Benefits of Organizational Culture Importance

April 26, 2012 by  Filed under: Management 

An organization is a common platform where individuals work for a common goal. Each organization has its own way of working which shape up the culture. Organizational culture is a set of norms and values shared by people within an organization. The beliefs, principles, ideologies, and values form the culture. Organizational culture importance can be outlined as follows.

Culture or principles and norms determine the way employees interact at their place of work. Healthy values and principles motivate employees to perform in an efficient manner for the betterment of the organization. If the workers perform efficiently, the resources of the company are utilized in an optimum manner to deliver best possible results.

Moreover, favorable attitude enhances the morale of the employees to work to their fullest potential. This increases the productivity of the business enterprise at large. Increased productivity results in reduced cost of production of the product. When the cost per unit of the product reduces, the business is in a better position to market its products at low rates to its prospects. Low prices attract more customers which boost the sale of the company resulting in more profits. Thus, healthy principles within an organization have a positive impact on the growth as well as profitability of the organization.

Norms and principles helps to develop healthy competition at the workplace and employees compete with each other within the organization. This in turn increases the overall productivity and efficiency of the company. Moreover, healthy competition motivates employees to perform better and get promotion.

The norms of the organization guide its employees to work as per the set policies of the company. It serves as a direction for employees to perform their tasks as per predefined policies and strategies of the company. When workers are guided in the right direction, the objectives of the company are attained easily by utilizing less resource in much less time.

No two companies have identical ideologies. The norms of each company are unique; hence, it creates a brand image distinct from other companies. This goes a long way in getting customer recognition among prospects.

Workers in any company come from a variety of backgrounds. They differ in language, habits etc. A common ideology unites employees with different attitudes and motivates them to work together for the betterment of the enterprise.

The working ideology and principles within a business enterprise helps to develop strong relationship among employees. Every worker has a certain assigned task depending upon his skills and credentials. The work is not treated as a burden and employees adjust themselves according to the norms and values of the company to perform better.

Common norms and values brings employee on a common platform to work effectively for the organization. Every person in the organization is treated equally. This reposes confidence among workers who are motivated to work as a team for the profitability and growth of the enterprise.

Thus, organizational culture importance is varied. A company that has better ideologies and principles at work place fares better than other companies and stay ahead in competition. Moreover, it also builds a positive image of the enterprise among its employees as well as the society.

About the Author

Dr. Doreen McGunagle is fiercely committed to guiding corporate and non-profit leaders who are serious about making corporate culture shifts to boost profits, performance, and growth as world-class service organizations. For more great information visit

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