“CULTURE ISN’T SIMPLY ONE ASPECT OF THE GAME – IT IS THE GAME

ONCE YOU ENTER A SUCCESSFUL CULTURE, YOU FEEL IT IMMEDIATELY. ”

Aim: To find clear solutions for shaping corporate culture

Objectives:

Identifying the role of the leader in creating corporate culture Explaining types of culture Understanding the corporate culture’s influence of company’s performance Finding real solutions for shaping corporate culture

Corporate culture is the total sum of the values, customs, traditions and meanings that make a company unique. Corporate culture is often called "the character of an organization" since it embodies the vision of the company’s founders. The values of a corporate culture influence the ethical standards within a corporation, as well as managerial behavior.

In the early stages of a company the leader is that who create the corporate culture, on him and his vision depends the positioning of the company. For example, SAS (the leader in business analytics software and service) CEO Jim Goodnight’s philosophy is simple: Treat employees like they make a difference and they will. He thinks his strategy allows the company to be ranked by Fortune in "100 Best Companies to Work For". Companies with a very good corporate culture are: Google, Apple , Starbucks , TED … Confidence in an organization is more than just a spirit of "We can do it." It is the foundation, systems, and culture involving positive behaviors such as open communication, self-scrutiny, respect, teamwork, accountability, collaboration, and initiative that result in winning. In turn, winning breeds greater confidence and raises the company to an even higher level.

Edgar Schein, a corporate culture pioneer asserts that, while leaders create culture in the early stages of an organization, culture creates leaders as an organization matures. He suggests that culture is deep, broad, and stable. It can be an unconscious determinant of who gets hired, who gets promoted and rewarded.

There are different types of the corporate culture, the most common are:

Authoritarian culture Participative culture Mechanistic culture Organic culture Sub-cultures and Dominant culture

The Authoritarian culture

In authoritarian culture, there is a centralization of power with the leader & obedience to orders & discipline are stressed.

Any disobedience is punished severely.

It is assumed that leader know what is good for the organization & always acts in its interest.

Participative culture

Participative culture tends to emerge where most organizational members see themselves as equals & take part in decision-making.

Mechanistic Cultures

This culture exhibits the values of bureaucracy.

Authority flows down from the top of the organisation to the lower levels

Communication flows through prescribed channels.

There is great departmental loyalty.

It resist change and innovation.

Organic Culture

Emphasis on task accomplishment, team work and free flow of communication. There is widespread understanding of the problem, threats & opportunities the organization is

facing. There is Flexibility, Change & Innovation.

Sub-culture and Dominant Culture

A subculture is a group of people with a culture (whether distinct or hidden) which differentiates them from the larger culture to which they belong.

Organizational culture emerges when there is an integration of all departments (subculture) into a whole.

Subcultures may be even in conflict with the dominant culture.

Culture is a well-stabled component, but same time it can be adjusted

• Stories – Depicting the past events of the organization. Some organizations actually try to manage this element of culture learning.

• Rituals – Repetitive sequential activities reinforcing the values of the organization.

• Material Symbols – Conveying social equality, desired organizational behavior, etc. by the top management.

• Language – Acceptance and preservation of culture.