Aligning Corporate Culture in Newly Acquired Hospitals

By Ahmad Chaudhry, PhD, MBA

Organizational culture is defined as “the way things are done” within an organization (Certo, 2006). The ways an organization conducts its business, treats its employees, allows freedom in decision-making, and manages the flow of information all help build culture. Researchers define organizational culture as the set of shared values and beliefs that employees hold and that determine how they perceive, think about, and react to the organization’s various environments (Schein, 1996). Made up of its members’ shared beliefs, values, symbols, and behaviors, organizational culture guides individual decisions and actions on an unconscious level. It can be observed and manifested in an organization’s climate. Culture defines attitudes and work patterns that must be recognized to enhance effort and performance. Studies show that organizational culture can impact employees’ motivation, satisfaction, and turnover, and can be a source of competitive advantage (Guinto, 2006). It is, therefore, important to understand an organization’s culture and how it helps support business goals.

Every organization’s culture is unique. A healthcare facility with collaborative culture may emphasize teamwork, while a more controlled culture thrives on structure and stability. Culture based on competition needs to operate openly and adapt to change quickly; creative culture, meanwhile, fosters innovation, risk-taking, and individual initiative. The culture of a newly acquired hospital may well differ from the culture of the parent organization. Since each culture type differs in its goals and purposes (Certo, 2006), it is imperative for corporate leadership to understand its own culture as well as the culture of the newly acquired hospital. A mismatch between the two may interfere with achieving corporate goals and be counterproductive; thus, this issue needs special attention. By introducing the existing corporate culture at the new hospital, an organization will not only become more efficient, but also gain competitive advantage in the industry.

An organization’s mission and values are important factors in identifying and understanding its culture. Companies intentionally publish their mission and values in an attempt to shape their company culture for the better. Leaders at the corporate level must ensure employees know what the company stands for and believes in. The mission emphasizes why the company exists, and the values help guide employees’ behavior. For example, a mission statement may pledge to provide comprehensive, quality healthcare in a convenient, compassionate, and cost-effective manner.