Reference no: EM132906341

COMPANY CULTURE:

It was Peter Drucker who famously said that 'culture eats strategy for breakfast'. No kidding. A work culture can absolutely be the deal-breaker or decisive factor when it comes to defining a company's success. Great company culture just doesn't happen on its own. It's more than mere fun and games. It's beyond the inspirational quotes, and artwork chalked onto the pillar, glowing customer testimonials lining the walls, and bean bags littered across the floor. All that stuff is nice and makes life more pleasant, but it does not change the core of who you are as a company. Great organisational work culture is more than paycheques, fun, and perks. Below are examples of two companies that take organisational culture seriously and have reaped the rewards from such initiatives. These companies have purposeful programmes in place to instil and maintain the organisational culture. 1. Zappos.com Zappos.com is an online shoe and clothing retailer based in Las Vegas, Nevada, United States of America. Zappos has the following programme on organisational culture:

• Complementing the Right People with the Right Culture. When organisational culture is the topic, Zappos always make it into the list. Always, without exception. They weed out the people that are just there for a paycheque and retain only those who are committed to what the company stands for. Interviews At Zappos, they carry out a culture fit interview which carries half the weight of whether the candidate is hired. All employees, whether they are in a senior position or not, must go through the same four-week call center training where ten core values are instilled into each team member. And at the end of the first week, the Zappos CEO, Tony Hsieh, will pay you $2,000 to quit if you decide that it isn't your cup of tea. After such rigorous screening, it's a wonder if their work culture didn't work like magic.
• Takeaway Care more about the kind of people you acquire than the money that goes into hiring them. For if you locate the right talent and have the right culture to nurture them, they'll more than pay you back with their commitment and drive. At Zappos, employee raises are the result of their performance, not office politics. And liberal budget portions are set aside for team building and cultural promotion activities. They obviously care, and they have the team to show for it! 2. Walt Disney Walt Disney is a world-famous entertainment company. The company has the following programme on organisational culture: The Happiest Place on Earth is the Happiest Place to Work. Walt Disney is not just among the most recognisable brands in the world; they also are the kindest community on the planet. A brand which is almost synonymous with magic, Disney extends the magical experience even to its employees and the company culture. Who wouldn't want to be part of such sheer magic? Sigh! What Sets Them Apart Unparalleled heritage, pride and culture, wonderful community, amazing growth opportunity, and a creative atmosphere sets them apart, says a Disney employee. Disney only hires people who align with what their brand stands for. The organisational benefits of being a Disney employee include access to Mickey's Retreat (an exclusive area accessible only to Cast Members and their families), generous discounts on Disney parks, hotels and merchandise, incentive schemes and private healthcare. Magical, isn't it? Takeaway All the fancy office furniture, designer juice bars, and loud vodka parties don't really matter if people aren't nice to each other. Disney strives to make every place the happiest place to work and is compassionate towards each other. People can tell when their company cares for them more than as an employee code. And as is the case with Disney, they care back. Win-win!

QUESTION:

Given the strong emphasis these highly successful companies, Zappos.com and Walt Disney, place on organisational culture, critically examine the relationship between organisational culture and corporate governance.