Corporate culture refers to the character of a company’s internal work climate – as shaped by a system of shared values, beliefs, ethical standards, and traditions that define behavioral norms, ingrained attitudes, accepted work practices, and styles of operating. Every company has its own unique culture. The character of a company’s culture or work climate is a product of the core values and business principles that executives espouse, the standards of what is ethically acceptable and what is not, the work practices and behaviors that define “how we do thing around here,” its approach to people management and the “chemistry” and the “personality” that permeates its work environment. The chief things to look for include the following:
1. The values, business principles, and ethical standards that management preaches and practices. 2. The company’s approach to people management and the official policies, procedures and operating practices that paint the white lines for the behaviour of company personnel 3. The atmosphere and spirit that pervades the work climate. 4. The way managers and employees interact and relate to each other 5. The strength of peer pressure to do things in particular ways and conform to expended norms. 6. The actions and behaviours that are explicitly encouraged and rewarded by management in the form of compensation and promotion. 7. The company’s revered traditions and oft-repeated stories about “heroic act” and “how we do things around here”. 8. The manner in which the company deals with external stakeholders
Discuss the ways in which corporate culture can either help or hinder effective execution of strategy.
Strong culture can help a powerful effect on the strategy execution process. This effect may be positive or negative since a company’s present culture and work climate may or not be compatible with what in needed for effective implementation and execution of the chosen...