The Importance Of Corporate Culture
Corporate culture continues to receive a lot of attention in businesses all around the world due to its potential to affect the organizational performance of a company. There are multiple positive and negative aspects of corporate culture which can lead to the key to success of an organization. Thus, many organizations like McDonalds, have come to appreciate the influence corporate culture has on them.
Definition of Corporate Culture
Per Dictionary.com (2002) the definition of corporate culture is “the philosophy, values, behavior, dress codes, etc., that together constitute the unique style of policies of a company”. In other words, it relates back to the beliefs and behaviors which determine how both management and employees …show more content…
Without positive aspects, it would be harder for the company to have great business transactions (MAS, 2009). Each culture is different and has different factors that play a role in creating one. There are multiple components of great cultures. High staff quality and sense of values are important qualities to having a great corporate culture (Allen, 2013).
High Staff Quality
A company is unable to build itself and grow without reliable staff. If a company has people who share its core values and can embrace those values, then the employees can grow and move forward in the same direction with the company (Allen, 2013). Thus, the company can have a strong corporate culture with the proper staff, and are reliable and choose to stay because they have the same values.
The company’s values are the core of its corporate culture. Since values offer a set of guidelines to achieve a vision, it helps keep all the employees pulling the same direction (Coleman, 2013) Values help build a stronger relationship with the organizations, customers, and employees. The customers provide the business and the employees run the business. Values are important to the company’s corporate culture; without they would not be able to build a relationship with their customers. If they have no customers, they have no business (Coleman, …show more content…
When they belong to identity it encourages participation in the company. However, since a business is never standing still there are always opportunities for changes (Johnson,2016). If an owner decides it is time to make a change it threatens the employer’s identity. Thus, the employee might not support the change and decide to leave the company.
Most companies have some type of flexibility with their coworkers needs. However, if a company is not willing to offer any flexibility employees will feel trapped (Johnson,2016). If there is no flexibility being provided by the corporate culture, it potentially can bring a great disadvantage when the company needs to adapt to change. Thus, companies can lose employees and customers if they are not willing to be flexible with change or new ideas (Serena, 2010).
Culture effects on