Founders' value really matter to a company?

The key to a successful organization is to have a culture based on a strongly held and widely shared set of beliefs that are supported by strategy and structure. When an organization has a strong culture, three things happen: Employees know how top management wants them to respond to any situation, employees believe that the expected response is the proper one, and employees know that they will be rewarded for demonstrating the organization's values.

Employers have a vital role in perpetuating a strong culture, starting with recruiting and selecting applicants who will share the organization's beliefs and thrive in that culture, developing orientation, training and performance management programs that outline and reinforce the organization's core values and ensuring that appropriate rewards and recognition go to employees who truly embody the values.

An organization's culture defines the proper way to behave within the organization. This culture consists of shared beliefs and values established by leaders and then communicated and reinforced through various methods, ultimately shaping employee perceptions, behaviors and understanding. Organizational culture sets the context for everything an enterprise does. Because industries and situations vary significantly, there is not a one-size-fits-all culture template that meets the needs of all organizations.

A strong culture is a common denominator among the most successful companies. All have consensus at the top regarding cultural priorities, and those values focus not on individuals but on the organization and its goals. Leaders in successful companies live their cultures every day and go out of their way to communicate their cultural identities to employees as well as prospective new hires. They are clear about their values and how those values define their organizations and determine how the organizations run. 

Conversely, an ineffective culture can bring down the organization and its leadership. Disengaged employees, high turnover, poor customer relations and lower profits are examples of how the wrong culture can negatively impact the bottom line.

Mergers and acquisitions are fraught with culture issues. Even organizational cultures that have worked well may develop into a dysfunctional culture after a merger. Research has shown that two out of three mergers fail because of cultural problems. Blending and redefining the cultures, and reconciling the differences between them, build a common platform for the future. In recent years, the fast pace of mergers and acquisitions has changed the way businesses now meld. The focus in mergers has shifted away from blending cultures and has moved toward meeting specific business objectives. Some experts believe that if the right business plan and agenda are in place during a merger, a strong corporate culture will develop naturally. 

Business Case

If an organization's culture is going to improve the organization's overall performance, the culture must provide a strategic competitive advantage, and beliefs and values must be widely shared and firmly upheld. A strong culture can bring benefits such as enhanced trust and cooperation, fewer disagreements and more-efficient decision-making. Culture also provides an informal control mechanism, a strong sense of identification with the organization and shared understanding among employees about what is important. Employees whose organizations have strongly defined cultures can also justify their behaviors at work because those behaviors fit the culture

Modern Organization VS Traditional Organization

Today there are two main flows of organization run concurrently; One Traditional Organization, established in between 20th century another is Modern Organization emerged in this ongoing century. There are huge differences between these two trends. Why the traditional organization criticizes the modern as a misguided and vulnerable organization? What’s the real fact?

 Generally the meaning of organization is an entity comprising multiple people, such as an institution or an association that has a collective goal and is linked to an external environment.

Traditional organization represent the organizational structure in a business is hierarchical, meaning power flows vertically and upward, and employees are departmentalized. All employees follow a chain of command. Such as a manager is the chief coordinator of all departments. Each department has a head who reports to the manager. Like the military system-very hierarchical, organized, disciplined. Every department has its own rules and regulations as well as and every employee has own job description and accountability to his superior. There’s strictly follow their own business strategy that’s set in the annual economic year. All the goal achievement plans are set before and difficult to change. Always traditional organization is fixed and rigid.

Modern Organization means a boundaryless organization which is networking together and collaborating more than ever before. They are well-suited for rapid innovation and therefore ideal for companies in the growing technology industry. Its main concept is to diversify its activities and connectivity as a result it can accept new challenges and can set a goal frequently. Modern style of management largely depends on soft skills – consensus building, relationships, listening, and understanding, taking the team along with you willingly rather than dragging them along with you.

The main points of disagreement:

Stability: People believe that traditional organizations are stable in their activities and progress. On the other hand modern one is more dynamic with its multiple business strategy. They need multiple progress and constant changes.

Flexibility: Modern Organizations are always flexible to change their workflow, focuses as well as connectivity. There the organization is need to update their competitive advantages and the employees are required to upgrade their knowledge and skills. Traditional Organizations are fixed, inflexible and planned.

Hierarchy: Modern Organizations flow “Flat Hierarchy” and Traditional flow “Tall Hierarchy”

Teamwork: Team work is the main concept of modern organization. The organization who build more effective team can gain more. On the other hand a traditional one follows a chain of command where every employee should be obeyed to his superior.

Employee Morale: As an employee of a modern organization get more freedom and flexibility to exchange his or her assessment. Consequently in this type of organization you find high employee morale. Traditional is a job oriented organization so you are not sure about the matter of employee morale.

Risk Management: Traditional organization maintain a specific policy to protect any kind of risk that would be hampered for the organization or its employees. So employees are more educated about the matter thus can take any step. Modern organization are slightly brave in this matter. Though they are always ready to take new challenges so everyone here prepared to face any risk instantly.

Diversification: Moreover the main contradiction between the modern and traditional organization is their business policies. Traditional organizations are slightly conservative and they try to follow traditional rules and regulation. They always flow a static business strategy and make a workflow model maintaining a traditional marketing policy and employee management system. A modern organization is doing modification, rescheduling, flexible entity management and dynamic business strategy.

Technology: Modern Organization is more technology based and boundaryless. So the number of employee or the office compartment doesn’t matter. But traditional organizations are centralized and backward to accept advanced technology.

So today is the right time to think about the business model of your organization. In present situation public demands are unlimited and their attention become diversified. So you should be more dynamic, more virtual and more advanced in modern technology.