The Role of Organizational Culture in a Firm’s Identity

Every organization has a distinct culture that may or may not be formally documented and disseminated to its members. This manner in which operations are conducted and business is done plays an important part in creating a sense of common purpose, shared values, and conveying to the customer a consistent product and/or service experience. The organizational culture also helps employees know the framework of acceptable attitudes and behaviors that help the firm achieve its goals. According to George and Jones in the Text Understanding and Managing Organizational Behvaior, Four socialization tactics used by management to convey what is expected are 1) formal socialization practices, 2) organizational language, 3) signs, symbols, and stories, 4) organizational rites and ceremonies.

Apple, Inc., a multinational technology leader based in the United States has been able to grow at a tremendous pace over the last decade to become the most valuable company based on market capitalization in the world.

The innovative spirit that drives the company starts with formal socialization practices for employees, which teaches them the value of creating and marketing cutting edge user-friendly electronic products that enhance the lives of users. Apple Store employees are taught to place folks first, are given a uniform, and taught how to interact with customers.

This commitment to creating new things is continually reinforced by new terms introduced into not only the company’s vernacular, but into the popular culture, which further helps drive sales. Examples include “there’s an App for that” and “a magical and revolutionary device at an unbelievable price.”

The Apple Inc. logo is known for representing exquisite industrial design, simplicity of form and functionality, and high quality engineering. The product launch events using slideshow presentations tell the story of how items such as the iPhone and iPad satisfy the needs of customers. The company’s retail outlets also have a distinct futuristic aesthetic that clearly sets the store appearance and layout apart from its competitors.

The date of product availability often generates long lines as excited shoppers eagerly await obtaining units at thousands of locations across the country. This show of large numbers who seek to immediately obtain new offerings can be considered a ritual for early adopters, Apple devotees, and those who appreciate state of the art electronics that are ahead of their time.

A well-developed organizational culture is key in shaping how internal and external stakeholders view and react to activities in any industry. Often, employees respond to situations based on the examples of role models from senior management who transmit these standards through terminal and instrumental values. Terminal being a desired state or outcome and instrumental being a desired mode or type of behavior. These methods of working in turn aid the effective execution of standard operating procedures, which regulate operational continuity.


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