Organizational culture & negative effects

Organizational culture can increase efficiency since all the employees know the standard practice for completing different tasks.

The employees are trained in the corporate philosophy, which they can ingrain deeply into all employees. The most successful organisations often have a dominant corporate culture employees must follow closely.

Organizational culture can result in group think.

The culture may become so dominant that employees and employers alike may dismiss good ideas that seem counter to the organizational culture. Companies that do not have an open and flexible culture can find themselves losing a competitive edge because they do not adapt to the changes of the market.

Organizational culture can make it hard for employees of one organisation to do business with other organisations.

This fact can impact employees even after leaving a company. The employee may try to impose the old culture into the new environment and as a result take on the image of an outsider unwilling to adapt.

The organizational culture may even seep into the employee's personal life.

If the culture is strong and aggressive, as is the case in many fast-paced investment houses, that culture may impact the way the employee interacts with her family. She may expect the same fast-paced style at home and extend that pressure on her family.

Sadly, some people who become part of an organizational culture for a long time can begin to lose their own identities. The employee can only speak about work and the life becomes work-centric. After time, the employee may not even realise he has lost so much of his personality outside work.