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Corporate Culture

Essay by   •  November 1, 2010  •  Research Paper  •  2,094 Words (9 Pages)  •  2,373 Views

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Utilising the video case study of 'Egg Finance' (Slave Nation, Channel 4), critically examine the extent to which corporate culture is used as an effective tool for the achievement of organizational goals.

Corporate Culture is widely used in many organisations and has a variety of definitions. It has been defined by Koozes, Caldwell & Posner cited by Moorhead/Griffin, (1989:494) as:

"a set of shared, enduring beliefs communicated through a variety of

symbolic media, creating meaning in people's work lives."

The argument to be taken in this essay will identify the usefulness and necessity for corporate culture to gain organizational success. In order to do this the argument will be utilized by supporting the theories of Emile Durkheim, Carol Axtell Ray, Terrance Deal and Allen Kennedy.

Qubein (1999:2), cited by Sadri and Lees, states that," corporate culture encompasses several key elements." He adds, "It is fostered not merely by a mission statement, but by a clear corporate vision which is a mental picture of the company's desired future."

It is not only the managers who should have this clear vision, the employees ought to perceive this as well. They should feel the need that they want to help to achieve the organizations goals.

When organisations follow corporate culture, they try to make their employees feel that they belong and are accepted for who they are, thus making them want to work for the company. Attempt is made to make the employees feel that their organisation is their religion. This has been clearly demonstrated in Egg Finance. Corporate culture has been extensively used in Egg Finance, and in doing so have captured the hearts and minds of their employees.

Each employee working for Egg Finance feels that "Egg" is their life. They feel safe and secure and feel that they are affiliated to the company. Carol Ray (1994) agrees with this as being part of corporate culture as she states that:

"a corporation's culture has an important purpose to promote

a sense of belongingness to the employees."

This has definitely worked for the employees at Egg. They even go to the extent of calling themselves an "egg person." This ties in with the corporate cultural belief of Emile Durkheim and his approach.

Egg Finance have tried to create an "Egg World" for their employees. They have many out-of-work activities that their employees can participate in. These include; running, football and many more. Egg feels that if they involve their employees deeply into their organisation, then this will be a psychological way to brainwash their employees. Employees will feel that this is their only life, and will feel inclined to remain loyal to the company. This has clearly worked, as all employees at Egg seem extremely happy and proud to work for Egg Finance.

Through the use of management psychology and techniques, Egg Finance have developed hardworking and loyal employees. The management of Egg realise that this is something that had to be worked at, and that it would not happen automatically. This coincides with the view of Carol Ray (1994:2), as she mentions,

"The effects of culture should not be left to chance." She adds, "Proper implementation then leads to internalization of desired values and norms."

This shows that in order for corporate culture to be an effective tool for organisational success, it will need to be implemented correctly. Employees must not feel that they are being used or abused.

If corporate culture is implemented correctly, then employees should feel that their firms' status affects them as well as the organisation. Athos & Pascale, (1982), cited by Ray (1994:2), share the same opinion as this, as they have stated:

If management meets this challenge, employees identify more completely

with the firm and see their own interest as congruent with it."

This has been clearly demonstrated in Egg Finance. Employees working at Egg believe that as an employee they should "work hard as well as play hard." As the employees feel that they are treated as individuals and that they are treated well, in turn they will treat their customers as individuals. This will make their customers feel happy and satisfied with the service, thus aiding to achieve organisational goals.

In order to gain corporate culture, Durkheim, (1901), believes that management will need to form and shape their employees. The management of Egg Finance have achieved this. Employees feel that they are being creative, nevertheless they are actually being derived from the management standardization. This has been done through the use of new computer technology. The scripts produced on the screen is the driving factor for getting the work done. The managers of Egg have also embedded scripts into the employees' minds as to how they should communicate whilst taking calls. Although they feel that they are being treated as individuals and are being creative, this is not actually the case in Egg Finance.

In addition to shaping an organisations' employees, managers will also need to control their workforce. This will only work if employees co operate with the rules and regulations that are set. Buchanan & Huczynski (2001) also feel that this is an important aspect of retaining their employees as they state:

"Control is an important aspect of organisational behavior

as it sets standards, measures performance

and concerns correction of deviation from standards."

This has been portrayed in Egg Finance. The employees have their fair share of fun, but there is also a certain level of tight control. This has been done, as mentioned previously through scripts and new technology. This is also known as Taylorism. This is the dehumanizing and deskilling of the employees. However, the employees at Egg Finance do not feel that they are being controlled, thus making them strive to meet their objectives and goals.

In order to gain good management and control, a Hands-on-Manager is required.

"Peters and Waterman noted that the firms they studied insisted that

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