{"id":297,"date":"2017-08-09T20:41:56","date_gmt":"2017-08-09T20:41:56","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-principlesofmanagement\/?post_type=chapter&p=297"},"modified":"2018-03-05T18:58:25","modified_gmt":"2018-03-05T18:58:25","slug":"organizational-culture","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-mcc-supervision\/chapter\/organizational-culture\/","title":{"raw":"Organizational Culture","rendered":"Organizational Culture"},"content":{"raw":"

What you\u2019ll learn to do: describe organizational culture, and explain how culture can be a competitive advantage<\/h2>\r\nOrganizational culture is a term that describes the shared values and goals of an organization. When everyone in a corporation shares the same values and goals, it\u2019s possible to create a culture of mutual respect, collaboration, and support. Companies that have a strong, supportive culture are more likely to attract highly qualified, loyal employees who understand and work toward the company\u2019s best interests.\r\n
\r\n

Learning Outcomes<\/h3>\r\n
    \r\n \t
  • Define culture for a business.<\/li>\r\n \t
  • Explain how culture can be a competitive advantage for a business.<\/li>\r\n \t
  • List the levels of culture.<\/li>\r\n<\/ul>\r\n<\/div>\r\nOrganizational culture<\/strong> is a term that can relate to any organization at all, from a church to a university. When talking about the culture of a business, you\u2019ll often hear the term \u201ccorporate culture.\u201d Corporate culture<\/strong> is, according to INC Magazine<\/em>:\r\n
    the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization's goals, strategies, structure, and approaches to labor, customers, investors, and the greater community. As such, it is an essential component in any business's ultimate success or failure.[footnote]\u201cCorporate Culture,\u201d Inc. 2017. https:\/\/www.inc.com\/encyclopedia\/corporate-culture.html.[\/footnote]<\/blockquote>\r\nLike families (or nations), corporations have cultures. Sometimes those cultures \u201cjust happen.\u201d All too often, when corporate culture is not intentionally created, the culture winds up being disjointed or even antagonistic. Employees are all working toward different goals, in different ways, with different approaches. For instance, although Bob is dedicated to the idea of crafting quality products, Suzanne is eager to sell as much product as possible (even if the quality is only so-so). Meanwhile, Brad thinks the company should start making a wider range of products and is trying to push his ideas forward during sales meetings.\r\n\r\nThe idea of corporate culture developed from our knowledge of national, regional, and family cultures, and many theories exist about what makes a good (or poor) corporate culture. To get an idea of what a corporate culture looks like, think about families you know well. Some are formal whereas others are easygoing. Some work together toward shared goals whereas others encourage individuality and independence. Some are always having fun whereas others seem to be in a permanent state of internal conflict. We can describe corporate cultures in similar ways.\r\n\r\nAlthough some businesses give little thought to corporate culture, many successful companies have cultures that are intentionally created or tweaked. Sometimes corporate cultures are the result of a founder\u2019s personal vision. But just as often, corporate cultures are created through a collaborative effort that involves not only upper management but also managers and employees.\r\n

    What Do Corporate Cultures Look Like?<\/h2>\r\nPerhaps the best way to get an idea of what we\u2019re talking about when we talk about corporate culture is to consider some examples. Let\u2019s take a look at the cultures inside a few well-known companies.\r\n

    IBM<\/h3>\r\nIBM\u2019s founder Thomas Watson was one of the great developers of corporate culture. Based on a very different worldview than the one we have today, it encouraged morality, temperance, and consistency. Men who worked for IBM were expected to dress in a certain style (dark suits, white shirts) and behave conservatively. The \u201cIBM Spirit\u201d was even represented in corporate songs such as \u201cEver Onward\u201d that employees were required to sing at gatherings and conventions.\r\n\r\nThe lyrics to \u201cEver Onward,\u201d captured in a songbook from 1937, are a great way to understand the original culture of a company that became one of the truly great icons of American business. Read one verse of the song that follows.\r\n
    EVER ONWARD \u2013 EVER ONWARD!\r\nThat's the spirit that has brought us fame!\r\nWe're big, but bigger we will be\r\nWe can't fail for all can see\r\nThat to serve humanity has been our aim!\r\nOur products now are known, in every zone,\r\nOur reputation sparkles like a gem!\r\nWe've fought our way through \u2013 and new\r\nFields we're sure to conquer too\r\nFor the EVER ONWARD I.B.M.[footnote]\u201cIBM Rally Song, Ever Onward,\u201d IBM, https:\/\/www-03.ibm.com\/ibm\/history\/multimedia\/everonward_trans.html [\/footnote]<\/blockquote>\r\nWatch the following video to hear the song and find out more about IBM\u2019s early corporate culture:\r\n\r\nhttps:\/\/www.youtube.com\/watch?v=YBpNzxz1XgU\r\n

    Google<\/h3>\r\nOne business that has revolutionized the way of work and its vision about it is Google. Google has become known as the company with endless perks for its valued employees. Some of these include coffee bars, free meals, lounge breaks, and even the option to bring your pet to work! Google has locations worldwide, and management embraces the idea that a happy employee leads to a productive workplace. The company\u2019s long-term success ties back to its corporate culture and values. Here\u2019s a list of Google\u2019s core values, around which it builds its corporate culture:\r\n
    \r\n
      \r\n \t
    1. We want to work with great people.<\/li>\r\n \t
    2. Technology innovation is our lifeblood.<\/li>\r\n \t
    3. Working at Google is fun.<\/li>\r\n \t
    4. Be actively involved; you are Google.<\/li>\r\n \t
    5. Don't take success for granted.<\/li>\r\n \t
    6. Do the right thing; don't be evil.<\/li>\r\n \t
    7. Earn customer and user loyalty and respect every day.<\/li>\r\n \t
    8. Sustainable long-term growth and profitability are key to our success.<\/li>\r\n \t
    9. Google cares about and supports the communities where we work and live.<\/li>\r\n<\/ol>\r\n<\/div>\r\n

      Apple<\/h3>\r\nGoogle likes to make sure its employees are having fun, but Apple\u2019s corporate culture is a bit more focused on getting things done. Its founder, Steve Jobs, passed along a set of core values that make it clear that competition, focus, and hard work are part of the organizational culture:\r\n
      \r\n
        \r\n \t
      1. We believe that we\u2019re on the face of the Earth to make great products.<\/li>\r\n \t
      2. We believe in the simple, not the complex.<\/li>\r\n \t
      3. We believe that we need to own and control the primary technologies behind the products we make.<\/li>\r\n \t
      4. We participate only in markets where we can make a significant contribution.<\/li>\r\n \t
      5. We believe in saying no to thousands of projects so that we can really focus on the few that are truly important and meaningful to us..<\/li>\r\n \t
      6. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot.<\/li>\r\n \t
      7. We don\u2019t settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we\u2019re wrong and the courage to change.[footnote]Have you ever read about Apple's core values? (2017, May 25). Retrieved September 15, 2017, from https:\/\/thinkmarketingmagazine.com\/apple-core-values\/[\/footnote]<\/li>\r\n<\/ol>\r\n<\/div>\r\nCompare Apple\u2019s values to those of Google. Apple focuses on competition, outcomes, and excellence, whereas Google emphasizes values such as having fun, behaving ethically, serving the customer, and engaging with the wider world. Both companies make digital products, both have seen great success, and both attract plenty of dedicated employees. But because the corporate cultures are so different, Apple and Google attract different people who have different personal goals, work styles, and expectations.\r\n

        Corporate Culture as a Competitive Advantage<\/h2>\r\nWhy is it so important to have a strong, positive corporate culture? There are three good reasons:\r\n
          \r\n \t
        • A strong culture helps employees, customers, and the general public to identify your corporate values. Say, for example, that your company culture values innovation. In that case, your employees will know that they will be encouraged to come up with new ideas\u2014and your customers will know that your products and services are likely to have a creative or unique quality.<\/li>\r\n \t
        • Companies with strong, coherent cultures attract high-quality employees who believe in the same values as the corporation. Once those employees come on board, they start to feel that they \u201cbelong\u201d because they are part of a shared culture. Employees who feel that their jobs are a great match for their personal values are more likely to be loyal to their employers. After all, they are doing what they enjoy doing for an organization that shares their ideals and goals.<\/li>\r\n \t
        • A strong corporate culture can help a corporation to build its brand. For example, Starbucks has built a culture and brand that includes very public dedication to international fair trade. Customers who care about fair trade are more likely to buy from\u2014and stay loyal to\u2014Starbucks.<\/li>\r\n<\/ul>\r\n

          Levels of Corporate Culture<\/h2>\r\n[caption id=\"attachment_1311\" align=\"aligncenter\" width=\"400\"]\"Schein\u2019s E.H. Schein\u2019s model of corporate culture includes artifacts, values, and assumptions[\/caption]\r\n\r\nE.H. Schein is a theorist who studies corporate culture. In 1992, he wrote a book titled\u00a0Organizational Culture and Leadership, which suggests that there are three levels of corporate culture. At the core of a culture are basic assumptions<\/strong> about human behavior, which are usually so ingrained into the culture that they\u2019re difficult to pinpoint. Surrounding the assumptions are expressed\u00a0values<\/strong> drawn from those assumptions. These usually appear in the form of standards, rules, and public expressions of the organization\u2019s philosophy. At the surface level are artifacts<\/strong>\u00a0that are the outcome of the assumptions and values\u2014these appear as actions, policies, the physical environment, office jokes, and so on.\r\n\r\nFor example, when Home Depot, under the leadership of a new CEO, needed to return the company to its customer-centric roots in 2007, it quickly introduced artifacts\u2014buttons and awards\u2014to remind everyone who came first: customers. Sales associates began wearing buttons that invited customers to ask for help. Associates were rewarded for outstanding customer reviews and recognized in meetings with sales plaques and more buttons. With a renewed focus on its stated value of providing excellent customer service, Home Depot began hiring people who loved serving customers instead of worrying about costs and profits. Management did not completely abandon the cost discipline of its previous CEO, but it loosened the reins substantially. The underlying assumption was that profits would return if the company took care of customers. Profits did return, although the competition from Lowe\u2019s has been stiff.\r\n\r\nThere is no right or wrong set of assumptions and values, and companies can be successful no matter which values they embrace. You are, however, most likely to do well with a company that shares your beliefs. Just looking around a workplace can help you to determine whether a company values hierarchy or shared authority, individual achievement or teamwork.\r\n

          Check Your Understanding<\/strong><\/h2>\r\nAnswer the question(s) below to see how well you understand the topics covered in the previous section. This short quiz does\u00a0not<\/strong>\u00a0count toward your grade in the class, and you can retake it an unlimited number of times.\r\n\r\nUse this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.\r\n\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/6635","rendered":"

          What you\u2019ll learn to do: describe organizational culture, and explain how culture can be a competitive advantage<\/h2>\n

          Organizational culture is a term that describes the shared values and goals of an organization. When everyone in a corporation shares the same values and goals, it\u2019s possible to create a culture of mutual respect, collaboration, and support. Companies that have a strong, supportive culture are more likely to attract highly qualified, loyal employees who understand and work toward the company\u2019s best interests.<\/p>\n

          \n

          Learning Outcomes<\/h3>\n
            \n
          • Define culture for a business.<\/li>\n
          • Explain how culture can be a competitive advantage for a business.<\/li>\n
          • List the levels of culture.<\/li>\n<\/ul>\n<\/div>\n

            Organizational culture<\/strong> is a term that can relate to any organization at all, from a church to a university. When talking about the culture of a business, you\u2019ll often hear the term \u201ccorporate culture.\u201d Corporate culture<\/strong> is, according to INC Magazine<\/em>:<\/p>\n

            the shared values, attitudes, standards, and beliefs that characterize members of an organization and define its nature. Corporate culture is rooted in an organization’s goals, strategies, structure, and approaches to labor, customers, investors, and the greater community. As such, it is an essential component in any business’s ultimate success or failure.[1]<\/sup><\/a><\/p><\/blockquote>\n

            Like families (or nations), corporations have cultures. Sometimes those cultures \u201cjust happen.\u201d All too often, when corporate culture is not intentionally created, the culture winds up being disjointed or even antagonistic. Employees are all working toward different goals, in different ways, with different approaches. For instance, although Bob is dedicated to the idea of crafting quality products, Suzanne is eager to sell as much product as possible (even if the quality is only so-so). Meanwhile, Brad thinks the company should start making a wider range of products and is trying to push his ideas forward during sales meetings.<\/p>\n

            The idea of corporate culture developed from our knowledge of national, regional, and family cultures, and many theories exist about what makes a good (or poor) corporate culture. To get an idea of what a corporate culture looks like, think about families you know well. Some are formal whereas others are easygoing. Some work together toward shared goals whereas others encourage individuality and independence. Some are always having fun whereas others seem to be in a permanent state of internal conflict. We can describe corporate cultures in similar ways.<\/p>\n

            Although some businesses give little thought to corporate culture, many successful companies have cultures that are intentionally created or tweaked. Sometimes corporate cultures are the result of a founder\u2019s personal vision. But just as often, corporate cultures are created through a collaborative effort that involves not only upper management but also managers and employees.<\/p>\n

            What Do Corporate Cultures Look Like?<\/h2>\n

            Perhaps the best way to get an idea of what we\u2019re talking about when we talk about corporate culture is to consider some examples. Let\u2019s take a look at the cultures inside a few well-known companies.<\/p>\n

            IBM<\/h3>\n

            IBM\u2019s founder Thomas Watson was one of the great developers of corporate culture. Based on a very different worldview than the one we have today, it encouraged morality, temperance, and consistency. Men who worked for IBM were expected to dress in a certain style (dark suits, white shirts) and behave conservatively. The \u201cIBM Spirit\u201d was even represented in corporate songs such as \u201cEver Onward\u201d that employees were required to sing at gatherings and conventions.<\/p>\n

            The lyrics to \u201cEver Onward,\u201d captured in a songbook from 1937, are a great way to understand the original culture of a company that became one of the truly great icons of American business. Read one verse of the song that follows.<\/p>\n

            EVER ONWARD \u2013 EVER ONWARD!
            \nThat’s the spirit that has brought us fame!
            \nWe’re big, but bigger we will be
            \nWe can’t fail for all can see
            \nThat to serve humanity has been our aim!
            \nOur products now are known, in every zone,
            \nOur reputation sparkles like a gem!
            \nWe’ve fought our way through \u2013 and new
            \nFields we’re sure to conquer too
            \nFor the EVER ONWARD I.B.M.            [2]<\/sup><\/a><\/p><\/blockquote>\n

            Watch the following video to hear the song and find out more about IBM\u2019s early corporate culture:<\/p>\n