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

There are many different and competingpersonal worth or meaning. These values are
definitions of "corporate culture" in theexpressed in operating beliefs and norms of
organizational theory literature. On one endbehavior.
of the spectrum culture is simply defined as
the patterns of behavior within theThe corporate culture develops as people come
organization (Smircich, 1983). On the otherto share a set of beliefs and then they use
end, some theorists have definedthese to establish norms about the way they
organizational culture as a system of sharedshould behave towards each other and to
cognitions and the human mind generates theoutsiders (Papers4you.com, 2006). If the
culture by means of a finite number of rulesoutcomes are positive this reinforces their
(Fiol, 1991). Although all the theoristsshared belief in the values underlying their
believe in the importance of the culture inbehavior. In this way, the organizations
the organizational studies but still there isdevelop deep seated values and beliefs about
a lack of consensus over its precisethe way that staff should run things.
definition (Papers4you.com, 2006). TheoristsHowever, it looks simple and straight forward
have accepted this fact and approached thecase in theory, but when it is referred in
concept of culture from the most widely usedthe practical life then it is a big task to
definition of culture, as defined by Lismenlet it be a success story. It can be
et al (2004) "a complex set of values,concluded by drawing upon Barney (1986) that
beliefs, assumptions, and symbols that definea valuable, rare and inimitable corporate
the way in which a firm conducts itsculture can be a source of sustained
business".competitive  advantage  for  a  company.
The evolution of corporate culture within anReferences:
organization has been the center of
discussion for many years. Practitioners haveBarney, J. (1986) "Organizational Culture:
called it the 'way we do things around here'Can It Be a Source of Sustained Competitive
(Hampden-Turner, 1990) and the theorists haveAdvantage?" Academy of Management Review,
called it as the 'collective programming ofVol.  11,  No.  3,  pp.  656-665
the mind' (Siew & Kelvin, 2004) which
distinguishes one group from another. CultureFiol, C. (1991) "Managing Cultures as a
reflects the identifiable components ofCompetitive Resource: An Identity-Based View
practices,  customs,  beliefs  and  values:of Sustainable Competitive Advantage,"
Journal of Management, Vol. 17 No. 1, pp.
Practices: These represents the surface level191-211
of a culture i.e. the visible elements such
as language, etiquette, form of greeting,Hampden-Turner, C (1990), "Corporate Culture-
clothing, and also include the artifacts ofFrom Vicious to Virtuous circles", The
the business i.e. the physical layout. TheseEconomist  books,  pg  21-22
practices do have relevance as it greases the
functionality of the organization. SuchLismen, C.; Margaret, S. and Ed Snape (2004)
practices keep the employees motivated,"In Search of Sustained Competitive
concerned and even transform everyone toAdvantage: The Impact of Organizational
follow the similar path as everyone in orderCulture, Competitive Strategy and Human
to  achieve  the  common corporate objective.Resource Management Practices on Firm
Performance," International Journal of Human
Customs: These are the accepted modes orResource  Management,  Vol.  15:1,  pp. 17-35
norms of behavior within the organization,
reflecting the values and beliefs, whichPapers For You (2006) "E/B/49. Review of
provide guidelines for the way people andtheories on organizational culture",
groups, are expected to behave towards eachAvailable  from [22/06/2006]
other. These often shape aspects of the
physical appearance of the organization, alsoPapers For You (2006) "P/B/309. Why is
called  the  artifacts.corporate culture important?", Available from
[21/06/2006]
Beliefs: The assumptions that members hold
about the organization and the situationSiew Kim Jean Lee, Kelvin Yu (2004),
within it- about what practices work well in"Corporate culture and organizational
this business, for example how people makeperformance", Journal of Managerial
decisions, how teams work together and stylesPsychology; Volume: 19 Issue: 4; 2004
of  problem  solving.Research  paper
Values: Deeply held ideas of membersSmircich, L. (1983) "Concepts of Culture and
regarding what constitute right or wrong,Organizational Analysis," Administrative
fair or unfair, thus anything that hasScience Quarterly, Vol. 28, pp.



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