Evolution of Corporate Culture: How Important is it in Today's World?

There are many different and competing definitions ofheld ideas of members regarding what constitute right
"corporate culture" in the organizational theory literature.or wrong, fair or unfair, thus anything that has personal
On one end of the spectrum culture is simply definedworth or meaning. These values are expressed in
as the patterns of behavior within the organizationoperating beliefs and norms of behavior.The corporate
(Smircich, 1983). On the other end, some theorists haveculture develops as people come to share a set of
defined organizational culture as a system of sharedbeliefs and then they use these to establish norms
cognitions and the human mind generates the cultureabout the way they should behave towards each
by means of a finite number of rules (Fiol, 1991).other and to outsiders (Papers4you.com, 2006). If the
Although all the theorists believe in the importance ofoutcomes are positive this reinforces their shared
the culture in the organizational studies but still there isbelief in the values underlying their behavior. In this way,
a lack of consensus over its precise definitionthe organizations develop deep seated values and
(Papers4you.com, 2006). Theorists have accepted thisbeliefs about the way that staff should run things.
fact and approached the concept of culture from theHowever, it looks simple and straight forward case in
most widely used definition of culture, as defined bytheory, but when it is referred in the practical life then it
Lismen et al (2004) "a complex set of values, beliefs,is a big task to let it be a success story. It can be
assumptions, and symbols that define the way in whichconcluded by drawing upon Barney (1986) that a
a firm conducts its business".The evolution ofvaluable, rare and inimitable corporate culture can be a
corporate culture within an organization has been thesource of sustained competitive advantage for a
center of discussion for many years. Practitionerscompany.References:Barney, J. (1986) "Organizational
have called it the 'way we do things around here'Culture: Can It Be a Source of Sustained Competitive
(Hampden-Turner, 1990) and the theorists have called itAdvantage?" Academy of Management Review, Vol.
as the 'collective programming of the mind' (Siew &11, No. 3, pp. 656-665Fiol, C. (1991) "Managing Cultures
Kelvin, 2004) which distinguishes one group fromas a Competitive Resource: An Identity-Based View
another. Culture reflects the identifiable components ofof Sustainable Competitive Advantage," Journal of
practices, customs, beliefs and values:Practices: TheseManagement, Vol. 17 No. 1, pp. 191-211Hampden-Turner,
represents the surface level of a culture i.e. the visibleC (1990), "Corporate Culture- From Vicious to Virtuous
elements such as language, etiquette, form of greeting,circles", The Economist books, pg 21-22Lismen, C.;
clothing, and also include the artifacts of the businessMargaret, S. and Ed Snape (2004) "In Search of
i.e. the physical layout. These practices do haveSustained Competitive Advantage: The Impact of
relevance as it greases the functionality of theOrganizational Culture, Competitive Strategy and
organization. Such practices keep the employeesHuman Resource Management Practices on Firm
motivated, concerned and even transform everyonePerformance," International Journal of Human
to follow the similar path as everyone in order toResource Management, Vol. 15:1, pp. 17-35Papers For
achieve the common corporate objective.Customs:You (2006) "E/B/49. Review of theories on
These are the accepted modes or norms of behaviororganizational culture", Available from [22/06
within the organization, reflecting the values and beliefs,2006]Papers For You (2006) "P/B/309. Why is
which provide guidelines for the way people andcorporate culture important?", Available from [21/06
groups, are expected to behave towards each other.2006]Siew Kim Jean Lee, Kelvin Yu (2004), "Corporate
These often shape aspects of the physicalculture and organizational performance", Journal of
appearance of the organization, also called theManagerial Psychology; Volume: 19 Issue: 4; 2004
artifacts.Beliefs: The assumptions that members holdResearch paperSmircich, L. (1983) "Concepts of
about the organization and the situation within it- aboutCulture and Organizational Analysis," Administrative
what practices work well in this business, for exampleScience Quarterly, Vol. 28, pp. 339-358Copyright 2006
how people make decisions, how teams workVerena Veneeva.
together and styles of problem solving.Values: Deeply