How corporate culture is formed

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    How corporate culture is formed

    Many factors contribute to the formation of organisational culture. These include the role of the founding members of the organisation, their personalities and beliefs. Often the strong leader’s attitude will permeate the organisation. For example, Jan Koum, the CEO of WhatsApp, has refused to let advertisers buy space on the WhatsApp application. His belief has influenced the strategy and values of the company.

    Other factors that are likely to have a significant impact on the formation of the firm’s culture of the environmental factors that the business was born into. For example, the history or heritage of a business more determined certain values and norms because they form part of employees buy into.

    Similarly, the success of a company will play a big part in setting the values and expectations for staff. Pinterest was the most rapidly growing social network site in 2012 and 2013 and was named one of the most innovative companies, all of which will contribute to the motivation and beliefs of its workforce.

    The type of product is another factor in creating culture. For example, the technological complexity of a product may determine the skill and expertise of the workforce and the pace of change or need innovation.

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