Just what is “corporate culture”? Corporate culture can be defined as a collection of uniform and enduring beliefs, customs, traditions and practices shared and continued by employees of a corporation. These shared beliefs define an organization’s fundamental characteristics and create an attitude that distinguishes it from all others.
But why is corporate culture so important? Research has suggested that understanding corporate culture as a management philosophy is essential to managing an organization in improving its overall performance. Findings also indicate that corporate culture had an integral effect on employee performance. A 10 years worth of data from Queen’s University Center for Business Venturing (Pontefract in Forbes, 2017) on employee engagement shows that organizations with good culture produce:
65% increase in stock price
26% decrease in employee turnover
100% increase in the number of job applications that come in
20% reduction in absenteeism
15% increase in productivity
30% increase in customer satisfaction rate
The results show that corporate culture is important in motivating employees to be committed to their organization, which is why an organization needs to be aware of the importance of it in order to provide a favorable working environment to its employees and attain their full commitment for organizational success.
Source:
ACT Consulting
ASSE Foundation Research
European Journal of Economics, Finance and Administrative Sciences