Managing and changing mistrustful cultures

Corporate culture is essential to the success of any organization. Because employees will ultimately determine the productivity and profitability of the company, the corporate culture has to focus on employees’ participation and identification with the company’s goals. Leaders and management have to constantly adapt not only to economic variables such as profit and marketplace changes, but also to diversity and changes in values. During the last 20 years the American corporation has been vulnerable to foreign competition, government regulations and changes in the values of the population in general. This paper looks into a brief history of corporate culture concept evolution. It explains the importance of the organization’s recruitment of individuals that match with the values of the corporation. Finally, it gives examples of some companies that, when challenged, turned around, changed their corporate values and succeeded in their efforts. It also presents companies that are now in a transition period of restructuring the organization and changing its values. Their success depends on strong leaders that must transmit the new values to the employees who in turn will carry out the new corporate culture.