Corporate Culture

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The Russian Presidential Academy of National Economy and Public Administration Faculty of Real Estate Management

Corporate culture as effective tool of improving

employee performance in a company

Written by:

Khomich Veronika

3rd year

Moscow 2013

Contents

I. Introduction3

II. Basic characteristics of organizational culture5

2.1 Definition and levels of organizational culture5

2.2 Types of organizational culture6

2.3 Functions of organizational culture8

2.4 Changing and improving organizational culture8

III. Organizational culture in the USA and Japan11

3.1 Organizational culture in Zappos12
3.1.1 Values12
3.1.2 Hiring and training13
3.1.4 Working environment14

3.2 Organizational culture in Toyota15
3.2.1 Values15
3.2.2 Hiring and training16
3.2.3 Working environment18

IV. Conclusion20

V. References21

VI. Enclosure22

I. Introduction

An organization's culture varies as widely as the nature of work itself. Oftentimes a unique different mix of values and norms govern the cultural environment of an organization. In today's fast changing business environment, the cultural make-up of an organization plays a critical role in the success of the firm to achieve its strategic objectives. Corporate culture is a broad term that is used to describe the general working environment found within a business operation. A number of factors can influence the nature of this culture, including the policies and procedures developed for the operation, the mission and vision statements of the business, and even the personalities and management strategies employed within the company. Thus, founders of the company hire those who share the same vision as them and the newcomers learn the norms and values of the organization. It is possible that, in due course of time, the members of the organization, particularly the top management, will attempt to modify the organizational culture to fit changing marketplace conditions. This can lead to changes in the decision-making processes and management styles. The importance of corporate culture is vital to the life of the company, since this culture often sets the standard for how employees view their assigned duties, relationships within the workplace, and even whether or not they will choose to remain with the employer for an extended period of time. Through decades of empirical research, scholars have established abundant links between organizational culture and organizational performance. While previously businesses were either unaware of culture’s importance or believed it too difficult to manage, today they recognize that it can be used for competitive advantage. This is something that Apple Computer gets. By leveraging their culture of innovation toward product as well as internal processes, they have been able to survive — despite incredible competition — as well as venture into new and profitable markets. In order to use culture strategically, companies first need to understand it. Afterwards, organizations have to build up the culture, which will help them survive in the market. The corporate culture influences the work gets done in the organization. In this era of competition, companies require such culture that increases the employee commitment. The culture of an organization motivates the workforce, which affects the performance of organization. The organization that consists of clear and comprehensive shared values and believes result...
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