Organizational Culture

By Author: Carolyn Smith
Total Articles: 29
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Introduction
Organization culture is the manners in which activities are performed in an organization, the culture of an organization are guided by its values, beliefs, attitudes and experiences of an organization. Organization culture is a defined collection of norms and values that people and groups share in an organization, which directs the manner they interact with one another and with organization's stakeholders. According to Schein (1992) concept, organizational culture is a model of shared fundamental assumption which an organization has leant in the process of solving its internal integration which has worked adequately well to be taken valid in order to be used to be taught to other new members of the organization. (Schein 1992) Schein identifies three main aspects which are;
Artifacts; evident organizational structures and procedures
Espoused values; these are goals objective and strategies of the organization
Underlying assumptions; unconscious, assumed, thoughts beliefs perceptions and feelings (the eventual source of values and acts)
Kotter (1992) states that; culture of an organization ...
... is dynamic and it is a continuous process. Leadership structure of an organization has a major position in defining organizational culture of an organization. Managers and founders of the organization play a significant role in as creators of culture of an organization.

Organization selected
Starbucks Corporation is a big multinational coffee and coffeehouse chain/outlet company which is based in United States. Starbucks currently is the biggest coffeehouse company in the whole world, with a record number of 15,011 stores located in 42 countries one of the countries being Switzerland. Starbucks sells brewed coffee, espresso-based hot drinks, hot and also cold drinks, snacks and products for instance mugs and coffee beans. Starbucks has an entertainment division and Hear Music brand, Starbucks also markets music, books and film. A lot of these items are seasonal or specific to the locality of the store. Some grocery stores sell Starbucks branded ice cream and coffee. (Starbucks Corporation, (Fortune.com, 2002)

Location and stores design
Starbucks coffee stores are usually clustered in a high-traffic or high-visibility location in every market. The Stores differ in size, with an average size of roughly 1,500 square feet. Given that the Starbucks stores vary in size, they are located in a mixture of settings, that includes office buildings, downtown retail centers and suburban retail centers, airport terminals, and even kiosks located typically in lobbies of building. Whatever location the stores are, the company focuses on attracting dense pedestrian street traffic, by having a lot of comfortable seating in that customers feel welcomed to stay more than they may have planned. The company also sets each store individually depending on the specific location it is in. in general Starbucks do not have a specific buildings design for its stores. (Fortune.com, 2002)

Vision
The company is vision is "to establish Starbucks as the most recognized and respected brand in the world". (Fortune.com, 2002)

Mission
The mission statement of Starbucks Corporation is to found Starbucks as the leader supplier of the finest coffee in the entire world whilst maintaining Starbucks' uncompromising principles as the corporation grow. (Fortune.com, 2002)

Starbucks Corporation has clearly stated guidelines which are followed and uses them as a direction device for the future of the company business. Conventionally, the guidelines would more suitably be linked to the vision; but Starbucks has set them within the mission statement. (Fortune.com, 2002)

The six main principles of Starbucks are stated as (starbucks.com)
1. Provide the best work environment and treat on another with dignity and respect.
2. Appreciate diversity as an indispensable element in the manner we do business.
3. Relate the utmost standards of quality when making a purchase, roasting and delivering of our coffee.
4. Develop passionately satisfied customers at all the time.
5. Make a positive contribution to our environment and our communities.
6. Identify that profitability is vital to future success. (Fortune.com, 2002)

Analyzing Starbucks using the Myers-Briggs Type Indicator (MBTI)
The Myers-Briggs Type Indicator (MBTI) is a personality questionnaire formulated to identify particular psychological variations according to typological theories of Carl Gustav Jung. The five personality characteristics are extraversion; openness; agreeableness; conscientiousness; and emotional stability (neuroticism)
(McCrae &Costa, 1989) From these indicators we can then suggest that Starbucks has an overall preference for Extraversion, since the company will like to express itself much and to think for new innovations which have been the driving force of the company for many years.

Analyzing Starbucks using Holsfede's cultural framework
To assist us understand the cultural environment of Starbucks, we will apply Greet Holsfede's cultural framework. Holsfede formulated a model that outlines five main dimensions to understand the different cultures, which are power distance; individualism; masculinity; uncertainty Avoidance; long term orientation. (Hofstede, 1991) according to this model it can be said that Starbucks have a low Power distance as the corporation beliefs in respecting each individual meaning that it believes in equality amongst individuals. Also the company can be said to have lower uncertainty avoidance has it has taken a lot of risks by establishing new branches in different countries. In terms of individualistic and collectivistic, the company operates has a team thus it is has a high collectivistic. In terms of masculinity and femininity, the company respects all employees meaning that it views all the employees the same regardless of their gender. Thus it is highly femininity. Culturally, Starbucks is long term oriented has one of its guiding principle is caring for the environment and the community which are long term aspects. (Hofstede, 1991)

Conclusion
Overall, Starbucks appears to be a well-built and well-rounded company, as a leader in the industry, Starbucks has built a very strong organization culture. Research shows that organization culture and climate of an organization determines the performance of an organization. Organization culture has three main aspects which are; Artifacts, Shared values; and Basic assumptions Culture can determine the success or failure of an organization to achieve its stated mission and objectives. Culture of Starbucks defines it since it a collective beliefs and ideology shared by the employees working in an organization. Kotter (1992) observers that, culture of an organization is the main motivating force that ensures the success of an organization; which is apparent with Starbucks.

Reference:
Fortune.com (2002); Best Companies to Work For; Retrieved 10 Feb., 2008 on the World Wide Web: http://www.fortune.com/lists/bestcompanies
Hofstede, G. H. (1991): Cultures and organizations: software of the mind; London; New York, McGraw-Hill.
McCrae, R .R & Costa, P T (1989); Reinterpreting the Myers-Briggs Type Indicator from the Perspective of the Five-Factor Model of Personality, Journal of Personality, 57(1):17-40
Kotter, J. (1992): Corporate Culture and Performance, Free Press
Schein, E.H. (1992): Organizational Culture and Leadership (2nd edition.). San Francisco; Wiley & Sons

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