Corporate Culture

An insight into corporate culture & its role in promoting efficiency in a global economy
Liandri Boonzaier Matrikel nr: 2585923 Theory of the Firm Porf. Dr. Christian Cordes

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INDEX 1. Introduction……………………………………………………………………Page 3 2. Important elements of Edgar Schein’s theory on corporate culture 2.1 Definition of corporate culture………………………………………..Page 3 2.2 Levels of corporate culture…………………………………………....Page 3 2.3 Origins of organizational culture……………………………………..Page 4 2.4 Strength of organizational culture…………………………………....Page 4 2.5 How leader embed & transmit culture…………………………….....Page 4/5 2.6 Change in organizational culture…………………………………......Page 5 3. Studies done by economists on corporate culture 3.1 KREPS, D. (1990)……………………………………………………… 3.1.1 The Kreps model on corporate culture…………………………...Page 6 3.1.2 The trust game……………………………………………………..Page 6/7 3.1.3 Roles of corporate culture identified by Kreps…………………..Page 7 3.2 CRéMER, J. (1993)……………………………………………………. 3.2.1 3 Components of corporate culture ……………………………...Page 8 3.2.2 Communication in three possible organizational forms………...Page 9 4. A practical study on the role of corporate culture on efficiency……………Page 10 5. Creating a culture of Corporate Governance………………………………..Page 11/12 6. Conclusion……………………………………………………………………...Page 12 7. Reference list…………………………………………………………………...Page 13

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1. Introduction As Benjamin. (1999) points out that most economists have overlooked the topic of corporate culture in their studies on organizations. Therefore its role in our increasing global economy can sometimes be underestimated. The studies done by a famous theorist of corporate culture; Edgar Schein provides some insight into the topic of corporate culture from an organizational physiologists’ view. A brief overview of the essentials of his theory which relate to economics is used as an introduction in this paper. There are of course the exceptions of the work done by economists such as Kreps, 1990; Crémer,

References:          Aidin, B., Ceylan, A., 2009. The role of organizational culture on effectiveness. Kreps, D., 1990. Corporate culture. In: Alt, J.E., Shepsle, K.A., 1990. Perspectives on positive political economy. Cambridge: Cambridge University Press Benjamin, E., 1999. Economics and corporate culture. Cornell university and & university of California, Berkeley. Buckley, J., Michie, J., 1996. Firms organizations and Contracts. A Reader in Industrial Organization. Cambridge: Cambridge University Press Crémer, J., Garicano, L., Prat, A., 2007. Language and the theory of the firm. The quarterly journal of economics. Kitzol, K., 2008. Corporate culture nach Edgar Schein. University of applied Sciences Mainz Operatives Management. Saucier, G., 2008. Beyond Compliance: Building a Governance culture. Terrence, E., et al., 2000. Corporate Cultures, the Rites and Rituals of Corporate Life http://corporate-eye.com/blog/corporate-governance. Accessed 08/07/2011 13