Organizational Issues of Mergers and Acquisitions - Part 1

Corporate Culture

The Importance of Corporate Culture

Most enterprises don't consciously create a corporate culture; it is something that evolves as a result of the company's policies and procedures and is most often a reflection of top management's values and beliefs. Regardless of whether the culture is deliberately formulated from inception or has grown and developed over the lifespan of the organization, it is vitally important that the values and beliefs embraced by corporate management are clearly stated and communicated. Culture has a definite effect on the success of a corporation. "Organizations that have strong and unique cultures generally experience excellent performance" (Gayeski, 1998, p. 1).

While establishing a corporate culture is of considerable importance from an organizational perspective, care should be taken not to undervalue the role it plays in the arena of individual contribution. Whether one subscribes to Maslow's widely accepted needs hierarchy theory, or Alderfer's alternative ERG theory (for existence, relatedness and growth), a corporate culture must be designed to meet the basic human needs for physical security and psychological well-being. (Greenberg & Baron, 1997).

Corporate culture is a phenomenon that should be viewed from a holistic perspective, and as an artificial construct that requires constant maintenance and adjustment.

Organizational Perspective and Analysis

"One of the biggest misconceptions about corporate culture is that good cultures just happen-that some companies luck out. " (Duffy, 1999, p. 1).