The importance of establishing corporate culture


A nations development needs the support of its spirit, while a corporation needs spiritual and cultural ideas to guide its operation and development. In the modern world, the diversified corporate cultures have come into being because of different nationalities, races, religions, and so on, and there are many such enterprises as and McDonald's(Deal and Kennedy 1982, 193 ) and Sony (Lessem 1990, 112) which have successful corporate culture around the world. It is clear that corporate culture has become an indispensable part of companies and it has been exerting profound influence on the development of enterprises.

From an economical point of view, Brown point out that:

Organizational culture refers to the pattern of beliefs, values and learned ways of coping with experience that have developed during the course of organization's history, and which tend to be manifested in its material arrangements and in the behaviors of its members.

In other words, corporate culture is the total sum of values, professional ethics and code of conduct and guidelines of social practice among staff that formed under a certain social economic conditions and make companies unique.

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In this essay, the first part I attempt to expand the definitions with special emphasis the elements of corporate culture. The second part demonstrates the function of corporate culture. The third part illustrates how to establish and develop a successful corporate culture. The purpose of this essay is to discuss the importance of establishing and developing corporate culture in a corporation, thereby helping those people who haven't a clear understanding of corporate culture to pay more attention to corporate culture.

According to the definition of corporate culture, there are some aspects or elements of corporate culture, including values, heroes, rites and rituals (Deal and Kennedy 1982, 14). More specifically, on the one hand, value is the bedrock of any corporate culture, which provides a sense of common direction for all employees and guidelines for their day-to-day behaviour. On the other hand, heroes play a pivotal role in a strong culture. Like Bill Gates, Charlie Bell (Brown 1998, 156), the famous CEO, they create the role models for employees to follow. They have unshakable character and style. According to Deal and Kennedy: "The hero is the great motivator, the magician, the person everyone will count on when things get tough."(Brown 1998, 23) Furthermore, Rites and rituals are the systematic and programmed routines of day-to-day life in the company. It is very probable that any culture will die without expressive events. For example, training programmes, induction programmes, and retirement dinners can facilitate changes in corporate role and status (Brown 1998, 22). In addition to these, each corporation has its unique values, heroes, rites and rituals, so the corporate culture is different and every corporation has its own characteristics of corporate culture.

It is possible that corporate culture is a organizational force that controls patterns of organizational behaviour by shaping members' cognitions and perceptions of meanings and realities, providing affective energy for mobilization, and identifying who belongs and who does not, so a large number of functions have been attributing to corporate culture. An enterprise that is able to maintain a positive culture is likely to enjoy many benefits. To begin with, when organization members identify with the culture, the work environment tends to be more enjoyable, which boosts morale. This leads to augmented levels of teamwork, sharing of information, and creating new ideas. Moreover, corporate culture helps to attract and retain top employees, that is to say, if corporation are simply relying on high salaries, high treatment, it is difficult to recruit and retain capable personnel, since their high level of demand cannot be satisfied by high salaries. Only a strong corporate culture can attract them, and make them have a strong sense of belonging. Additionally, a good corporate culture can completely fulfil the potential and stimulates the morale of the staff. Meanwhile, as a spiritual force, the corporate culture is restriction and pillar of corporation. When a good corporate culture is founded, it brings a group of wisdom, the spirit of collaboration, fresh vitality. And it will provide innovative and progressive spiritual power for corporation. Consequently, a strong corporate culture can be a source of competitive advantage. When considering corporate culture, it is helpful to consider actual companies that have demonstrated the positive effects that a corporate culture can have.

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However, there are some organisations, are not performing to anything like their maximum potential, and large numbers of companies decline and go bankrupt every year. In fact, what is clear is that culture has a widespread influence on organisational life. In short, these unhealthy cultures tend to have low-performance values, leadership, rites and rituals all combine to restrict the development of corporation, may promote conflict, diminish employee motivation and reduce the competitive power. A healthy and successful corporate culture should be founded by the leadership with a sense of crisis or need for change, highly regarded by employees with central beliefs and values, and thereby stimulating the morale of the staff and promoting the advancement of corporation. Consequently, it is imperative that establishing and developing a successful and high-performance culture in a corporation.

A successful corporate culture enables an organisation to achieve excellent performance. Establishing and developing a successful corporate culture should: (1) facilitate goal alignment, (2) lead to high levels of employee motivation, (3) be better able to learn from its past experience, (4) create an effective communication channel. Furthermore, Establishing and developing a corporate culture can enhance the vitality of corporation to ensure the healthy development of market economy, and therefore establishing and developing the corporate culture is the urgent need and inevitable trend to gain market economic competitive advantages. Corporate culture refers to an organization's values, beliefs, and behaviors. In general, it influences all the ways in which people interact and measure success within the business environment. While culture is not the only determinant of business success or failure, a high-performance culture can be a significant competitive advantage over organizations with which a firm competes. It is almost certain that building corporate culture and improving the cohesion and the competition ability in the market is the basic strategy of existence and development of corporation.

Different companies have different corporate culture. It is worth noting that each corporate culture has its own etiquette activities characteristics and each company should establish and develop a successful corporate culture according to its own condition and environment. The success of Sony has shown us a good example to illustrate the importance of establishing and developing corporate culture and how the culture affects enterprises. For instance, Sony has a unique view about the turnover (Lessem 1990, 113). As for the enterprises, their different stages of development need employees good at different skills. It is very important for a company to make full use of their current staff members to advocate its innovation or transformation. Generally speaking, it is a good opportunity for companies to improve their core competence. It would seem that Sony Co. Ltd is famous for his remarkable technologies and service as well .it has expanded in many countries and regions and achieved the great successful in the area of electronic technology. It is that corporate culture, for the staff and the development of corporation which is the most precious and powerful of organizational resources.

In conclusion, this essay have explained what corporate culture with special emphasis its three main elements, including values, heroes, rites and rituals and then demonstrated the function of corporate culture and how to establish and develop a successful corporate culture. Corporate culture is restriction and pillar of corporation which can make environment more enjoyable in order to attract and retain top employees. As mentioned above, a strong culture is not only able to respond to an environment, but they also adapt to diverse and changing circumstances with different values, activities of heroes, and rites and rituals. These results lead to the conclusion that establishing and developing corporate culture are playing increasingly essential role in a corporation. In my opinion, the winners in the business world of tomorrow will be the heroes who can forge the values, rites and rituals that can keep working productively and Enhancing the Competition Power.

(1375 words)