Good Corporate Culture Essay Example
Good Corporate Culture Essay Example

Good Corporate Culture Essay Example

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  • Pages: 5 (1145 words)
  • Published: May 14, 2017
  • Type: Case Study
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According to Baeney (2006), corporate culture refers to the fundamental specifications that a particular organization creates, discovers, and develops when dealing with both external adaptation and internal integration issues. It serves as a guide for organization members to comprehend the aspects related to cultural identity, including corporate ideology, business concept, work style, values, codes of conduct, ethics, customs, cultural traditions, management systems, and corporate image. Additionally, Gordon and Ditomaso (2002) note that corporate culture plays a critical role in helping members of an organization to feel, think, and understand these identity-related issues. This essay will highlight the significance of creating a good corporate culture before delving into specific measures of how it can be developed.

Haier’s successful corporate culture will be presented as a real case study. According to Kreps

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(2000), building a good corporate culture is essential for a successful business. A positive corporate culture not only motivates employees but also increases the popularity and influence of the company, leading to long-term growth. Regardless of the industry, a good business must create a cultural atmosphere that aligns closely with its development goals.

(Joris, Maryse & Marco 2005) A good corporate culture can be reflected in various ways, such as the spirit, specific employee behavior or the management idea. The building of a positive corporate culture requires measures to be taken. One important aspect is to have a people-based and people-oriented business idea that takes into account the human point of view and the dual perspective of internal and external customers (Rob and Zemsky, 2002). A good example of this is seen in famous corporations, like Disney, which sets up its theme park based on visitors' needs

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Disney's staff training even covers how to help parents change their children's diapers (Gachter and Thoni, 2005).

According to Cremer (2003), Disney's competitive edge stems from more than just its customer service culture. The company's well-trained staff is also a contributing factor. Additionally, leadership plays a significant role in shaping the corporate culture, with senior management serving as the soul, pillar, and backbone of the organization. Advanced ideas and concepts directly impact the company's growth.

High-level decision errors can cause numerous instances of loss or damage in today's society, including in the creation of corporate culture. Companies that solely focus on economic benefits without giving attention to culture may become stagnant, lacking in spiritual realm and room for development. Without strong cultural support, even large companies cannot establish long-term footholds in today's competitive society (Besley and Ghatak, 2005). The absence of such support results in a short life expectancy for Chinese private corporations.

Looking to the future, both small and large companies with general managers must prioritize creating effectiveness for their staff, including building culture, spirit, and prospects rather than solely focusing on targets. Without long-term planning, corporate development will decline. As company executives, it's their responsibility to not only promote corporate culture for their employees but also for society as a whole. Pursuing high-level leadership and culture can lead a business towards success. Additionally, involving all employees in cultural development can be either self-spontaneous or organized by the corporation (Baker, Gibbons Murphy, 2002).

A successful culture and concept should involve all employees in learning and implementation. Active participation from all employees is necessary to promote corporate culture. Even if a slogan or goal is good, without employee involvement

it will be empty. The key to building corporate culture is to engage and motivate all individuals to participate. Human resource planning must prioritize employee participation as an essential part of corporate culture. Leadership must learn about employee needs and concerns through surveys.

The importance of paying attention to both the big picture and small details is crucial in developing a strong and successful company. Haier's success in cultivating their corporate culture serves as a prime example of how this can be achieved. Their culture emphasizes Chinese roots while still having a global strategy, even amidst internal tumult. Zhang Reimin, the CEO, was able to transform Haier into a renowned global brand with aspirations of joining the top 500 companies worldwide. Today, Haier has become more than just an embodiment of culture - it has become synonymous with China.

During the period from 1984 to 1991, Zhang referred to it as the "brand name strategy stage" of Haier (Ruimin, 2007). At that time, Haier had only one product, which was the refrigerator. However, by 1991, Haier's refrigerator production had exceeded 300,000 units and generated a revenue of over 5 million (Ruimin, 2007). Of all the hundred-plus refrigerator corporations in China, only Haier's products remained without overstock and were sold at full price (Ruimin, 2007). Haier was also recognized as one of the "China Ten well-known trademark" in the field of household appliances. From 1992 onwards, Haier began its "diversity stage of development" and now boasts a variety of 58 series products with over 9200 different models (Ruimin, 2007), including not just white appliances but also black and beige ones.

Haier has the best market share in the country

for refrigerators, freezers, washing machines, and air conditioners due to their innovative culture that has led to speedy development and growth. The corporation has a culture focused on learning and innovation, which is a strong sub-culture that learns and adapts to excellent components from both home and abroad through concept and management innovation.

Haier’s corporate culture embodies a Chinese-style management model with characteristic cultural values. The staff collectively recognize the innovative values established by the business leaders. The core of Haier’s culture is based on innovation, forming a unique system that has grown over two decades. Innovation is considered a guiding concept, with strategic, technology and market innovations serving as the direction, means and goal, respectively.

Haier’s culture has evolved with its growth and expansion, from a small to a big, and then to a strong player in the global market. Constant innovation and development are key components of Haier’s culture. Active participation of all staff members is also a significant cultural characteristic at Haier. The company’s slogan "Daily gingerly, daily walking on thin ice, daily excellence, and continuous improvement every day" is not just words, but reflects the belief and spirit of Haier. In conclusion, the implementation of enterprise culture construction is closely connected with emphasizing people-oriented spirit and the role of leadership, encouraging every employee to take part in the company. By doing so, a good corporate culture can be built. These three important factors- people orientation, leadership, and staff participation should be emphasized while building a good company culture. There are also other aspects that need attention to promote a positive corporate culture.

Ensuring the successful completion of the task of building corporate

culture requires monitoring issues that arise during development and implementation. To effectively promote corporate culture, a memorable and inspiring language should be utilized. Additionally, adjustments and rebuilding of the corporate culture may be necessary in response to changes in the environment.

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