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Essay / Organizational culture: the values of culture on a...
This classification of corporate culture does not imply that a type of culture is positive or negative, but describes the influence that culture has on its members. Studies have indicated that organizations with a strong culture are often a sign of excellent management (Peters and Waterman, 1982). Strong organizational cultures express clear messages about the qualities important to a company. These shared values are beneficial to organizations because they improve communication and decrease disagreements, thereby improving the effectiveness of the decision-making process (Sathe, 2003). Additionally, members of strong cultures are able to identify strongly with that culture. This is an asset for an organization because being able to identify with a culture creates a feeling of belonging among employees. This improves engagement with a company, which in turn improves overall company performance. It is also argued that there is a link between the type of culture of an organization and economic performance, visible through Starbucks and AIG. Flamholtz and Randle (2012) asserted that Starbucks, known for having a strong positive culture and whose employees display consistent messages about the company's priorities, has experienced high levels of economic success. However, AIG's dysfunctional corporate culture, displaying conflicting messages about the company's core concerns, nearly drove the company into bankruptcy in 2008, demonstrating how a strong organizational culture can contribute to the company's success. a business.