ON THE INFLUENCE OF CORPORATE CULTURE ON MANAGEMENT PROCESSES

Abstract

There has been analysed the importance of corporate culture in the activities of companies. It is noted that the presence of an effective corporate culture or its individual elements significantly improves the work of the organization, its business processes, also has a significant impact on the achievement of key financial indicators, increasing the number of customers and consumers, establishing relationships with external target groups, improving the moral and psychological climate. Based on statistics, it is noted that in domestic companies not enough attention is given to corporate culture, even if its importance is recognized by managers, in contrast to foreign organizations that create appropriate units for corporate culture, develop special programs for its implementation in the staff and mechanisms for combining some of its elements with specific target indicators. There have been shown the research results of the influence of corporate culture or its separate elements on the general administrative processes, namely: planning, organization, motivation, control and regulation. In particular, on the basis of the research by both business scholars and practitioners it has been shown that corporate culture influences the development of strategic plans, as key elements of corporate culture such as mission, vision, logo, slogan, history are also key elements of strategy, thus, contributing to the achievement of set goals for the growth of financial performance of the organization, customer loyalty, their credibility in a recognizable brand. The chosen type of corporate culture sets the main strategic directions of the company, in particular: the type “baseball team” contributes to the implementation of the strategy of rapid growth, and “academic club” contributes to the implementation of the strategy of moderate growth. Regulated values are of great importance in the organization, for which, in order to strengthen the impact, clear visual rules of their use in current activities must be prescribed. The key role of corporate culture is its stimulating function, which ensures proper involvement of employees, their recognition, which, consequently, contributing to their positive motivation to work, reducing staff turnover, absenteeism, mistakes and increasing productivity, number of customer and etc. Forming the basic postulates of the company, corporate culture creates a standard of action used in controlling business processes. And if they deviate from the declared statements – to regulate them.