ACC2006 Company Law

What is Corporate Culture?

From small scale organisations to big companies, every company has a culture. The culture stands for the value, approaches and attitudes of the personnel of the company. The corporate culture directs the staff how to feel, think and perform functions in the company. The corporate culture signifies the different and exclusive personality of the organization. It express the core values, principals, standards and the beliefs of the company. The corporate culture is also the public and internal environment of the company (Buys et al., 2017).

The culture of the organisation checks and controls the behaviour of the employees. It also controls way of behaviour of the people outside of the company (Clarke, 2018). Corporate culture refers to basically routines, customs and norms of company. It also helps the employees to get their targets. The culture of company is created by many physical and immaterial elements. These physical and immaterial elements together form an environment to do work effectively. The Corporate culture may differentiate between industries, resident and foreign company and also the organisations in the same sector (Tomasic, 2017).

The organisation having positive corporate culture gets a reputation among the potential personnel. The healthy corporate culture helps to attract trained and capable workers to the company. Apart of this, the company may charge more for the products and services to the customer or client by maintaining positive corporate culture. Customers want to do business with the reputed company so corporate culture plays a key factor for the company (Chaikin and Hook, 2018). It also helps to increase productivity of workers. When productivity of workers increase, the revenue increases and financial structure expands. The Corporate culture of workplace motivates the employees to render services and products of high quality. It also helps in decreasing the employee turnover and in increasing the possibility of employee retention in company (Groysberg et al., 2018).

How to enforce corporate culture in the company?

The corporate culture is essential factor for the success of business. It should enforce in the proper way to keep healthy environment in the company. These are discussing below-

1. Determine the value of company- The management should ask employed persons and provide those inputs on company’s value. These employees will help in shaping direction of the organisation.
2. Recognise the corporate culture expert- The Company should recognise the personnel who knows the values of company very well and who is passionate about the targets.
3. Continue traditions- The Company should always follow the traditions which effect the employees of the company such as social programs, events, counselling, professional growth programme and rewards.
4. Direct communication line between employees and the management - There should be open and direct communication line for employees in the company so that they can tell problems and ideas to relevant authority or the management of the company (Meglino, Ravlin and Adkins, 2016).
5. Prepare to change- As changes are necessary to made in the organisation according to the circumstances and situations, the company should always get prepare for the changes because altering an organisation’s corporate culture takes a lot of time, patience and the devotion.
6. Give protection to the employees- If employee feels not secured and harassed in the workplace, then positive work culture cannot be established in the organisation. So it is the duty of manager of the company to ensure safety of the employees in the organisation. The negative staff should not keep in the organisation to spread negativity all around.
7. Powers to the employees of company- Many times the employees feel helpless. They get bored from their work so the managers should give some authority to the employees of the company. If they get powers to select, they will be capable to choose tasks to do as per their interest.
8. Personnel should be hire smartly- The positive work culture mostly depends on the employees of the organisation. The company should get the right people in the workplace so that they can contribute in establishing healthy corporate culture in the company.

As per the above analysis it is cleared that the success of the organisation depends on the culture of the organisation so it is a duty of company to make all the possible efforts to create positive work culture in the organisation.

Reference

Buys et al. (2017) Disability management and organisational culture in Australia. Australia: The Australia University press.

Chaikin, D. and Hook, G. (2018) Corporate and trust securities. North Melbourne: Australian Scholarly Publishing.

Clarke, A. (2018) Culture and its place in the corporate governance puzzle. Journal of Governance Directions, 70(1), pp. 10-15.

Groysberg et al. (2018) The leader’s guide to corporate culture. Harvard business review Journal, 55(2), pp. 17-25.

Meglino, B. M., Ravlin, E. C. and Adkins, C. L. (2016) A work values approach to corporate culture. Journal of applied psychology, 74(1), pp. 424-432.

Tomasic, R. (2017) Exploring the limits of corporate culture as a regulatory tool- The case of financial institutions. Australian Journal of Corporate Law, 32(5), pp. 196-221.