understand what organisational culture is and why it matters.

• Explore Charles Handy’s four types of culture:

  • Power culture: Centralised decision-making, often seen in entrepreneurial or authoritarian structures.

  • Role culture: Hierarchical, governed by rules and procedures, common in large bureaucracies.

  • Task culture: Team-oriented, with a focus on outcomes and problem-solving.

  • Person culture: Individual-focused, seen in professional partnerships (e.g. law or accountancy firms).

• Recognise the influence of culture on motivation, strategy, and change management.

• Assess how organisational culture can be aligned or misaligned with a firm’s objectives, especially during periods of growth, mergers, or leadership changes.

• Evaluate the impact of leadership style on culture and vice versa.

• Analyse the challenges of changing culture, including resistance, communication, and leadership involvement.

These align with broader learning aims in the IB curriculum such as critical thinking, ethical consideration, and cultural awareness in business contexts.

Real-World Relevance

Organisational culture has never been more topical. Several global case studies can bring the syllabus to life:

• Netflix: A classic example of “freedom and responsibility” task culture. The company’s culture deck has been widely shared and credited for driving innovation and accountability.

• Uber (2017): Faced backlash over its toxic internal culture, prompting a major leadership overhaul and cultural transformation under new CEO Dara Khosrowshahi.

• Zappos: Emphasises employee happiness and a strong people-first culture, which CEO Tony Hsieh believed was central to brand loyalty.

• Amazon: Frequently scrutinised for its hard-charging performance culture, which can be seen as either a strength (innovation, speed) or a liability (burnout, attrition).

These case studies show how culture is more than a buzzword – it’s a strategic asset or liability, directly influencing outcomes and reputation.

How It’s Assessed

Assessment of this sub-topic appears in Paper 1 (based on a case study) and Paper 2 (structured questions). Key exam characteristics include:

• Command terms: “Explain,” “Analyse,” “Discuss,” and “Evaluate” are commonly used, requiring students to show depth and application.

• Students may be asked to:

  • Analyse the type of culture present in a case study firm.

  • Evaluate the advantages and disadvantages of a particular culture.

  • Discuss the implications of cultural change during a merger or leadership transition.

• The IB rewards structured answers, integration of theory with applied examples, and balanced evaluation.

Students benefit from using models (e.g. Handy’s) as analytical frameworks when answering applied questions.

Enterprise Skills Integration

Organisational culture links closely with several Enterprise Skills themes:

• Decision-Making & Problem-Solving: Understanding cultural barriers to strategic decisions or implementation challenges.

• Commercial Awareness: Recognising how culture affects productivity, innovation, and stakeholder relationships.

• Workplace Readiness: Prepares students to navigate different workplace cultures, including digital or hybrid norms.

Our simulations and Skills Hub tools help students explore how cultural factors impact leadership, team collaboration, and stakeholder engagement in practice.

Careers Links

This topic directly supports Gatsby Benchmarks 4, 5, and 6:

• Benchmark 4: Links classroom content to career contexts, e.g. how understanding culture is crucial for HR, consulting, or management roles.

• Benchmark 5: Employer case studies from the Skills Hub show how culture influences hiring, retention, and leadership development.

• Benchmark 6: Simulations replicate decision-making within varying cultural environments, providing pseudo-workplace experience.

Relevant careers and progression routes include:

• Human Resource Management

• Organisational Psychology

• Consulting

• Corporate Leadership Development

• Change Management

Professional competencies such as adaptability, communication, and team dynamics are all enhanced by understanding corporate culture.

Teaching Notes

• Start with self-reflection: Ask students to consider cultures in schools, clubs, or workplaces they’ve experienced.

• Use Handy’s model as an anchor: Have students categorise real firms using the four types and justify their choices.

• Incorporate debates: “Is culture more important than strategy?” stimulates higher-order thinking.

• Common pitfalls:

  • Confusing leadership style with organisational culture.

  • Overgeneralising culture without referencing specific behaviours, values, or structures.

  • Neglecting external factors (e.g. market pressures, leadership change) when analysing cultural shifts.

Extension Activities

• Mini research task: Investigate the culture of a real company and present findings using Handy’s framework.

• Simulated decision-making: Use Skills Hub tools to role-play leadership decisions in a cultural clash scenario.

• Cultural audit: Design a checklist students could use to assess organisational culture in any setting.