Enterprise culture is the penetration in ubiquitous things in all business activities, is the soul of the enterprise is located. With China’s accession to the WTO, domestic enterprises and foreign companies directly increasing competition, creating the business characteristics of enterprise culture to improve enterprise value is the inevitable choice of China enterprise’s survival and development. In this article on enterprise culture and enterprise value on the basis of an analysis of the concept, analysis of the relationship between enterprise culture and enterprise value, for the current lack of enterprise culture construction of enterprises in China, to create characteristic enterprise culture has made some recommendations.
Analysis, enterprise culture and enterprise value concept
(A) analysis of the concept of enterprise culture
1, the concept and connotation of enterprise culture
The so-called corporate culture, refers to the organization in the long-term survival and development is shared by most members of the organization followed the formation of basic beliefs, values and code of conduct is a road, spirit of enterprise, the enterprise’s business ethics, corporate style, in which scientific cultural quality and the sum of the corporate image. Simply be summarized the corporate culture is the spirit of the Tao of business, Enterprise and corporate image.
Corporate culture has a very rich connotations and it includes: ① road to guide the management of enterprise production and management. Also called a business purpose, philosophy, philosophy; ② reflect Enterprise distinct personality characteristics condensed all the personnel of the enterprise spirit of enterprise; ③ standardizing Enterprise professional ethics of the staff; ④ formation in enterprise production and management enterprises style and etiquette; ⑤ science and cultural quality of the employees; ⑥ corporate image.
2, the functions of enterprise culture
As a kind of objective existence, corporate culture on enterprise production and management activities play an important role.
① Guide. Motives guided members of the Organization into line with the organizational goals. To this end, in the formulation of organizational goals, should members into the Organization’s dedication and a sense of achievement, contain more personal goals, and led to high housing built and inspiring.
② role model. Rules and regulations constitute the enterprise staff’s hard constraints and Enterprise organizational ethics and organizational culture of the soft constraints constitute members of the organization. Specification of both hard and soft, with groups of values as the Foundation. Once a common belief in the enterprise employees forming a deep tradition, constitute a response mechanism, as long as the induced by external signals, you can get a positive response, and rapid transformation of the expected behavior. This flexible constraint, you can weaken the impact of hard constraints on mental, mitigation autonomy between psychology and be put to the reality of conflict, weakening the psychological reactance, so harmonious, consistent employee behavior, and meet the needs of enterprise objectives.
③ condensation. Culture has a strong cohesion force, corporate culture is the binder for employees of the enterprise, people at all levels in all its aspects, under the banner of solidarity objective of the Organization and individual feelings and fate and the fate of the enterprise are closely linked, have a profound sense of identity, as well as the joys and Enterprise common fate.
④ incentive. Enterprise culture core is to establish common values, in all acts that occur under the guidance of such collective values, and is the expected behavior of the Organization, which brings interest consistent with the interests of the Organization, integration of organizational goals and personal goals. In addition to meeting the material needs, groups of noble values lead to satisfaction, a sense of achievement and honor, the spirit of the members of the organization need to meet, resulting in a profound and lasting inspiration.
(B) analysis of enterprise value concept
1, the concept of enterprise value
Current theoretical awareness of the value has not yet reached a unified enterprise, about the meaning of enterprise value, there are three main theories to explain, namely the Marxist labor theory of value, utility theory of value and value theory of new classical economics. Integrated three theoretical explanation, we can see the value of enterprise are reflected both assets and long term profitability of the enterprise, also reflect the market value of a comprehensive evaluation on enterprise.
Influencing factors of 2, the value of enterprise
Influence factors of enterprise’s value is the profitability of enterprises, business environment and internal factors in particular:
① Enterprise profitability. Profitability is the decision of enterprise value and ultimately decisive factors are measured from the angle of the output. Most direct manifestation is the enterprise profitability of operating cash flows and the discount rate level of both decide the value of enterprise.
② business environmental factors. External environment of enterprises including the macroeconomic environment and business environment. Macro environmental factors including economic and environmental factors, political, social and environmental factors and environmental factors of science and technology.
③ the internal factors. Enterprise internal factors can be measured by financial index-related factors, mainly refers to the profitability of enterprises and the true source of competitive advantage, is the unique resources and capabilities of an enterprise, it does not imitate by other enterprise core ability–corporate culture.
Second, the relationship between enterprise culture and enterprise value
Enterprise culture is the penetration in ubiquitous things in all business activities, is the soul of the enterprise is located, on the whole corporate culture is an important part of enterprise value, excellent corporate culture to create and enhance corporate value.
(A) the enterprise culture is an important part of enterprise value
Regardless of whether the enterprise is self aware, aim. Corporate culture are like people’s thoughts and ideas as long as life exists around it exist and the development of enterprises. On the concept of enterprise culture, Enterprise acquired essentially from the process of subjectively to include value, aesthetic concepts such as the continuous pursuit of the process, to ultimately achieve their pursuit of their own culture. In this process, the enterprise was obtained from the objective interests. To contribute to society. Enterprise culture is innate, along with the major asset of the enterprise’s survival and development of the whole process, regardless of the size of the enterprise’s material value, enterprises must have their personality and culture. Enterprise culture and enterprise with substances that constitute a continuum of integration of enterprise’s material and spiritual, are an important part of enterprise value.
(B) corporate culture to create enterprise value
From an economic perspective, the real value creation question is how can lower production costs of enterprises to create products or how to be of equal value in the same issue of production costs to create higher-value products. While the production cost is equal to the conversion costs and transaction costs, and.
1, the enterprise culture to reduce transaction costs, to create enterprise value
Business transaction costs, transaction costs can be divided into internal and external corporate transaction costs. Influence factors of enterprise within the external transaction costs and transaction costs are the same. External transaction costs are external to the enterprise and the enterprise market subject (such as customers, suppliers, competitors, etc) information search costs for market trading occurs, negotiation, cost and compliance costs. Internal transaction costs is the owner and elements of the enterprise information search costs that occur when you make transactions, negotiation, cost and compliance costs.
① enterprise culture to reduce internal transaction costs
Enterprise culture to reduce internal transaction costs, mainly in the first, enterprise culture can reduce internal uncertainty. Business formal terms of the contract as complete as possible to reduce uncertainty. But also tends to increase the cost of the contract. At the same time due to the limited rationality of man and the environment cannot possibly forecast, making formal contract is impossible to complete. Second, the corporate culture can save limited rationality. Finally, enterprise culture conducive to release the compressed information.
② enterprise culture to reduce external transaction costs
Enterprise for conscious of enterprise culture management, established a values system and through behavior culture and substances culture makes of to outside explicit, such in for external transactions Shi external transactions main on can clear to perception to enterprise of value system, thus faced less of uncertainty or complexity faced more less of opportunism behavior thus save has external transactions main of limited rational induces its also reduce opportunism behavior thus increased has reduce external transactions cost of May and conducive to save transactions cost. Of course, the degree of probability of occurrence and the results need to depend on external culture of traders, if both pay attention to credibility, moral and ethical you can greatly reduce transaction costs; otherwise, the extent possible and to reduce transaction costs are small.
2, corporate culture to reduce conversion costs, create enterprise value
Enterprise production in reality is a production team, individual team member’s actual productivity and team collaboration benefits are factors which determine team productivity.
① individual members of the actual enterprise culture to improve team productivity
Individual team members actual productivity depends on two factors: worker initiative of play and the ability of the workers. Corporate culture as a kind of spiritual power, because you can achieve personal pursuit of self worth and meaning of life and thus to improve people’s subjective initiative and can greatly enhance the value creation of the workers. One can often see this kind of phenomenon: the conditions much the same workers ‘ collective or individual, or even of the same workers ‘ collective or individual using the same means of labor and the subject of labour. Due to their emotional, subjective efforts of varying degrees. Significant difference in effect leads to the production. Another point is the manufacturers as a persistent storage of corporate culture and company migrations over time with the role of cultural transmission. This cultural transfer promoted the study of groups and individuals and therefore improves the productivity of manufacturers.
② enterprise culture to improve team efficiency
Efficiency refers to the different subjects of cooperation through mutual cooperation arising out of a single subject can create value by the sum of the part of the benefit. That is, “1+1>2″ appears. Cooperation between the different subjects can produce benefits. Because on the one hand by working together can reduce transaction costs and competitive costs on the other hand by forming a mutual sharing of resources and cooperation can complement each other. Promote professional development and to create economies of scale. But the benefits of cooperation is the prerequisite of effective cooperation. However, in team production, marginal outputs of the players were not involved in the cooperation can be observed separately and directly. At this time. Opportunist tendencies of man will be inducing lazy behavior. This increases effective measure the performance of team members and appropriate rewards and incentives more difficult and thus will cause a failure of cooperation. Difficult to get the benefits of cooperation so as to reduce team productivity.
Inhibition of opportunism through the corporate culture, from the perspective of team production, corporate culture as can provide selective incentives to team members while reducing opportunistic behavior, corporate culture for your team members provide selective incentives because the corporate culture can make personal simplify the decision-making process and thus saving the cost of information.
Third, the problems of enterprise culture construction in China
Enterprise culture in most of China’s enterprises have recognized the key role to create, improve enterprise value, and actively began construction of the enterprise’s corporate culture, such as Haier and Huawei, but taking a domestic enterprise, enterprise culture building there are still many deficiencies.
(A) the enterprise culture of political
Most enterprises, especially State-owned enterprises in China at the time of construction of enterprise culture, enterprise culture is the equivalent of political and ideological work in enterprises, mainly to carry out the directives of the Central and local government, cultural workers of enterprises must be a strong party spirit of party members and cadres, high level of Marxism theory. Individuals learn from Lei Feng always stresses dedication, on the mouth, without regard to actual performance results. Politics is the management of enterprise enterprise, create benefits; staff stresses dedication, stresses hard work, but also stresses the value of returns, stresses incentive mechanisms, to fully mobilize the enthusiasm and creativity of employees.
(B) similarity of enterprise culture
Uniqueness is one of the important characteristics of enterprise culture. Excellent enterprise culture in many aspects of common, but more prominent is that it’s unique, it should represent the unique characteristics of the enterprise, is the spiritual connotation of enterprise development. When most of the enterprises in construction of enterprise culture in our country as the leader on Enterprise cultural construction is not clear, on the company’s existing situation grasp of inaccurate, blind copy, corporate culture familiar, few have a distinct personality.
(C) the corporate culture of isolated
Enterprise of culture construction and enterprise of development target and economic interests is close contact in together of, excellent enterprise culture of formation and enterprise of development grow and statistics improve is mutual role of, it can promote enterprise improve statistics, enhanced enterprise of strength, and enterprise of development grow and can prompted staff produced pride and centripetal force, thus constraint own of words and deeds, consciously comply with enterprise of the regulations, maintenance enterprise image, actively participation enterprise culture of construction. However, the current leader on the cultural construction of enterprises in China and mishandling of the relationship between the economic benefits of enterprises. Or culture for culture, ignoring economic benefits; or utilitarian purpose too strong, attempted to immediate, hurriedly seek.
(D) the formalization enterprise culture
Some entrepreneurs on enterprise culture too narrow that only some cultural activities, sports activities, cultural and sports activities of enterprises carrying out good, is the establishment of the corporate culture. Actual facade tend to dress up in, or in order to fashion, are keen to make a fuss, made several slogans, posted a few slogans, a Bill, write one song, a flag, unified company apparel, then engage in some of the art sports activities, believe that this completes the construction of enterprise culture. Has not proved to be effective under the conditions of a competition culture in the market as a means to promoting long-term, stable development of enterprise management and management thinking, but merely treated as a veil.
Four, creating the characteristic enterprise culture to create enterprise value
Enterprise culture and important role has been increasingly recognized by enterprises around the world, as China’s accession to the WTO, in the face of increasingly fierce competition, domestic enterprises are to survive and develop must be characteristic enterprise culture construction enterprises, improve enterprise values.
(A) to establish corporate values and entrepreneurial spirit of the place first in the construction of enterprise culture
Enterprise value concept construction is the core of enterprise culture and enterprise spirit, and soul is the basis for forming the material aspects of enterprise culture and institutional level. Spirit of enterprise and value is the establishment of the spirit of enterprise culture building process. Creating enterprise values and entrepreneurial spirit to emphasize the following several points:
1, creating a distinctive corporate values and the spirit. Corporate values and entrepreneurial spirit should be in the business throughout the whole process of production, management, management of distilled with bright, autonomy, independence of spirit and value of philosophy, with a business distinctive characteristics, has the characteristics of not imitative of, not copied.
2, eclectic. Spirit of enterprise established to absorb the essence of Chinese traditional culture and national spirit, and to Western culture and values, also selection of lessons learned, particularly learning and absorbing advanced management concept in the West.
3, development vision and unite the life pursuit of individual employees, employee loyalty to the enterprise.
4, business to a higher spiritual pursuit, in the spirit of enterprise in the new period should consciously added to the environment, social responsibility, to raise the corporate values and business philosophy to the height of the overall construction of well-off society and the construction of harmonic society.
(B) the spirit of enterprise system and enterprise value concept in the construction and development complement each other.
Enterprise value is the soft management in construction of enterprise culture and spirit, soft constraints, it emphasized that advocate and believe in the concept of value, focus on ideology, indoctrination of the soul, on staff training, information, advocacy, but if you just stop at instilling the concept of enterprise value, advocate, flow in a pile of number, is to build up the enterprise culture. Building of enterprise culture and enterprise production, operation, and management activities into one, the inextricably linked, that is, it is necessary to make enterprise values into staff value consensus, and turn it into a code of conduct for each staff position. -To build rules, value orientation, philosophy, business formation, such as institutionalization of professional ethics, and in enterprise production, operation and management aspects of effective implementation. If you have an enterprise cultural construction of spirit culture, behavior, culture and system of closely, with the constraints of the system to regulate employee behaviors, eventually employees self control, self-control mechanism, to build a successful corporate culture.
(C) play the central role of entrepreneurs in construction of enterprise culture.
Entrepreneur in the construction of enterprise culture core position, on the one hand entrepreneurs thoughts, behaviors, and so has a great influence on enterprise culture, cultivation of enterprise culture is to a large extent, depend on the values of entrepreneurs and professional quality on the other, to promote the establishment of enterprise culture need entrepreneurs from the top down, using his authority to consolidate values in the enterprise.
1, entrepreneurs must fully recognize the importance of the intangible assets of corporate culture. Enterprise culture is the penetration in ubiquitous things in all business activities, is the soul of the enterprise is located. 21st century who have cultural superiority, who will have a competitive advantage, benefit and development advantages. Therefore, to change corporate culture management consciousness situation of weak as soon as possible.
2, entrepreneurs to use ways of dissemination and implementation of their corporate culture that have been recognized. Code for using Enterprise core value to guide corporate behavior, actions and deeds, to become embodiment of corporate values.
3, entrepreneurs should continuously improve their quality. Entrepreneurs must advance with the times, continuous learning, innovation, and to improve the quality of their moral and cultural training, pay attention to their image and establish, through various channels, including management, to improve their comprehensive quality, played the role of the first to set an example.
4, entrepreneurs must actively apply enterprise culture development enterprise. Entrepreneur to internal enterprise culture unite employees, external to portray a good corporate image, to stereotypes of corporate culture construction of enterprise culture as enterprises in the public image, recognition and Visual identification of two major standardizing Enterprise behavior system, showing excellent enterprise culture unique charm.
(D) implementation of people-oriented spirit of enterprise culture
The essential features of corporate culture is to promote people-centred humanistic management philosophy to uphold as a centre of all activities of the enterprise management and people. The staff’s respect, trust, stimulate the enthusiasm of the staff, increase employee innovation. Progress of cultivation management requirements would be people-oriented corporate culture corporate culture and play a main role as a leading link of enterprise management.
1, full attention to the human factor, the people as the center of modern management, its management is the core of play initiative.
2, respect for human personality, value their individuality, for personify, humanized management. Truly understanding, respect, inspired, and concern for people, to create a warm, comfortable and beautiful working environment, creating a harmonious relationship.
3, to create conditions, through development, meet, changes in the needs of the people, excited everyone’s desire and motive force of development, help everyone realize one value, and overall development.
(E) in creating the learning-type organization in construction of enterprise culture
Create learning organizations are an important part of enterprise culture construction. So-called learning enterprise is based on a common vision, characterized by team learning, to enhance learning ability as the core of the enterprise, improving population’s IQ, the employees are self-transcendence, innovative, eventually realizing enterprise’s wealth increased speed, service, value and target. Create a learning organization is the effective measures of cultivating excellent enterprise culture, is also implementing the guarantee of good corporate culture. Learning organization is the 21st century the most competitive and most have the ability to adapt organizational forms, it emphasizes information and knowledge sharing between staff, capacity and expertise to share, to complete a task. Therefore, require employees to have a strong learning ability, emphasis on lifelong learning, evolutionary learning of employees, the whole process of learning, group learning. Through the creation of learning organizations, increase the accumulation of knowledge, fostering innovation and adaptability, cultivation of team spirit, cultivate harmonious atmosphere inside, enhance the competitiveness of enterprises.
Closing remarks
Enterprise culture is an important part of enterprise value, excellent corporate culture to create and enhance corporate value. Domestic enterprises at the time of construction of enterprise culture, first should actively create the core values and entrepreneurial spirit, perfecting the enterprises on the basis of the rules and regulations, secondly to humanistic management about playing the role of entrepreneurs, create an enterprise culture in learning and organizational development, improve enterprise values.