Why is company culture very important to be a successful business?
The company’s culture may define its identity and reputation but it is one of those intangibles that have to be imbibed by its personnel over a period of time. Every organization has its own unique values and standards system for activities like carrying out business transactions, maintaining employee relations and maintaining relations with partners that define its culture. This is generally defined by its founders but is established and communicated by its employees and stakeholders over a period of time. It is said that culture is established by the balanced alignment of leaders and managers within the organization as then there is trust and transparency at all levels which is critical for success.
According to a recent study, culture is an essential part of an organization’s growth and performance as it flourishes in an atmosphere of constantly changing the business environment. Dynamic company culture has its own unique benefits that can enhance its strength and encourage greater employee engagement as the values encompassing it are passed on from old to new. Culture has the capability of bringing employees together as they work together as a team to forge the DNA that is unique to the organization and spells its success. In “Towards a Theory of Organizational Culture and Effectiveness by D R. Dennison and A.K. Mishra”, besides enhancing performance and standing among peers, cultures can also help organizations in predicting financial performance in the immediate future
Role of culture in enhancing organizational success is important due to these advantages:
Strong performance – Studies carried out by academicians and industry experts on the effect of culture on an organization’s overall performance have emphasized that strong culture brings employees together and motivates them to scale heights that they would not have done under regular circumstances. It invokes a powerful spirit of togetherness and camaraderie within them encouraging communication and greater collaboration as they move towards a common goal. Employees that find a culture fit with the organization are bound to stick around even during trying times and give their best shot instead of jumping ship at first sign of trouble.
Brand promotion – Forging a strong corporate culture for business practices and employee performance in the early stages of organizational growth is very important as it helps in establishing the brand and distinguishes it from peers. Brand and culture form an intimate bond to provide organizations with a competitive advantage that defines them before partners, markets, vendors and prospective employees. Global brands like Disney and McDonalds that take pride in their culture do not hesitate to use it to attract top talent and impress business partners.
Successful hiring process – As the organization moves rapidly from start-up to expansion phase the hiring team stays focused on hiring people that fit into the culture instead of adopting an all-inclusive model that can create an enviable work environment. Culture fitment has been recorded as one of the most common reasons for employee turnover and lack of focus as management is engaged in putting out ideological differences instead of fuelling growth. While searching for employees that are culture fits the hiring manager can compromise on the skills to a certain extent as skills gaps can be covered by training but mindsets cannot.
Focus on goals and image
Culture needs to be recognized and acknowledged by management and employees to retain its core values as the organization expands and grows across boundaries. It can be defined by guidelines that encourage employees at all levels to accomplish goals as that is recognized as one of their essential missions. The values that makeup culture should be like its life fabric as only then individual objectives can be aligned to business goals for the successful growth of a business idea.
Every successful organization today which is a global brand may have had several ups and downs according to the business environment, but these have still managed to remain in business as they have clear focus and belief in their purpose and are perfectly aligned to their core values.