The Significance of Corporate Culture – Nu Leadership Series

”Wealth in the new regime flows directly from innovation, not optimization; that is, wealth is not gained by perfecting the known, but by imperfectly seizing the unknown.”
Kevin Kelly

As the turbulent times of 21st century continue, organizational culture remains an undervalued necessity for most large organizations. Some bureaucrats care more about the process than the people. Title and position become a key element in maintaining the status quo. Legitimate power, authority gained by a formal hierarchy, is how most managers influence followers. Few individuals lead with an inspired attitude but by the adage “do as I say, not as I do.”

In leading in this manner, the importance of organizational culture is lost. Roberts and Rollins, management experts, explain that culture plays a critical role in stimulating organizational effectiveness. They argue that culture can either strengthen or hamper organizational effectiveness. Therefore, many organizational initiatives become passing fads because bureaucrats overlook the importance of changing culture, and followers become disenchanted with the whole process.

Cameron and Quinn, organization researchers, argue that in successful organizations, market forces have less of an impact than company values. Miller reaffirms this point by explaining that organizational culture influences nearly all of an organization’s processes, from execution of strategy to the implementation of new business alliances. Therefore, organizations should not overlook the significance of culture in organizational performance.

References:

Cameron, K. & Quinn, R. (2006). Diagnosing and Changing Organizational Culture. San Francisco, CA: Jossey-Bass.

Draft (1995). Organization Theory and Design. New York: West Publishing Company.
Miller, K. (2003). Assessing Your Institution’s Culture. The RMA Journal, 86(4). Pg. 32.

Roberts, D. & Rollins, T. (1999). Targeted Culture Modeling: A New Approach to Culture Assessment and Change. Employment Relations Today, 23(2). Pg. 7.

© 2006 by Daryl D. Green