3 Reasons Why Culture is So Important within Organisations

Culture comes up a lot in business and organisations, especially in the academic side around the subject. Despite this though, many people are ok with just accepting a business culture and going along with it, believing that once a culture has come into play, it can’t be changed. Culture is one of the main reasons that companies fail. Even with a great idea, a culture can cripple an organisation from the inside out. In today’s article, I would like to discuss the 5 reasons why culture is so important. Having the Right People It can take years to acquire a team of the right people. Yet that team could ultimately be the failure of the business, because it doesn’t fit together, the culture doesn’t work. Let’s use a football team as an example. Real Madrid and Barcelona of late are the perfect examples. Real Madrid have always been seen as having best players in the world, they spend millions and millions getting these players so that they can compete, but then Barcelona beat them, because they still have great players, but they have built a team… It is exactly the same in businesses around the world. The best companies don’t necessarily always have the best employees, but they have employees who fit with the rest of the group and work well together. Projecting a Brand Image People often don’t think of this, but a culture within an organisation can be a deciding factor of what kind of brand image is projected to people outside of the company. Take Google for example, a few years ago they were gaining a...

Organisational Environment and Culture

Organisational Environment Definition: The organisational environment is technically anything which is external to an organisation and can affect it in anyway, causing the organisation to react to this change. Fro example if a competitor lowers their prices, then an organisation in the same market may have to react by also lowering its prices, or saying that they have a better quality product which could help brand image and in turn sales, more than selling for cheaper. Organisational Culture Definition: Cultures in organisation is defined by how the organisation is run, how the personalities within the organisation interact with each other and also how the structure of the company is set out. Stable Environments From research it has been found that companies in more stable, simple environments have more standard, formalised cultures which are lead in a central way, not allowing much innovation or out-of-the-box thinking. This is most likely to do with the fact that their isn’t much to change all the time and therefore employees are expected to just get on with their job. Complex Environments This is in contrast to complex, unstable environments, where the culture is more likely to be informal, free-flowing and adaptable, as this leads to innovations, ideas to make change and ideas to help come back when a competitor, or another sector, has made a change. Key Learning Points How would you Define the Organisational Environment? How would you Define Organisational...

The Organisational Domain

The Organisational Domain Definition: The organisations chosen field of action, the part of the environment which they choose to be vital to their company, so if that part changes, they must react. It is the area which the organisation will sell its products and services, in a way their niche (even though it may not be that small). It is said that there is ten different sectors which make up the environment for an organisation, each of which affect different organisations in different ways. These are shown below; Industry Raw Materials Human Resources Financial Resources Market Technology Economic Conditions Government Sociocultural International A good way to remember these is to make an anagram, such as ‘FISH M’ TIGER’  diagram which shows these off quite well is the following; The above sectors are known as the Task Environments and General Environments, depending on how that certain sector affects the organisation in question. Task Environments These are sectors which an organisation will interact with directly and therefore have a direct impact on the company itself. This includes the sectors; Industry Raw Materials Market Sectors Human Resource International Sectors General Environment These are sectors which an organisation will interact with indirectly, not directly every day, but it will indirectly influence the firm. The sectors which are included are the following; Government Sociocultural Economic Conditions Technology Financial Resources Sector More on This Subject To delve in deeper to this topic we recommend the following articles from MyHRMBook.com; An Organisation’s Environment and the Uncertainty this Brings The Culture Created due to an Organisation’s Environment The Resources Available due to an Organisation’s Environment We also suggest...

Environment

Environment Definition: The organisational environment is technically anything which is external to an organisation and can affect it in anyway, causing the organisation to react to this change. Fro example if a competitor lowers their prices, then an organisation in the same market may have to react by also lowering its prices, or saying that they have a better quality product which could help brand image and in turn sales, more than selling for cheaper. As stated above, the environment an organisation is in can be anything which affects it externally, therefore we can build up an environment around an organisation by determining what that organisation does, how it does it, what it needs to do it and many more things like this. Over the years organisations have had to worry about their environment more and more, mainly due to the expansion of international borders. Originally a company, say in Greece, would have only had to worry about competitors in their own countries, after they joined the European Union then this business boundary would have expanded to the whole of Europe, and in turn American as they gain more global appeal. Although this has made concentrating on the environment even more vital, it had also created lots more opportunities, many of which don’t really fit into this section, but some will, such as more opportunity to join up with companies of the same nature in different countries, which will help take on the global market without having to spend as much money on market research etc. The Organisational Domain Organisational Environment and Culture Organisation Environmental Uncertainty Organisational Resources Key...