Why Organisation Culture central in all Aspect of Companies
Introduction
when you think of the word culture what the first thing that pop into your mind? For example Harry Potter novel and shakespeare was a popular culture and so are society and organisation. In organisation everything relate to our habitats, office and environment which all comprises of culture. In other word it is our cultural norms, cultural artefact and cultural practices. The concept of organisational culture and its history stretches back long before organisation theories began. Cooperate culture had been evolve a lots since the 1970’s as a result many executives now a day pay much more attention to culture as it is one of the main strategy to sharping its business plan. Corporate culture have come under significant pressure over time due to …show more content…
John Kotter and James Heskett wrote a book about the culture and long term performance on a series of four empirical studies conducted between 1987 and 1992, exploring over 200 companies in considerable depth. They came up with a conclusion that
Corporate culture can have a significant impact on firm’s long term financial performance
Corporate culture will become even more important in the future as it will determined the success or failure of firms.
Based on this academic research we shouldn’t dismiss culture lightly but highly regard it as an important factor and should be further examine . Fact and figures from the research conducted by the two professor show a correlation that culture will have an strong impact on the companies financial position. Their research found out that
Culturally strong companies averaged 571% higher gains in operating earning than those more culturally deprived over the elven years.
Companies with highly rated cultures averaged 417% higher returns on investment than their less culturally roust counterparts.
Companies with strong culture saw their stock prices increases by
Introduction
when you think of the word culture what the first thing that pop into your mind? For example Harry Potter novel and shakespeare was a popular culture and so are society and organisation. In organisation everything relate to our habitats, office and environment which all comprises of culture. In other word it is our cultural norms, cultural artefact and cultural practices. The concept of organisational culture and its history stretches back long before organisation theories began. Cooperate culture had been evolve a lots since the 1970’s as a result many executives now a day pay much more attention to culture as it is one of the main strategy to sharping its business plan. Corporate culture have come under significant pressure over time due to …show more content…
John Kotter and James Heskett wrote a book about the culture and long term performance on a series of four empirical studies conducted between 1987 and 1992, exploring over 200 companies in considerable depth. They came up with a conclusion that
Corporate culture can have a significant impact on firm’s long term financial performance
Corporate culture will become even more important in the future as it will determined the success or failure of firms.
Based on this academic research we shouldn’t dismiss culture lightly but highly regard it as an important factor and should be further examine . Fact and figures from the research conducted by the two professor show a correlation that culture will have an strong impact on the companies financial position. Their research found out that
Culturally strong companies averaged 571% higher gains in operating earning than those more culturally deprived over the elven years.
Companies with highly rated cultures averaged 417% higher returns on investment than their less culturally roust counterparts.
Companies with strong culture saw their stock prices increases by