Corporate Culture

A business’s culture is the culture of the group of people working for that business. It is the set of beliefs and values held by employees that determines how they will respond to a particular situation. Thus, at the very heart of Johnson & Johnson’s success is its underlying mission, which it calls ‘Our Credo’. It states the company’s responsibilities to their customers, employees, communities and their stockholders. This mission statement is shared by all of its businesses and has been translated into 36 languages. It acts as a common bond between the various business units and the values outlined in it ensure a coherent approach. The Credo also acts as a yardstick against which all decisions can be judged. If the managers are uncertain about the wisdom of a particular course of action they can judge it against the letter and the spirit of the Credo.

Does culture matter? A business may well have objectives it wishes to achieve and politics it wishes to implement, but its success will depend on the extent to which employees embrace these initiatives, and that in turn depends on the prevailing business culture.

Culture is also likely to be felt in terms of attitude towards change and flexibility. A culture of openness to change will assist a firm in responding to the changing needs of the marketplace quickly, which should lead to greater profitability in the longer term. On the other hand, a ‘can’t do’ culture, where employees stick narrowly to their role (‘it’s not my job’) may lead to missed sales and dissatisfied customers.

There is a wide variety of factors that determine the prevailing culture within an organization. These include management style, recruitment policy, reward policy, and stated aims and objectives.

For example, if a firm aims to recruit innovative high-fliers, offering above average salaries, this will tend to create a more dynamic, forward-looking culture than if the firm pays below the industry average. A firm filled with top-quality graduates aiming to make their mark will have quite a different feel to one in which most employees are clock watching.

Dress-code, timekeeping, hot-desking, time off, reporting procedures, types of meeting, and names are all the elements of a corporate culture. Let us dwell on some of them. The dress code in the workplace is the rules about what kind of clothes employees are allowed to wear there. In some companies employees are allowed to wear clothes that are less smart than usual on Friday. This day is known as a dress-down Friday. Hot-desking is also one of the elements of corporate culture. It is the practice of not assigning particular desks to particular employees in a workplace, so that employees can work at any desk that is available.

The organization’s policies and goals, if clearly communicated, influence culture, especially if employees are rewarded for displaying values that the organization considers to be important. The impact of these policies will be reduced, however, if employees are encouraged to break official policy. For example, if the organization’s stated policy is that quality is the number one priority, but in practice employees are encouraged to cut corners to hit deadlines (whether deliberately, or simply by the structure of their pay system), then the culture which develops will probably be one of corner-cutting.

Culture is very important - it has a major impact on the behavior patterns of a firm’s workforce. It is not something that can be achieved overnight.

Ex. 1.

A. Different companies have different cultures and ways of working. Complete these sentences with the words in brackets.

Dress (uniforms / casual Fridays / weekend clothes)

1. We don’t have to wear business suits at the end of the week. My company has a system of … casual Fridays ……

2. In many banks, staff can’t wear what they like. They have to wear …….

Timekeeping (flexible hours / part-time / shift work)

1. For two weeks each month, I work at night. I can’t sleep during the day. I hate … ….

2. We have a … … system in our office. Some people work from 9 a.m. to 5 p.m.; others work from 10 a.m. to 6 a.m.

Time off (childcare / annual leave / public holiday)

1. I am so busy at the moment that I worked on New Year’s Day, which is a(n) … ….

2. How many days’ … … do you get in your company?

Reporting procedures (written report / face-to-face / e-mail)

1. We often speak on the phone but never … ….

2. He send us a(n) … … in the post each month.

Types of meeting (informal / formal / social)

1. Our department starts everyday with a(n) … … meeting. It is very relaxed.

2. Companies have an Annual General Meeting (AGM) once a year. It is a very … … meeting, with a lot of people.

Names (job title / first name / family names)

1. In some countries, the company culture is formal. Staff use … … when they speak to each other.

2. What’s your … … now? Are you ‘Chief Executive’?

B. Would you like to work for an organization which has:

– uniforms?

– casual Fridays?

– a lot of formal meetings?

– flexible hours?

Why? Why not?

Ex. 2. Answer the questions on the text.

3. What is organizational culture?

4. How is it determined by a company mission?

5. What are other elements of a corporate culture?

6. What impact does culture have on the behavior patterns of a firm’s workforce?

7. In what cases can the impact of a company core values be reduced?