Corporate Culture and Its Impact on Organizational Growth

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ORGANIZATIONAL PSYCHOLOGY
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Corporate culture is the beliefs and the behaviours that decides how an organization’s
management and the employees interact and handle the business transactions (Hickman &
Silva, 2018). The culture of the organization refers to the business hours, dress code,
turnover, hiring decisions, client satisfaction, benefits that the employee gets, office setup etc.
These are some of the factors that influences the working environment of the organization.
The corporate or organizational culture has a direct impact on the growth of the organization.
Corporate culture are generally of 5 types and those are:
 Team-first Corporate Culture: Team oriented style companies focus on building a
corporate environment that is employee friendly (Pan, Siegel & Wang, 2017). They
believe that happier employees will provide better customer satisfaction. Making their
employees happy is their top priority. One such company is Zappos who are famous
for their fun culture and this leads to the brilliant customer satisfaction. This team
culture helps the employees to freely interact with the management and this resolves
many problems in the organization.
 Elite corporate culture: These team culture are used by those who wants to innovate
and bring change in the market. An elite organizational culture hires the best
employee. Companies with the elite culture hires the employees who are capable,
confident, and competitive. One of the best example of the organization who uses this
wok culture is the SpaceX (Hernandez, 2013). The employees within this work
culture aren’t afraid of questioning the things which can be improved, the top most
priority for them is their work and they generally have a long working hours. They
has highly skilled employees who are looking to innovate all the time (Benn, Edwards
& Williams, 2014).
 Horizontal corporate culture: This type of work culture is common with the start-up
business because it is a more collaborative work culture. In this work culture,

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everyone tries to pitch in his or her thoughts and mind-set. Basecamp is the suitable
example of this workplace culture. All the employee tend to participate in this type of
work environment. The organization continuously improves their product in the
market so that they can be ahead of their rivals (Carlos Pinho, Paula Rodrigues &
Dibb, 2014).
 Conventional corporate culture: These are the traditional method of managing the
corporate culture. In this corporate culture, the organization has some strict guidelines
for most of the departments and individuals. The interaction between the departments
are very less. The CEO decides most of the decisions that are taken in the company.
 Progressive corporate culture: The progressive working culture is the one in which the
employees talks openly about the competition and the possible solution to handle the
competition. The organization who uses the progressive work culture has a high
turnover rate. Any change in the market has a direct impact on the revenue of the
company. One of the example of this corporate culture that can be seen in LinkedIn
(Kim, Kim & Nam, 2014).
Corporate culture has a direct impact on the customer relations and social responsibility.
A good corporate culture has a positive impact on the production and growth of the
organization. Corporate culture ensures that the conflicts and arguments within the workplace
decreases with the help of some guidelines that is set by the organization. A good corporate
culture has the following effects on the organization:
 Satisfied customers: Business organization that have treated their employee properly
and provided a friendly work environment has proved to deliver good customer
service. The profit driven company who have only focused on increasing the profit
have suffered loss in the long-run. A company that values its customer will give
employees who value their customer (Keintany & Riwo-Abudho, 2014).