Factors influencing corporate culture

Organizational Structure — This includes both the structure defined by the organization chart, and the unwritten lines of power and influence that indicate whose contributions are most valued.

By analyzing the factors in each, you can begin to see the bigger picture of your culture: This determines what is expected to happen in given situations, and what is valued by management. In more static environments, cultural issues may be responsible for low morale, absenteeism or high staff turnover, with all of the adverse effects those can have on productivity.

These elements are represented graphically as six semi-overlapping circles see Figure 1 belowwhich together influence the cultural paradigm.

Published by Pearson Education, The key is that these people have the greatest amount of influence on decisions, operations, and strategic direction. Elements of the Cultural Web The Cultural Web identifies six interrelated elements that help to make up what Johnson and Scholes call the "paradigm" — the pattern or model — of the work environment.

Such approaches can play a key role in formulating strategy or planning change.

The Cultural Web

Fortunately, while corporate culture can be elusive, approaches have been developed to help us look at it. The six elements are: Analyzing Culture as It Is Now Start by looking at each element separately, and asking yourself questions that help you determine the dominant factors in each element.

Rituals and Routines — The daily behavior and actions of people that signal acceptable behavior. And while that may be true, there are so many elements that go into determining what you do and why, that this definition only scratches the surface.

From " Fundamentals of Strategy. This may involve one or two key senior executives, a whole group of executives, or even a department.

Power Structures — The pockets of real power in the company. Who and what the company chooses to immortalize says a great deal about what it values, and perceives as great behavior. Culture often becomes the focus of attention during periods of organizational change — when companies merge and their cultures clash, for example, or when growth and other strategic change mean that the existing culture becomes inappropriate, and hinders rather than supports progress.

These differences are the changes we need to make to achieve the high-performance culture that we want. These include financial systems, quality systems, and rewards including the way they are measured and distributed within the organization.

Control Systems — The ways that the organization is controlled. Symbols — The visual representations of the company including logos, how plush the offices are, and the formal or informal dress codes.

Elements and related questions are shown below, illustrated with the example of a bodywork repair company. Stories — The past events and people talked about inside and outside the company. Using the Cultural Web We use the Cultural Web firstly to look at organizational culture as it is now, secondly to look at how we want the culture to be, and thirdly to identify the differences between the two.

What is the first thing that pops in your mind when you hear the term corporate culture? Using it, you can expose cultural assumptions and practices, and set to work aligning organizational elements with one another, and with your strategy. From " Fundamentals of Strategy " by G.

Whether you can define it or not, you know that culture exists. A great many people refer to the classic phrase coined by the McKinsey organization, that culture is "how we do things around here".Corporate culture affects decisions and outcomes.

Learn how to analyze and improve your company's culture using Johnson and Scholes' Cultural Web. Before I went on the trip, I wanted to know what it would cost me, in order to see if I could afford it.

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Factors influencing corporate culture
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