How market forces shape organizational response? (Part 2)

Managing Corporate Culture is not simple. It requires constant assessments and monitoring by examining the external and internal environment. Such examination would reveal the nature of changes that are anticipated or are taking place in these environments. These changes may force the organization to adapt or modify their corporate culture according to the demands of the environment. A relaxed attitude on the part of the managers who believe they have a strong culture built over the years to enable them to cope with any kind of situation is risky. Uttal asserts that a static culture means a continuation of old, inefficient ways (Uttal, 1982).

Many leaders believe that organizational excellence can be achieved through effectively managing corporate cultures. It is sometimes observed that most managers do not know how to manage culture because of their lack of knowledge in monitoring and changing an ailing corporate culture although they realize that corporate culture is critical to corporate success (Miller, 1983). Basically managing culture involves identifying the existing norms, values and beliefs, comparing them against the desired values, norms and beliefs, and planning and implementing the socialization process systematically.

Culture provides a solid foundation and a positive climate for productivity improvement. Sathe points out that corporate culture determine both the efficiency and effectiveness of the company (Sathe, 1985). Luce also affirms the same view and states that by improving the organizational culture, the organization can be made more effective and productive (Luce, 1984). Of course culture per se does not directly increase profit or decrease cost. But it influences the behavior of people in an organization. Because the companies have certain common cultural attributes, other companies can become excellent by emulating them (Peters & Waterman, 1982).

Moskowitz identifies the following as characteristics of working places in good companies not found in other companies:

·         Make people feel they are part of a team

·         Encourage open communication

·         Stress on quality

·         Profit sharing

·         Reduce rank distinctions (Moskowitz, 1985).

Although corporate culture is an invisible and elusive concept, it significantly affects all spheres of corporate life activities, ranging from day-to-day routines to corporate strategy. How much mileage a corporation can get out of this culture depends on how it is nurtured and managed. It is proven fact that companies with strong corporate culture maintain leadership in their business activities.