Importance of Organisational Culture

This article discusses the importance of organisational culture and its impact on the workforce and productivity. It explores different perspectives and conclusions on organisational culture, highlighting its relevance in maintaining viability and effectiveness of a company.

Running head: MANAGEMENT
Importance of organisational culture
Name of the student
Name of the University
Author note

1. Main argument
The ambiguity surrounding organisational culture incites the argument about
what it means and if there is an actual need for it. While some describe the culture as
an observable repetitive behaviour that is core of the cultural value, it negates the
feelings, thoughts of the workforce. In another perspective, incentives drives the
organisation culture. Employees exhibit a particular behaviour motivated by some
monetary gain or recognition. Though there are several perspective about the culture
in an organisation, it cannot be denied that it is the framework on which an
organisations functioning depends on (Elsmore, 2017). Organisational culture is very
important value that instils motivation and values in the workforce however, the
impact is to be evaluated. This topic explores the need of organisational culture and
its relevance.
2. Assumption and Limitation
The article discusses about various point of view concerning organisational
culture. The author offers his synthesis on the opinion of few selected viewpoints in
the discussion he initiated on the LinkedIn platform. The topic that he had taken for
discussion was what was organisational culture and why should we care. The topic
provides useful analysis of the various comments and provides a retrospect analogy to
each comment. The author explains organisational culture is often a repetitive
behaviour he states even though there is truth in this statement it does not consider the
feelings of employee. This explain is valid as research show organisations that do not
value their employees and is not open to their thoughts and views and focuses solely
on work, is leading cause of stress and burnout (Smith, Brescoll & Thomas, 2016, p.
209-224). While examining a comment that said organisational culture is like immune
system, author explains that organisational culture can also help to eliminate harmful

practices that can cause harm to the working environment. In an interview, Ariana
Huffington a board member of Uber, stated the same where the company’s policies
must cater to every employee, and just like immune system, a company needs to
evaluate their policies and eliminate the one that is not beneficial to the workforce
(Connley, 2019).
Even though, this article is discusses about the dynamics and different
perception of organisational culture, it does have certain limitations. It does not
provide readers a particular discussion on the care perspective as is stated on the
topic. It is a literary piece written very well and approached in a creative manner, but
does not detailed information or data to support the synthesis.
3. Main conclusions of the article
The article derives several perspectives on culture and its implications, these
conclusions from the literature in reference. Organisational culture can have
tremendous impact on the work force and productivity of the company. The article
throws light on various work culture ideologies and its possible effect on the
workforce. In large multinational organisations, leaders often feel the pressure to
emulate the culture of the society outside them. Culture and strategy is imperative for
the leaders to maintain viability and effectiveness of the company. While strategy
forms the logical orientation and norms, culture uses value and belief to attain goals
within an organisation. Therefore, it is important for leaders to establish a balanced
approach of culture in the company (Minkov, 2018).
Several cultures that exists within an organisation, under different divisions’
finance, marketing, faculty and others. Therefore, there is no single work culture but
various sub-cultures within an organisation (Da Veiga & Martins,2017, p. 72-94). The
right kind of organisational cultural can prove to be a tactical social order for a

company. Studies show that the norms of the company if properly aligned with the
value system of the employees it can yield long-term profit for the company. The
article concludes that culture is dynamic and should be flexible able to change
according to the requirement of the organisation and environment (Dhir, 2019).
4. Discussion
Organisational culture is an intrinsic value of any company. Success of an
organisation is dependent on its workforce and a motivated group of employee will
deliver incredibly to the overall development of the company. The analysis from the
article as well the study material provide a similar assessment that organisational
culture is an requirement, however the right balance in work culture and ethics can
make or break an organisation (Gibbons & Kaplan,2015, p.447-51). As Edgar Schein
model of organization, culture states that employees undergo various changes through
their experience at work and gradually develop a work culture. Therefore, culture is
based on learning of experiences and is slow gradual development.
According to Robert Cooke, there are three work cultures first the constructive
work culture where employees are involved in positive interaction and culture
promotes growth. Second where there is no flexibility in leadership style and
employees develop certain behavior to cater to their needs. Lastly, the aggressive style
where competition is high and there is no positive interpersonal growth. Organisation
affected by the culture outside the company such as the regional factor, political
environment. A positive work culture should motivate the employees to accomplish
their tasks in given time (Minkov, 2018).
The productivity is directly related to the growth of the organisation, thus it is
important leaders of the organisation choose and practice unique cultural values that is
conducive for everyone (Quang, 2017).

5. CSR approach and analysis
Starbucks is well-known American company that started in the early 1970. It is very
popular brand for coffee lovers and has a global reach of over 75 countries with, over
13.5 million people who are in their loyalty reward program. The “transformational
Agenda” by the CEO Howard Schultz of Starbucks has three main agendas that is
ethical sourcing of raw materials, community development, and environmental change.
Ethical sourcing of raw materials states that Starbucks purchases their products that is
tea, coffee and cocoa from ethically sourced farms (Kang & Namkung, 2018, p.1130-
1151). They believe that they encourage farmers to adhere to ethical farming practices to
grow their products, which ensures the quality of the product and eco-friendly practice.
Favoring the farmers considerably who make better income by selling their products to
Starbucks at a fair market price.
Starbucks supports to develop community stores in partnership with a local non-profit
organisation. Which aims their services towards the betterment of the area they are
located. Starbucks donates $0.05 to $0.15 per transaction to the non-profit organisation.
Starbucks has a very inclusive and diverse work culture, which includes, youths,
military veterans (Responsibility | Starbucks Mission Statement, 2019). They provide
skill training and employment opportunity to these vulnerable groups improving their
quality of life. The Starbucks College achievement plan in partnership with Arizona
State University, offers eligible part time and full time bachelor courses with complete
tuition coverage (Real & Percell, 2018). A milestone for students who find it difficult to
secure a college education due to lack of funds subsequently.
Lastly, Starbucks understands its implication on the environment and targets towards
environmental friendly manufacturers. Starbucks partnered with U.S Green Building

Council in 2001 to adapt LEED (Leadership in Energy and Environmental Design), the
purpose of this project is to use ecologically sourced building materials and energy
efficient sources to reduce carbon footprint and contribute to a sustainable environment
(Boone,2017).. They also pay attention to water and waste management by using
renewal energy sources, recycling, reducing and treating their waste.
These factors help to create a good brand image in the eyes of the public.
Nevertheless, there are certain recommendation that can enable Starbucks to consider
few improvements. Starbucks’s top CSR priority is environment; however, they have
not changed their single use plastic cups that is a high pollutant to the environment.
Starbucks should consider alternative form of selling their beverage without causing
harm to the environment. Lastly, the company depends highly on the loyalty of their
customers and hikes product prices with two-price hike in 2016 alone. The rise in cost of
the product is due to price hike in coffee beans; however, the employees have not seen
any increment in their salary. Management must understand that labour cost are minimal
expenditure in a company as big as Starbucks (Hill, 2017). These are possible
recommendation that Starbucks can consider in their CSR program.
6. Peer reviewed journal on CSR
The first article is CSR Reasons, Practices and Impact to Corporate
Reputation; it is relevant to the following assignment as it discusses the commercial
value attached to recent CSR activities. CSR is a profitable strategy that reduces
negative consequences of business and enhances the positive aspects of the commerce
and marketing. From the article in discussion, the motivation behind the company’s
CSR is finally to promote positive brand image and subsequently boost financial state
of the company (Šontaitė-Petkevičienė, 2015, p.503-508) .

The second literature in discussion is Organizational culture and CSR: An
exploratory study of Estonian service organizations. The article provides data and
analytics to establish the relation between organizational culture and CSR. It provides
valuable information in establishing the relationship dynamics through data. It shows
that a company with CSR has more transparency affects the outsider in this case the
customer’s viewpoint which consequently effects the insider’s point of view that is
the employees (Jaakson, Vadi, & Tamm, 2009, p.6-18). Thus, affecting the work
culture. The study is relevant to the topic as it able to show a correlation between CSR
and organizational culture.
7. Citation
One of the most important factors that impacts a corporate’s reputation is the
perception of its CSR activities on the stakeholder. The activities should aim to meet
the perception of stakeholder’s environmental and social values (Yu & Choi, 2016,
p.226-235).
“Employees in service organizations are in direct contact with other
stakeholders, especially customers. Frequent socialization, breakdown of the internal-
external boundary and heightened visibility of insiders to outsiders, and vice versa
ensures that organizational identity is not formed in isolation.”

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