Business Management (SAC 1) (Chapter 2) (Corporate Culture)

Identify a strategy to develop corporate culture (implementation of policies)

A policy (written statement) tells employees what to do and how to do it in any given situation. In order to develop and reinforce the corporate culture of a business, the policies and practices within a business should reflect the values of that business. Policies can establish standards of behaviour and guiding principals on actions that may be taken and this can assist in reinforcing corporate culture by; establishing consistency (any employee caught breaking a rule of the business will face the same consequence), setting out procedures (these will guarantee that actions reflect the values and mission of the business), and recognising the rights and obligations of people within the business etc.

Describe corporate culture.

Corporate culture is a system of shared values and beliefs of people within a business. It is an internal factor which management seeks to influence through putting in place strategies to develop and alter the culture of the business in the hope of optimising business performance. A positive culture that encourages productivity improvement, high standards of quality in products and services and employee engagement is crucial to the competitiveness and success of a business. Corporate culture is also taught to newcomers and is representative of the things that worked well in the past and are considered valid within the business.

Distinguish between official and real corporate culture.

Official corporate culture is a set of values and beliefs that the business wants to present to the public as its own. Official corporate culture is visible through business or company documents, goals, mission and official statements. The official culture is not always reflecting off the real or actual culture of a business. The real (unofficial) culture is what actually prevails in the business. Real culture can be gleaned through observation of what actually occurs and the real relationships and interactions between people.

Identify a strategy to develop corporate culture (physical environment and material symbols)

Physical environment is a significant indicator of culture, open plan offices, for example, promote lateral communication, team building and communication. The location of the business also affects its culture, For example, a traditional CBD location will promote a different culture to a business in a rural location.material symbols representing status in an organisation are another physical indicator (for example, senior managers having bigger officers than middle managers).

Identify a strategy to develop corporate culture (official business documentation)

The branding of a business is an important factor when developing the official corporate culture of that business. It represents the ways the customers view the business. It is, therefore, important when designing business documentation, to ensure that it clearly represents the image the business wants to convey. The language used in the documentation may indicate whether the business has adopted a formal or informal culture. Also, specific or specialist language (such as jargon and acronyms) can act to bind employees within a workplace (such VCAA, VCE, GAT).

Identify a strategy to develop corporate culture (people)

The culture of a business is also reflected in its people. Employees are an important determinant and indicator of culture. If a level of formality between management and employees is required in the workplace, the manner in which people greet each other can achieve this (e.g. using courtesy titles such as Mr, Mrs, Dr and Professor when greeting fellow workers). If a business wants to create a corporate culture that celebrates divercity in its people, it can use recruitment policies to achieve this objective. DIvercity can be created by ensuring that there is a mix of workers with different; ethnic backgrounds, ages, skills and levels of experience. Divercity acts to enrich corporate culture.

Identify a strategy to develop corporate culture (the creation of a formal written mission, vision and values statement).

The mission statement, vision statement and values statement act as the starting point for identification and establishment of the desired culture (official and real). They provide the purpose with which all decisions made in the business must match up.

Identify a strategy to develop corporate culture (stories narratives and rituals)

The people about whom stories are told often become 'heroes' for that business (such as the business founders). Displaying photos of these people in the foyer or reception area will show the pride and esteem in which they are valued. Establishing and acknowledging key values and expectations within a business should be encouraged. Examples of these are: recognition and reward ceremonies, weekly social get-togethers, participating in social club activities or the annual Christmas party.

Identify a strategy to develop corporate culture (establishing management structures)

The way in which the different parts of a business are formally arranged in order to link management, employees and their functions can help to develop the corporate culture. Traditional businesses have operated under a hierarchical structure which features three distinct levels of management (senior/executive, middle level, and front line management). All three levels of management must make sure that corporate culture is understood by all workers. Removing layers (delayering) of management has meant that some management roles and responsibilities have been taken over by employee work groups or teams. This change in structure has resulted in significant workplace changes such as; greater employee involvement in participative decision making, increased levels of employee engagement, decentralisation of power, improved motivation etc.

Identify a strategy to develop corporate culture (choice of management styles)

Use of management style will affect the corporate culture of a business. Management style refers to the different ways that managers in a business behave. The preferred style of a manager will depend on many factors, such as cultural styles of leadership, and the style of business they are managing. For example, autocratic style will suit a highly structured business, where a great emphasis is placed on accomplishing tasks in a giving time limit and where the manager places little value on the employee's job satisfaction. In contrast, a manager who uses a participative style to manage the employees places emphasis on ensuring the workers gain job satisfaction. Evidently, using participative style management will result in the development of a positive real corporate culture within the workplace. Management must value their workers for both their contributio to the success of the business and also as private individuals.