What is corporate culture?
Corporate culture refers to the beliefs, values and overall behavior of employees
and how they interact with each other. It also includes how management and
employees interact with outside sources, such as third-party vendors or
customers. Corporate culture is often a vague concept that's implied rather than
expressly defined. It develops organically over a period of time and all those
involved learn from and adapt to it.
Corporate culture provides small businesses with a way of gauging how
employees interact with each other, how they celebrate victories and how
management encourages innovation. Well-defined cultures attract like-minded
professionals who will thrive in the type of environment you have created.
Why is corporate culture so important?
Corporate culture is important because of how it caters to individuals and their
beliefs and behaviors. Employees prefer to work for companies whose corporate
culture aligns with their own beliefs. It also makes for happier and more effective
employees.
Traditional corporate cultures create environments with rules and strict dress
codes that promote high performance. Alternatively, casual corporate cultures
provide a more relaxed and enjoyable atmosphere with fewer rules and are often
more conducive to creative ideation.
How does corporate culture affect employee performance?
Strong corporate cultures encourage better communication among employees,
which in turn guarantees your company a competitive advantage over the
competition. Employees feel valued and empowered within a strong culture, as
though they have more control over their job. Even remote workers often feel
more valued and achieve higher levels of performance. Strong cultures also give
employees the opportunity and encouragement to grow within their roles.
Promotions and training motivate employees and add to the overall corporate
culture. In a comfortable environment that challenges employees to be better,
the organization as a whole reaches and exceeds its goals.