ON-LINE DATABASE of SCIENTIFIC PAPERS
10.5593/sgemsocial2017/15/S05.009

ANALYSIS OF CORPORATE CULTURE BASED ON FUZZY COGNITIVE MAP

E. A. Evseev
Thursday 28 September 2017 by Libadmin2017

References: 4th International Multidisciplinary Scientific Conference on Social Sciences and Arts SGEM 2017, www.sgemsocial.org, SGEM2017 Conference Proceedings, ISBN 978-619-7408-17-1 / ISSN 2367-5659, 24 - 30 August, 2017, Book 1, Vol 5, 67-74 pp, DOI: 10.5593/sgemsocial2017/15/S05.009

ABSTRACT

Corporate culture is an important element of almost any company: most researchers, both theorists, and practitioners underline the key role of corporate culture in the success and prosperity of any organization. Speaking about corporate culture, we mean firstly the combination of values and perceptions prevailing in the organization, and also norms and patterns of behavior that determine the status and activities of employees.
Evaluation of the level of development of a corporate culture and the mutual dependency of factors influencing it is an actual practical task. The qualitative nature of most of these factors, the complexity of their reciprocal effects make it difficult to apply the classical quantitative modeling techniques. Therefore, an attempt has been made to describe and analyze the situation regarding fuzzy cognitive maps. The object of the study is a medium-sized Russian trading company. The company works at furniture market since 1993 and already has a well-established corporate culture.
Considered model is a variant of a classical fuzzy cognitive map. Model concepts reflect the major features of corporate culture and are divided into the following groups: rules, the company’s values, factors that characterize the company’s communications, integration, and adaptation of employees, domestic politics, and the company’s history. Quantitative assessments of the values of concepts of FCM and the forces of their mutual influence are based on interviews with the heads of the enterprise. The purpose of the analysis is to study the effect of corporate culture on the efficiency of the company. We are going to determine the key elements of the corporate culture that may be viewed as factors of improvement of the company’s functioning.
The simulation showed that the value of model concepts that characterize corporate culture and the effectiveness of the company quickly stabilized at a high level. It can be concluded that the corporate culture of the company is fairly stable and positively affects its efficiency. However, an unexpectedly rapid stabilization of values, in our opinion, indicates excessive optimism of the company representatives in the assessment of the power of mutually influential factors.
The constructed model is of fundamental significance and can be used in organizational management practices. However, its parameters should be defined more precisely by the larger amount of empirical data collected from existing companies’ cases.

Keywords: organizational culture, fuzzy cognitive map