Organizational Culture: The Values Of Culture On An Organization

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Culture is defined as a complex set of values, beliefs, assumptions, and symbols that define how members of an organisation act (Barney, 1986). Although culture can be both an asset and a liability in regards to the success of an organisation, it is the nature of an organisations core values, attributes, communication skills and how an organisations culture is perceived by its stakeholders that define the influence culture has on an organisation. This will be illustrated through how strong and weak organisational cultures can act as both an asset and a liability to an organisation.

Culture has an immense impact on an organisation. Culture not only defines a business’ employees, customers, suppliers, and competitors, it also outlines how a
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This classification of business culture does not imply a type of culture is positive or negative, however depicts the influence culture has over its members. Studies have indicated that organisations with strong cultures are often indicative of excellent management (Peters & Waterman, 1982). Strong organisational cultures express clear messages about what qualities are important to a business. These shared values are beneficial to organisations as they improve communication and decrease disagreements, improving efficiency during the decision making process (Sathe, 2003). Furthermore, members of strong cultures are able to strongly identify with the culture. This is an asset to an organisation as being able to identify oneself to a culture creates a sense of belonging within employees. This improves commitment to a business which inturn improves overall business performance. It is also argued that there is a link between an organisations culture type and economic performance which can be seen through Starbucks and AIG. Flamholtz and Randle (2012), asserted that Starbucks, who are renowned for having a strong positive culture whose employees exhibit consistent messages about the firm’s priorities, experienced high levels of economic success. However, AIG’s dysfunctional corporate culture exhibiting contradictory messages in regards to the business’ main concerns, almost led the firm into bankruptcy in 2008. Thus demonstrating, how a strong organisational culture can contribute towards the success of a
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