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The concept of organizational culture refers to the shared beliefs, norms and values that employees have within an organization. Organizational culture can be described as the foundation of the strategy. Therefore, in order to successfully develop and execute a strategy, an organization should try to align its strategy with its organizational culture. Additionally, the initiatives and goals of the employees should reinforce and establish a culture which takes into account the strategy of the organization.

Moreover, organizational culture plays a significant role and influences the organizational strategy. Culture can be considered as the medium through which the organization interacts with both its external and internal environment. Therefore, we can conclude that the terms culture and strategy are essentially compatible.

As mentioned above, organizational culture refers to the shared beliefs, norms and values within the company, which means that employees have a shared system of meaning i.e. words and behaviors, which forms the relationships of the individuals, mutual understandings and their communication within the organization. All these elements affect the decision making process of individuals, their interpretation on the subjects discussed and how they manage the environment of the organization. Hence, organizational culture can be used as a tool to achieve competitive advantage and develop a successful organizational strategy.

Can you identify examples of organizational cultures that can enhance the strategy of an organization?

Kind Regards,

Katerina

 

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