Formation of Corporate Culture
Let’s consider the issue of corporate culture formation.
The formation and development of corporate culture are systematically linked to the dominant management style within an organization, although these concepts are not identical. Different management paradigms have been used at various stages of human society’s development. Generally, they can be grouped into two types: technocratic and person-centered (humanistic, person-oriented, person-psychological).
An analysis of the technocratic approach shows that, at their core, the technocratic approach and the development of corporate culture are incompatible. Under authoritarian management, which is dominant in the technocratic model, culture is always superficial and based on fear and manipulation.
The development of a high-quality corporate culture is possible only through person-centered management [26].
When considering the development of person-oriented management and its impact on corporate culture, it should be noted that a high-quality corporate culture—one that is accepted and understood by employees—is necessary only within a person-oriented management framework. On the other hand, in most cases, a high-quality corporate culture is impossible to sustain over the long term without person-oriented management. For example, in the USSR, corporate culture was demonstrative in nature.
Under authoritarian management, employee culture cannot help but be ostentatious. It is enough for a person to merely proclaim the organization’s values. They can think whatever they want, as long as they follow the manager’s orders.
Therefore, the first and foremost condition for the formation and management of a high-quality corporate culture in an organization is a personal management paradigm.
An analysis of effective and successful organizations shows that the process of forming and developing corporate culture requires a conscious and purposeful system of actions that is formalized in a program or project for developing the organization’s corporate culture.
Experience in developing corporate culture shows that it goes through distinct life cycles: slow growth, rapid growth, stabilization, and decline. The factors driving slow growth include training and employees’ internalization of the corporate mission, core business principles, and the external attributes of corporate culture. Rapid growth is based on the externalization and implementation of corporate culture. During the stabilization phase, specific details of corporate culture are refined. The next, inevitable stage is the aging of the corporate culture. The life cycle of a corporate culture project can last 2–5 years. To prevent a decline in the effectiveness of the corporate culture, it is necessary to begin developing a new project in a timely manner.
Therefore, managing corporate culture requires constant work on its development.
Scholars identify the stages of corporate culture design [26].
- Setting goals.
- Analysis of external and internal conditions.
- Analysis of the state of corporate culture
- Planning changes to corporate culture.
- Planning changes to management style.
- Development of methods for changing corporate culture and management style.
- Conducting an experiment.
- Project refinement.
- Training and psychological preparation of employees.
- Overcoming resistance and implementing the project.
In the practice of implementing corporate projects by domestic organizations, there is a tendency to substitute the process of developing a high-quality corporate culture with one that is merely for show. In particular, the emphasis is placed not on fostering a high level of ethical and psychological culture among employees, but on presenting the external attributes of corporate culture (Corporate Culture Policy, logo, flag, design, employee dress code, etc.). This is linked to the conservatism and general cultural level of people in the post-socialist space, as well as the fact that the path to developing corporate culture is difficult, whereas creating formal external attributes requires less time and effort. This approach is also based on the fact that partners and clients, looking at the facade of corporate culture’s external attributes, do not immediately realize that the external appearance does not reflect the substance of corporate culture.
The humanization of work (humanization of production) can have a significant impact on the development of corporate culture. Researchers identify several directions for the humanization of work [26].
- Strengthening management through values and culture.
- Shifting the management model toward organizational cultures of “creative teams,” “collegiality,” and “one big family.”
- Developing a motivation system that takes into account the diverse needs of employees.
- Strengthening moral methods of motivation.
- Intellectualization of work.
- Creating comfortable working conditions.
- Ensuring opportunities for employees’ self-actualization and growth both at work and outside of it.
- Fostering collectivism and teamwork skills while providing opportunities for each individual to develop, provided these do not conflict with the organization’s strategic goals. Working to improve the social and psychological climate within the organization and its departments.
- Developing positive external manifestations of corporate culture: creating a corporate identity, a system of rituals and celebrations, and establishing a distinctive behavioral style, among other things.
- Exploring the organization’s roots, history, heroes, and myths.