Significance of Culture in the Success of a Firm

The article demonstrates the significance of culture in the success of a firm and in the performance of leaders. The primary purpose of the article is to help the leader of the company in acquiring a better understanding of culture and its advantages in the success of an organization.

Ethical Business Management
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Table of Contents
Summary.....................................................................................................................................................2
References..................................................................................................................................................4

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Summary
The article demonstrates the significance of culture in the success of a firm and in the
performance of leaders. The primary purpose of the article is to help the leader of the company in
acquiring a better understanding of culture and its advantages in the success of an organization
(Warrick 395-404). Culture plays an essential role in the effectiveness of the organization and
morale of the employees in sustaining culture within the organization. The attitudes, practices,
beliefs, behavior, and values are referred to as organizational culture. It is crucial for the leaders
of the organization to build or sustain culture to get success as well as the competitive advantage
of the firm. As the culture plays a significant role in the success of an organization, hence the
firm requires to appoint a culture team. The team would monitor the culture of the company and
should help the leaders in implementing various ways to strengthen the culture. The leaders at
Zappos believed in getting the right culture to build a long-term brand and great customer
service. It is observed that a firm with a healthy culture gets high revenue in sales as compared to
a firm without a healthy culture. If a company has high-performance culture, it means the
company has skilled leaders, clear vision and goals, excellent teamwork, positive environment
and open communication (Hock et al. 433-450).
The company with low-performance culture do not have clear vision of the business, lack
of trained leaders, and unclear core values (Bortolotti et al. 182-201). The leaders can influence
the culture by using various strategies, styles, values or practices. The leader of IBM has made
crucial changes in the culture which generated positive impact on the organization. There are
both visible and invisible factors in defining the culture. The obvious factors are layout as well as
the design of the office, dress, and technologies. The invisible factors includes deep beliefs,
underlying assumptions, and expressed values. Culture can be damaged due to sudden changes in

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the market, natural disasters or change in the budget. There are various guidelines provided in
the article for developing culture such as engage the employees in the ideals of the culture, use
stories or symbols, make plans, and recognize valued behaviors. It is seen that more than 60% of
leaders fail to obtain their desired goals because they do not develop a healthy culture.
The article is closely related to the current workplace across different firms. Several
organizations adopt cultures within the company to train their employees with core values. For
example, Kellogg Co. is the organization where the leaders build a strong culture among its
employees. They create a confident team, pursue learning, and remain passionate about their
work. Another organization is McDonald where the members develop a healthy culture for
achieving the results and high performance for the company. There are several factors about the
culture of the company that a leader should know such as matters of culture; culture can be built
by design, hiring of leader or culture those fit to top level in the organization (Sarooghi et al.
714-731). If the culture is neglected, then it will cost to the firm as well as the customers and
employees.

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References
Bortolotti, Thomas, Stefania Boscari, and Pamela Danese. "Successful lean implementation:
Organizational culture and soft lean practices." International Journal of Production
Economics 160 (2015): 182-201.
Hock, Marianne, Thomas Clauss, and Esther Schulz. "The impact of organizational culture on a
firm's capability to innovate the business model." R&D Management 46.3 (2016): 433-
450.
Sarooghi, Hessamoddin, Dirk Libaers, and Andrew Burkemper. "Examining the relationship
between creativity and innovation: A meta-analysis of organizational, cultural, and
environmental factors." Journal of business venturing 30.5 (2015): 714-731.
Warrick, D. D. "What leaders need to know about organizational culture." Business
Horizons 60.3 (2017): 395-404.