Answer to Question 1
The culture of an organization normally is strongly influenced by the beliefs and philosophy of the organization's founder. A firm's founder transmits his or her beliefs to a small group of close associates, often family members who already share the same values or at least know each other well. As the firm grows, the founder's values determine who is hired and who is retained and promoted. Selection and socialization processes tend to reinforce the founder's values. These values become firmly entrenched even after the founder is long gone.
Answer to Question 2
Formal socialization occurs when an employee's newcomer status is made obvious, through separate training or orientation away from the job. Informal socialization happens when the new employee receives little special attention and begins working right away.
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