Meaning of corporate culture –
• Oxford Dictionary defines corporate culture as the ideas, customs or beliefs of a particular group.
• Corporate culture means an organization’s values and beliefs that reflect overall environment of the organization.
• It reflects overall attitude or character (i.e. approach) of an organization.
• It sets standards of behavior for the employees, as to what they should do and what not accordingly, behavior of employees depends upon the organizational culture.
• Managements strives to establish a strong organizational culture.
Ethics & Communication Notes of Most Important Questions for CA IPCC
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Types of corporate culture –
Strong Culture –
• Personal goals of employees are aligned with the organization goals.
• Employees are more likely to support organization wide change.
• Strong culture encourages risk taking and innovation.
• Little control (control by exception) is required to be exercised.
Weak Culture –
• Employees are morel likely to resist change.
• Employees lack the initiative to innovate.
• Employee’s personal goals are less aligned with the organization goals.
• Strict control (by laying down extensive procedures) is required to be exercised.