Corporate Culture & Strategy2 Executive Summary Culture is the characteristic and understanding of other peoples’ social habits, language, arts, and religious backgrounds. Corporate culture represents the professional values adopted by a company to establish a proper employee, clients, and partner’s relationship in the business (Farndale, Scullion, and Sparrow, 2010, p. 165). The assignment presents two weeks 3 activities. Activity one will major in corporate culture and strategy while activity 2 will define culture. Corporate culture and strategy activity analysis will discuss culture clashes in the event corporate culture fights corporate strategy and the cost it exposes an organization to. Activity 2 will explain the meaning of organizational culture and the reasons why managers should care about organizational cultures.
Corporate Culture & Strategy3 Table of Contents Executive Summary.........................................................................................................................2 E-Learning Activities.......................................................................................................................4 Week 3: Activity 1: Corporate Culture and Strategy...................................................................4 Week 3: Activity 2: Definition of Culture...................................................................................5 Conclusion.......................................................................................................................................8 References........................................................................................................................................9
Corporate Culture & Strategy4 E-Learning Activities Week 3: Activity 1: Corporate Culture and Strategy Section 1 For companies, “culture is everything”. There is a need for proper integration of corporate culture and strategy in order to boost organizational performance. Culture clash cost businesses dearly. Different corporate culture types are experienced in various forms. The most common examples of corporate culture types are hierarchy culture, adhocracy, and market strategies as employed differently by different companies. The establishment of a proper hierarchy within an organization spells out the protocols, channels, and communication mechanisms to be used by a company. A proper communication hierarchy in an organization ensures that there are order and unity of command, where the right power positions are respected and instruct the rest on what to do(MacIntosh and Doherty, 2010, p. 110). Further, adhocracy is another type of corporate culture which is flexible, adaptable, and informal. Adhocracy counteracts bureaucracy and relies on a well-defined set of hierarchy useful in achieving organizational objectives. Also, there exists a clan business culture that discourages equality and diversity in the workplace. Clan oriented business cultures are family like and focus on nurturing, mentoring, and working together towards achieving the set objectives(Naranjo-Valencia, Jiménez-Jiménez, and Sanz- Valle, 2011, p. 60). Lastly, market organizational culture also exists in businesses plans to achieve the set corporate strategies. A market-oriented business culture is result oriented and focuses on strategic competition approaches and the policies of getting the job done. Section 2 Woolworths is an Australian based retail company that properly integrates the types of organizational culture to its corporate culture and strategy. Woolworths is associated with the
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Corporate Culture & Strategy5 two lower cultures (Hierarchy and Market) and mainly focus on stabilizing the upper two business cultures (Clan and Adhocracy) with adaptability and flexibility. The employment of a hierarchy culture by the management of Woolworths based on control helps the company achieve incremental benefits such as increased customer based and productivity both domestically and globally(Bititci et al., 2014, p. 38). Further, Woolworths has been emphasizing on increased managerial focus on Adhocracy something which has enabled the company to achieve a breakthrough for change. The main objective of Woolworths is valuing the culture of employees, management, clients, and other interested parties. Through this doing, Woolworths has been able to diversify its operations to global markets and become the largest retail supermarket and stall in Australia. The corporate culture and strategy of Woolworths encourage creativity and innovation through which employees freely share new ideas appropriately. The use of right organizational cultures by Woolworths is the main factor behind its current success, position, development, and competitiveness in the Australian and international markets(Zheng, Yang, and McLean, 2010, p. 30). In this doing, corporate culture and strategy has enabled Woolworths focus on mentorship and nurturing programs that boost its competitiveness in the market. Week 3: Activity 2: Definition of Culture Section 1 Different scholars define culture differently. The definition of culture varies from one person to another due to the environment, context, and purpose of why culture is being referred to in any given context. However, among all the definitions of culture that I have learned, one meets my understanding of culture in the workplace. Culture can be defined as the set of shared, taken-for- granted, implicit assumptions held by a particular group and that helps in determining how the
Corporate Culture & Strategy6 group perceives, thinks, and reacts to its environment(Spencer-Oatey and Franklin, 2012, p. 11). In simple terms, cultures refer to the shared beliefs, assumptions, ethics, and values that people form/ have about their workplace. There are many reasons why I support the definition that culture entails shared assumptions, beliefs, ethics, and values. To begin with, culture introduces the aspect of organizational culture in a business that spells out the norms, behaviors, attitudes, and policies adopted by a business. The success of a culture depends on the values of an organization.If the value of a company is promoting effective communication, then a communication language/culture is made known to all employees and clients of the company to enhance communication. Also, different people come from varying backgrounds where their social beliefs vary and form an organization. Further, ethics defines the responsible behavior of an organization; and this forms its culture. Section 2 The business world has turned out to be very competitive, and this has triggered most companies in establishing proper organizational cultures as a strategy to achieving the set corporate goals. Commonwealth Bank defines culture as the values, beliefs, ethics, and behavior exemplified by employees while in the workplace. At the company, the management established work ethics that defines how employees conduct themselves in responding to customers concerns and queries. There is a clear language that is used both internally and while interacting with the outsiders, and this is Australian English. Further, every employee is expected to respect the seniors, colleagues, and subordinate officers who work in the company, and this is part of the organization’s culture (Bellot, 2011, p. 30). There is a clear set of policies documented and shared with all employees about the values they are expected to conform to while in the workplace. Commonwealth Bank
Corporate Culture & Strategy7 stands for accountability, equity and diversity, respect, professionalism, and ethics. The management has provided a conducive working environment that motivates and encourages employees to increase productivity and offer first class banking services to the customers. Today, the organization attracts employees from all diversity due to its positive public reputation due to its unique culture and value for employees as the most important assets of the company.
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Corporate Culture & Strategy8 Conclusion There lacks a proper organizational culture for an arts organization. Every business culture promotes some form of behavior as well as inhibiting others. Some corporate cultures suit gradual, rapid, and constant change as others derails incremental development, growth, and sustainability in an organization. Culture involves a set of beliefs, ethics, assumptions, and values that define a company to its interested stakeholders. A proper integration of corporate culture, organizational culture, and corporate strategies boosts a company’s performance and productivity. The management should establish a proper organizational culture in order to achieve the set corporate goals. Culture is a corporate strategy in itself, and this is why management officials must care about their organizational cultures.
Corporate Culture & Strategy9 References Bellot, J., 2011, January. Defining and assessing organizational culture. InNursing Forum(Vol. 46, No. 1, pp. 29-37). Blackwell Publishing Inc. Retrieved from: https://onlinelibrary.wiley.com/doi/full/10.1111/j.1744-6198.2010.00207.x Bititci, U.S., Mendibil, K., Nudurupati, S., Turner, T. and Garengo, P., 2014. The interplay between performance measurement, organizational culture and management styles.Measuring Business Excellence,8(3), pp.28-41. Retrieved from: https://www.emeraldinsight.com/doi/abs/10.1108/13683040410555591 Culture clash: When corporate culture fights strategy, it can cost you’http://knowledge.wpcarey.asu.edu/article.cfm?aid=31 Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global talent management.Journal of world business,45(2), pp.161-168. Retrieved from: https://www.sciencedirect.com/science/article/pii/S109095160900073X MacIntosh, E.W. and Doherty, A., 2010. The influence of organizational culture on job satisfaction and intention to leave.Sports Management Review,13(2), pp.106-117. Retrieved from:https://www.sciencedirect.com/science/article/abs/pii/S1441352309000515 Naranjo-Valencia, J.C., Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation or imitation? The role of organizational culture.Management Decision,49(1), pp.55-72. Retrieved from: https://www.emeraldinsight.com/doi/abs/10.1108/00251741111094437 Spencer-Oatey, H. and Franklin, P., 2012. What is culture?A compilation of quotations. GlobalPAD Core Concepts. Retrieved from:
Corporate Culture & Strategy10 https://warwick.ac.uk/fac/soc/al/globalpad/openhouse/interculturalskills_old/global_pad_- _what_is_culture.pdf What is Organizational Culture? And Why Should We Care?http://blogs.hbr.org/2013/05/what- is-organizational-culture/ Zheng, W., Yang, B. and McLean, G.N., 2010. Linking organizational culture, structure, strategy, and organizational effectiveness: Mediating role of knowledge management.Journal of Business Research,63(7), pp.763-771. Retrieved from: https://www.sciencedirect.com/science/article/abs/pii/S0148296309001714