Corporate culture: technology of its formation

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УДК 658:330.87

Security and Innovation of the Enterprise of Lesya Ukrainka East European National University

Corporate Culture: Technology of its Formation

O. Khilukha

A. Levchuk

Lutsk

Introduction. The corporate world is becoming more and more global and more and more international. It demands the unique quality and style of organization, which company forms through its corporate culture. Companies with corporate values are strongly associated with superior performance over a long period of time.

Literature Review. Based on the rewiews of the literature in the field S. V. Kovalevsky, Yu. I. Paleh, V. V Yurchenko, Yu. V. Melnik, N. V. Bogdanova, L. I. Skibitskaya, V. A. Savchenko, V. G. Voronkova, A. G. Belichenko, O. M. Popov, M. Elvisson, D. Epidrey, A. Cromi and other scientists, it was hypothesized that corporate culture have contributed towards culture and performance research.

Article Purpose and Objectives. The purpose of the article is to investigate the impact of corporate culture on the organizational performance and the productivity of its employees and to establish a relationship between the goals of the organization and the goals of employees.

During the study, the following objectives were achieved:

- to develop the definition of the concept of «corporate culture»;

- to study various directions of development of corporate culture;

- to offer a list of moral and psychological qualities and competencies, which should have a successful manager for building an effective corporate culture.

© Khilukha O., Levchuk A., Maksymchuk A., 2017

The Main Issues Statement and the Obtained Results Grounding. Corporate culture is an important link in the activities of the corporation, an integral part of a successful strategy for its development, it is based on the main benchmarks and values that the company follows when interacting with its employees, partners and customers. To determine the essence of the concept of corporate culture we must outline the semantic model of the basic concepts of the field of study.

We support the idea of synonymy about the use of the concepts of «organizational culture» and «corporate culture», proceeding from an understanding of culture as a set of tangible and intangible artifacts of the company based on a system of values, norms, rules and principles of behavior, which are assimilated and shared by the majority of its participants.

The definitions «organization» and «corporation» are specific in the interpretation. From the standpoint of an interdisciplinary approach, «organization» is a system of social interactions and management technologies, organized by the content of formal and informal norms, rules, values and principles aimed at achieving certain goals.

The notion of «corporation» has a more specific socio-economic meaning. This is an association of interacting producers (enterprises, units), which has a single management system and is associated with the presence of common ideas and goals. In the context of our research, the corporation is one of the varieties of the organization.

Thus, organizational culture is a universal and basic definition that defines the essence of the phenomenon under study, and corporate culture acts as a kind of organizational culture, which is due to the specifics of the investigated object the corporation. corporate culture productivity goal

Various scholars interpret the category of corporate culture differently. From the managerial point of view, corporate culture is seen as a means to increase the effectiveness of the organization, which serves as a catalyst for organizational changes [1, p. 116].

V. V. Yurchenko understands under this concept a unique set of norms, values, beliefs, patterns of behavior, etc., which determine the way of uniting groups and individuals into an organization to achieve its goals [2].

M. Elvisson defines that culture as a product of knowledge, through which people interpret their experience and manage their actions [3].

D. Eldridge and A. Cromby say the corporate culture is a unique set of norms, values, beliefs that determine the way of uniting groups and individuals into an organization to achieve its goals.

Consideration of the subject-object relations of the corporation allows to distinguish the different levels that form it:

• general level. These are, first of all, examples of basic assumptions that every employee of the enterprise adheres to in his behavior and actions, the values that are taken by each individual, as well as the symbolism by which value orientations are passed on by members of the corporation;

• the level of subjective-object relations in corporate culture, realized through the motivational structures of the personality of the employees of the organization, which prompts for the embodiment of their behavior and activities of corporate values;

• the level of subjective-subjective relations. These are the values that influence the management's work and collective generalized ideas about perfection in various spheres of the organization's activities (philosophy, motto, myths, heroes).

Thus, in our opinion, corporate culture is a system-forming component of management organization, which includes a set of collective values, beliefs, patterns of behavior of members of the organization, which give the general orientation of their actions and orientate towards the achievement of the goals.

L. G. Shmorgun considers four types of corporate culture: clan, adhocratic, hierarchical (bureaucratic) and market [7].

Under the established clan culture, according to scientists, organizations are similar to large families. Heads or leaders of organizations are perceived as educators and, perhaps, even as parents. The organization keeps together due to devotion and tradition. It focuses on the long-term benefits of personal development, it attaches importance to the high degree of team cohesion and moral climate. Success is defined in terms of a good feeling for consumers and caring for people. The organization encourages teamwork and consent, full participation in the business. In clan culture, there are two types of leaders: the accomplice (the person who solves conflicts and seeks consensus) and the mentor (a caring manager who understands others and takes care of the needs of individuals).

In adhocratic culture people are at risk, leaders are considered innovators and people ready to take risks. The communicative nature of the organization is devotion to experimentation and innovation. In the long run, the organization focuses on growing and obtaining new resources. The organization encourages personal initiative and freedom. In adhocratic culture, two types of leaders are distinguished: the innovator (the person capable of predicting changes) and the seer (the person who emphasizes the possibilities of the organization and evaluates the probability. The sign of this style of leadership is the strategic direction and continuous improvement of the current activity).

Hierarchical (bureaucratic) culture implies a very formalized and structured workplace. Leaders are proud to be rationally minded coordinators and organizers. The organization combines formal rules and official policy. Long-term care of the organization is to ensure the stability and indicators of the smooth running of cost-effective operations. Success is defined in terms of reliability of deliveries, smooth schedules, low costs, etc. The role of a leader in a hierarchical (bureaucratic) culture is as follows: an instructor (a technical, well-informed expert, a person who is tracking details and knows the case) and a coordinator (a person that maintains the structure and workflow. The basis of his influence is the engineering of the situation, the management of the calendar Schedules, distribution of assignments, allocation of resources, etc.).

Market culture assumes that the main concern of a result-oriented organization is the fulfillment of the task. People are purposeful and compete with each other. Leaders are solid leaders and rigorous competitors. They are steadfast and demanding. The organization combines the emphasis on the quest for victory. Reputation and success are a common concern. The focus of the perspective is geared towards competitive action, the solution of the objectives and the achievement of measurable goals. Success is defined in terms of penetration into markets and market shares. Important competitive pricing and market leadership. The style of the organization is a tough line for competitiveness. In market culture, there are two types of leaders: a fighter (a person who actively solves problems and targets, receives energy in competitive situations), and the director is focused on solving problems and decision-making (the person who aspires to the results through hard work. There is a persistent and reasonable argument in favor of bringing the case to an end. Productivity is actively encouraged).

It is indisputable that without a corporate culture, the activities of any organization are impossible, since corporate culture is at least controlled, but a spontaneous phenomenon, which will definitely be formed where people are and where there is communication between these people. Corporate culture in the hands of a skilled manager can become a driving element of strategic management and will ensure the success of the company.

To build a positive microclimate in a team, it's important for a manager to have the following competencies:

- purposefulness is the ability of a person to subordinate their actions to the set goals. Purposeful persons have clear and definite goals in life;

- perseverance is the ability to mobilize their ability to sustain the struggle against difficulties, the ability to direct and control behavior in accordance with the stated purpose;

- determination is the ability to adopt and implement swift, well-grounded decisions. The decisive person is able to throw back the vibrations and doubts at the right moment and resolutely to dwell on the concrete purpose and to determine the ways and means of its achievement;

- initiative is the ability to work creatively, to act initially;

- autonomy is the ability not to be subjected to the influence of various factors that can distract from achieving the goal, critically evaluate the advice and suggestions of others, act on the basis of their views and beliefs;

- courage is the ability to overcome fear and go for a justifiable risk in order to achieve the goal, in spite of the danger to their own well-being;

- exposure is the ability to reject actions, feelings and thoughts that interfere with the implementation of the decision [4, p. 125].

For a manager, such personality traits as self-confidence are relevant to the presence of a clear goal and ability to act and achieve results.

Moral and psychological qualities give the leader the opportunity to influence people, without which it is impossible to build successful management activities. This subgroup consists of:

- honesty and decency, truthfulness and sincerity, modesty and simplicity;

- principledness, developed sense of responsibility, high demand for oneself and others;

- justice, benevolence, impartiality and respect in relations with subordinates, the ability to create a mood in a team that promotes productive activity;

- knowledge of human psychology and individual approach to subordinates, taking into account their personal characteristics - character, temperament, value orientations, ability to work with people and knowledge of methods of effective influence on them;

- readiness to establish contacts with subordinates, the desire to protect their legitimate interests, care for their everyday needs;

- ability to empathy, identification (the ability to mentally put yourself in the position of another person and look at the problem from its positions);

- kindness, tact, recognition of the success of others, lack of pettyness;

- objectivity, sober perception of criticism;

- tolerance and courtesy, prudence and balance;

- communicability, ability to listen and hear;

- developed sense of humor;

- sense of personal responsibility, reliability [4, p. 127].

Scientists in the field of management psychology give practical recommendations for the formation of self-confidence skills in managers. The main ones are: the need to avoid negative emotions in the process of business communication, to express their thoughts, to be friendly and friendly, to be persistent and determined in achieving the goals set, not to be afraid of mistakes.

Implementation of a sustainable corporate culture by domestic enterprises will make it possible to improve the management process and prevent conflicts, according to V. A. Savchenko, who also argues that the corporate culture of the competitive organizations is characterized by positive significance and purposeful behavior of the personnel regarding the perception of changes and introduction of innovations, systematic mastering of new competences, knowledge, skills and abilities [5, p. 50].

Corporate culture should promote the creation of a motivational system for personnel development, shaping the needs, interests and motives of employees for training. It depends on the coherence of the values, norms, rules of the game and the behavior of the personnel with regard to the content, forms and methods of training offered by the organization or educational institutions, the results that employees expect from the curriculum.

Therefore, when developing strategic plans and tactical programs, one must take into account the type of corporate culture prevailing among employees. When designing a new corporate culture, material and non-material incentives should be developed that motivate the staff to accept change, to master the new knowledge, skills needed to innovate.

In the design and management of corporate culture a significant role belongs to communicative connections. Thanks to communications, information is exchanged between employees about values, beliefs, patterns, rules of the game and dominant behavior and other subcultures of the organization. Strengthening contacts between employees enables to overcome the psychological barriers to innovation, promotes industrial adaptation, ensures the assimilation of values by employees and the organization's norms, and thus contributes to the self-fulfillment and development of personnel.

The results of efforts to form the corporate culture of the organization are easily captured by external manifestations: adaptation of new employees in the team, internal organizational legends and rituals, behavior of employees at meetings, uniforms, external design of the office, etc. And if employees, even in the rest of the day, discuss professional issues and various professional nuances, it turns out that they are delighted with their business. It should be noted separately that the formation or introduction of a corporate culture, which leads to a favorable psychological climate in the team, becomes, in modern conditions, the global strategic resource of the organization.

To form the corporate culture of an organization that would support a strategy for organizational development, management should develop an algorithm that is implemented at the following stages:

1) working out the mission of the organization, defining the strategy, the main goals and values (priorities, principles, approaches, norms and desirable patterns of behavior);

2) studying the existing corporate culture. Determine the degree of compliance of the existing corporate culture with the organization's development strategy. Detection of positive and negative values;

3) the development of organizational measures aimed at the formation, development or consolidation of the desired values and patterns of behavior;

5) assessment of the success of the impact on corporate culture and making the necessary adjustments.

Conclusions and Perspectives of Further Research. Corporate culture is a factor which influences the performance of the organization and the productivity of its employees. Due to consideration of the notion of «corporate culture» from the point of view of domestic and foreign scientists, the proper interpretation of this term was proposed. Corporate culture has strongest positive influence on the organizational performance. Companies that are consistent in their values, have a higher tendency to reduce costs, to build an appropriative strategy and to probe into issues.

References

1. Berle, A., & Means, G. (1932). The modern corporation and private property. New York: Macmillian.

2. Blair, M. (1995). Ownership and Control: Rethinking Corporate Governance for the Twenty First Century. Washington: Brookings Institution.

3. Velentzas, I., & Broni, G. (2010). Business Ethics, Corporate Governance, Corporate Social Responsibility. Ilidza: IuS.

4. Khilukha O., & Kuzmin O. (2016) Regulation of stakeholders' interests in corporate governance through negotiations. Economic-Annals-XXI, 9-10, 56-60.

5. Hart, O. (1995). Corporate governance: some theory and implications. The Economic Journal, 105(430), 678-698. doi: https://doi.org/10.2307/2235027

6. Astapova, G. V. (2006). Orhanizatsiyno-ekonomichnyy mekhanizm korporatyvnoho upravlinnya aviapidpryyemstvom na osnovi prava trudovoyi vlasnosti [Economic management mechanism of corporate management of the aviation company on the basis of labor ownership]. Kyiv: National Aviation University (in Ukrainian).

7. Lipych, L. G., Tovstenyuk, O. V., & Khilukha, O. A. (2014). Investytsiyna pryvablyvist' intelektual'noho kapitalu pidpryyemstv: identyfikatsiya i diahnostyka [The investment attractiveness of enterprises' intellectual capital: identification and diagnostics]. Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomichni nauky - Herald of Khmelnytskyi National University, 6(1), 139-141 (in Ukrainian).

Annotation

The article investigates corporate culture as a factor which form a facilitate reliable performance in relatively unstable environments. The study reviews the concept and approaches to the corporate culture. The research followed by methods, such as comparative analysis, synthesis, scientific abstraction. Practical implications. The study finds that an effective culture must be aligned with moral and psychological qualities of the employer and employee of the company. Research implications. The study shows that the corporate culture influence the performance of the organization and productivity of its employees. Further studies should examine the possible relationships between corporate culture and the strategy of the company among Ukrainian companies.

Key words: corporate culture, employee relations, organizational performance, productivity.

Робота присвячена дослідженню корпоративної культури як фактора впливу на ефективність функціонування організації та продуктивність праці її співробітників. У ході дослідження було розглянуто поняття «корпоративна культура» з точки зору вітчизняних і зарубіжних учених та запропоновано власне трактування цього терміну. Вивчено різні підходи до визначення корпоративної культури. У ході дослідницької наукової роботи було встановлено взаємозв'язок між цілями організації та цілями працівників. У роботі застосовано такі методи: порівняльного аналізу, синтезу, наукової абстракції. Практичне значення дослідження полягає у розвитку компаніями запропонованих компетентностей працівників для формування якісної корпоративної культури та підвищення ефективності діяльності корпорації. Подальші дослідження націлені на розроблення рекомендацій щодо побудови стійкої корпоративної культури організації з урахуванням особливостей розвитку її співробітників та економічними цілями підприємства.

Ключові слова: корпоративна культура, корпоративне управління, культура розвитку персоналу, мотиваційна система.

Работа посвящена исследованию корпоративной культуры как фактора влияния на эффективность функционирования организации и производительность труда ее сотрудников. В ходе исследования было рассмотрено понятие «корпоративная культура» с точки зрения отечественных и зарубежных ученых и предложено собственную трактовку этого термина. Изучены различные подходы к определению корпоративной культуры. В ходе исследовательской установлена взаимосвязь между целями организации и целями работников. В работе применены такие методы, как сравнительного анализа, синтеза, научной абстракции. Практическое значение исследования заключается в использование компаниями предложенных компетентностей работниками для формирования и развития корпоративной культуры и повышения эффективности деятельности корпорации. Дальнейшие исследования должны быть нацелены на разработку рекомендаций по построению устойчивой корпоративной культуры организации с учетом особенностей развития ее сотрудников и ее экономическими целями предприятия.

Ключевые слова: корпоративная культура, корпоративное управление, культура развития персонала, мотивационная система.

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