2.3 CORPORATE CULTURE AND STRATEGIES FOR ITS DEVELOPMENT

Question 1

WHAT IS CORPORATE CULTURE?

Answer 1

CORPORATE CULTURE is the shared values and beliefs of people within business. Broken into 2 types: Official corporate culture and real corporate culture.

Change can have significant impact on culture as employees may:
- Feel uncertain/stressed
- Worry that change will affect their job security

It is important for managers to acknowledge the impact that change has on employees and provide support through periods of uncertainty.

This can be done by implementing strategies to develop corporate culture.

By developing a positive corporate culture a business can enhance employee and customer interactions, build a favourable business reputation and improve its financial performance.

Question 2

STRATEGIES FOR DEVELOPING OFFICIAL CORPORATE CULTURE

Answer 2

Official corporate culture involves the shared views and values that a business aims to achieve, often outlines in written format.
- Strategies that managers introduce to develop official corporate culture should align with its overall objectives and intentions.
- Often involves more formal approaches.

Question 3

STRATEGIES FOR DEVELOPING REAL CORPORATE CULTURE

Answer 3

STRATEGIES FOR DEVELOPING REAL CORPORATE CULTURE

This the actual shared values and beliefs of the people within the business expressed through informal rules and habits.
- Strategies that managers introduce to develop real corporate culture aligns with its official corporate culture
- Often involves strategies that have a more employee-oriented approach