Corporate Culture Analysis

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CHAPTER 1: INTRODUCTION

The aim of this assignment is to determine the definition of organizational culture and how affects a company’s final performance. Numerous scholars provided thoroughly researches on the theory of corporate culture. The plethora of them shares the opinion that corporate culture is structured on the foundations of merely its people; values; beliefs; symbols, routines and rituals. Therefore; to further support the above theory and the importance of corporate culture; a real life paradigm is provided on how corporate culture is applied and influenced an organization.

1.1 My company’s profile My company is
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Thus; we can argue that organizational culture acts as a social control mechanism and sets the right framework for organizational processes in peoples’ mind (Sorensen, 2002). On the other hand according to Schein’s own words “corporate culture provides group members with a way of giving meaning to their daily lives, setting guidelines and rules for how to behave and most important reducing and containing the anxiety of dealing with an unpredictable and uncertain environment” (Sorensen, 2002). We can further identify three benefits of strong culture and its significance on company’s performance (Sorensen, 2002). Firstly based on Van den Steen theory (2010); organizational values and norms that are widely shared within a company can easily lead to more delegation; less monitoring; better communication; and to higher execution of effort. Furthermore as Kotter and Heskett (1992) supported on their research; shared values facilitate a social control amongst employees that contributes to easily detect and correct inappropriate behaviors and violations of any kind of behavioral norms. However; according to Van den Steen theory (2010) that I tend to support his argument from my own personal working experience; a high commitment to shared norms can lead to less experimentation; limited incentives to gather information; and insufficient persuasion from management to employees. Secondly according to Kreps (1990), Cremer (1993) and Hermalin (2001) theories; another significant aspect of having a strong corporate culture is the goal oriented direction that is applied to a company (Van den Steen, 2010). A goal alignment strategy provides to employees a safer environment without any uncertainties or doubts about their working future. Consequently; this will lead to a better
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