The culture of an organization or corporation is similar to the greater societal culture in that both are governed by a set of rules. In society, there is a law enforcement network, the judicial system, and the penal system. They operate locally, within the state, and at the federal level.
In a corporation or organization, the entity itself (usually set forth by executive members) creates the rules. However, because a corporation is not an autonomous entity, the law applies to them just as with any other citizen. The only difference is that a corporation could be considered its own entity in the court of law, so executive members are theoretically protected from lawsuits pertaining to the corporation. This is why many entrepreneurs and small business owners register their companies as a limited liability company (LLC).
Another similarity between corporate culture and the cultures found in society at large is the tribal mindset of members. In society, individuals tend to form collectives, or "cliques," based on various social and psychological factors. For instance, people with the same hobby could form a group pertaining to that hobby, such as a book club.
In a corporation or organization, the same dynamics apply. For instance, the executive members might spend more time together because they all work together in a specific sector of the company's hierarchy. The same can be said with the other levels of the company. The root of this is irrelevant to corporate or non-corporate culture, but can be traced to group psychology.
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Wednesday, November 19, 2014
Corporations/organizations have been described as having their own cultures. Discuss how an organization’s culture can be compared to society at large in terms of similarities and differences.
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