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The Importance Of organizational Culture

Like individuals, organizations too have a unique personality that we refer to as ‘culture’. It’s an invisible yet powerful force that drives the thoughts and actions of each of its members. It’s a system of shared values, beliefs, and goals.

Organizational culture has a huge impact on the company’s ability to succeed and make it big in the competitive world that we live in today. A company without a tangible culture finds it difficult to tap into the full potential of its employees, and to keep them happy. And, that puts both the organization’s and its people’s well being at risk.

Here are some of the reasons why organizational culture plays such an important role in the success of any business:

Unity

An organization, irrespective of its actual size – whether it’s a start-up with 10-15 employees or an organization with a bigger workforce, is strengthened by its unity. The unity results from a solid organizational culture – a set of shared values and principles that the members abide by in every decision that they take. The similarity of thought and action enables the employees of a company to work synergistically, to help each other in their goals, and to stay strong as a group in order to fight against the rival forces.

Business Success

One organization that has a palpable organizational culture is Google Inc. One look at the Google products and campuses across the globe, few interactions with its employees, and we would know what the company stands for – Creativity and Innovativeness. Building and maintaining Google’s culture requires relentless effortBut, the company very well knows that the secret to its success is its people and the culture they create and maintain.

Stability

Lack of purpose and motivation is one of the major reasons why people are often dissatisfied at work and why they quit their jobs and look for greener pastures.

Organizational culture, by its very nature, ensures that the purpose of its members are aligned with the purpose of the organization. And, this compatibility of goals and way of thinking drives the members to perform well, be self-directed, and be loyal to the organization they belong to.

Sense of Direction

When an organization has laid out its values, beliefs and goals, its employees have a clear direction to work towards. They can discern between right and wrong, important and unimportant and this clarity ensures a focused approach to work, and a productive use of the organization’s time and resources.

Identity

‘Identity’ and ‘brand image’ emerge from an organization’s culture and its people. Apple’s products wouldn’t be known for their ‘perfection’ and ‘enduring beauty’, had it not been for Steve Jobs’ unique way of approaching the technology business, his emphasis on creating products that weren’t just efficient, but also aesthetically pleasing and immaculately designed. It’s the people who create the organization and it’s the organization that creates the ‘brand image’. And, we know what a big role the identity of the brand plays in how well it’s received by the market and how far it goes.

Written by Nanyang MBA

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