Thursday, December 22, 2016

THE SIGNIFICANCE OF CULTURE

Culture represents the ‘social glue’ and generates a ‘we-feeling’, thus counteracting processes of differentiations which are an unavoidable part of organizational life. Organizational culture offers a shared system of meanings which is the basis for communications and mutual understanding. If these functions are not fulfilled in a satisfactory way, culture may significantly reduce the efficiency of an organization.





Purcell et al (2005) found in their previous research (2003) that in some organizations there was a certain something – christened the ‘big idea’ – that seemed to give them a competitive edge. The big idea consisted of a few words or statements that very clearly summed up the organization, what it was about and what it was like to work there. In turn this enabled the organization to manage its corporate culture and establish a set of shared values, which recognized and reinforced the sort of organization it wanted to be. Thus it was able to establish a strong shared culture within which particular practices that encouraged better performance would be embedded and flourish.

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