Organizational Culture

Strong Corporate Cultures

The practical interest in organizational cultures can be traced to management theorists in business and industry, when, in the 1970s, Japanese businesses seemed to be much more successful than their American counterparts. The difference seemed to be found not in technology, marketing, or formal organization, but in the organizational or corporate culture. Japanese businesses seemed to give more attention to creating a culture of commitment to tasks that supported their manufacturing mission. In the United States in the 1980s, management theorists such as Terrence E. Deal and Allan Kennedy began to advocate the development of “strong” cultures, cultures that were consciously reinforced and widely [Page 1040]shared (Deal & Kennedy 1982). New employees were to be taught the firm's culture and rewarded for embracing the accepted practice and values of the corporation. These values are often reinforced with stories about the significant episodes in the firm's history, especially concerning adversity overcome by a heroic founder of the organization.

Corporate or organizational cultures are often cited, fairly or unfairly, as one of the major reasons for organizational success or failure. Strong corporate cultures were often thought to be the product of strong leaders, who, by design or trial and error, created corporate structure, values, and procedures that matched his or her management style. These leaders reinforced their values by corporate rites or celebrations—perhaps marking the achievement of a significant goal—that enhanced the solidarity of the employees and underscored the importance of loyalty to the organization. One crucial role of management is to manage the corporate culture, according to some theorists.

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