CORPORATE CULTURE

Corporate culture may be formal or informal depending on the expectations of the organisation

The corporate culture of an organisation may be defined as 'the system of shared values' that exists within the corporate structure of an organisation. The existence of a corporate culture implies that there is a common set of values and norms that form the basis for all work practices and procedures that are carried out within the organisation. It also implies that there are clearly established ideals and beliefs that all employees, managers and owners of the organisation believe are the keys to the successful operation of the organisation. These values represent: how employees believe they will be treated by management how managers treat each other how customers will be treated and how customers expect to be treated how the organisation interacts with other organisations and government agencies how the organisation views the wider environment and the level of corporate ethics and social responsibility that is evident in the actions of the organisation The existence of a corporate culture for an organisation enables the many and varied sections or departments of an organisation to feel a sense of belonging to each other rather than acting as independent units. Corporate culture is an intangible term, i.e. it can not be touched or seen visibly. However, there are many signs or symbols that tell us about the corporate culture of an organisation The corporate culture is something that evolves from the initial establishment of the organisation and the formulation of the mission and vision statement. In some instances, stakeholders view the organisation differently from how the organisation perceives itself. There may be, as a result, a difference between what is supposedly the 'official' culture and what the 'actual' culture is within the organisation. Changes to the environment within which the organisation operates may have an impact on the culture of the organisation. The organisation must be flexible and be able to adapt to these changes for the benefit of all stakeholders of the organisation. The corporate culture of an organisation is, however, difficult to alter and a significant change process would have to be implemented to achieve this. Management has a direct role to play in the development or change in the corporate culture. Management will act as a role model for their employees and their behaviour should mirror what the organisation is attempting to achieve through its goals and objectives. Management must provide the necessary infrastructure to train and to educate the employees with respect to this corporate culture and to ensure that they are properly motivated.