Corporate Culture Flashcards
What are methods to ensure good corporate culture
1) Logos/Staff Uniforms - They should have designed logos and staff uniforms that are consistent across the business
2) Slogans - Use of a phrase or motto that can be recognised by customers and used in marketing.
3) Policies and Procedures - It must have strong, clearly defined policies and procedures; all of which must be shared amongst employees
4) Owner’s ideals and beliefs – The ideals and beliefs of the owner should be implemented across the organization and shared by all
5) Layout/Store Design - They need to consider a standardised corporate design for shops and outlets that are familiar to customers
6) Staff are trained on the corporate culture - They have to make staff aware of the corporate culture and image, this can be expensive, it may involve staff training costs.
7) Mission statement - Having a mission statement that clearly expresses the business’ goals and ideals
What are advantages of having a good corporate culture ?
1) Staff will form an identity with the organisation due to wearing the staff uniform which could result in reduced absences or lower staff turnover
2) Customers associate with that organisation due to branding e.g. logos and slogans, this will result in improved customer satisfaction and increased customer loyalty
3) Employees have a strong awareness and understanding of the practices and policies which are implemented across the whole business- this will allow flexibility of staff and will enable them to move between branches/departments easier
4) Shared Values/beliefs can attract high quality staff quality staff which results in a better quality service
5) Company can easily be recognized across world due to consistent branding meaning customers will feel comfortable with products wherever they are, leading to higher sales/profits
6) Reward culture such as ‘employee of the month’ can motivate staff which is good because they will be more productive.
7) Office layout such as use of open plan can encourage collaboration between employees leading to improved communication and idea sharing
What are disadvantages of ensuring good corporate culture
-May stifle staff creativity as they will be expected to behave and make decisions inline with the business’ corporate culture – this may be demotivating
-Some essential staff may struggle to fit in and therefore may leave the business meaning the business will lose their experience and knowledge which could reduce their competitive edge
-Staff are used to working in a certain way meaning it may be difficult to implement change and there may be staff resistance
-Effort required to maintain the culture e.g. training new staff on the corporate culture which is time consuming
What factors should a business consider when trying to implement their corporate culture?
-The finance available to put the culture in place i.e. Does the business have the funding to support it all such as changing logos and uniforms
-Target market – what do the customers expect from the business e.g. One which is very formal and professional – uniforms and suits would apply
-The organisation needs to take into account the ideas/principles of the owners.
-The policies and procedures as they set the expectations and state the behaviours required in that organisation
-May require the organisation to hold launch events or press conferences.
-They need to design appropriate logos, motifs and uniforms.
-They need to consider a corporate design for shops and outlets.
-They have to make staff aware of the corporate culture and image which will involve staff training
What is corporate culture ?
Corporate Culture can be described as:
The values, beliefs and norms related to the organisation that is shared by all its members.
Aspects of Corporate Culture include a business’s:
-Values, norms, beliefs and language used
-Attitude of all member in the organisation
-Formal and informal activities
-Policies and procedures
-Management style
