In the sixties, businesses still had an essentially rational management of the company. A little later, came an understanding of the enormous importance the human dimension in management. Economists in the late seventies highlighted this after their research on a new dimension of cultures- the corporate culture.
Indeed, the implementation of a strategy does not occur only on a rational level by using action plans, budgets and other rational management tools, but it presupposes a change of values and a cultural change.
Today's economic environment makes it almost essential for companies to decentralize. However, this tends to make values of group cohesion disappear. To fight against the segmentation of the company, it is essential to create a unifying element i.e. a corporate culture with norms and values.
Adapting corporate culture after drastic changes in market is often crucial for its long-term survival. Therefore, it is necessary to increase transparency and facilitate understanding.
We will first examine the reality of the corporate culture and how it can be formed, and then we will look its various impacts and the means and difficulties of its management. Finally, we will take as a concrete example the corporate culture of the hotel chain Starwood.
1.Notion of corporate culture
A. Definition
Corporate culture is a relatively new concept which emerged in the late 1970s.
It required the establishment of a new way of thinking that forms a link between the abstract and irrational value of culture in relation to the rational aspect of the company.
Tags: definition of corporate culture, company culture, Starwood chain of hotels
[...] The culture needs to be scalable. • Setting up a corporate culture is not inexpensive, communication, recruitment methods can, sometimes, be a source of significant costs. And we note that when companies have trouble financing their investments, they tend to overlook many expenses related to their culture. The non-promotion of its culture may create a concern or anxiety within its staff and lead to the deterioration of the social climate. This could in turn, affect the economic performance of the company and its competitiveness. [...]
[...] • Undertake symbolic actions (for example: sponsoring an event, donating etc.) In order for symbolic actions to produce an optimal effect, they must be: 1 Relevant to the situation; 2 Spontaneous; 3 New and original, creative and interesting; 4 Planned and carried out in good time. C. Difficulties in managing corporate culture Management of corporate culture is essential to obtain a satisfactory effect. However, several problems can arise and it is necessary to resolve them quickly. • The confrontation between indigenous culture and foreign culture. [...]
[...] Formation of culture The foundations of corporate culture are created during the creation of the company. The culture then evolves throughout its existence and changes based on its experiences. When a new company is formed it is generally associated with its head. For example the company Ford established by Henry Ford or IBM by Thomas J. Watson. As experiences, norms, rules and relevant opinions originate and shape daily life. These standards are constantly changing. For example, while trying to solve a problem and achieving varying degrees of success, some values remain and others disappear. [...]
[...] Corporate culture Overview Introduction 1. Notion of corporate culture A. Definition B. Components C. Features D. Formation of corporate culture 2. Performance A. Impact of corporate culture 1 On cohesion and motivation within the group 2 On the management of the company B. Means for managing corporate culture C. Difficulties in managing corporate culture 3. Example of the hotel chain Starwood. [...]
[...] Definition Corporate culture is a relatively new concept which emerged in the late 1970s. It required the establishment of a new way of thinking that forms a link between the abstract and irrational value of culture in relation to the rational aspect of the company. The concept of culture is very complex but here, we will only give you a short definition - Culture is the product of collective behavior and thought by a society. By ‘corporate culture' we mean a set of norms, values and thought patterns that mark the common behavior of employees at all levels. [...]
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