Organizational Culture and Profitability:Responses
Organizational Culture and Profitability:responses
.Social capital is the relationship and norm that determines the type and level of social interaction. Fortune magazine list of most admired companies also are also top profitable companies due to social capital. With a high level of social capital, a company is in a position to realize profits. High social capital means customers will have product loyalty thus more profits. A company can realize profits if it has an excellent culture (Shahzad, & Khan, 2012). An excellent culture thus precedes profits. An organization with an excellent culture means it is organized and geared towards achieving already set goals. Face book’s culture focuses on satisfying individual needs. This is with regards to sharing of individual information as compared to relying on what machines can offer. This culture enables many face book users to stay connected to colleagues and relatives. Unfortunately, issues of invasion arise. Face book faces the task of streamlining its operations and strengthen its privacy policies. This allows face book users to only share information that they need to share.
B.I agree with response B on the effect of fortune 500 companies. Fortune 500 Magazine, lists companies that are performing exceptionally. Other companies and aspiring business people look at the operations and culture of these companies so that they can emulate. It is true that just like face book, Google is a reputable company that has witnessed rapid growth with time. It is also true that Google looked at the immediate need of consumers by providing them with a reliable search engine. I, however, disagree with the opinion that goggle has a search engine that is too slow for the older generation. Google may have a lot of traffic, but it is efficient and reliable and manages to serve all users at once.
C.I agree with response C opinion that high social capital leads to high profitability. A company that has high social capital suggests that it attracts many customers. With more customers, an organization will strive to satisfy their diverse needs. The customers will purchase products and services from the company which in turn translates to profits (Shahzad, & Khan, 2012). I agree that companies such as apple, face book and Google all have excellent organizational cultures. This has made these organizations, the desire of many potential employees. The companies encourage innovation; look into satisfying employees financial and career needs.
D.I agree with response D that the society look at the fortune 500 companies as an institution of success and wealth. I, however, disagree with the notion of giving back to have an excellent culture. Culture in organizations refers to the beliefs, ideologies and principles that employees in an organization share (Shahzad, & Khan, 2012). Giving back to the society is just a section of the ideologies that an organizational culture may have. It does not, however, signify an excellent culture. Organizational culture in an organization refers to the factors that will guarantee success within an organization. Factors such as unity, loyalty, and direction are geared towards an excellent organizational culture. I agree that having a culture like Google, which promote innovation and horizontal relations leads to profitability.
E.It is true that excellent organizational culture results to increased profits and admiration from the public. I agree that the organizational culture in face book focuses on an individual and satisfying individual needs (Shahzad, & Khan, 2012). It is also true that Google’s culture is mathematical and end goal oriented. The adoption of a suitable culture depends on the overall goal of the organization. It also depends on whether the organization is service oriented or product oriented.
Reference
Shahzad, F. & Khan, A. (2012). Impact of organizational culture of organizational performance. Interdisciplinary journal of contemporary research in business. Vol. 3(9)
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