jueves, 18 de febrero de 2010

Corporate Culture (Sumary and Answer)

According to the Gregory Millman's article publicated in the Financial Executive "Corporate culture describes the whole collection of assumptions, practices and norms that people in an organization adopt over time". About this issue many executives and academic specialists have given their opinion, most of the CEOs expect the corporate culture helps the organization to get better outcomes in its performance, that's why when things aren't working good within the organization, the managers, in a precipitated decision, arrange to change the corporate culture,but it has proved that this is not the best solution. The cultural changes take much time to be executed and adopted.
When things aren't working properly, the most effective way to fix the problem is first identify which factors are causing this bad performance and then change all these behaviours that aren't healthy for the company, all these changes could be supported by a strong corporate culture oriented to the continum improvement.

Due to the actual economic conditions and the shifting business environment , where the workers have higher turnover rates and the average tenure of a CEO is just about five years, entail that the corporate culture doesn't have the required time to be developed. Eventhough this situation shows other facet, the professional culture is becoming more important to the company's performance , the norms and values that are tied to a specific profession could be practiced in any organization, " the occupational groups define cultures that transcend organizations".

Do you thing  there is a corporate culture in every organization?

I agree with the statement that in each organization exists a corporate culture and it is composed by a common set of values, beliefs and attitudes, which are proposed by the company's owner or the board of directors. As long as the employees stay in the organization, it would be easier for them to truly adopt the corporate culture in their lifes.
I think the corporate culture can be modified, but this process takes much time in becoming a real change, the stronger the corporate culture, the slower the change process.
Any change that entails a corporate culture modification such as a M&A, could generate rejection and troubles among the organization members, because the change causes uncertainty and moves the employees out of their "safe zone", where they develop their jobs, for that reason is very important that the CEO get a complete knowledge of the national cultures that are involved in those corporate transactions in order to direct the new corporate culture to the strategic objectives of the company.

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