Approaches to Understanding Corporate Culture
By Driss Elmouden
In the modern business landscape, companies must be viewed as strategic systems that are inherently open and interconnected with their environment. This "open" nature signifies that organizations are in constant, dynamic interaction with a diverse array of external stakeholders, making it impossible to view a company as a closed "black box". Instead, corporate culture is expressed through the everyday operations of these complex processes.
To further clarify this view, companies are qualified as a «strategic open system». This distinction is made for two main reasons:
Companies actively define their missions and economic goals in a competitive environment. They set out strategies and make decisions that determine how they position themselves and operate in relation to competitors and the broader market.
They shape the internal life of the organization, aiming to provide purpose and direction to all members within. This strategic orientation influences the company's culture and how employees experience their roles.
Defining the Role of the Individual in the Company
To fully understand corporate culture, it is essential to go beyond the traditional view of the organizational actor as a purely rational, profit-maximizing "homo economicus". Human behavior in organizations is far more nuanced.
An individual in a company is driven not only by rational interests but also by emotions, values, and passions. Employees internalize moral codes, ideals, and have their own perceptions, judgments, and reflections. They adapt and behave based on their unique understanding of authority and social relationships within the organization. This perspective is crucial for appreciating how individual actors contribute to and shape the overall culture of a company.
Establishing a Link Between the Organization and the Individual
The relationship between a company and its employees is pivotal in understanding organizational culture. This relationship becomes more significant as one moves up the corporate hierarchy. Senior executives, managers, and decision-makers have a more profound influence on—and are more deeply influenced by—the corporate culture.
To conceptualize this relationship, the notion of "contact" between the organization and the individual is used. This highlights the dynamic and reciprocal nature of the relationship, where both parties actively shape each other.
Choosing Data Collection Tools
Analyzing corporate culture requires a comprehensive approach to data collection. A single method is insufficient to capture the complexity of the organization-individual interaction. Instead, a combination of tools is recommended, each tailored to specific aspects of the company's environment and the behaviors of its actors:
Observation: This involves closely monitoring the organization's everyday operations and interactions. Observation should also extend to critical events or episodes that may arise, as they often reveal the underlying cultural dynamics more clearly.
Semi-structured interviews: Conducted over the long term, these interviews are guided by a set framework of questions aimed at exploring the deeper relationship between the organization and its members. This method provides valuable insights into how individuals perceive and experience the culture, as well as the meanings they attach to various aspects of their work life.
By integrating these different approaches, a richer, more nuanced understanding of corporate culture can be achieved, allowing companies to effectively manage and evolve their internal environment.
Key Takeaways
Companies must be viewed as strategic open systems that are in constant interaction with external stakeholders.
Individuals in companies are driven by emotions, values, and passions, not just rational interests.
The relationship between the organization and its employees is pivotal in shaping corporate culture.
A combination of observation and semi-structured interviews is recommended to comprehensively analyze corporate culture.
Related Topics
Organizational Behavior
Strategic Management
Corporate Culture
