Corporate Culture

Corporate Culture

LSOs all have their own unique corporate culture, which refers to a set of unwritten or informal rules that dictate how people in an organisation should behave in any given circumstances. These are rules are based on the beliefs, values, ideas and expectations shared by the members of the LSO. The corporate culture of an organisation has both observable and non-observable elements.

The official culture of an organisation is stated in their company motto or mission statement while the real culture reflects how things actually operate. Corporate Culture is loosely linked to Ethical Behaviour. The values carried out by an organisation’s culture set the scene for what is right and wrong at work.

Managers’ Role in Corporate Culture

Within an organisation it is the role of the managers to turn a negative corporate culture to a positive corporate culture. Managers should adopt strategies that will ensure a positive corporate culture is achieved by the organisation. Using strategies such as a suggestion box, staff building exercises and possibly a change in management styles have been previously used and successfully implemented within organisations to change the corporate culture.

Elements of Corporate Culture

Corporate Culture is based on the existence of four elements.

  1. Values

The values of an LSO are evident in their formal policies, customer relations, attitudes of management to staff and staff to management and the prevailing management style

  1. Symbols

Symbols can include events or objects that represent something the organisation views as important, the physical environment and the sponsorship and/or participation in certain types of events that is undertaken by the organisation.

  1. Rituals, Rites and Celebrations

The Rituals, Rites and Celebrations of an organisation are the routine behavioural patterns in an organisation’s everyday life. Examples of this include Communal morning tea, Regular social gatherings, Casual Friday and Birthday celebrations.

  1. Heroes

Heroes are the organisation’s successful employees who reflect its values and therefore, act as an example for others.

Indicators of Corporate Culture

To determine and evaluate an organisation’s corporate culture the following indicators may be used.

  • Firstly its communication channels. These can be formal or informal channels and also one or two-way. This acts as an indicator as it displays how the organisation’s values in the input of employees.
  • Secondly the dress code of the organisation. This can include having a uniform, casual clothes or formal attire. This acts as an indicator as it displays how the organisation values the appearance of their employees and the employees’ freedom in choice.
  • Thirdly the willingness of the organisation attempt to achieve their objectives and improve. The organisation may be competitive in the market and constantly trying hard to achieve its objectives. However organisations may also be content with the status quo, happy with how they are currently performing and relaxed. This acts as an indicator as it shows the organisation’s level of competitiveness in the market and how well they are achieving their objectives.
  • Finally the socialisation occurring within the organisation. Do the staff mingle and get along with the organisation or only work independently? This acts as an indicator as it shows how the organisation’s employees interact with each other.

Relevant Key Performance Indicators

Evaluating and determining the effectiveness and standard of an organisation’s corporate culture can be done using key performance indicators. The most relevant key performance indicators include:


The managers of LSOs have the role of ensuring their organisation has a positive corporate culture. This is due to the following benefits:

  • It can lead to increased productivity
  • Reduced staff turnover and absenteeism
  • Reduced cost of Recruitment and Training
  • Greater profitability
  • Positive public perception of organisation

Differences in Various Corporate Cultures

All organisations have a culture that is unique to them. Key points of difference of an organisation’s corporate culture may include:

  • The degree to which employees are encouraged to become risk takers and innovators.
  • The attention to detail that is expected of the employees and within operations.
  • The extent to which employees’ needs and wants are taken into account.
  • The degree of team orientation
  • Level of competitiveness
  • Diversity among employees age of the organisation