Question

Is corporate culture an important element in an organization and its strategic direction? How can organizational culture be created, influenced, and changed?

Answer 1

Is corporate culture an important element in an organization and its strategic direction?

Yes, corporate culture is an important element in an organization and its strategic direction

Importance of Corporate culture in an organisation

• The culture decides the way employees interact at their workplace. A healthy culture encourages the employees to stay motivated and loyal towards the management.
• The culture of the workplace also goes a long way in promoting healthy competition at the workplace. Employees try their level best to perform better than their fellow workers and earn recognition and appreciation of the superiors. It is the culture of the workplace which actually motivates the employees to perform.
• Every organization must have set guidelines for the employees to work accordingly. The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace. Every individual is clear about his roles and responsibilities in the organization and know how to accomplish the tasks ahead of the deadlines.
• No two organizations can have the same work culture. It is the culture of an organization which makes it distinct from others. The work culture goes a long way in creating the brand image of the organization. The work culture gives an identity to the organization. In other words, an organization is known by its culture.
• The organization culture brings all the employees on a common platform. The employees must be treated equally and no one should feel neglected or left out at the workplace. It is essential for the employees to adjust well in the organization culture for them to deliver their level best.
• The work culture unites the employees who are otherwise from different back grounds, families and have varied attitudes and mentalities. The culture gives the employees a sense of unity at the workplace.

Certain organizations follow a culture where all the employees irrespective of their designations have to step into the office on time. Such a culture encourages the employees to be punctual which eventually benefits them in the long run. It is the culture of the organization which makes the individuals a successful professional.

• Every employee is clear with his roles and responsibilities and strives hard to accomplish the tasks within the desired time frame as per the set guidelines. Implementation of policies is never a problem in organizations where people follow a set culture. The new employees also try their level best to understand the work culture and make the organization a better place to work.
• The work culture promotes healthy relationship amongst the employees. No one treats work as a burden and moulds himself according to the culture.
• It is the culture of the organization which extracts the best out of each team member. In a culture where management is very particular about the reporting system, the employees however busy they are would send their reports by end of the day. No one has to force anyone to work. The culture develops a habit in the individuals which makes them successful at the workplace.

Importance of corporate culture in strategic directions

Strategic Management Basics

Strategic management is the planning process through which company leaders formulate strategies for accomplishing company missions and objectives. It has four basic elements, according to the Management Study Guide website's "Strategic Management Process - Meaning, Steps and Components." These elements are environmental scanning, strategy formulation, strategy implementation and strategy evaluation. These four steps outline a sequential strategic process whereby leaders analyze the company's current situation, prepare strategies, implement them and then review strategic effectiveness.

Cultural Influence

Organizational culture is so impacting it can result in the success or failure of a company. A strong organizational culture is one of the most sustainable competitive advantages a company can have because it is difficult to copy. Culture is simply a collection of shared norms or values within a workplace, or what is generally referred to as a company's way of doing things. Fun, family-friendly, positive, negative, upbeat, demoralizing and stressful are some common adjectives used in describing work cultures. Some of these have positive influences in production and performance, while others are symptomatic or contribute to organizational problems.

Alignment

Because organizational cultures are unique and offer strategic advantages, it makes complete sense that companies would consider culture in strategic management. Consider a high-performing company that has a corporate strategy of providing a fun and friendly customer-centered environment. This would not align well with a stagnant culture or one with very traditional and stoic employees. Instead, it is necessary for the company to hire fun, friendly and customer-oriented workers and provide an environment that is fun and rewards great customer-friendly behavior.

External and Internal Strategy

Another way of looking at strategic management that supports the influence of culture is its balance between external and internal strategic elements. Generally, strategy management aids in carrying out corporate missions and visions. Missions and visions state the company's purpose and values. They are intended to offer direction for the company as it interacts with the marketplace, but they also typically connect to internal strategies and culture. For instance, a company that markets itself as a green-friendly organization to get business would likely also promote environmental responsibility internally and make it part of the organizational culture.