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

There are many different and competingtogether and styles of problem
definitions of "corporate culture" in thesolving.Values: Deeply held ideas of members
organizational theory literature. On one endregarding what constitute right or wrong,
of the spectrum culture is simply defined asfair or unfair, thus anything that has
the patterns of behavior within thepersonal worth or meaning. These values are
organization (Smircich, 1983). On the otherexpressed in operating beliefs and norms of
end, some theorists have definedbehavior.The corporate culture develops as
organizational culture as a system of sharedpeople come to share a set of beliefs and
cognitions and the human mind generates thethen they use these to establish norms about
culture by means of a finite number of rulesthe way they should behave towards each other
(Fiol, 1991). Although all the theoristsand to outsiders (Papers4you.com, 2006). If
believe in the importance of the culture inthe outcomes are positive this reinforces
the organizational studies but still there istheir shared belief in the values underlying
a lack of consensus over its precisetheir behavior. In this way, the
definition (Papers4you.com, 2006). Theoristsorganizations develop deep seated values and
have accepted this fact and approached thebeliefs about the way that staff should run
concept of culture from the most widely usedthings. However, it looks simple and straight
definition of culture, as defined by Lismenforward case in theory, but when it is
et al (2004) "a complex set of values,referred in the practical life then it is a
beliefs, assumptions, and symbols that definebig task to let it be a success story. It can
the way in which a firm conducts itsbe concluded by drawing upon Barney (1986)
business".The evolution of corporate culturethat a valuable, rare and inimitable
within an organization has been the center ofcorporate culture can be a source of
discussion for many years. Practitioners havesustained competitive advantage for a
called it the 'way we do things around here'company.References:Barney, J. (1986)
(Hampden-Turner, 1990) and the theorists have"Organizational Culture: Can It Be a Source
called it as the 'collective programming ofof Sustained Competitive Advantage?" Academy
the mind' (Siew & Kelvin, 2004) whichof Management Review, Vol. 11, No. 3, pp.
distinguishes one group from another. Culture656-665Fiol, C. (1991) "Managing Cultures as
reflects the identifiable components ofa Competitive Resource: An Identity-Based
practices, customs, beliefs andView of Sustainable Competitive Advantage,"
values:Practices: These represents theJournal of Management, Vol. 17 No. 1, pp.
surface level of a culture i.e. the visible191-211Hampden-Turner, C (1990), "Corporate
elements such as language, etiquette, form ofCulture- From Vicious to Virtuous circles",
greeting, clothing, and also include theThe Economist books, pg 21-22Lismen, C.;
artifacts of the business i.e. the physicalMargaret, S. and Ed Snape (2004) "In Search
layout. These practices do have relevance asof Sustained Competitive Advantage: The
it greases the functionality of theImpact of Organizational Culture, Competitive
organization. Such practices keep theStrategy and Human Resource Management
employees motivated, concerned and evenPractices on Firm Performance," International
transform everyone to follow the similar pathJournal of Human Resource Management, Vol.
as everyone in order to achieve the common15:1, pp. 17-35Papers For You (2006) "E/B/49.
corporate objective.Customs: These are theReview of theories on organizational
accepted modes or norms of behavior withinculture", Available from [22/06/2006]Papers
the organization, reflecting the values andFor You (2006) "P/B/309. Why is corporate
beliefs, which provide guidelines for the wayculture important?", Available from [21/06
people and groups, are expected to behave2006]Siew Kim Jean Lee, Kelvin Yu (2004),
towards each other. These often shape aspects"Corporate culture and organizational
of the physical appearance of theperformance", Journal of Managerial
organization, also called thePsychology; Volume: 19 Issue: 4; 2004
artifacts.Beliefs: The assumptions thatResearch paperSmircich, L. (1983) "Concepts
members hold about the organization and theof Culture and Organizational Analysis,"
situation within it- about what practicesAdministrative Science Quarterly, Vol. 28,
work well in this business, for example howpp. 339-358Copyright 2006 Verena Veneeva.
people make decisions, how teams work



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