Understanding About Corporate Culture

Corporate Culture by Sathe (1982) defined as a number of important assumptions held by members of the company, namely a system of values that are held together about what is important and beliefs about how the world works. Three factors explain the differences in the dominant cultural influences on behavior:

1. Beliefs and shared values.
2. Owned widely shared.
3. Can be clearly known, has a stronger influence on behavior.

Culture of a company or corporate culture can be interpreted as a representation of group interaction and group expectations. A number of important factors that emerged include the norms, beliefs, default values, rituals, structures, rewards, climate, and the type of interactions that can be expected in a company. Corporate culture also reflects the company’s managerial demands. So Corporate Culture includes all policies, procedures, objectives, strategies, and management actions.

According to Frederick, Post, and Davis (1992), personal values and moral character has a very important role in improving a company’s ethical performance. However, two factors are not independent factors with no other effect. Values and personal character can be influenced by the culture of a company. Corporate culture can be said as a combination of ideas, customs, traditional practices, corporate values, and common sense that helped definite the normal behavior for anyone who works in a company. As for the culture itself is the way we do things around us.

The concept of corporate culture should associated with the understanding that the company is a social institution in addition to economic institutions, and may present goals to the contrary.

Corporate culture often determines the ability to change, or to adjust to new environmental conditions. Because the survival of the constant depends on the ability to change, then the companies that are not able to follow changes in the existing conditions will fail to maintain its position in the market. Often the desire for stability can be a barrier to making changes to follow the changing environment.

Developing a corporate culture that directly or indirectly has given direction to each member company to provide the best service for humanitarian purposes. The ability and willingness to align private behavior with the needs, priorities and targets of the organization is no longer regarded as a burden but as an awareness, among others:
1. Trying to fit in, respect the norms of the organization, and doing what is expected.
2. Understand and actively promote the organization’s mission and goals.
3. Choosing activities and personal priorities to meet the needs of the organization and adapt with the organization’s mission.
4. Take appropriate action with the mission and maintain the good name of the organization
5. Conducting personal sacrifice.
6. Putting the interests of the organization above their own interests, including the personal interests and family affairs.
7. Supports a favorable decision, although the organization does not favor others.
8. Providing clarity about the target group and how the contribution of each member’s role in achieving these aims.
9. Improve the effectiveness, morale and productivity of the group. This includes trying to establish esprit de corps.
10. Keeping the group, protecting groups and it’s reputation. Also ensure that practical needs are met and provide the resources needed.
11. Ensure that others receive the mission, goals, agenda, climate, and policy leaders.