Organizational Culture

A culture can be strong (think of Disney) or weak. A strong culture is not necessarily an asset to the organization. An organization's culture will start with the founder's values and preferences and respond to industry demands. However, the culture is shaped over time as it deals with external and internal challenges. Additionally, the culture is shared with new employees. Companies can use a formal orientation program and mentoring to instill the organizational culture during the onboarding process. We can learn about an organization's culture by looking at its mission statement, rituals, rules and policies, physical layout, and stories. Read this text to consider organizational culture in more depth and provides some different perspectives to help us understand corporate culture, including how it forms.

Creating and Maintaining Organizational Culture

Mission Statement

A mission statement is a statement of purpose, describing who the company is and what it does. Many companies have mission statements, but they do not always reflect the company's values and its purpose. An effective mission statement is well known by employees, is transmitted to all employees starting from their first day at work, and influences employee behavior.

Not all mission statements are effective, because some are written by public relations specialists and can be found in a company's Web site, but it does not affect how employees act or behave. In fact, some mission statements reflect who the company wants to be as opposed to who they actually are. If the mission statement does not affect employee behavior on a day-to-day basis, it has little usefulness as a tool for understanding the company's culture. An oft-cited example of a mission statement that had little impact on how a company operates belongs to Enron. Their missions and values statement began, "As a partner in the communities in which we operate, Enron believes it has a responsibility to conduct itself according to certain basic principles". Their values statement included such ironic declarations as "We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness and arrogance don't belong here".

A mission statement that is taken seriously and widely communicated may provide insights into the corporate culture. For example, the Mayo Clinic's mission statement is "The needs of the patient come first". This mission statement evolved from the founders who are quoted as saying, "The best interest of the patient is the only interest to be considered". Mayo Clinics have a corporate culture that puts patients first. For example, no incentives are given to physicians based on the number of patients they see. Because doctors are salaried, they have no interest in retaining a patient for themselves and they refer the patient to other doctors when needed. Wal-Mart Stores Inc. may be another example of a company who lives its mission statement, and therefore its mission statement may give hints about its culture: "Saving people money so they can live better". In fact, their culture emphasizes thrift and cost control in everything they do. For example, even though most CEOs of large companies in the United States have lavish salaries and showy offices, Wal-Mart's CEO Michael Duke and other high-level corporate officers work out of modest offices in the company's headquarters.

Figure 15.10 Visual Elements of Culture