Corporate Culture should Encourage Voluntary Action by Employees



Corporate Culture should Encourage Voluntary Action
by Employees

company culture

Now that the industry is undergoing significant changes due to COVID-19,
two things are said to have a great impact on the sustainable growth of a company: people and culture.
In this ever-changing era, the speed at which a company grows is completely depends on how employees work,
and what culture the company pursues. Therefore, we would like to start an in-depth conversation
about our employees and corporate culture, with the utmost importance.
Article. Editor’s Office


Corporate culture is established when employees act on their own


Edgar Schein, a scholar who is referred to as the father of organizational culture, defines corporate culture as an informal guide specifying how members should behave in various situations of an organization, and a cohesive element that unifies the organization. In other words, they represent the invisible rules and energy that unite an organization under various circumstances.

Fortune magazine selects the 100 best companies to work for every year and emphasizes corporate culture as an important criterion of a great But why is it that such an important corporate culture mindset is so hard to internalize? This can be explained by comparing the process of a married couple becoming a family. Most married couples quarrel a lot, especially early in their marriage. It is quite natural because every family has different ways of communicating with and treating another person. The process of getting used to each other’s way can be a long, painful process if the two partners have grown up in completely different environments. Because it is not always a matter of right or wrong, it is even more difficult to accept other people’s ways of living.

Similarly, employees start working and join a company with different competencies and mindsets. Not only do they differ in their capabilities, way of working and tackling problems, and communication style, but their reasons for working might also be different. Some companies with firmly established ways of doing things emphasize and train employees in the corporate culture they pursue, but these days ─ with the growing importance of diversity and individuality of members in an organization ─it is becoming more difficult for employees to follow the corporate culture just because it had been previously established.

If productivity were more important than anything else, like in the past, it would have been possible to lead members with strong centralized leadership to achieve sophisticated systems and order. Companies in the past have been successful with a system that would allow elimination of poorly performing employees. However, the times have changed. Individuals have become as important to the company as the leader's charisma and corporate success. Therefore, it would be work in vain, or a lost cause if employees do not want to contribute to the company. Bringing employees together and properly representing them have become key elements in corporate culture.


A company that satisfies employees naturally performs better


According to the “Seven Models of Organizational Culture Diagnosis,” published by the consulting firm McKinsey & Co., the essential components for shaping and determining an organization's culture are strategy, systems, structure, style, capabilities, employees, and shared values. Among the seven, the most emphasized is shared values. This is because the corporate values can change the atmosphere, culture, and direction of the organization. Many companies have created positive results by setting and practicing this shared value strategically.

SAS Institute, a data analyst company, has been ranked #1 in the IT field several times in the “100 Best Companies to Work for” by Fortune magazine. “Happy employees make customers happy” is one of the management philosophies of SAS. Its founder Jim Goodnight valued mutual trust among members of the organization the most ─ and he wanted to create a culture, in which employees can comfortably ask to leave early to attend their children’s school events, and so forth. In other words, the shared value was work and life balance. Stressing this company value not only improved work satisfaction of employees but also improved efficiency and created better results considering the number of employees as they could focus on work with a positive mindset. Another exemplary company is Wegmans. Wegmans beat Amazon, which was the No. 1 player for three consecutive years and proudly ranked no. 1 in the “Top 100 Companies with Excellent Corporate Reputation” announced in 2019 by Harris Poll, a polling agency. How could an unlisted supermarket, which had only 104 outlets in the USA as of last year, achieve such a no. 1 corporate reputation?

The answer can be found in the banner hanging at the Wegmans headquarters. Under the company motto, “Employees first, customers second,” Wegmans has consistently emphasized employees since its inception. They promote work-life balance, as well as employee self-development, mutual bonds, and reliable management. The company abides by the principle of not firing or laying off anyone, and even looks for jobs for employees who unavoidably have to leave. Hence, the turnover rate is extremely low and employees who have confidence in the company show their highest creativity and autonomy in their work.

Hyundai Glovis has recently set up a corporate culture suitable for the new era by relocating to a new office building. Not only have the work methods and systems changed smartly, but the environment was also built to boost autonomy and creativity. In addition, break areas were located throughout the building so employees are able to relax well even during short breaks. From the outside, it may appear that the facility has just been upgraded but it is for the sake of employee satisfaction. If an employee truly understands that the growth of the company means more benefit to himself/herself, the employee would want to be proactive about making the change, bringing success, and helping to create a corporate culture.


It is necessary to cultivate a bottom-up corporate culture


The two companies, SAS and Wegmans, have another similarity; they did not force it on employees in a top-down way. Based on respect and consideration for their employees, both companies created comfortable and encouraging environments for them.

The bottom-up culture is being emphasized in Korea these days, but it is not an easy fix ─especially when leaders have led companies from the top with a focus on growth for such a long time. Corporate culture, too, will not be easily changed if the top management just gives orders in a top-down manner. It is necessary to create a solid framework that focuses on the basics and motivates the members to cultivate their own culture. The role of the leader should be just delivering a consistent and continuous message.

Another key aspect is operation of a dedicated team to lead internalization. A dedicated team can help reinforce the culture by carrying out various programs and activities. Rather than having a few people or leaders in each department, we have to put an entire team in charge so they can make constant efforts in finding the right method until it is completely internalized.



Klaus Schwab, an author of “The Fourth Industrial Revolution,” told of a remarkable story at the World Economic Forum. He said, “In the new world, it is not the big fish which eats the small fish, it’s the fast fish which eats the slow fish. To be fast here means the speed of changing direction, not the speed of what you are doing.”

Corporate culture is what can empower companies to be proactive and change quickly. A positive and healthy corporate culture will be the greatest driving force for employees to understand the direction of management and move forward together even during the time of ‘speed war.’

2021.04.01

company culture

Now that the industry is undergoing significant changes due to COVID-19,
two things are said to have a great impact on the sustainable growth of a company: people and culture.
In this ever-changing era, the speed at which a company grows is completely depends on how employees work,
and what culture the company pursues. Therefore, we would like to start an in-depth conversation
about our employees and corporate culture, with the utmost importance.
Article. Editor’s Office

Corporate culture is established when employees act on their own

Edgar Schein, a scholar who is referred to as the father of organizational culture, defines corporate culture as an informal guide specifying how members should behave in various situations of an organization, and a cohesive element that unifies the organization. In other words, they represent the invisible rules and energy that unite an organization under various circumstances.

Fortune magazine selects the 100 best companies to work for every year and emphasizes corporate culture as an important criterion of a great But why is it that such an important corporate culture mindset is so hard to internalize? This can be explained by comparing the process of a married couple becoming a family. Most married couples quarrel a lot, especially early in their marriage. It is quite natural because every family has different ways of communicating with and treating another person. The process of getting used to each other’s way can be a long, painful process if the two partners have grown up in completely different environments. Because it is not always a matter of right or wrong, it is even more difficult to accept other people’s ways of living.

Similarly, employees start working and join a company with different competencies and mindsets. Not only do they differ in their capabilities, way of working and tackling problems, and communication style, but their reasons for working might also be different. Some companies with firmly established ways of doing things emphasize and train employees in the corporate culture they pursue, but these days ─ with the growing importance of diversity and individuality of members in an organization ─it is becoming more difficult for employees to follow the corporate culture just because it had been previously established.

If productivity were more important than anything else, like in the past, it would have been possible to lead members with strong centralized leadership to achieve sophisticated systems and order. Companies in the past have been successful with a system that would allow elimination of poorly performing employees. However, the times have changed. Individuals have become as important to the company as the leader’s charisma and corporate success. Therefore, it would be work in vain, or a lost cause if employees do not want to contribute to the company. Bringing employees together and properly representing them have become key elements in corporate culture.

A company that satisfies employees naturally performs better

According to the “Seven Models of Organizational Culture Diagnosis,” published by the consulting firm McKinsey & Co., the essential components for shaping and determining an organization’s culture are strategy, systems, structure, style, capabilities, employees, and shared values. Among the seven, the most emphasized is shared values. This is because the corporate values can change the atmosphere, culture, and direction of the organization. Many companies have created positive results by setting and practicing this shared value strategically.

SAS Institute, a data analyst company, has been ranked #1 in the IT field several times in the “100 Best Companies to Work for” by Fortune magazine. “Happy employees make customers happy” is one of the management philosophies of SAS. Its founder Jim Goodnight valued mutual trust among members of the organization the most ─ and he wanted to create a culture, in which employees can comfortably ask to leave early to attend their children’s school events, and so forth. In other words, the shared value was work and life balance. Stressing this company value not only improved work satisfaction of employees but also improved efficiency and created better results considering the number of employees as they could focus on work with a positive mindset. Another exemplary company is Wegmans. Wegmans beat Amazon, which was the No. 1 player for three consecutive years and proudly ranked no. 1 in the “Top 100 Companies with Excellent Corporate Reputation” announced in 2019 by Harris Poll, a polling agency. How could an unlisted supermarket, which had only 104 outlets in the USA as of last year, achieve such a no. 1 corporate reputation?

The answer can be found in the banner hanging at the Wegmans headquarters. Under the company motto, “Employees first, customers second,” Wegmans has consistently emphasized employees since its inception. They promote work-life balance, as well as employee self-development, mutual bonds, and reliable management. The company abides by the principle of not firing or laying off anyone, and even looks for jobs for employees who unavoidably have to leave. Hence, the turnover rate is extremely low and employees who have confidence in the company show their highest creativity and autonomy in their work.

Hyundai Glovis has recently set up a corporate culture suitable for the new era by relocating to a new office building. Not only have the work methods and systems changed smartly, but the environment was also built to boost autonomy and creativity. In addition, break areas were located throughout the building so employees are able to relax well even during short breaks. From the outside, it may appear that the facility has just been upgraded but it is for the sake of employee satisfaction. If an employee truly understands that the growth of the company means more benefit to himself/herself, the employee would want to be proactive about making the change, bringing success, and helping to create a corporate culture.

It is necessary to cultivate a bottom-up corporate culture

The two companies, SAS and Wegmans, have another similarity; they did not force it on employees in a top-down way. Based on respect and consideration for their employees, both companies created comfortable and encouraging environments for them.

The bottom-up culture is being emphasized in Korea these days, but it is not an easy fix ─especially when leaders have led companies from the top with a focus on growth for such a long time. Corporate culture, too, will not be easily changed if the top management just gives orders in a top-down manner. It is necessary to create a solid framework that focuses on the basics and motivates the members to cultivate their own culture. The role of the leader should be just delivering a consistent and continuous message.

Another key aspect is operation of a dedicated team to lead internalization. A dedicated team can help reinforce the culture by carrying out various programs and activities. Rather than having a few people or leaders in each department, we have to put an entire team in charge so they can make constant efforts in finding the right method until it is completely internalized.

 

Klaus Schwab, an author of “The Fourth Industrial Revolution,” told of a remarkable story at the World Economic Forum. He said, “In the new world, it is not the big fish which eats the small fish, it’s the fast fish which eats the slow fish. To be fast here means the speed of changing direction, not the speed of what you are doing.”

Corporate culture is what can empower companies to be proactive and change quickly. A positive and healthy corporate culture will be the greatest driving force for employees to understand the direction of management and move forward together even during the time of ‘speed war.’