Concept of Corporate Culture and Entrepreneurial Culture
Concept of Corporate Culture
Corporate culture refers to values, norms, beliefs, and behaviors shared in common in an organization. It determines how a company interacts and handles outside business transactions. Corporate culture is normally implied. It is developed over time. It is rooted in an organization’s goals, strategies, structure, and approaches. It largely dictates any business’s ultimate success or failure.
Characteristics of Corporate Culture
The following are some of the notable characteristics of the corporate culture.
- Corporate culture is rooted in the vision and mission of the organization. They articulate the company’s purpose of existence.
- A company’s values are the core of its corporate culture. They offer a set of guidelines needed to achieve the vision.
- An effective corporate culture always attempts to turn the values into practice.
- Corporate culture lays a high emphasis on the human resource of the organization.
- The corporate culture emphasizes outcomes.
- Corporate culture is built around teamwork.
- Corporate culture focuses on innovativeness.
Concept of Entrepreneurial Culture
Entrepreneurial culture refers to the establishment of an entrepreneurial environment where the employees are constantly motivated and encouraged to innovate, create and take risks. It emphasizes pursuing change, innovation, risk-taking, and opportunities. It promotes the growth, performance, and success of the business.
Entrepreneurial culture is one in which new ideas and creativity are expected, risk-taking is encouraged, failure is tolerated, learning is promoted. It champions product, process, and administrative innovations, and views continuous change as a conveyor of opportunities.
Entrepreneurial culture is shared throughout the organization. It serves to socialize the employees and helps them treating the customers, treating each other, and acting in their jobs. The entrepreneurial culture encourages autonomy, risk-taking, and entrepreneurial behavior.
Characteristics of Entrepreneurial Culture
Entrepreneurial culture has some characteristics as mentioned below.
- New ideas are encouraged
- Experimentation is promoted, trial and error is encouraged.
- Failures are allowed. However, attempts are made not to repeat the same mistakes again.
- There is no parameter for an opportunity.
- Resources are available and accessible.
- Multidisciplinary teamwork is promoted.
- Establishment of a long time horizon for evaluating the success of each program or venture.
- A volunteer program that cannot be forced upon an individual.
- Appropriate reward system for risk-taking, energy, and effort.
- Availability of sponsors and champions
- Top management support
