Defining Corporate Culture

The Elements that Create a Company Culture

© Joni Rose

Defining a Corporate Culture, Stock xchng - mjamesno

A corporate culture can be defined by a company's hiring practices, management style and the physical space it provides to employees.

There are many factors that help to define a corporate culture. Decisions are made at the upper management level that shape and form a corporate culture can align or contradict corporate goals, mission and values. Hiring practices, management styles as well as the physical space can shape how a company is perceived by new or potential employees.

HIRING PRACTICES

The Generations Represented by the Workforce

Some companies hire predominantly from one age group while other companies show more of a diversity of age groups within their talent pool. While younger workers offer fresh ideas, older workers can offer experience.

The Ethnic Origins Represented by the Workforce

If one ethnic group is more represented in the talent pool than another, it can create a strong impact on the corporate culture.

Compensation and Benefits

How a company’s compensations packages stack up against the competition can also help define a corporate culture. Companies that strive to pay their talent at the high end of the salary survey range will tend to have less turn over and more satisfied employees. Companies that pay less than the market averages will tend to see higher turn over and morale may be low.

THE MANAGEMENT STYLE

Mission, Values and Goals

Values, missions and goals are empty statements if companies fail to recognize their practice in daily operations. A culture can be defined by how much importance a company puts on the practice of mission, value and goal statements.

Response to Threats and Opportunities

Is the company reactive or proactive? Do the products and services reflect an awareness of changes in the marketplace? How a company responds to increased competition or a shift in trends can indicate not only a cultural acceptance of innovative thinking but of acting on ideas.

Policies and Procedures

The policy and procedure manual of a company can be a clear indicator of a corporate culture. Do you see signs of collaboration and a matrix structure or of a hierarchy of channels that must be navigated?

Financial Management

Is the company all flash and little substance when it comes to glossy promotional materials that shimmer in comparison to their stock performance? Analyzing how a company spends money can reveal either a culture of opulence and high roller expectations or one of conservation and penny pinching.

THE COMPANY ENVIRONMENT

The Physical Layout of the Workspaces

Is interaction encouraged by an open floor plan or are there many small offices where employees are tucked away out of sight to work solo? Are the meeting rooms large enough for team meetings or designed for small gatherings? Is the office of the CEO on a separate floor away from the front line or in the middle of the battlefield?

The Amenities or Lack of Amenities

Some companies spend big dollars on providing amenities to employees such as daycare, dry cleaning services or subsidized or free lunches. The value a company puts on an employees time and energy and need to balance life and work can be shown by the amenities provided or the lack there of.

Location of the Office

The office location can reflect on the corporate culture. Is the office in an industrial park, a trendy neighbourhood or a remote corner of the city without bus service?

Looking at the sum of these factors can help define a corporate culture. Words on a section of an HR web page mean little when they aren’t backed up with congruent practices.

If you have comments or suggestions on this article, please start a discussion.

Copyright © 2008 Joni Rose and Suite 101. All rights reserved. Any unauthorized use will constitute an infringement of copyright.


The copyright of the article Defining Corporate Culture in Training/Professional Development is owned by Joni Rose. Permission to republish Defining Corporate Culture must be granted by the author in writing.


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