What is Cultural Theory

• Formally defined as a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration.

• Also known as Corporate Culture or Organizational Culture.

• Concept in the field of organizational studies and management which describes the attitudes, experiences, beliefs and values of an organization.

• The specific collection of values and norms that are shared by people and groups in an organization.

• Organizational values as "beliefs and ideas about what kinds of goals members of an organization should pursue.

• Ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals.

Communicative Mechanism

• Formal statements of organizational philosophy.

• Deliberate coaching and modeling by leaders.

• Promotion and salary increment criteria.

• Responses to crises.

• Organizational structure.

• Design of physical spaces.

• Focus of attention.

• Storytelling and legends.

CONCLUSION

• Managers must be able to identify and work with the many types of cultures that exist simultaneously within an organization or a business network.

• Leaders need a sophisticated understanding of corporate culture, and powerful tools for rallying executives and middle managers to work effectively with cultural variables.