The Importance of Culture in Organization

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Each association has a unique subculture, creating it specific & completely different from one to another organization (Norton, 2009). 

 In the event that you have command occupations in various associations, you possibly establish that they need one in all a form designs and methods for working and which employees need to adopt to them. Culture will be generally classified as formal and informal culture. While formal culture tends to de focus on procedures, documentation and formal cultures are run on a friendlier basis with the employees and managers operating with less restriction or limitations (Norton, 2009).

The culture is an intangible force & it adds numerous cultural values to the organizations to make the organizations so special. Culture plays plentiful important roles in Organization.

Figure 1: Basic Functions of Organizational Culture

                                        Figure 01: Basic function of Organizational culture.

                                                    Source: Greenberg, 2011,

 Importance of the Organizational Culture

Organization culture is intangible resource (Kaplan & Norton, 2004) and leads to competitive advantage as this resourced is difficult to imitate by competitors (Greenberg, 2011), and hence, the advantage of organizational culture is as follows (Norton, 2009).

-       The Culture produce unique identity to the organization & that separates one from another.

-       It’s a talent attractor & retainer as seen in Google,

-       Success as an organization by attracting talent due to the culture.

-       The culture creates grater synergy or team work among the people.

Importance of Organizational Culture in Banking Industry

Why Organization Culture importance to HSBC bank

1.       HSBC strategies target on people.

2.       HSBC have a shared purpose.

3.       HSBC can higher serve clients if they devise and maintain the proper environment.

Conclusion

Best culture makes all employees experience secure and welcome, never excluded or uncomfortable. Focusing on “culture fit” alone make it difficult to hire and welcome employees who are different than the prevailing culture, even if they’d be an asset and outstanding counterbalance at your company.

Reference

Greenberg, J., 2011. Behavior in Organization. 10 ed. s.l.:New Jersey; Pearson Education.

Kaplan, R. S. & Norton, D. P., 2004. Strategy Maps: Converting Intangible Assets into Tangible Outcomes. Boston: Harvard Business School Press.

Norton, A., 2009. Integrated Management. London: Elsevier.

 

Comments

  1. Ruwan Herath28 March 2021 at 19:35

    'Cultural fit' is a modern cooperate word and HR has vital role to play when creating a organizational culture. This will be an employee attending tool as well. Author has clearly explained the topic.

    ReplyDelete
  2. Janashi Lamahewa25 April 2021 at 09:54

    My point of view is that organizational culture is playing a vital role in creating a happy, healthy and balanced work environment. For an example as the "Bank of the people" Peoples bank Sri Lanka is rooted in a value based culture focused on creating consistent and sustainable value to its stakeholders. There are three main aspects in their culture. Corporate culture enriched with open, transparent, accountable, customer-centric, goal and team oriented, And Knowledge culture filled with six decades of learning and expertise. Innovation culture with bottom-up approach and a rewarding culture filled with opportunity and aspirations for all team members.
    Nicely written article.

    ReplyDelete

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