Corporate Culture
Salih Ahmed ISLAM
Internal Audit Expert CIA | MBA | GRCP | Consultant | Trainer | Author
Corporate culture generally encompasses the behaviors, beliefs and specific habits to any institution. Culture is shared by the members of that institution, it regulates their behavior. An established corporate culture can be mentioned if the corporate actions of the employees overlap with the corporate culture, can be directed and norms are accepted by the employees.
Especially in the last two decades, corporate culture has paved the way for the formation of an important discussion. The corporate culture, which melts the employees of the enterprise in a pot, is also indispensable for institutions. With the increasing importance given to human in the growing competition market, studies in this field have been effective in many researches. Today, corporate culture is an effective tool in the competitive environment of businesses against each other. Corporate culture provides an advantage for businesses that are aware of this tool and use it correctly. People realize that working in companies with a good corporate culture is at least as important as money and other side benefits.
If the corporate culture is not well-structured, the following signs are frequently seen:
? Mutual accusatory behaviors,
? Emphasizing individuality rather than teamwork,
? Not owning their duties,
? Promotions based on personal relationships, not on merit,
? Rapid loss of personnel,
? Restless, anxious, nervous and complaining employees,
? Decreases in work efficiency,
? Dealing with non-working issues during working hours,
? Resistance in implementing managerial decisions,
? Fraud,
? Keeping personal interests ahead of company interests,
Culture can be an antidote to many organizational problems and can significantly affect how an organization is run (Warrick, 2017). That is, sustainable culture can be achieved through the pursuance of strong corporate culture. Strong cultures are based on two characteristics, high levels of agreement among employees about what is valued and high levels of intensity about these values. If both are high,
a strong culture exists; and if both are low, the culture is not strong at all. Moreover, a strong corporate culture influences performance through better execution, reduction in cost, empowerment of employee consistent decision making in difficult times and value more than strategic decisions. They added that it also affects creativity, productivity, firm’s value and profitability.
Creating an organizational culture of ethical values such as integrity and openness can help to reduce the risk of fraud. Top management should create and sustain an ethical corporate culture that integrates an organization’s core values, motivates employees in doing what is right. Employees should be empowered to voice out their suspicions and to see their crucial role in minimizing frauds.
Recruitment Consultant at H-LINE Human Development
3 年Very good topic Salih. I also have some opinions about the subject as in my expertise. A weak organizational culture is one in which employees are not clear with what their goals are. A weak culture is evident when most employees have varied opinions about the organization’s mission and values. The company is disorganized and this requires extra efforts and time to attain maximal unity of purpose. Employees waste time spinning their wheels, because of the inability to focus on what’s important. Weak organizational culture allows for an increase in turnover of employees because of a lack of corporate cohesiveness and mission. This spirals into low employee morale, and employee disengagement. Signs of a weak culture include lack of trust; focus on problems, staff losing confidence in their leaders and systems, and people spending more time focusing on problems rather than opportunities.