The Board of PCC Company, which operates in the investment and risk management industry, has explained that in order to 'take the company to the next stage of its growth' there will require to be significant alters in its internal operations and in the way staff work. The Managing Director feels that whilst the company has built a strong organisational culture, this is now becoming a barrier to realising the company's future aspirations, particularly as future developments may include a merger with another company.
Explain how the organisational culture of PCC Company might influence, both positively and negatively, its performance.
The positive influences of PCC Company's strong culture on organisational performance are that it can:
- Facilitate good communication, coordination and cooperation among different parts of PCC Company. This is because culture is the invisible bond which ties the people in the company together.
- Give a framework for social identity providing the employees of PCC Company with a sense of belonging to the company and in that sense helps in retaining talent within the company.
- Strengthen the dominant values and attitudes of employees in PCC Company and can help in regulating the behaviour and norms between members of staff.