What Is the Importance of Corporate Culture?

Malcolm Tatum

"Corporate culture" is a broad term that is used to describe the general working environment found within a business operation. A number of factors can influence the nature of this culture, including the policies and procedures developed for the operation, the mission and vision statements of the business, and even the personalities and management strategies employed within the company. The importance of corporate culture is vital to the life of the company, since this culture often sets the standard for how employees view their assigned duties, relationships within the workplace, and even whether or not they will choose to remain with the employer for an extended period of time.

One common method for creating a strong corporate culture is to create rules or guidelines for all employees to follow.
One common method for creating a strong corporate culture is to create rules or guidelines for all employees to follow.

The importance of corporate culture is seen in the desire of a company to grow. In order to do so, the ability to engage employees in capturing the vision and devoting themselves to this goal requires understanding which aspects of the company currently offer motivation and which ones tend to dampen enthusiasm and lead to employees doing what they must and no more. Here, paying close attention to management strategies, the type of benefits offered, and even the general attitude that is cultivated on a manufacturing floor will provide important clues as to what can be done to increase company loyalty and ultimately make it possible to pursue growth. Unless the importance of corporate culture and the impact of these factors are not understood, the company could find itself with a high employee turnover that cripples efforts to achieve that growth.

Another example of how the importance of corporate culture is made manifest in a company is what happens to employee morale when certain negative situations develop. By noting that something has occurred which has decreased the desire of employees to work together, or even for employees to show up at work each day, managers and owners can begin to address whatever has caused this unwelcome shift in the culture and find ways to counteract the effects. Monitoring the culture and quickly identifying unhealthy trends make it easier to slow the damage and repair it before it is too late.

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One other way to understand the importance of corporate culture is to see it as a great way to assess the level of efficiency that is present within the operation. This includes understanding which policies and procedures are working, which are not, and what effect issues such as ineffectual management, poor communication, and other detrimental elements are having on the attitudes employees bring into the workplace. By knowing what is working and what is not, and how those factors affect efficiency and productivity, owners and managers can work on those issues, often with the involvement of employees, and make the workplace a more welcoming and productive environment for everyone concerned.

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