Evolution of corporate culture: how important is it in today's world?

There are many different and competing definitions ofconstitute right or wrong, fair or unfair, thus anything
"corporate culture" in the organizational theory literature.that has personal worth or meaning. These values are
On one end of the spectrum culture is simply definedexpressed in operating beliefs and norms of behavior.
as the patterns of behavior within the organizationThe corporate culture develops as people come to
(Smircich, 1983). On the other end, some theorists haveshare a set of beliefs and then they use these to
defined organizational culture as a system of sharedestablish norms about the way they should behave
cognitions and the human mind generates the culturetowards each other and to outsiders
by means of a finite number of rules (Fiol, 1991).(Papers4you.com, 2006). If the outcomes are positive
Although all the theorists believe in the importance ofthis reinforces their shared belief in the values
the culture in the organizational studies but still there isunderlying their behavior. In this way, the organizations
a lack of consensus over its precise definitiondevelop deep seated values and beliefs about the
(Papers4you.com, 2006). Theorists have accepted thisway that staff should run things. However, it looks
fact and approached the concept of culture from thesimple and straight forward case in theory, but when it
most widely used definition of culture, as defined byis referred in the practical life then it is a big task to let
Lismen et al (2004) "a complex set of values, beliefs,it be a success story. It can be concluded by drawing
assumptions, and symbols that define the way in whichupon Barney (1986) that a valuable, rare and inimitable
a firm conducts its business".corporate culture can be a source of sustained
The evolution of corporate culture within ancompetitive advantage for a company.
organization has been the center of discussion forReferences:
many years. Practitioners have called it the 'way weBarney, J. (1986) "Organizational Culture: Can It Be a
do things around here' (Hampden-Turner, 1990) and theSource of Sustained Competitive Advantage?"
theorists have called it as the 'collective programmingAcademy of Management Review, Vol. 11, No. 3, pp.
of the mind' (Siew & Kelvin, 2004) which656-665
distinguishes one group from another. Culture reflectsFiol, C. (1991) "Managing Cultures as a Competitive
the identifiable components of practices, customs,Resource: An Identity-Based View of Sustainable
beliefs and values:Competitive Advantage," Journal of Management, Vol.
Practices: These represents the surface level of a17 No. 1, pp. 191-211
culture i.e. the visible elements such as language,Hampden-Turner, C (1990), "Corporate Culture- From
etiquette, form of greeting, clothing, and also include theVicious to Virtuous circles", The Economist books, pg
artifacts of the business i.e. the physical layout. These21-22
practices do have relevance as it greases theLismen, C.; Margaret, S. and Ed Snape (2004) "In
functionality of the organization. Such practices keepSearch of Sustained Competitive Advantage: The
the employees motivated, concerned and evenImpact of Organizational Culture, Competitive Strategy
transform everyone to follow the similar path asand Human Resource Management Practices on Firm
everyone in order to achieve the common corporatePerformance," International Journal of Human
objective.Resource Management, Vol. 15:1, pp. 17-35
Customs: These are the accepted modes or norms ofPapers For You (2006) "E/B/49. Review of theories
behavior within the organization, reflecting the valueson organizational culture", Available from [22/06
and beliefs, which provide guidelines for the way2006]Papers For You (2006) "P/B/309. Why is
people and groups, are expected to behave towardscorporate culture important?", Available from [21/06
each other. These often shape aspects of the2006]
physical appearance of the organization, also called theSiew Kim Jean Lee, Kelvin Yu (2004), "Corporate
artifacts.culture and organizational performance", Journal of
Beliefs: The assumptions that members hold about theManagerial Psychology; Volume: 19 Issue: 4; 2004
organization and the situation within it- about whatResearch paper
practices work well in this business, for example howSmircich, L. (1983) "Concepts of Culture and
people make decisions, how teams work together andOrganizational Analysis," Administrative Science
styles of problem solving.Quarterly, Vol. 28, pp.
Values: Deeply held ideas of members regarding what