7.2 Strong and weak cultures
Culture strongly influences business results. Articles and books on organisational culture tend to validate a 'strong culture'. After studying 80 large American companies, Deal and Kennedy reported that those companies with consistently high performance were companies with strong cultures. Similarly, Peters and Waterman (1982), in their book In Search of Excellence suggested that excellent organisations have a set of shared common values and that their cultures are strong.
It is generally accepted then that strong corporate cultures are 'good', while weak cultures are 'bad' for an organisation. This generalisation needs to be tempered, however, with the understanding that strong corporate cultures can be disadvantageous in certain situations.
For example, if external environmental influences require planned organisational change, a strongly held culture that is resistant to change is likely to be a disadvantage. Strongly held attitudes may also be in direct conflict with organisational objectives.
Organisations need to be able alter their cultures in order to meet future challenges. In Australia , large public sector companies are experiencing deregulation; and the move towards 'corporatisation' has required a cultural shift. Such organisations have traditionally placed emphasis on stability and control and may find problems when attempting to 'corporatise'.
Activity 7.1
A strong culture can provide an organisation with a competitive edge, giving it an advantage over its competitors. Culture is critical in developing and maintaining the level of dedication among employees, which often characterises successful firms.
Explain this statement. Clearly justify your answer, providing examples. (Approximately 600 words)