what is the corporate culture ?

What kind of information will you get from this blog?

1. What is corporate culture?
2. How corporate culture works?
3. what are the different types of corporate culture?
4. what is Adaptability culture?
5. What is achievement culture?
6. what is involvement culture?
7. What is consistency culture?

 

The internal environment within which managers work includes corporate culture, production technology, organization structure, and physical facilities. Of these, corporate culture has emerged as extremely important to competitive advantage. The internal culture must fit the needs of the external environment and company strategy. Organizational culture can be defined as the set of key values, beliefs, understandings, and norms shared by members of an organization. The concept of culture helps managers to understand the hidden, complex aspects of organizational life. Culture is a pattern of shared values and assumptions about how things are done within the organization. Corporate culture can be analyzed at three levels, as shown in Figer, with each level becoming less obvious. At the surface level, there are visible artifacts, which include such things as manner of dress, patterns of behavior, physical symbols, organizational ceremonies, and office layout.

Visible artifacts are all the things one can see, hear, and observe by watching members of the organization. At a deeper level, there are the expressed values and beliefs, which are not observable but can be discerned from how people explain and justify what they do. These are values that members of the organization hold at a conscious level. They can be interpreted from the stories, language, and symbols organization members use to represent them. Some values become so deeply embedded in a culture that members are no longer consciously aware of them. These basic, underlying assumptions and beliefs are the essence of culture and subconsciously guide behavior and decisions. A big influence on internal corporate culture is the external environment. Cultures can vary widely across organizations; however, organizations within the same industry often reveal similar cultural characteristics because they are operating in similar environments. The internal culture should embody what it takes to succeed in the environment.

 

 

Various types of corporate culture:

corporate culture can be divided into four categories as shown figer, on the basis of following two dimensions - 

• The extent to which the external environment requires flexibility or stability.
•  The extent to which a company's strategic focus is internal or external.

 

Type's of corporate culture are discussed below -

 

1. Adaptability culture:  Adaptability culture is characterized by values that support the company's ability to interpret and translate signals from the environment into new behaviour responses. The adaptability culture emerges in an environment that requires fast response and high-risk decision making. Employees have autonomy to make decisions and act freely to meet new needs, and responsiveness to customers is highly valued. Managers also actively create change by encouraging and rewarding creativity, experimentation, and risk taking.

            Most companies in the electronics industry, as well as those involved in e-commerce, cosmetics, and fashion, also use an adaptability culture because they must move quickly to respond to rapid changes in the environment.

2. Achievement culture:  The achievement culture is suited to organizations that are concerned with serving specific customers in the external environment but without the intense need for flexibility and rapid change. This is a results-oriented culture that values competitiveness, aggressiveness, personal initiative, and willingness to work hard to achieve results. Siebel systems, which sells complex software systems, has thrived on an achievement culture. Professionalism and aggressiveness are core values. Employees are forbidden to eat at their desks or to decorate with more than one or two personal photographs. People who succeed at Siebel are focused, competitive, and driven to win. Those who perform and meet stringent goals are handsomely rewarded; those who cannot perform and meet stringent goals are fired.

 

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      3. Involvement culture: The involvement culture has an internal focus on the involvement and participation of employees to rapidly meet the changing needs of the environment. This culture places high value on meeting the needs of employees, and the organization may be characterized by a caring, family-like atmosphere. Managers emphasize values such as cooperation, consideration of both employees and customers and avoiding status differences.

 

       4. Consistency culture: The consistency culture, has an internal focus and a consistency orientation for a stable environment. This culture supports and rewards a methodical, rational, orderly way of doing things. In today's fast-changing world, few companies operate in a stable environment, and most managers are shifting toward cultures that are more flexible and in tune with changes in the environment.

 

conclusion 

From this blog, we learn about corporate culture and what are the different types of corporate culture and how corporate culture works?