Convenience

Organizational culture
is the set of values, beliefs,
behaviors, customs, and attitudes that helps the organization’s members understand
what it stands for, how it does things, and what it considers important.
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The Importance of Organizational Culture
Culture determines the organization’s “feel.” A strong and clear culture can play an
important role in the competitiveness of a business. At the same time, though, there is
no universal culture that will help all organizations. The stereotypic image of Microsoft,
for example, is that of a workplace where people dress very casually and work very long
hours. In contrast, the image of Bank of America for some observers is that of a formal
Organizational
Culture
The set of values,
beliefs, behaviors,
customs, and
attitudes that helps
the organization’s
members
understand what it
stands for, how it
does things, and
what it considers
important
North American
Free Trade
Agreement (NAFTA)
An agreement
among the United
States, Canada, and
Mexico to promote
trade with one
another
General Agreement
on Tariffs and Trade
(GATT)
A trade agreement
intended to promote
international trade
by reducing trade
barriers and making
it easier for all
nations to compete
in international
markets
World Trade
Organization (WTO)
An organization,
which currently
includes 140
member nations and
32 observer
countries, that
requires members to
open their markets to
international trade
and to follow WTO
rules
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Part 1:
An Introduction to Management
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setting with rigid work rules and people dressed in conservative business attire. And
Texas Instruments likes to talk about its “shirtsleeve” culture, in which ties are avoided
and few managers even wear jackets. Southwest Airlines maintains a culture that stresses
fun and excitement.
Of course, the same culture is not necessarily found throughout an entire organization.
For example, the sales and marketing department may have a culture quite different from
that of the operations and manufacturing department. Regardless of its nature, however,
culture is a powerful force in organizations, one that can shape the firm’s overall effective-
ness and long-term success. Companies that can develop and maintain a strong culture,
such as Starbucks and Procter & Gamble, tend to be more effective than companies that
have trouble developing and maintaining a strong culture, such as Kmart.
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