- Corporate culture represents the professional value adopted by an organization to dictate how it interacts with its stakeholders.
- A healthy corporate culture has several benefits to an organization such as increasing a firm’s productivity and helping a company to gain a positive reputation.
- A healthy corporate culture can help drive a business strategy by dictating what professional values a firm requires all its stakeholders to oblige to.
- A firm’s management should ensure that all the professional values required from all stakeholders are transparent and establish open employee feedback channels to allow employees to share their insights about various organizational issues.
- A healthy corporate culture is of great impact on an organization, and an organization’s management should establish an open employee feedback channel to enhance teamwork within the firm.
Every organization has a culture including small businesses and large corporations. An organization’s culture is defined by the values and attitudes demonstrated by the given firm’s employees when undertaking their responsibilities. Besides, in an unhealthy firm’s culture, employees only perform the assigned duties to meet their demands such as health benefits and a paycheck. On the other hand, corporate culture represents the professional values that a given firm or company adopts that guides how they interact with its shareholders including clients, employees, suppliers, and others. A healthy corporate culture always values all stakeholders, hence promoting effective communication and workflow within an organization. This paper outlines the importance of corporate culture to an organization, how corporate culture can drive a business strategy and what initiatives organizational management can take to ensure that corporate culture drives the firm’s business strategy.
A healthy corporate culture can be of significant importance to an organization in various areas such as in employee retention, improving the quality of products, increasing productivity, helping a firm to gain a positive reputation, and help in dictating an organization’s risks. According to Szczepańska-Woszczyna (2018), employees experience high morale and a positive attitude toward an organization when they feel their contribution to the firm is valued. Therefore, they are likely to be loyal to a particular organization, thus their loyalty may reduce employee turnover. Employee turnover can significantly cost an organization including incurring high expenses in recruiting and hiring new employees (Szczepańska-Woszczyna, 2018). Thus, a healthy corporate culture can be of great importance to an organization as it can help the firm to retain their valuable employees and save them some extra expenses they would incur in conducting employee recruitment and hiring activities.
A healthy corporate can help an organization to gain a positive reputation among potential workers. As aforementioned, workers would like to be loyal to an organization that values their contribution, as a result, they may share their experience with others about such an organization. Considering this fact, talented and experienced could certainly get attracted to a given firm and have the desire to work for it. Besides, customers would like to do business with firms that have a positive reputation, and this is certainly would help an organization to generate more revenue.
A healthy corporate culture can contribute to an increase in an organization’s productivity by boosting the morale of employees. An organization’s productivity represents the efficiency and effectiveness of the firm’s products or services and consumers would desire to purchase the company’s product or pay for such services (Bąk & Sukiennik, 2019). Besides, a particular firm can increase its profitability by increasing its productivity. An increase in productivity also benefits employees as it would translate to a rise in their wage pays.
A healthy corporate culture also encourages employees to deliver quality products and services. Employees tend to offer their best levels of knowledge and expertise in organizational environments where they feel safe and respected. This certainly translates to the production of quality products that can help to enhance an organization’s reputation amongst is customers.
Dictating the risks that a business is willing to take related to client interaction and investing in equipment is another importance of a healthy corporate culture. If promoting environmental responsibility is the ultimate goal of an organization, then the corporate culture will represent the risks that the firm should take in developing new products to satisfy the customer’s demands. An organization’s corporate planning can also be impacted by risk assessment based on beliefs and sense of responsibility established by the business.
As many are increasingly being bitten by the entrepreneurship bug and money being flooded into technology startups, the concerns surrounding business culture continue to emerge and attract more attention. Many are establishing businesses with the desire to create the coolest corporate culture based on flashy perks such as performance bonuses, flexible schedules, paid sick days, and others. However, these flashy perks do not balance an organization’s healthy corporate culture. Unsurprisingly, many businesses in today’s society are struggling to assess the risks associated with these costly perks amid high employee dissatisfaction and turnover. For an organization to create a healthy corporate culture, the management should certainly look beyond these flashy perks and focus on establishing an environment where employees will feel that their contribution towards the firm is valued, and they are respected.
Corporate culture brings quite many benefits to an organization. Corporate culture itself represents the beliefs and behaviors that a particular organization integrates into its operations. The concept also extends to how an organization interacts with its stakeholders. Considering this fact, corporate culture helps to drive a company’s business strategy by demonstrating a transparent representation of the firm’s values (Thompson, Peteraf, Gamble, Strickland III & Jain, 2013). Thus, before an individual can start a business, they should establish a culture. The business culture should incorporate the values that are required to meet the firm’s and stakeholders’ expectations. Besides, an individual should formulate guidelines on how those mentioned values would be used to evaluate every organizational decision-making process.
An organization’s culture is counter-productive when it does not have an open employee feedback channel. High employee turnover is an indicator of a problematic corporate culture, and when it shows up, then an organization’s management may want to consider coming up with effective strategies to improve the business culture. As aforementioned, corporate culture helps to drive a firm’s business strategy by representing its truthful values. Therefore, to achieve this, an organization’s management should consider having a corporate culture that values transparency. Employees certainly find it hard to trust an organization that keeps them out in decision making processes concerning the direction of the business. There is a need for organizational management to engage their employees in decision making processes by leveraging the communication and collaboration tools like conferencing tools (Angeli, 2009). Moreover, organizational management can use corporate culture to drive its business strategy by making the collaboration the firm’s work standard. Promoting teamwork within an organization is one way of making a big impact on the employees’ morale. Every employee’s desire is to collectively work with individuals who are driven by the same purpose. Organizational management should focus on implementing team building activities to achieve their objective (Groysberg, Lee, Price & Cheng, 2018). To help drive the business strategy, and organizational management can also establish effective channels for employee feedback. Employees certainly do not need to be part of organizations where they are commanded by strangers. Their desire is usually to feel engaged in the organization’s activities. Indeed, they do want an organization’s management to hear their voices and have their issues addressed. Employees do feel motivated when their voices are heard and can contribute to how the firm should be managed and what should be improved. As such, organizational management should create various employee feedback channels such as interviews and focus groups to give the employees an opportunity to comfortable express their views.
In closing, corporate culture is of significant importance to every organization as it represents the professional values that a company adopts to effectively conducts its operations. Corporate culture has several benefits such as it can increase a firm’s productivity, and help an organization to gain a positive reputation amongst its customers and employees. Besides, the concept helps to drive an organization’s business strategy by dictating what professional values a firm requires all its stakeholders to oblige to. To achieve this, a firm’s management should establish an open employee feedback channel, and ensure the company’s objectives are clear to all the stakeholders.
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