CHAPTER 3 THEORITICAL FRAMEWORK THE CONCEPT OF COPORATE CULTURE In this section, we will discuss the concept of corporate culture. First, we will define corporate culture. Next we will differentiate between national and corporate culture also we will discuss some type and models of corporate culture and finally, how managers can deal with cultural differences in the merger process. Definition of corporate culture There are different explanations of the word culture, each one depending on the way the word is used. Nahavandi and Malekzadeh (1998), defines culture as “the beliefs and assumption shared by members of an organization.”the author further explained that culture is usually companies are not having just one one culture as the use of the word suggests at times rather most companies have “more than one more than one set of beliefs that influence the employees’ behavior within their organization.” In the business environment, culture is often perceived as “the way we do things around here” this includes : “the way we deal with customers” ; “the way we treat other employees”; and even the way leaders relate to, develop, give incentive and motivate people.” (Deal and Kennedy, 1982). Aiman-Smith (2004) defined culture as the “web of tacit understandings, boundaries, common language, and shared expectations maintained over time by the members.” The author suggested seven ways of looking at corporate culture which he developed from anthropology: Historical: The view of culture as “a social heritage passed on from generation to generation.” Behavioral: The view of culture as “shared, learned human behavior or as a way of life” Normative: The view of culture as “ideals, values, or rules for living” Functional: The view of cultur... ... middle of paper ... ...process is very slow and risk taking and innovation is not encouraged. This culture may be dissatisfying to employees. • Task/achievement cultures: Here the emphasis is on finishing a particular task. The culture is “team-oriented” and employees are committed to a particular task. The specific task at hand determines how things are done. Employees are highly flexible and have a high degree of autonomy. It encourages creativity and employees are generally satisfied in the working environment. • Person/support culture: The focus here is on equality (egalitarianism). The approach to management is supportive and quick response to individual needs. Additionally, information is shared jointly. A decision is made only after all members have discussed and have reached an agreement. This type of culture is mostly seen in communities and cooperatives or in common amenities.
Culture often means an appreciation of the finer things in life; however, culture brings members of a society together. We have a sense of belonging because we share similar beliefs, values, and attitudes about what’s right and wrong. As a result, culture changes as people adapt to their surroundings. According to Bishop Donald, “let it begin with me and my children and grandchildren” (211). Among other things, culture influences what you eat; how you were raised and will raise your own children? If, when, and whom you will marry; how you make and spend money. Truth is culture is adaptive and always changing over time because
Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competitiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their actions to achieve its goals.
Culture is a difficult concept to put into words. “Traditionally anthropologists have used the term culture to refer to a way of life - traditions and customs - transmitted through learning” (Kottak, et al. 2008: p.11). Children inherit their culture, as well as social norms and ethics, through a process called enculturation. Enculturation, in essence, determines who a person will become, because culture defines who a person is. More specifically, “Culture is that complex whole which includes knowledge, beliefs arts, morals, laws, customs, and any other capabilities or habits acquired by man as a member of society” (Taylor, 1971/1951: p. 1). In modern society, our traditions and customs come from a variety of different sources. Television,
Chapter sixteen in our textbook highlights the benefits of organizational culture and what it can do for any company with a strong culture perspective. In fact chapter sixteen-three(a) speaks widely on how a strong culture perspective shapes any organization up well enough to perform better than any of its competitors who do not balance any organizational culture. If not mistaken after viewing SAS institute case they are well on track with facilitating a high performance organization culture. First, SAS institute motivate all employees to become goal alignment in their field of work. This is where they all share the common goal to get their work done. In one of the excerpts taken away from this case, an employee- friendly benefits summary expresses the statement “If you treat employees as if they make a difference to the company, they will make a difference to the company.” “SAS Institute’s founders set out to create the kind of workplace where employees would enjoy spending time. And even though the workforce continues to grow year after year, it’s still the kind of place where people enjoy working.” Clearly highlighted from this statement that SAS Institute is mainly ran off of a fit perspective. Which argues that a culture is only as good as it fits the industry. Allowing a good blueprint or set up will
To simply the understanding on this subject (Smircich, 1983) classified the perspective of organizational culture into five theoretical culture mainstreams in anthropology. 1. Cross culture management. 2. Corporate culture.
Culture can be defined as “A pattern of basic assumptions invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that has worked well enough to be considered valid, and therefore to be taught to the new members as the correct way to perceive, think and feel in relation to those problems”. Schein (1988). Organizational culture can be defined as a system of shared beliefs and values that develops within an organization and guides the behavior of its members. It includes routine behaviors, norms, dominant values, and feelings or climates. The purpose and function of this culture is to help foster internal integration, bring staff members from all levels of the organization closer together, and enhance their performance.
There are different approaches between the anthropological and sociological field about culture (Tressider and Hirst 2012, Thomas 2002, Gupta and Ferguson 1997, Montanari 2006). Culture can be defined as the traits (understood as the beliefs, traditions, values, codes, etc.) that a person can acquire as a product of being part of a community or society (Thomas 2002). In addition, Montanari (2006) defined culture as the congruence between tradition and innovation. Culture is also being transmitted by no biological processes (like behavioural patterns, adaptation to new environmental changes) and can be also defined as what we called “civilization”. (Thomas 2002). In other words, culture is part of human beings and
Culture is “a system of shared beliefs and values that develops within an organisation and guides the behaviour of its members” (Schermerhorn et al. 2011). It plays an important role in any organisation. For instance, in Woolworths we can se...
This type of culture results in lack of communication, lack of direction towards a common objective/goal and lack of commitment to the To ensure all the employees are competent, they need to develop a system to measure this competency. For example, they can do assessments to gauge competency. Besides that, they should provide compulsory and supplementary training to their employees to add in value and skills. Mentoring systems also can be implemented to ensure sharing of knowledge and experiences. Performance Rewards.
This essay gives a basic idea of what organizational culture is, and emphasis on the controversial issues of managing organizational cultures. As there are various definitions for organizational culture, and none of them are universally agreed. Therefore, for an easier understanding by readers, the definition of organizational culture given in this essay focusing on levels of culture, and will be discussed t together with Schein's(1983) framework. Before talking about managing organizational cultures, the types will be introduced first. Because, there are some descriptions about managing different types of organizational cultures, in the following content.
Culture varies from one organization to another as it is shaped by the values and beliefs of the people working there. As it progresses over the years, it takes form in such a way that it works or performs in a manner to regulate behavior, action and decision making processes within the organization. It not just includes written rules and regulations, but also the behavioral aspects faced by each one on a day to day basis.
In the end, what we learn from this article is very realistic and logical. Furthermore, it is supported with real-life examples. Culture is ordinary, each individual has it, and it is both individual and common. It’s a result of both traditional values and an individual effort. Therefore, trying to fit it into certain sharp-edged models would be wrong.
Corporate culture is the shared values and meanings that members hold in common and that are practiced by an organization’s leaders. Corporate culture is a powerful force that affects individuals in very real ways. In this paper I will explain the concept of corporate culture, apply the concept towards my employer, and analyze the validity of this concept. Research As Sackmann's Iceberg model demonstrates, culture is a series of visible and invisible characteristics that influence the behavior of members of organizations. Organizational and corporate cultures are formal and informal. They can be studied by observation, by listening and interacting with people in the culture, by reading what the company says about its own culture, by understanding career path progressions, and by observing stories about the company. As R. Solomon stated, “Corporate culture is related to ethics through the values and leadership styles that the leaders practice; the company model, the rituals and symbols that organizations value, and the way organizational executives and members communicate among themselves and with stakeholders. As a culture, the corporation defines not only jobs and roles; it also sets goals and establishes what counts as success” (Solomon, 1997, p.138). Corporate values are used to define corporate culture and drive operations found in “strong” corporate cultures. Boeing, Johnson & Johnson, and Bonar Group, the engineering firm I work for, all exemplify “strong” cultures. They all have a shared philosophy, they value the importance of people, they all have heroes that symbolize the success of the company, and they celebrate rituals, which provide opportunities for caring and sharing, for developing a spiri...
The concept of organizational culture is one of the most debated topics for researchers and theorists. There is no one accepted definition of culture. People even said that it is hard to define culture and even more change it. It is considered a complex part of an organization although many have believed that culture influences employee behavior and organizational effectiveness (Kilmann, Saxton, & Serpa 1985; Marcoulides & Heck, 1993; Schein, 1985a, 1990).
It brought organisational culture to the performance of a company, which has become a critical topic in management department. In addition to organisational culture, organisations need to be aware and prepared for changes in the expanding workforce as business grows. Companies are faced with maximizing benefits as well as profits while minimizing negative factors that come from those changes. There is no one answer to the issue, but some of the guidelines are clear. Awareness of organisational culture, teamwork, individual performance, external environment adaptation, leadership, and measurement of organisational culture are key factors that lead a company to perform better.