Business management have the responsibility to establish corporate culture in a business organization.
It is the management team that sets all the rules, norms and expectation within a business in order to share the culture of the firm. Therefore, cultural understanding is desirable for planning any corporate strategy. It is also a prerequisite to effective management and leadership.
The main reason to establish corporate culture
One of the major factors that contributes to the growth in popularity of corporate culture the success. What is mean by success is the success of the business and its owners as well as the success of manager and employees. Therefore, there is a belief nowadays that there is a relationship between having a strong corporate culture and improved business performance.
Secondly, there a growing awareness in the general society that successful leaders are not only concerned with costs, sales revenue and profits, but also with the ability of leaders to motivate, inspire and to gain commitment from the employees.
Finally, it is beneficial for the business to create, establish and maintain positive, cooperative and team-based organizational cultures where each and every employee can thrive both professionally and personally.
Strategies to establish corporate culture
There are several interrelated strategies to create a positive corporate culture:
- Define core values. What are the guiding principles that will shape your company?
- Promote a sense of value. Businesses with strong cultures establish systems to recognize and reward efforts of their employees by opportunities for promotion, professional development initiatives, investing in training, etc.
- Communicate values clearly and consistently. Ensure everyone understands the company’s values and how they should be reflected in everyday actions.
- Develop a sense of belonging. Well-established multinational businesses create a sense of belonging by building up historical accounts of their businesses and glorified past successes.
- Promote open communication and feedback. Create a safe space for employees to share their ideas and concerns.
- Create a sense of unity. Managers can create unity by establishing SMART business objectives for workforce to foster a culture of collaborative teamwork and mutual understanding.
- Empower employees. Give employees the autonomy and resources to make decisions and contribute to the company’s success.
- Lead by example. Leaders should embody the company’s values in their own behavior.
- Encourage responsibility. To make employees more dedicated and responsible for their work, business managers should create opportunities for staff to work in teams, participate in social events and get to know each other better.
- Recognize and reward desired behaviors. Acknowledge and reward employees who embody the company’s values.
- Celebrate successes. Take time to celebrate milestones and achievements together.
Remember that any attempts to establish a corporate culture in multinational businesses will surely be undermined by the strength and influence of national cultures.
Example 1: The history of most companies can now be found on the Internet. Multinational organizations such as Coca-Cola, FC Barcelona or Cadbury even have their own museums connecting the past to the present and to shape the future.
Core elements of corporate culture
It is the management who sets the standard for the corporate culture in a business organization. With the core elements of organizational culture being share values, beliefs and norms.
Here are a few ideas how corporate culture can packaged and communicated to make it more visible. Each element brings a unique dimension to understanding and experiencing the company’s values and practices:
- Environmental elements: Physical workplace design, symbols, slogans, mottoes, technology and tools, dress code and attire, etc.
- Communication and engagement: Employee recognition and rewards, special events, rites and occasions, internal communication channels, daily rituals, social events and initiatives, etc.
- Learning and development: Courses, mentorship programs, shadowing opportunities, cultural ambassadors, etc.
- Storytelling and narrative: Stories, sagas and legends, video testimonials, heroes, blogs and internal publications, photographs and artifacts, gamification, etc.
By taking a multifaceted approach to packaging and communicating culture, business managers can create a vibrant and visible atmosphere that attracts and retains talent, improves engagement, and drives success.
Finally, in order to communicate corporate culture after it had been established, it is wise for the management to establish cultural networks within the firm. These are groups of people that work together over time that form the values and beliefs that a company wants to promote.
