Managing Corporate Cultures
NOT MERELY A SLOGAN ANYMORE
The company must manage the corporate culture well in order to have the ability to face challenges during change. In the past, a corporate culture was an instrument, a slogan, a past romanticm and a self actualization. Nowadays, a corporate culture is one of the promoting factors in establishing a qualified HRM, ensuring the direction of business expansion, and preserving competitive edge of the company.
The corporate culture elements consist of values, heroism, rituals, celebrations, and cultural network. A company that is unable to manage its corporate cultures will experience a decline or a loss of business competitiveness. The HRM is uncontrollable, it has its own will that does not go along, or even contradicts with the purpose of the organization. A non-cohesive organization does not have a clear target and business expansion will proceed slow or stop.
JCG CONCEPT OF CORPORATE CULTURES
The JCG suggests that the central theme of corporate cultures is an understanding of what the organization is for and how its members are supposed to behave. Therefore, a corporate culture is one key driving force for organization performance.
The elements of corporate cultures are complex sets of common beliefs within the organization and expectations of the members of the organization, known as the JCGs Model of Corporate Culture. JCGs Model of Organizational Culture is formulated based on the philosophy that the aspects of human behaviors hold a crucial role in managing culture. The first element is a set of common beliefts that consists of shared philosophies, ideologies, and values. Therefore, philosophies, ideologies and values must have become the core of belief for everyone. The second element is a complex set of expectations on forming assumptions, behaviors and norms.
CORPORATE CULTURE PROFILING
JCG Corporate Culture Profiling is a method of illustrating the corporate cultures. By means of internal employee survey, questionnaires and interviews for the executives, senior managers, managers, unit and focus group leaders, data on the characteristics of the corporate cultures in the company can be obtained. To enable the construction and the development of the corporate cultures, the company must at first explore and identify the existing values. In this method, the JCG has established 10 characteristics of a supportive culture which consist of: individual initiatives, risk tolerance, direction, integration, management support, control, and identity, reward system, conflict tolerance and communication pattern (Susanto, 1997).
ADAPT OR DIE
The development of the corporate culture is a challenge for many companies. The statement adapt or die is a fact. The JCG as PARTNER IN CHANGE can assist companies in identifying whether development of a new corporate culture is required. The JCG has constructed a model of corporate cultures development which is known as the JCG Corporate Culture Development Model. This model is a framework showing a start-to-finish process that is carried out in a corporate culture development.
A company faces five challenges in corporate cultures development. First, a sensitive, innovative and flexible Cosmopolitan manager who is able to work optimally in plural environment; second, Intercultural Communication that approves and accepts the influence of cultures in communication; third, Acculturation, the ability to adapt in variety of cultures; fourth, Cultural Sensitivity that gives a sense of sensitivity in variety of cultures and enables an integration of cultural characteristics and uniqueness; and fifth, Cultural Synergy that collaborates the similarity and the diversity to enrich the organization. These challenges must be countered by developing cosmopolitan manager, creating cultural sensitivity and operating communicationg between cultures, acculturation and cultural synergy. The ability to counter these challenges must be incorporated in the organization.
THE INFLUENCE OF SOCIETAL CULTURES
Each societal group comprises its own cultural elements that can affect corporate cultures. Power distance, uncertainty avoidance, individualism, collectivism, masculinity and femininity are the elements of societal cultural that influence corporate cultures. If the elements are very strong, then it is ensured that the corporate cultures will include these elements although in a different degree.
CORPORATE CULTURES AND BUSINESS ETHICS
The corporate cultures that possess the organization can create certain norms to decide whether a decision or action is ethical or not. Understanding the good values and the ability in creating shared values becomes crucial in managing the corporate cultures. The shared values, as an important element of common beliefs, are served as the frame of reference in decision making and ethical action.
CORPORATE CULTURES: PLEDGE OF COMPETITIVENESS
To counter business challenges, the corporate cultures, which are served the foundation (bed rock) of the organization, must be administered appropriately. Understanding its own cultures and the ability to conduct assessment and development are the competencies every company needs.
Planning and executing business strategy effectively in a precise matter by a reliable HR in a condusive cultural environment will bring the company to a winning position. The JCG Framework of Working Model can be used by the company to answer the challenges and problems in the corporate cultures management, through either corporate culture assessment and analysis or cultural change and adaptation.