3.4.2 Corporate Culture

• Corporate Culture refers to the *shared values, norms, and practices* within an organization.
• A company with a culture that values innovation may encourage risk-taking.
• Corporate Culture is often abbreviated as CC.
• Values are the core principles that guide an organization's decisions and actions.
• Norms are the unwritten rules that govern behavior within the organization.
• Practices include routines and traditions that are part of the work environment.
• Match the element of corporate culture with its description:

  1️⃣ Values

  2️⃣ Core principles guiding decisions

  3️⃣ Norms

  4️⃣ Unwritten rules governing behavior

  5️⃣ Practices

  6️⃣ Routines and traditions defining work environment
• Values in corporate culture shape decision-making.
• A strong corporate culture can enhance employee morale and productivity.
• Corporate culture helps attract and retain talent.
• Open communication is a common value in companies with strong corporate cultures.
• Why is corporate culture considered crucial in an organization?

  Shapes behavior and performance
• A strong corporate culture fosters alignment between company goals and employee values
• Companies like Google and Netflix are known for strong corporate cultures that prioritize innovation and employee autonomy
• What does the term 'Corporate Culture' refer to within an organization?

  Shared values, norms, practices
• A company with a culture that values innovation may encourage employees to take risks
• Match the key elements of corporate culture with their descriptions:

  Values ↔️ Core beliefs

  Norms ↔️ Accepted behaviors

  Practices ↔️ Routines and traditions
• What is the focus of a 'Clan Culture' in corporate culture?

  Collaboration and team building
• A 'Hierarchy Culture' in corporate culture stresses structure and control
• Southwest Airlines is an example of a company with a 'Clan Culture'
• How does corporate culture influence business decisions within an organization?

  Shapes values, norms, practices
• Corporate culture impacts decisions related to innovation, long-term sustainability, and ethical considerations
• Match the components of corporate culture with their descriptions:

  Values ↔️ Core beliefs guiding decision-making

  Norms ↔️ Unwritten rules influencing conduct

  Practices ↔️ Routines shaping daily operations
• What are the core principles that guide an organization's decisions and actions called?

  Values
• A strong corporate culture enhances employee morale, productivity, and job satisfaction
• What are the four main types of corporate cultures?

  Clan, Adhocracy, Hierarchy, Market
• A Clan Culture emphasizes collaboration and strong team bonds
• Arrange the strategies for shaping corporate culture in order of effectiveness:

  1️⃣ Leadership Behavior

  2️⃣ Rewards and Recognition

  3️⃣ Effective Communication

  4️⃣ Training Programs
• Netflix's culture of freedom and responsibility is consistently reinforced through leadership behavior