Importance of Positive Corporate Culture for an Organization

Why it is Important for an Organization to Keep Positive Corporate Culture

The increased competition and the uncertain world economy have increased concerns on how organizations do their business. Consequently, the organization culture has been identified as one of the key elements that can drive organizational growth. The concept of organizational culture can be defined as the set of beliefs and values, which are embedded in the organization (Tsai, 2011). Culture has an influence on how people behave, think and how they work. Keeping a positive corporate culture helps in creating efficiency and motivated workforce. In effect, corporate culture has unprecedented impact on the organizational employees and the ability of the progressive organizations to meet their objectives and corporate vision.

According to (Tsai, 2011), other aspects of the organization such as strategies, products or services can be duplicated. However, the corporate culture is unique and it identifies each organization. Having a positive corporate culture helps in creating the basis for strong and positive work culture within the organization. The cultural foundations based on commitment, engagement, trust and wellbeing in addition to the behaviors of the leaders reflect strong cultural foundations. These tenets of the cultural foundations are important in the development of positive corporate culture, which drives organization growth.

            In addition, organizational leadership has an influence on the way the employees behave and interact with one another (Tsai, 2011). When such influence is based on positive organizational culture that is rooted in trust, commitment and engagement, the organizational employees will be motivated to work more (Roos & Van Eeden, 2008). In contrast, a toxic leadership influence, based on mistrust and lack of employee engagement leads to demotivation, which results in poor performance and high employee turnover rates. In fact, one of the issues that an employee evaluates while seeking for employment us the organization culture. A positive corporate culture helps the organization in attracting and retaining best talent.

            In economic perspectives, positive corporate culture brings dramatic and a sustainable increase in production and performance. According to (Roos & Van Eeden, 2008) an average employee often contributes less than 21% of their potential. Most progressive companies have recognized the need of harnessing the extra employee potential through appropriate elements of positive corporate culture. Some aspects such as teamwork, motivation, financial incentives and responsiveness to change, give the employees the desire to improve productivity and workplace performances.

            Organizations exist to serve the interests of its stakeholders and shareholders, with the view of creating a shared value. The ability of an organization to attract investors or create shared value hinges on its corporate culture (Garmendia, 2004). A positive corporate culture helps in enhancing the reputation of the organization. Progressive companies that have positive corporate culture enhance their reputation and are in better position to attract skilled workers and investors. Most investors assess the organization culture in order to determine the direction that the company is headed.          

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Finally, positive corporate culture helps the organizational employees in producing services and products of the highest quality. Companies whose culture encourage and values high standards create an atmosphere that enables the employees to meet such standards (Garmendia, 2004). The positive corporate cultures for product/service excellence are important in the creation of products and services with the reputations of high quality.

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