Chapter 16:

Culture and Diversity in Business

UNIT 5: HUMAN RESOURCES

 Corporate Culture
Corporate culture: a company’s shared values, beliefs, and goals
Culture may be defined
◦ Formally, through a company code of ethics, a written manual, and the orientation
process
◦ Informally, through dress codes, work habits, and social activities

Factors influencing cultures may include

◦ Company’s founder
◦ Industry (banking vs. technology)
◦ Geographic location (NYC vs. Silicon Valley)

Consider
Why is it important to know something about a firm’s corporate culture
before accepting a job there?
 Examples of corporate
cultures
o McDonald’s & Disney: Both stress customer services and family
values. Employees are expected to be clean-cut and greet each
customer with a smile.

o FedEx, Ben & Jerry’s, and

Patagonia stress worker
satisfaction and
concerns for environment.
 Examples of corporate
cultures
o Company founder can influence its culture, William Hewlett stressed
a “people first” culture

o Regional differences may effect company’s culture: Wall Street firm

in NY may expect to wear a suit and tie. High-tech company in
California might wear T-shirts and shorts to work.
Corporate Culture
continued
FORMAL CULTURE . . . INFORMAL CULTURE
-May have a strict hierarchy, or -Employees encouraged to make decisions
chain of command on their own; may have decentralized
organization

-May have one top decision maker -Work hours are more flexible; may also
with several layers of work from home
management below (bureaucracy)
-Making changes or passing down -May value innovation over tradition
decisions may be complicated
-Job titles indicate power/status -Job titles are not as important

-Dress codes and work hours

strictly enforced -Dress code is more casual
Considering Corporate
Culture
Form groups of two to four people. Appoint a timekeeper and recorder.
Discuss the following questions. Your recorder should write your
answers on a separate sheet of paper (to hand in at end of class).
◦ Review the descriptions of formal and informal culture. What are some
drawbacks and benefits of each?
◦ Describe the classroom culture of your favorite class(es). What classroom
rules, work habits, and activities help shape how you work, act, and deal
with problems? How does this culture influence your work as students? Try
to connect your discussion of classroom culture to the notes on corporate
culture.