The global trend today is the conditions of radical socio-economic transformations and in this regard, corporate culture has become the primary factor affecting the efficiency and competitiveness of modern organizations.
For countries with high development potential, corporate culture is an essential element in understanding the management system as a whole. A detailed analysis of corporate culture as an element of governance can help improve the public and private governance models. As well as the control system in organizations, since in a market economy the professionalism of managers is often at the average level, which does not contribute to the development of both sides of these managerial relations [2, p. 108].
Therefore, we can talk about the importance and relevance of this issue, since the study of corporate culture reveals many very important problems. An organization can be thought of as a complex system that cannot be built without a corporate culture. Thanks to the corporate culture, organizations do not appear as faceless creatures, but differ in their structure. It also ensures long-term success and market dominance.
Corporate culture proper cannot be clearly indicated in the organization’s system, it is hidden, it is determined by a special form of this culture, according to the apt expression of a scientist, organizational culture is the “soul” of an organization [2, p. 109].
Any enterprise must create its own image, form its own image, for this you need to define your own goals and values, formulate a quality strategy for the products or services provided, establish civilized rules of conduct and moral principles for employees, create the business reputation of the organization; this list, which includes many more elements, constitutes the organizational culture of the enterprise, without which the effective functioning of the enterprise will not work.
Corporate culture is a kind of general culture, therefore, it is characterized by the same thing as other types of culture. However, corporate culture is a separate type of culture, since its subject is very specific – organization.
Corporate culture cannot be considered a separate phenomenon either spatially, temporally, or subjectively. This is a mandatory component of all other types of activities, it creates a clear order in other areas, such as political, technological and others. Therefore, it is natural for corporate culture to cover the entire life cycle of an organization; for example: society, enterprise, small group.
When it comes to corporate culture, the questions are those that make up the system of values and opinions of top management of the organization. In addition, corporate culture implies, in addition to people’s beliefs, mutual understanding between them, relations between people and the external environment. It rests on the psychology of the formation of practical experience, representing the value guidelines of this experience [3, p. 229].
If the organization is characterized by a favorable moral and psychological climate, then the staff will have confidence that the management trusts the employees, and good relations with employees are the key to the success of the enterprise.
In the developing world, under new conditions, leadership policy is changing, and positions that seemed previously unshakable as rigid discipline, strict hierarchy, ubiquitous control, hyper centralization, depersonalization of labor, and the slogan “The result is important, not the method,” are gradually losing their relevance. Other positions begin to dominate: self-determination of the worker, expansion of the influence of the individual, orientation on the needs of clients, individualization of work, promotion of initiative and creativity, decentralization.
Corporate culture is a culture of ensuring the orderliness and coherence of the functioning of a social organization. The system of meanings, values, norms and guidelines of corporate culture allows us to ensure the organization of activities for the implementation of the mission and goals of the organization [5, p. 1511].
Equally important is the name of the corporation, the brand of products manufactured, sales, and, consequently, the success of the organization, directly depend on these factors. What kind of reputation an organization has an influence on its attitude to it and determines reliability as a partner, the quality of goods and other provisions that make up the concept of corporate culture. With the development of economic relations, managerial views, organizations begin to be considered in the context of associations, with similar goals, objectives, behavior model, value system and place in the economy, which leads to the emergence and implementation of the term “corporate culture” in management sciences.
In the process of work, the organization creates its reputation and name, which implies: quality control of products and services provided, standardization of work, development of employees’ moral principles, etc. .; it implies a system of methods adopted by the enterprise for achieving goals, as well as the form of relationships in the performance of work, which, in fact, distinguishes a particular company from the rest.
But you need to keep in mind that corporate culture develops and acquires its own specific features under the influence of national culture. Various features of corporate culture, as a rule, depend on the characteristics of national culture, at the same time, many features in different countries are similar, since economic laws are the same for all.
Corporate culture is expressed through the prism of values. Values give rise to norms and rules of behavior, which in turn form the specific behavior of specific groups and individuals.
Corporate culture is relatively free from the goals of the organization, but at the same time there is a connection between them. Different types of corporate culture contribute to the realization of the same goals, though the effectiveness will be completely different. So, not all goals may be suitable for one or another type of culture.
When corporate culture is understood only in a narrow sense, there is an excess towards the problematic issues of the lower level of production, which leads to the loss of the social level of corporate culture, which is very important at this level, as it leads to the streamlining of life. And also a unified system of corporate culture is breaking, including both the upper and lower levels of functioning of society. Therefore, corporate culture must be understood both in the broad sense – as an indispensable element of the general culture, and in the narrow – as the culture of the company [3, p. 229].
The enterprises distinguish the dominant culture and subculture. The first is a conductor of core, core values. The study of the dominant culture takes place at the macro level, where the corporate culture of the organization actually takes shape.
If we consider quite large corporations, then we are talking about a subculture, it reflects the main problems that arise for employees, as well as ways to prevent problems and eliminate them.
The subculture covers many of the activities in the organization, both geographically and locally, vertically or horizontally. If a certain department of a certain organization has its own culture, unlike the culture of other departments, then we can talk about a vertical subculture. But if the department, which was originally inherent in the specificity of activity (for example: accounting, personnel department), therefore, we are talking about a horizontal subculture.
Theoretically, absolutely any group of people can have their own unique culture, subculture, but most often it is formed within the framework of departments, departments or a geographical location. The subculture consists both of the values of the general culture, and of the auxiliary values specific to this group only.
Large corporations, striving to maximize efficiency, favor the creation of their own corporate cultures, as this has a beneficial effect on the work of employees. Also, the creation of their own corporate culture enables employees to identify themselves with the product/services produced at a particular enterprise and to distinguish “their from others”. So the organization and the employee become important components of the whole, people become more responsible for the quality of products/services. A corporate culture is a controlling tool, it adjusts the relationships and activities of employees.
Based on the fact that the organization should be effective, it is important that the corporate culture, the strategy of the enterprise, its external and internal environment are consistent. In a market economy there should be a system in which the dominant role is played by: individual initiative, risks, high integration, normal acceptance of the conflict and wide horizontal communication [4, p. 210].
If the above factors are taken into account, then the effectiveness of the organization increases markedly, but the best outcome is the use of market principles in a stable environment.
Efficiency increases when corporate culture implements control, through which risks are reduced, and conflict decreases to a minimum.
Therefore, different organizations have different corporate cultures, which vary depending on the type of work performed, forms of ownership, market place, etc.
In organizations with a strong culture, personnel are confident in what kind of behavior should be in a particular situation, what criteria in work and communication should be followed. Organizational culture can be more effective than any formal structural control; the stronger the culture of the organization, the less management needs to pay attention to the development of formal rules and regulations to control employee behavior. It will all be in the subconscious of the employee who adopts the organization’s culture [4, p. 211].
Thus, the undoubted advantage of corporate culture is that it facilitates the management of the organization, in particular, the development of a control system (implicit obedience / self-control), planning (excluding them from this process / involving more people), motivation and other aspects of the activity.