What is a Corporate Culture?

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Corporate Culture

What is a Corporate Culture?

Put in simple terms, corporate or business culture is the personality of the organisation. This corporate culture is made up of the assumptions, values, standards (moral and financial) and behaviour of organisation members. We can therefore say that business culture is the shared meanings or common beliefs present among an organisation's members.

Culture is one of those terms that are difficult to express distinctly, but everyone knows it when they sense it. For example, the culture of a large, for-profit corporation is quite different than that of a hospital, which is focused on the patient, which is again quite different that that of a university.

A recent report into the Metropolitan Po- lice identified the service as being ‘institutionally racist’. – Could this be regarded as a fair reflection of the personality of this organization?

If there is a strong corporate culture employees can soon come to sense the particular culture of the business, and adopt it in the way they work, the way they re- late to management and colleagues and in the way that they deal with customers. This adoption of the firms culture ensures the culture is passed on as new workers are recruited.

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Types of Culture

There is no best or worst type of culture, any business that has been around long enough to have a recognisable culture, must be successful just to have survived. But each type of culture can have advantages and disadvantages, and as circumstances change, then unless the disadvantages can be overcome the long term existence of the business can be jeopardised.

Centralised or Leader Centric Culture.

Here the leader, who is likely to be a successful entrepreneur, sets the culture. Often, a company's founder has great influence in the initial values and principles in- ...

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