Literature Review

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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 &amp 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 &amp ScienceEducation. Vol. 11.

Literature Review

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16thMarch 2017


TheUSA has complex financial systems that may be hard to comprehend andchange. Currently, the dynamic nature of financial institutions isbecoming even more complex including insurances, technology,financial securities, and livelihood shifts. In this regard, Marcolinand Abraham (2006) believes that the financial literacy in a vitalcomponent for all Americans in order to enhance success andsustainable lives. However, the gap between the rich and poorcontinues to grow among the Americans especially in relation to theirqualifications to job (Reardon, 2011). The main group of concern isthe African Americans whose financial decisions do not follow themainstream expectations of financial literacy (Johnson, 2011). It wasbased on a historical norm carried along the descendants since theirslavery where redistribution to wealth did not happen. This aspectimplies the majority of the ethnic group remained poor with a set ofnorms for survival. These historical inequalities designed how theAfrican Americans interact with the financial markets and systems.

Insampling these cases of turnover among the black American population,the Bureau of Labor Statistics (2017) found that the job turnoverrate in the southern states has been higher compared to otherregions. The statistics recorded between 3.6% and 3.7% from August toDecember 2016. Statistics over a similar period in the North Easternregion including Maine, New York, and New Jersey has a turnover rateof between 2.90% and 3.30% (Bureau of Labor Statistics, 2017). TheMidwest region including Indiana, Iowa, and Michigan have a turn-overrate of between 3.20% and 3.50% (Bureau of Labor Statistics, 2017).In the West region including such areas as Alaska, Idaho, andArizona, there is a turn-over rate of between 3.4 and 3.6% (Bureau ofLabor Statistics, 2017). As given by the US Department of Labor, thecavity connecting the overall U.S. unemployment rate and the rate forAfrican Americans in 2015 was 4.30%.

Thecurrent literature discusses the concerns about high job turnoverrates among African American males. According to Quinn (2016) theAfrican American employment rate at Intel was 5.1 in 2014 however,this rate dropped to (4.8%) in 2016. The reason could be attributedto the dynamic labor market (Quinn, 2016). The culture that ispresent in the workplaces could also be a contributing factor to theincreasing job turnover rates (Quinn, 2016). The culture in theworkplaces could be one that does not allow the blacks to speak outor one that is uncomfortable for the members of the community (Quinn,2016). It could also mean that the ‘code’ of the AfricanAmericans has not been cracked (Quinn, 2016). However, given thatfinancial literacy is wrapped under well-thought decision-making,there is the high chance that high job turnovers among the blackmales indicate illiteracy (Littell &amp Hopkins, 2015). It is thesame illiteracy that accounts for degree completion failures, whichfurther braces more of the black males to the snares of unemploymentas indicated by Morrison (2015). The key message is that decreasecompletion of degrees and financial illiteracy is prevalent in thesouthern states, where in this case the state of Texas and the blackmales therein are affected

Economicadversities among the African Americans have a long historicalinfluence of 200 years until 1865 when the slavery economic systemwas ended. This exploitative system left the African Americancommunities segregated even after the development of laws to protecthuman rights (Edward, Thompson, Jamael, Olomoba, &amp Jordan, 2013).This ethnic group was not included in the mortgages designed by thegovernment as well as the money programs. In essence, mortgages andloans in the financial systems usually promote low turnover fororganization. For instance, an employee without monthly charges topay like loans may be less motivated to retain a job since there areno intense requirements. They grew to distrust the financial systemsand adopt other systems existing within their communities due unfairlending practices, racism and redlining. Acs and Popest (2009) arguethat white, pink and blue collar jobs make less income for theAfrican Americans than the European Americans. In a similar way,Spalter-Roth and Lowenthal (2005) informs that they have the highestproportion of service jobs while the European Americans take most ofthe professional jobs today.

Inthe prevailing context where Americans are encouraged to ensurefinancial security for future purposes, the topic of bad economicchoices aroused by financial illiteracy is prudent. A researchperformed by Miller (2010) informed that white Americans had higherfinancial achievements than their black counterparts. Miller arguedthat the experiences of black Americans in history and economy mayhave informed their behaviors and decisions to issues relating tomoney. Miller’s research used 17 black Americans selected using theconvenience sampling method in exploratory interviews of one and ahalf to two hours. This study introduced ethnic money knowledge (EMK)which explained how black Americans perceived the factor in aneconomy depending on their history and cultures. The researchindicated that black Americans were obliged to support the kin andextended family financially unlike in the mainstream expectationswhere individuals take care of their nuclear family. This behavior istransferred via the implicit and explicit financial communication ina family as a functional and culturally acceptable norm.

Lyonsand O’Brien (2006) conducted a study to clarify the speculations ofDawis and Lofquist (1984) who argued that turnover and jobsatisfaction among the black Americans cannot be based on the theoryof work adjustment (TWA). These researchers investigated the basicattributes using a sample population of black American employees.They related the causes of satisfaction and turnover among the samplepopulation including their strength and abilities. The researchersanalyzed qualitative data to determine the factors influencing jobsatisfaction and investigated the comparisons of fit-turnover andfit-satisfaction intentions association between the African-Americansand European-Americans. Two-hundred and four African-Americanemployees were involved in a self-report data collection to assesstheir fit perspective, racial environment, job satisfaction, as wellas turnover intentions. The research depicted that fit perspectiveelaborated the variance in job satisfaction (43.2%) and turnover(20.2%). The perspective, however, did not have influence on theracial climate.

Alfredand Gholnecsar (2012) conducted a research with the purpose ofreframing the discussions on the progress of Africa -American maleyouths. The research was based on the reviews of several literaturebodies. The article mainly focuses on research based on evidence fromthe observed participants. They used evidence-based research such asthe use of literacy models and the 3-historical framings that developliteracy levels of black American youths in urban schools. Theprogress of developing literacy of African American young men in theurban background has become a challenge to educators all over theP-12 spectrum (Tatum &amp Muhammad, 2012). Traditionally, theeducators and teachers used frames as a means to facilitate andimprove their studying achievements. Despite the use of these frames,the black Americans have not yet changed the trends in the results.In the traditional study assessments most of the young men underperformed despite these efforts. The young black males’ resultsshowed below average grades, low leaning potential, high dropout andretention rates. The researchers listed social inequality as one ofthe factors that facilitate the illiteracy levels of black youngmales. Social inequality among students makes it difficult for themto cover both the life-quality and the study achievement gaps (Tatum&amp Muhammad, 2012). This rate of illiteracy in turn affects theability of these males to secure employment. Without employment mostof them receive low wages which cannot sustain them or theirfamilies. The low level of literacy also affects of job turn-over.Most of the young men do not seek employment. They depend on lowpaying jobs which require hard labor not education. As they conclude,the researchers propose a research agenda which will be used in theadvancement of literacy developments of the African American males,with an aim to offer guidance to those involved in the advancementincluding researchers, educators, policymakers and teachers. Theguidelines will help improve the literacy levels of the blackAmerican youths. Being literate the youths will be able to securejobs which will help them improve their financial classes.

Martin(2010) informs that most African Americans who earn low wages arefinancially illiterate. This means that they lack resources,awareness or understanding on how to manage their money. He suggeststhat educators can be used in such cases to assist in the provisionof financial literacy to poor young black males living in the urbanregions or studying in urban schools. Financial literature caninclude savings, investments, setting of financial goals, credit oreven retirement plans. Understanding these virtues helps one live acomfortable and a self-sustaining life. Martin further states thatmanaging finances can operate hand in hand with progress as makers ofpolicies address the high poverty levels among the African Americancommunities recently. According to research done previously, theaspect of financial illiteracy inhibits active development in thelives of these youths and adults. The construction of objectives by afinancial literate individual helps them to analyze the relationshipbetween earnings, savings and investments. Financial literacy have apositive influence lives of young black males who earn wages as ithelps them invest in lower cost financial alternatives. He says thatthe dominating financial illiteracy in the African Americanhouseholds reflect their levels of poverty in the society due to themismanagement of the little funds they earn.

Stephens(2010) conducted a study traversing the various aspects of humancapital including theories, guarantee, education, and development inrelation to the labor market. He used a discourse analysis to showthat the theories of human capital fail to consider the policy ofworking first, development, and informing education. The research isset to investigate the black Americans as the poor community beingaffected by these values in the workplace. The research found thatthe inequalities among the black Americans living in the urban areashas grown profoundly.


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Edward,B., Thompson, D., Jamael, B., Olomoba, Z., &amp Jordan, A. (2013,January). Financial Literacy as a Means of Reducing Poverty withinthe African American Community. In NAAASConference Proceedings(p. 1).National Association of African American Studies.

Greenfield,J. S. (2015). Challenges and opportunities in the pursuit of collegefinance literacy. TheHigh School Journal,98(4), 316-336.

Johnson,H. (2011). Regaining Prosperity and Protecting It: Job Creation andFinancial Literacy in Black America. Retrieved March 05, 2017, from

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Morrison,A. (2015). Black Unemployment Rate 2015: In Better Economy,African-Americans See Minimal Gains. Retrieved March 05, 2017, from

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Taylor,S., &amp Wagland, S. (2013). The solution to the financial literacyproblem: what is the answer?.AustralasianAccounting Business &amp Finance Journal, 7(3),69.

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