Wednesday, 15 August 2018

What Is a Corporate Culture?

An organisation's corporate culture is the term used to describe its set of values and beliefs, and to a large extent determines how employees within the company should act. The corporate culture should be designed with the company's aims and objectives in mind, so that the actions and working practices of employees, as determined by the corporate culture, contribute to the achievement of those aims and objectives. For example, a design company will allow employees to work in a creative way, often with minimal supervision by line managers, in order to promote a culture of innovation and idea generation. Other businesses such as manufacturing may have a corporate culture focusing on efficiency, where everything a worker does should be geared towards reducing waste and improving processes.

The notion of corporate culture started to become popular in the early 1980s, with a growing belief that the ability to motivate and gain the commitment of workers (often referred to as "buy in") helped to improve productivity, increase motivation and reduce the level of staff turnover.

For a corporate culture to be effective, it must be communicated properly to workers. New starters will be made aware of the organisation's values, what is expected of them and how they ought to behave. For a company with particularly strong beliefs, they will often ask relevant questions during the interview process to ensure the person they hire fits in and has the same way of thinking. Existing workers should also be reminded periodically of the company's aims in case they begin to fade from their memory, although too much of this can cause problems, as discussed later in this article.

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