LITERATURE REVIEW 6
Numerous research studies have been carried out and documentedregarding the various factors that affect organizational culture.Most of the research findings have focused solely on the internal andexternal factors that influence the culture of an organization.However, the purpose of this literature review is to delve deeperinto the specific factors and the role they play in shaping theculture of an organization. The focus of this paper is on the factorsthat can lead to a successful organizational culture. However, itwill be noted that the literature review covers all factors includingthose that have a negative effect on the corporate culture.
Coleman (2013) has defined corporate culture as the common set ofbeliefs, attitudes, practices, ideologies, and values that employeesin a particular organization follow. There is need to mention thatduring my research I found out that there is divided opinionregarding the meaning of organizational culture. However, the abovedefinition seemed to be agreed upon by most of the researchers.Organizational culture is extremely important, and it affects how anorganization performs. Coleman (2013) has asserted that approximately20 to 30% differences in organizational performances are based on howwell an organization utilizes its culture. Coleman (2013) hasnarrowed down his factors for a successful organizational cultureinto six components. Firstly, he asserts that an organization’svision affects the organizational culture significantly. The visionof the organization is inculcated into the minds of the employees andtheir performance, behavior, and attitude are geared towardsachieving the vision. Coleman (2013) has continued to state that thecompany values have a significant effect on the culture of anorganization. Values determine the expected employee behaviors orpractices that will lead to the achievement of the vision.Furthermore, the values established by an organization stipulateaspects such as how clients should be served, the organizationalstandards and how colleagues relate with each other at the workplace.
According to Coleman (2013), the people a company hires as employeeshave an effect on its culture. For example, when an organizationhires people from the military, there is the likelihood that suchemployees will be strict and will follow the set rules andguidelines. Further, a company that hires more males than femaleswill experience a culture of working late since men can leave theoffice late. It is, therefore, essential to have a strict recruitmentprocess to make sure only the best employees whose personalattributes align to the organizational culture are hired. Thepractice of an organization is another factor that Colman has pointedout. An organization that predicates its success on the way it treatsits employees must demonstrate such practice (Coleman, 2013). Failureto treat employees well may result in a bad organizational culture.Lastly, the history or the narrative of an organization is importantin shaping the organizational culture. Companies such as Apple haverelied on the history of its co-founder Steve Jobs of his fascinationwith computers to advance its organizational success.
Guiso, Sapienza, and Zingales, (2013) have also made theircontributions to the issue of corporate culture and its importance.According to these authors, the culture of an organization hastremendous effects on the success of a company. Employees in acompany tend to follow the behaviors and practices of the leaders.For example, leaders or the management team that is trustworthy andinculcates the culture of honesty leads to an optimal performancefrom the employees. In this regard, it is evident that the managementor the leadership of an organization has significant effects on theculture of an organization (Guiso et al., 2013). The authors haveargued that the development of values in an organization tend to havelittle significance or effect on the culture. Their research focusedlargely on the governance style of an organization. Guiso et al.,(2013) have opined that the publicly run organizations lack anystrong culture due to poor governance. Further, they have assertedthat the old and traditional governance styles or models have adverseeffects on an organization’s culture. This is due to they lack theessential motivational aspects for the employees.
Constantin, Doina, and Mirela (2015) have equally researched andwritten on the factors that affect successful organizational cultureformation. According to these authors, organization culture is anassembly of values, attitudes, values, and conceptions that form thecontext of an organization’s activities and practices. According tothese authors, the environment is one of the primary factors thataffect the culture of an organization. The technological, economic,cultural, and judicial aspects are factors that can influence theculture of an organization. They have also pointed out the leadershipof an organization have an effect on the culture. Leaders who areclose to their subordinates create a culture of trust leading theoptimal performance (Constantin et al., 2015). These authors seem toagree with Colman that the narrative or the history of anorganization tend to affect the culture of an organization. Theypoint to the role that the founders or an organization play towardsthe culture of a company. For example, the love for computersdemonstrated by the founder of Apple can have a significant influenceon the culture and practices of the company. Further, the practicesor characteristics of an organization are other factors that theyshare with Colman. These may include aspects such as corporate socialresponsibility that some organizations are known for.
The corporate culture is dynamic, and there are numerous challengesexperienced by organizations as they attempt to transition from oneculture to another. Korsakova et al., (2016) have asserted thatorganizations face challenges while transitioning from one culture toanother due to the social, economic aspects. The authors haveasserted that the socio-economic changes affect the culture of anorganization significantly. There is need to align the corporateculture with the modern social and economic statuses of the world.The organizational cultures that were being practiced a hundred yearsago cannot be effective today and organizations that want to succeedmust transition (Korsakova et al., 2013). However, the transitionprocess must put in place the effective transition procedures.
While concluding, it is clear that numerous research studies havebeen conducted regarding the issue of factors affecting successfulcorporate culture. This research Study will add onto these findingsand add other factors that the above researchers never incorporated.There is no doubt that the organizational culture is an essentialtool in a firm and efforts must be made to ensure that it isprotected. This research will base its collection of data andresearch questions on the literature review above. There are manycommonalities between this literature review and the researchquestion. Some of the findings of this research project will yieldsimilar findings like the ones in this literature review.
Coleman, J. (2013) Six Components of a Great Corporate Culture.Harvard Business Review.
Constantin, R., Doina, R. and Mirela, S. (2015). The organizationalculture and the factors of its formation. International Journalof Environmental & Science Education Vol. 14.
Guiso, L., Sapienza, P., Zingales, L. (2013). The Value of CorporateCulture. Journal of Financial Economics.
Korsakova, T. V., Chelnokova, E. A., Kaznacheeva, S.N., Bicheva, I.B., Lazutina, A. L., Perova, T. V., (2016). Transformation ofCorporate Culture in Conditions of Transition to KnowledgeEconomics. International Journal of Environmental & ScienceEducation. Vol. 11.