Strategic Human Resource Management

What is Corporate Culture and Impact of Corporate Culture

What is Corporate Culture – There are quite divergent definitions and, hence, differing views as to what constitutes an organisational culture? It is commonly agreed that it stands for a set of assumptions the members of an organisation share in common.

In other words, the taproot of corporate culture is the organisation’s beliefs and philosophy about how its affairs are to be perfectly conducted. That is, it speaks of reasons as to why it does things the way it does. A company’s culture is mirrored in the values and business principles that management preaches and practies in official policies and procedures, in its highly valued traditions and often repeated stories, in the attitudes and behaviour of employees, in the peer pressures that exist to display the core values, in the company’s politics in its approaches to people management and problem solving, in its relationships with external stakeholders, and in the “chemistry” and the “”personality” that spread throughout its work environment.

The values, beliefs and practices that undergrid a company’s culture come from anywhere in the organisation hierarchy representing the philosophy of an influential executive and stemming from the exemplary actions on the part of specific employee, workgroup, department or division. Very of term, they key elements of culture originate with a founder or other strong leader who articulated them as set of business principles, company policies, or the ways of dealing with employees, customers, suppliers, shareholders and the communities in which it operates. Over a period of time, these cultural underpinnings take root, become embedded in as to how the company conducts its business come to be accepted and shared by the company managers and employees, and then persist new employees are encouraged to follow and adopt the professed values and practices.

Impact of Corporate Culture

(1) Setting of Objectives – People in the organisation are the building blocks which are turned out as effective building blocks every organisation to succeed, must accommodate individual objectives as the part of organisational objectives for one and all-particularly for those who are responsible for making decisions. The organisational objectives differ though they are business organisations. It is quite common to find that one man’s tea is another man’s poision.

(2) Patterns of Motivation – Organisational culture interacts to develop almost every person a motivational pattern. It is the culture that determines the way the people approach their jobs, roles and even the life in general. People find the work not a burden but a game generating self motivation making them to contribute their best in completing the assigned tasks easily and with greater satisfaction and excellence. When organisational cultured is so geared towards attainment. In absence of this, instead zeal to work, the employees develop frustration and degeneration.

(3) Organisational Processes – Organisational processes are nothing but the functions of management and, here management means strategic management. These are strategic planning, organizing, directing, coordinating, motivation and control. These functions do not exclude decision making.

(4) Organisational Ethics – Ethics speaks of respecting the principles of human conduct. Any act to be ethical is moral, right, good, honest and true. Here, organisational ethics is work ethics in an organisations that stems for organisational culture. That is, corporate culture decides the ethical standards for the organisation as a whole one hand and its individuals, on the other.

About the author


Leave a Comment