Question

What role does organizational culture play in the success of an organization’s overall financial performance? Explain Your answer.

Answer 1

Organization is a group of peoples which have different expertise, skills and knowledge and organization has different department which different work profile. Organization is working for achieving vision of organization. A positive culture in business today is unfortunately the exception rather than the norm, but a strong organizational culture can clearly differentiate a business from its competitors in the mind of its stakeholders.

Organization culture play following role in the success of organization overall financial success-

1. A reduced employee turnover rate with resultant definitive financial and operational advantages.
2. Decreasing operational expenses by innovation and management.
3. Developing a productive and knowledgeable team.
4. Planning of working capital and controlling over the credit policies.
5. Cutting the cost and developing multifunction employees support.
6. Control over fund flow and cash flow.
7. Controlling over the debtors.
8. Achieving the economy of scale.