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The Impact and Implications of Corporate Culture

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This paper illustrates that for identification of different types of corporate culture, various methods have been applied. Though they differ there still exist some commonalities among them. So there are different models to explain various indicators of corporate cultures. According to Hofstede’ s cultural dimension theory, culture affects business behavior. Hofstede pointed out that there are cultural differences existing in different nations and regions. So, when an organization decides to expand geographically, it should give importance to multiculturalism and create awareness in the organization so that it can handle the differences tactfully.

O’ Reilly, Chatman, and Caldwell developed a tool, Organizational Cultural Profile (OCP) which measures how corporate performance is affected by the corporate culture. Deal and Kennedy described four types of corporate culture. Daniel Denison model implies the four dimensions which can describe corporate culture. The four dimensions are adaptability, consistency, mission, and involvement. Corporate culture has the huge impact on the performance of an organization. If the culture is good, then it will have an optimistic impact and if it is disturbing then it will generate a negative impact.

A healthy culture encourages its employees to stay motivated and stay loyal to the company. The culture also tries to endorse healthy competition among its members. The employees try to work harder to get recognition and appreciation. This is the result of a good corporate culture. The brand image of the company is built on its work culture. The corporate culture teaches employees to manage and work in unison with people from different regions, backgrounds, and cultures having different mentalities and natures. Linnenluecke & Griffiths argued that if the corporate culture was inflexible, then it might bring difficulties for the employees.

They may feel trapped and restricted. Sometimes, any wrong decision by the head of the organization can adversely affect the work culture. Poor corporate culture can build neglectful attitudes and careless approaches among the workers. It can also serve to reduce the level of confidence of workers. Lack of strong ethical values can discourage employees.

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