Impact of culture

Culture has a significant impact on management and can be defined as the shared values, beliefs, norms and behaviours that shape the way people in an organisation think, feel and act. It influences how decisions are made, how employees interact and how conflicts are resolved. It also helps to create an identity for the organisation and can be used to differentiate it from its competitors. Culture can have a strong influence on the performance of the organisation, as it has the potential to motivate employees and create a sense of loyalty and commitment. It also promotes a sense of trust, making it easier for employees to collaborate. Ultimately, culture is essential to the success of any organisation.

Example of culture

• A strong corporate culture can have a positive impact on the performance of an organisation. For example, a culture that values innovation and encourages employees to take risks can lead to increased creativity and innovation, which in turn can lead to higher levels of productivity and profitability.
• Culture can also have an impact on the way employees interact with each other. For example, a culture that focuses on collaboration and open communication can lead to increased collaboration and a more positive working environment. This can lead to improved morale and performance.
• Culture can also impact the way that conflicts are resolved within an organisation. For example, a culture that encourages open dialogue and the resolution of conflicts through collaboration can lead to more effective conflict resolution and a stronger sense of unity among employees.
• Finally, culture can be used to differentiate an organisation from its competitors. For example, a company that values creativity and innovation can attract top talent, which can give it a competitive edge in the marketplace.

How to use culture

The impact of culture is essential in many aspects of managing an organisation. It can be used to:

• Establish a sense of identity and differentiate the organisation from its competitors.
• Create a sense of trust and collaboration between employees.
• Encourage a sense of loyalty and commitment to the organisation.
• Motivate employees and create a positive working environment.
• Shape the way decisions are made and how conflicts are resolved.
• Create a shared set of values, beliefs and behaviours that guide the organisation.

Impact of culture

Culture has a significant impact on management, influencing many aspects of how an organisation functions. This includes:

• Communication: The way in which employees communicate and interact with each other is heavily influenced by the culture of the organisation. This can affect the way in which information is shared, decisions are made and conflicts are resolved.
• Leadership: The type of leadership style adopted by the organisation is also heavily influenced by its culture. This can range from a more autocratic style, where decisions are made by the top management, to a more collaborative approach, where decisions are made through consensus.
• Motivation: Culture can have a strong influence on employee motivation, as it can create a sense of loyalty and commitment that can lead to improved performance. It can also be used to reward and recognise employees for their hard work and dedication.
• Performance: Culture can have a direct impact on the performance of the organisation, as it can help to foster a sense of trust and collaboration between employees. This can lead to increased productivity, creativity and innovation.
• Decision Making: The way in which decisions are made is also heavily influenced by the culture of the organisation. This can range from a top-down, hierarchical approach, where decisions are made by the top management, to a more participatory approach, where decisions are made through consensus.

Advantages of culture

The impact of culture on management can be highly beneficial to an organisation. The following are some of the advantages of having a strong organisational culture:

• Increased employee engagement and morale: Having a strong organisational culture can help to create a sense of belonging and pride among employees, improving morale and engagement in the workplace.
• Improved communication: A strong culture encourages employees to communicate openly and honestly with each other, helping to build trust and foster collaboration.
• Greater efficiency: A strong culture can help to build consistency and predictability in the way tasks are completed. This not only improves efficiency, but can also help to reduce errors and mistakes.
• Improved customer service: A strong culture can help to create a sense of loyalty and commitment among employees, resulting in improved customer service.
• Reduced employee turnover: A strong culture can help to create a sense of loyalty among employees, resulting in lower employee turnover.
• Increased innovation: A strong culture encourages employees to think creatively, resulting in increased innovation and new ideas.

Limitations of culture

Culture certainly has a significant impact on management, however, there are several limitations to consider. These include:

• A culture that is too rigid can limit innovation and creativity, leading to a lack of progress and a sense of stagnation.
• A culture that is too restrictive can lead to a lack of motivation and commitment, as employees may feel their ideas are not valued or respected.
• A culture that doesn't encourage collaboration and teamwork can lead to a lack of trust, resulting in a lack of communication.
• A culture that is too hierarchical can lead to a lack of communication between different levels of the organisation, resulting in an inefficient decision-making process.
• A culture that is too focused on the bottom line can lead to a lack of understanding of employees' needs and can lead to a lack of engagement.

Impact of culture — recommended articles

Leadership and organizational culture — Elements of organizational culture — Importance of trust — Relationships at work — Types of organizational culture — Emotion and motivation — Determinants of culture — Cultures and organizations — Dimensions of organizational culture

References

• Angel, R., & Thoits, P. (1987). The impact of culture on the cognitive structure of illness. Culture, medicine and psychiatry, 11(4), 465-494.
• Aycan, Z., Kanungo, R., Mendonca, M., Yu, K., Deller, J., Stahl, G., & Kurshid, A. (2000). Impact of culture on human resource management practices: A 10‐country comparison. Applied psychology, 49(1), 192-221.