Theoretical and methodological basis of research organizational culture as a factor of strategy implementation

Abstract

Culture is the way of organization, identity, and model of its dynamic relations. No management idea, no matter how good, will not work in practice (implementation) if it does not match the culture. An organization can have a great strategy, but the process will continue if its culture is aligned with and supportive. Culture establishes and maintains order, structure, membership criteria, conditions for evaluating effective performance, communication patterns, expectations and priorities, reward and punishment, the nature and use of power, decision-making practices, and management practices. Every successful organization has a core culture that is central to the functioning of the organization, forming the core of how that organization works to achieve success. The leadership culture must be aligned with the organization’s strategy and core leadership practices. A strong, consciously formed organizational culture ensures the achievement of organizational goals in the most effective, humane, and socially acceptable way. It contributes to implementing the organization’s strategy by creating an effective motivational mechanism that would encourage high initiative, effectiveness, and loyalty of its personnel. This allows the organization to receive the so-called management profit. In connection with this, the task of management becomes the creation of conditions for the realization of the individual’s potential, which can be used only in situations of goodwill, mutual understanding, support, and cooperation on the part of colleagues, which allows to reduce many negative factors of the internal environment of the organization in the field of group dynamics, conflict, labor productivity, staff turnover, employee satisfaction. Effective management and control of the degree of compatibility of the organizational culture with the organization’s strategy reduces the risk of inconsistency in the decisions made. In organizations with a weak corporate culture, there is a decrease in the degree of manageability and compatibility of the organizational culture with the company’s strategy. In cases of an increase in the degree of importance of the task of the strategy’s success, the risk becomes unacceptable.