Corporate Culture

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Abstract In the minds of many management teams, the term “Corporate Culture” is evolved and come to the forefront when discussing marketing, research, organizing, and progress for their respected companies. This essay will identify the usefulness and necessity of a corporate culture to gain organizational success and this will further explain its importance for managers in promoting organizational effectiveness and its impacts on an organizational competitive advantage. Corporate culture is widely used in many organisations with a variety of definition, The Macquarie dictionary defines it as: the strong consistent set of values, prejudices, etc., which are maintained within a business, affecting the attitudes and actions of its entire staff. As culture can be considered the fundamental character of organization, this essay will use the functions of culture in an organization that will help to explain the changes in the context of internal and external organizational environments that are likely an impact for every manager in a day to day decision making.

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Management

Table of Contents Abstract………………………………………………………………………………..page ii

Introduction……………………………………………………………………………page 1

I. Changes in the context of external and internal environments………………….page 1

II. Culture and its response to changes………………………………………………page 3

III. Type of culture in promoting organizational effectiveness……………………..page 4

Conclusion……………………………………………………………………………….page 4

References………………………………………………………………………………page 6

Introduction Globalization, technology, innovation, diversity and ethics are among the internal and external environment in which modern managers function. Functions such as planning, organizing, leading, and controlling can be influenced by these different internal and external factors since organizations need to ensure that they are addressed properly for business success. In addition, knowing the external and internal factors help organizations in identifying the business risks that exist in the environment in which they operate. This essay will discuss the function of corporate culture in the essence of understanding the external and internal function, especially in times of rapid and frequent changes. This Essay will be divided into three parts, Part 1 will discuss the changes in the context of external and internal environments, and Part 2 will identify the definition of corporate culture in response to the changes. Part 3 will explain how culture and its function can be adopted by a manager in promoting organizational effectiveness. Organizational Culture is a shared system of values, assumption, beliefs, practice, rituals, customs and norms (Bateman & Snell 2009). In the simplest way we can understand corporate culture as the environment within a company in which all staff and workers communicate and work together. I. Changes in the context of external and internal organizational environments. The organization’s environment is defined as the potential factors that would affect the operations and benefits of the organization; this includes the external and internal organizational environment. The internal organization environment is the physical psychological cultural element, while the external includes the common and particular factors. As we all know, the common external environment, with an indirect and long influence, contains the factors of economics, social, political, law, technology, resource and so on. However, the particular external environment changes with the organization’s period and profession, which affects the organization directly and swiftly. Michael Porter explains in Competitive Advantage: Creating and Sustaining Superior Performance (2008, p 4) that competitive strategy must grow out of sophisticated understanding of the rules of completion that determines an industry’s attractiveness. The ultimate aim of competitive strategy is to cope with and ideally, and to change...
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