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Clacla 24

An organization's culture defines proper employee behavior and is established by leaders through shared beliefs and values. Organizational culture sets the context for all company actions and varies between industries. A strong culture is common in successful companies, where leaders clearly communicate cultural priorities focused on goals, not individuals. An ineffective culture can negatively impact employee engagement, turnover, customer relations and profits. Mergers often struggle with cultural issues as different company cultures must be blended or redefined, and two out of three mergers fail due to cultural problems. For a culture to improve performance, it must provide a strategic advantage through widely shared and upheld beliefs and values that enhance trust, cooperation and efficient decision-making. Company leaders play a key role in shaping and sustaining

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12 views2 pages

Clacla 24

An organization's culture defines proper employee behavior and is established by leaders through shared beliefs and values. Organizational culture sets the context for all company actions and varies between industries. A strong culture is common in successful companies, where leaders clearly communicate cultural priorities focused on goals, not individuals. An ineffective culture can negatively impact employee engagement, turnover, customer relations and profits. Mergers often struggle with cultural issues as different company cultures must be blended or redefined, and two out of three mergers fail due to cultural problems. For a culture to improve performance, it must provide a strategic advantage through widely shared and upheld beliefs and values that enhance trust, cooperation and efficient decision-making. Company leaders play a key role in shaping and sustaining

Uploaded by

clarencearandadeleon
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Clarence De Leon

Bshm 1-D

An organization’s culture defines the proper way to behave within the organization. This culture consists
of shared beliefs and values established by leaders and then communicated and reinforced through
various methods, ultimately shaping employee perceptions, behaviors and understanding.
Organizational culture sets the context for everything an enterprise does. Because industries and
situations vary significantly, there is not a one-size-fits-all culture template that meets the needs of all
organizations.

A strong culture is a common denominator among the most successful companies. All have consensus at
the top regarding cultural priorities, and those values focus not on individuals but on the organization
and its goals. Leaders in successful companies live their cultures every day and go out of their way to
communicate their cultural identities to employees as well as prospective new hires. They are clear
about their values and how those values define their organizations and determine how the
organizations run. See What does it mean to be a values-based organization?

Conversely, an ineffective culture can bring down the organization and its leadership. Disengaged
employees, high turnover, poor customer relations and lower profits are examples of how the wrong
culture can negatively impact the bottom line.

Mergers and acquisitions are fraught with culture issues. Even organizational cultures that have worked
well may develop into a dysfunctional culture after a merger. Research has shown that two out of three
mergers fail because of cultural problems. Blending and redefining the cultures, and reconciling the
differences between them, build a common platform for the future. In recent years, the fast pace of
mergers and acquisitions has changed the way businesses now meld. The focus in mergers has shifted
away from blending cultures and has moved toward meeting specific business objectives. Some experts
believe that if the right business plan and agenda are in place during a merger, a strong corporate
culture will develop naturally. See Managing Organizational Change and Managing Human Resources in
Mergers and Acquisitions.

Business Case

If an organization’s culture is going to improve the organization’s overall performance, the culture must
provide a strategic competitive advantage, and beliefs and values must be widely shared and firmly
upheld. A strong culture can bring benefits such as enhanced trust and cooperation, fewer
disagreements and more-efficient decision-making. Culture also provides an informal control
mechanism, a strong sense of identification with the organization and shared understanding among
employees about what is important. Employees whose organizations have strongly defined cultures can
also justify their behaviors at work because those behaviors fit the culture. See Toxic Workplace Cultures
Hurt Workers and Company Profits.

Company leaders play an instrumental role in shaping and sustaining organizational culture. If the
executives themselves do not fit into an organization’s culture, they often fail in their jobs or quit due to
poor fit. Consequently, when organizations hire C-suite executives, these individuals should have both
the requisite skills and the ability to fit into the company culture. See SHRM Inclusive Workplace Culture
Specialty Credential and HR Can’t Change Company Culture by Itself.

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