3.1.9 Corporate culture

• Corporate culture encompasses shared values, beliefs, and behaviors influencing employee interactions and work within a business.
• It shapes decision-making, employee conduct, and overall operational methods.

Key Features of Corporate Culture:

• Represents the internal business environment.
• Influences employee behavior and decision-making processes.
• Shapes the way the business interacts with stakeholders.
• Can be deliberately molded by management to enhance performance.

Official vs. Real Corporate Culture

• Official corporate culture is defined through mission statements, policies, slogans, and branding.
• It represents the desired culture as set by management and is communicated externally.
• Real corporate culture reflects daily behaviors, interactions, and the workplace atmosphere.
• It can differ from the official culture if employees do not adhere to stated values and is influenced by various factors, including leadership and management style.

Comparison of Official vs. Real Culture

• Official Corporate Culture defines stated values and beliefs, while Real Corporate Culture reflects actual values and behaviors.
• Official Corporate Culture is documented in policies, missions, and slogans, whereas Real Corporate Culture is observed in work ethic and interactions.
• Official Corporate Culture is created by management, while Real Corporate Culture emerges from employees and the workplace.
• An example of Official Corporate Culture are mission statements valuing "teamwork" while Real Corporate Culture may manifest as employees competing individually instead of collaborating.

Importance of Corporate Culture

• A strong and positive corporate culture results in higher employee motivation, increased productivity, stronger customer relationships, better teamwork, and reduced staff turnover.
• A negative corporate culture can lead to low employee morale, high staff turnover, poor customer service, and resistance to innovation.

Strategies to Develop Corporate Culture

• Businesses can shape their corporate culture through leadership and management style, for example Cisco improved its workplace culture through transparency and trust.
• Establishing clear codes of conduct and implementing policies helps develop corporate culture.
• Training and development, such as induction programs for new employees, introduces and reinforces the corporate culture.
• Recognition and rewards systems value and recognize who demonstrates company values, for example "Employee of the Month" programs.
• Physical work environment like office layout, dress code, and workplace facilities contribute to establish culture, Google’s open office spaces enable collaboration among workers.

Similarities and Differences of Official and Real Culture

• Both, official and real, refer to values, beliefs, and behaviors but official is what the business claims to have, while real is what actually exists.
• Both impact employee behavior, decision-making and business performance but Official culture is set by management, while real culture is shaped by employees and workplace interactions.
• Both aim to create a positive and productive work environment, but official culture focuses on aspirations, whereas real culture reflects workplace experiences.
• Both need leadership and management strategies but official culture is established through policies while real culture is evident in actions.
• Both can be assessed through feedback, surveys, and observations, but official culture can be measured by mission statements, whereas real culture is seen through employee interactions.
• A strong culture leads to morale and success while misalignment can cause dissatisfaction and loss of credibility.

Explore how a company's shared values, beliefs, and behaviors influence its internal environment and operations. Learn about official vs. real corporate culture and how management shapes these aspects to enhance overall performance.