What are the basic functions of corporate culture

1.5 Which functions does a corporate culture fulfill?


Corporate culture is not an end in itself. It must be measured by the extent to which it contributes to achieving the company's goals.
A corporate culture essentially fulfills the following three tasks or functions:

a) Coordination function: The high degree of division of labor and specialization in modern companies results in a high need for coordination. Not everything can be summarized in schedules and formal regulations. The corporate culture partially takes over the coordination of tasks between the departments and the positions and in this way relieves the company organization.

b) Integration function: The corporate culture makes the company a unified whole. The employees of a company as well as the individual departments see themselves as belonging to a common organization.

c) Motivation function: The sense of belonging, which is associated with a strong corporate culture, has a motivating effect and a sense of purpose for the individual employees.

The corporate culture will have to be measured by the extent to which it fulfills these three tasks.


What are the specific advantages of a good corporate culture?

  • A good corporate culture offers a number of advantages:
  • A higher efficiency and productivity of the service provision
  • A stronger identification of the employees with the company and thus higher motivation
  • Conflicts are recognized, so solutions can be found at an early stage
  • Cooperation, conflict resolution, improvisation and creativity are encouraged
  • Implement innovation and restructuring processes faster and with fewer conflicts
  • A better working and working atmosphere

A positive corporate culture also has a number of advantages in terms of its external effect. These include:

  • Sustainable customer loyalty
  • Easier recruiting
  • A better reputation of your company with suppliers and other partners
  • A positive image in public