Strategic Management and Corporate Culture - Essay Example

The corporate culture of an organization is revealed in its client satisfaction, office setup, business hours, employee benefits, dress code, hiring decisions, turnover, treatment of clients, etc. According to Edgar Schein, the organizational culture is viewed as the simple beliefs and assumptions that function unconsciously and are shared by members of a company (Johnson, Whittington, Scholes, Angwin and Renger, 2013, p.147). The corporate culture has a significant influence on the alteration and development of organizational strategies. Schultz and Ravasi stated that corporate culture is a set of collective assumptions that outlines proper behavior for numerous conditions to guide what is happening within the organizations. The four different layers of organizational culture proposed by Edgar Schein are values, beliefs, behaviors, and paradigm (Johnson, Whittington, Scholes, Angwin, and Renger, 2013, p.152). The corporate culture can affect the manner in which groups and people interact with stakeholders, with clients, and with each other. A healthy corporate culture can help to improve the performance of an organization. Furthermore, it can benefit positive reputation, high employee retention, and increased productivity. The organizational cultures include government, non-profit, public, and private organizations. A company with positive corporate culture can make employees experience a positive attitude and high morale. It is critical for an organization to develop implicit rules, clear understandings, and a core set of assumptions that can be effectively incorporated into the workplace environment. An effective corporate culture can help to lessen human resources costs and retain valuable employees of the organization. Moreover, it is believed that a company with healthy corporate culture can increase profits, improve financial health, improve morale and increase productivity.

The sustainability of corporate culture and focusing on the building is one of the primary ways to show that people are a most valuable asset of an organization. Over the period of time, the organizational habit as culture is formed by repeated practices and behaviors.