Corporate culture priorities in the context of international transformations

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Corporate culture priorities in the context of international transformations

Lyubov Tytarenko, Candidate of Economic Sciences, Docent, Associate Professor at the Department? Tourism Iryna Levchenko, Doctor of Philosophical Sciences, Associate Professor at the Department of International Economic Relations and Tourism, Kateryna Potkalo, Student National University "Yuri Kondratyuk Poltava Polytechnic”

Introduction

Today's dynamic business environment requires rapid response and the ability of an enterprise to adapt to changes, especially in times of war. An equally important aspect in this regard is the ability of the staff to respond quickly, coherently and as a team to all situations. That is why every company should pay attention to the corporate culture within it. Have we ever thought about the importance of the corporate culture of an organisation, or attached importance to it, or focused on the effectiveness of its use as an important factor in motivating and stimulating the work of the organisation's personnel? Ukrainian business is only beginning to address these issues, but it is necessary to emphasise the importance of this issue, as the formation of a company's corporate culture is an important tool for increasing employee productivity, shaping its competitive image and sustainable development.

 The essence of the concept of "corporate culture" is considered, the components of corporate culture, its main aspects are given, the key typologies of corporate cultures are presented, which are taken into account by business practitioners during its formation and evaluation of the impact on the company's development. The priorities of the company's corporate culture are reflected in the process of implementing management functions that ensure the effectiveness of the company's activities, in particular for employees, consumers (clients), state authorities and business partners. Factors that affect the level of influence of corporate culture on management processes or target groups are summarized, in particular: type of corporate culture, level of its manifestation, acceptance by employees, formalities, size of the organization. It was determined that corporate culture, like every system, has specific elements inherent only to it, in particular: values, leadership, communication, training and development, cooperation and team building, rituals and symbols, systems and processes, response to changes.

These elements interact, creating a specific character of corporate culture, which determines the way of functioning and organization of interaction of its members. It is substantiated that in the conditions of international transformations, corporate culture is important for any organization, because managing it can influence the motivation of employees, the attractiveness of the enterprise as an employer; for each employee, his business reputation; on productivity and efficiency of labor activity; quality of work of employees; the nature of personal and industrial relations in the organization; creative potential of employees.

Key words: corporate culture, corporate ethics, international transformations, globalization, leadership, business.

Пріоритети корпоративної культури в умовах міжнародних трансформацій

Титаренко Любов Михайлівна, кандидат економічних наук, доцент, доцент кафедри. Левченко Ірина Василівна, доктор філософії, доцент кафедри міжнародних економічних відносин та туризму. Потькало Катерина Олегівна, студентка, Національний університет «Полтавська політехніка імені Юрія Кондратюка»

Розглянуто сутність поняття «корпоративна культура», наведено складові корпоративної культури, її основні аспекти, представлено ключові типології корпоративних культур, які беруться до уваги практиками бізнесу при її формуванні та оцінюванні впливу на розвиток компанії. Відображено пріоритети корпоративної культури компанії у процесі реалізації управлінських функцій, а саме функції планування, організування, мотивування, контролювання та регулювання, а також зазначено її особливий вплив на цільові групи впливу, які забезпечують ефективність діяльності компанії, зокрема на працівників, споживачів (клієнтів), державні органи влади та ділових партнерів. Узагальнено ключові фактори, які впливають на рівень впливу корпоративної культури на управлінські процеси чи цільові групи, зокрема: тип корпоративної культури, рівень її прояву, прийняття працівниками, формальності, розмір організації. Зазначено, що корпоративна культура являє собою комплекс певних ідей, цінностей, еталонів поведінки, настроїв і способів ведення професійної діяльності, що мають поділятися всіма членами організації. Корпоративну культуру можна також розглядати як інструмент стратегічного розвитку організації на основі стимулювання інновацій та керівництва всередині неї. Наголошено, що створення потужної корпоративної культури є складним завданням, що включає низку аспектів, і не існує універсального алгоритму для досягнення успіху в цьому напрямку. Визначено, що корпоративна культура як кожна система має специфічні, притаманні тільки їй, елементи, зокрема: цінності, лідерство, комунікація, навчання та розвиток, співпраця та тімбілдинг, ритуали та символи, системи та процеси, реагування на зміни. Ці елементи взаємодіють, створюючи конкретний характер корпоративної культури, який визначає спосіб функціонування та організації взаємодії її членів. Обґрунтовано, що в умовах міжнародних трансформацій корпоративна культура важлива для будь-якої організації, оскільки управляючи нею можна впливати на мотивацію працівників, на привабливість підприємства як роботодавця, що відбивається на плинності кадрів; на кожного працівника, його ділову репутацію; на продуктивність та ефективність трудової діяльності; якість роботи працівників; характер особистісних та виробничих відносин в організації; творчий потенціал службовців.

Ключові слова: корпоративна культура, корпоративна етика, міжнародні трансформації, глобалізація, лідерство, бізнес.

Analysis of recent research and publications

The problems of formation and development of corporate culture are addressed in the works of domestic and foreign scholars such as Varaksina O.V. and Shulga V.Y., Melnyk A.O., Davydenko N.V., Korolovich O.O., Myroshnychenko Yu.V., Pavlov O.I., Pigosh V.A., Resler M.V., Donald Sull, Belle Wong, J.D., Deanna Debara, Jason Gordon, Jianping Miao, Kat Boogaard, Kate Heinz, Lisa-Maria Hober, Rinaily Bonifacio, Tom Geraghty, Tom Jendriks, etc. Most researchers consider the categories of corporate culture as a set of established models of staff behavior used to influence the efficiency of the enterprise.

Corporate culture is a fairly new scientific issue, but there is a sufficient number of fundamental research in the scientific field. However, this issue remains quite controversial, in particular, it requires a deeper study of the peculiarities of corporate culture from the perspective of the most effective management, that takes into account various aspects of international transformations.

Objectives of the article

The purpose of the article is to study corporate culture as an effective tool for managing an organization in the context of international transformations.

The main material of the study. Economic transformation, as outlined in the 2030 Agenda, includes fundamental changes in the economy that increase the overall level of productivity while ensuring appropriate quantity and quality of employment, fair distribution of income and wealth, access to quality public services, and environmental protection. Modern processes of international transformations are fundamental and actually lead to a paradigm shift in international business, which in turn generates a new stage in the evolution of the scientific foundations of international business and corporate culture [1]. The concept of "corporate culture" is the subject of study in such fields of knowledge as management, philosophy, psychology, sociology, cultural studies, organizational behavior, and law [2]. It is closely interconnected with business ethics, business philosophy, and organizational behavior [3]. Corporate culture is a set of the most important provisions regarding the company's activities, determined by the organization's mission and development strategy, which are reflected in the social norms and values of employees. This culture allows to distinguish the organization, creates an atmosphere of identification for its staff, strengthens social stability and is a controlling mechanism that guides and shapes the relations and behavior of employees [4; 5]. According to the given data, corporate culture and corporate legal relations are capable of transforming, moving from one state to another, changing the structure of the constituent elements of influence on the behavior of personnel, changing the format of managerial and administrative rights and responsibilities [2]. In the modern world, corporate culture is a very important part of an enterprise.

The global experience shows that companies that take it into account as a subject of strategic management function better, i.e, more effectively. According to the study, corporate culture includes: staff values; communication system and language of communication; time management; relationships between staff; staff development and training; appearance and style of clothing. These elements are so closely interrelated that they need be studied in a comprehensive manner.

Depending on the role and importance of corporate culture in the enterprise management system, there are three types of it:

- rational and pragmatic - used to increase the level of competitiveness of the enterprise;

- phenomenological - used in enterprises that have special religious and cultural features and indirectly affect the efficiency of the enterprise;

- situational and systemic - assumes that the basic principles of corporate culture change depending on the goals and objectives of the enterprise and changes in the external environment [6].

Creating a strong corporate culture is a complex task that involves a number of aspects, and there is no onesize-fits-all recipe for success. The business environment is constantly changing and evolving, and the challenge for management is to ensure that their organization is appropriately adapted and evolves, and that it is ready for change. In addition, corporate culture is closely related to ethics and business protocol. For example, ethical standards establish trust between parties doing business together, including both partners and customers. Organizations earn this trust by demonstrating a pattern of ethical behavior over time, gaining a reputation for honesty and respect for human rights and social responsibility. Companies that conduct their international business ethically earn higher profits by attracting business partners who share the organization's commitment to ethics in international business. Analysts argue that the formulation and implementation of an ethics policy in an international organization and among its business partners abroad poses a challenge to companies. Ensuring that employees and partners meet the company's standards for worker safety, human rights and fair wages starts with creating a work culture of openness and care [7].

The main advantages of a strong corporate culture [8]:

- increasing labor productivity (a healthy work culture will motivate employees, increasing engagement and productivity);

- image growth (will help create a more attractive company image for potential candidates);

- greater customer loyalty (an effective demonstration of corporate culture will be able to attract the attention of customers; customers who identify with the company's brand and its values will become more loyal to the company);

- better communication and mutual understanding (uniting employees by common values and a common goal strengthens the connection with the organization, increasing the likelihood that they will remain working for the long term);

- higher satisfaction and well-being of employees (thanks to the right culture, employees will be happier, healthier and will work with greater desire and efficiency).

The formation of corporate culture depends on many factors, both external and internal. It is important to understand the impact of each of them and take them into account when forming and developing corporate culture at the enterprise.

External factors include the current state of social development, economic processes, political processes, innovation processes, environmental conditions and the level of strengthening cultural trends. Modern international transformations include globalization, intellectualization of labor and socialization. Economic processes, political processes and innovation processes also have an impact on the formation of corporate culture. In addition, it is necessary to take into account the environmental situation and the strengthening of cultural trends in both society and the economy. Internal factors include the company's philosophy, leadership, management style, communications, interpersonal relationships, employee-customer relationships, ethical standards, professional development, demographics, and others. Leadership and management style determine the sustainability of interpersonal relationships and relationships between employees and customers. Communications include all ways of exchanging information within an organization, including the common language, the communication patterns, and communication formats. Ethical standards and professional development reflect the company's guidelines for interaction with employees and customers. Demographic composition has an impact on the formation of corporate culture, as different generations have different values and approaches to work [9].

The more well-known models of organisational culture are explored. These models offer different approaches to developing a healthy corporate culture, so it is necessary to highlight their pros and cons to help choose the model that best suits the organisation. After all, corporate culture is not only a competitive advantage, but also the key to long-term success. The most prominent organizational culture models are: "Schein's Three-Level Model", "Hofstede's Cultural Dimensions", "Denison's Organizational Culture Model", "Cameron and Quinn's Competing Values Framework", "Handy's Cultural Types". Table 1 shows the advantages and disadvantages of each of these models.

Table 1. The most prominent organizational culture models: advantages and disadvantages

Source: [8; 10; 11; 12]

The most common approach is the one proposed by the scientist Ed Schein, who identifies three levels of corporate culture: the first level is visible artifacts, the second level is proclaimed values, rules and norms of behavior, and the third level is the basis of external manifestations, i.e. basic ideas (Figure. 1).

Artefacts. These describe any overt, visible, describable aspects of the organisation. Think things like branding and logos, office design, dress code, policies and tools. Things that you can see.

Espoused values. This is how people would describe the organisation, in current or aspirational terms. These include missions, goals, value statements, and social contracts.

Underlying assumptions. These are unconscious, unspoken, hard to articulate elements of the organisation, particularly from within [8].

Figure 1. Levels of corporate culture

Source: [8; 13]

Given the current international transformations, corporate culture is based on the key basic functions of management and is carried out taking into account the following basic criteria [14; 15]: type, manifestation, level of acceptance and level of formality of corporate culture, as well as the size of the company.

Type of corporate culture. When considering the various models of corporate culture described above, it can be seen that they predetermine certain features of employee relationships within the organization, as well as directions for determining strategic goals or performance standards, etc. For example: the "club" corporate culture is characterized by a loyalty of employees to each other and to management, as favorable and stable working conditions encourage and motivate the team to achieve the company's goals. This type of culture is characterized by a moderate growth strategy. In contrast, the "regulation culture" is more directive, thus strengthening the effect of control, and involves a large number of approvals from managers at different levels of management. This is an obstacle to communication between management and employees, resulting in a slowdown in the process of achieving targets.

The level of manifestation of corporate culture. Corporate culture can be openly manifested, i.e. everyone can see or hear its key statements, in particular, if there is a mission or vision of the company, a corporate code, etc. However, it may not be recognised by employees, although it will exist, as corporate culture is formed as soon as an organisation is established, i.e. when there is already a group of people.

The level of acceptance of the corporate culture by the company's employees is of great importance. The corporate culture is perceived differently by the organization's staff, creating both obstacles to its development and developing it. Acceptance of a certain type of culture ensures unity, team spirit, coordinated work, and a favorable psychological climate, i.e. creates optimal conditions for the effective operation of the organization. And vice versa.

The level of formality of the corporate culture. Often, the key postulates proclaimed in the corporate code may be of a purely formal nature. In this case, such a corporate culture is less effective than one where the management thinks through each of its components, creating all the conditions for the values and rules it proclaims to be accepted by the majority of employees, if not all, understanding that only then will the organization work as a whole, achieving the goals it has set.

Company size. Obviously, the larger the company, the more effort should be put into ensuring that the corporate culture has an impact on its operations. Small organizations are often more cohesive, organizational norms are stable, newcomers either quickly integrate into the team, adopting existing values, improving them, or leave. However, the larger the company, the more effort you need to put into maintaining or optimally changing the key parameters of corporate culture and the perception of its tenets by all members.

Based on the generalization of studies [9; 16-18] it can be concluded that the main provisions of the modern paradigm of corporate culture management in the context of international transformations are the following:

1) the success of an organization depends not only on its market position and availability of resources, but also on the role of the human factor;

2) the organization is viewed as an open dynamic system based on common values of individuals;

3) the main emphasis of the management system shifts: from the point of view of modern management, the goal plays a secondary role compared to values, and the organization is seen as an independent cultural entity;

4) the need for constant adaptation of the organization to the turbulent external environment reduces the importance of constant strict control, requires changes in approaches to personnel management and emphasizes the self-management and self-development of the individual, formation and dissemination of knowledge, integrated use of normative-value, systemic and situational approaches to management;

5) increased competition requires enterprises to carry out activities taking into account the long-term perspective, that is, based on the principles of strategic management;

6) oversaturation of the market with goods, strengthening of the tendency of rapid moral obsolescence of goods requires wide use of marketing principles in the process of management;

7) formation of the concept of social responsibility of business.

corporate culture international transformation

Conclusions

International transformations have different forms of manifestation: intensification of international trade in goods and services; globalization of the financial and credit sector; dominance of globalised firms, corporations, and alliances in all forms of international economic relations; regionalization of the world economy; global investment boom; intensification of international labor migration. Thus, in the context of international transformations, the management of an enterprise must take into account the company's values and the work environment, including any issues and concerns of employees. Corporate culture includes a set of interrelated elements: staff values; communication system and language of communication; time management; relationships in the company - between staff; staff development and training; staff appearance and style of clothing. All components need to be studied as a whole.

In the conditions of international transformations, the corporate culture of a company is most influenced by the following factors: a competent leader and a team of like-minded people; effective interaction with counterparties; a long-term strategy and vision of the corporation; effective internal communications; conflict resolution and teamwork support and the availability of mechanisms for involving staff in the decision-making process. At the same time, corporate culture is based on the basic functions of management and is carried out taking into account such basic criteria as the type of corporate culture, its manifestation, the level of acceptance and the level of formality of corporate culture, as well as the size of the company.

The following basic principles should play a leading role in shaping the elements of corporate culture: taking into account differences in social and cultural competence, staff development; taking into account the impracticality of automatically transferring all problematic traditions of society; regulating labor discipline; eliminating cultural barriers to cooperation to the maximum extent possible; understanding by members of a multicultural environment of the essence of collective interaction; and focusing on the experience of highly developed countries in management styles.

To create a healthy corporate culture, leaders, managers at various levels and other stakeholders must come together to achieve a common goal, as corporate culture can stimulate the development and realisation of each employee of an organisation as a highly moral individual. This requires a certain level of adaptability and may involve adjusting or improving some of the company's fundamental values, principles and visions. In the context of international transformations, company leaders must apply innovations in practice. This affects many aspects of the organization's activities, from regular processes such as adaptation and training to the core elements of business identity, such as its brand and mission statement, so management must constantly monitor the state of corporate culture, as preventing negative consequences will cost the company significantly cheaper than fixing the problem.

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Список використаних джерел

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