2019Economic Herald of the DonbasOpen access

Organizational culture of enterprises: challenges, threats and trends

Natalya Rynkevich

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Abstract

Organizational culture is an important characteristic of the enterprise, which determines, first and foremost, the personality of the company, that is, how it differs from others. Therefore, organizational culture occupies a leading position in the enterprise management system and becomes a key object of modernization. The purpose of this study is to diagnose the current state, identify trends and prospects for the organizational culture of enterprises on the basis of expert interviews. An empirical study of the barrier revealed, which impede the effective development of the organizational culture of enterprises, including: functional disruption impedes data exchange; lack of digital platforms to manage large databases; lack of digital competence of staff; lack of generally accepted definition of client orientation; misunderstanding of the essence of the client-oriented approach to the formation of organizational culture; the company's inability to communicate with customers. It is established that the main obstacles to the transformation of the organizational culture of companies in the conditions of digitalization of the economy include: low level of employee involvement; lack of financial resources; imperfection of organizational structure; lack of clear vision and support for leadership; misunderstanding of digital trends; failure to make the necessary changes to the organizational culture; underdevelopment of IT infrastructure; lack of digital skills; lack of databases. It is proved that there is a direct correlation between the organizational culture of enterprises and financial results. Ways of transformation of organizational culture are defined: improving the qualification of employees, which must meet the modern requirements of functioning of enterprises; introduction of digital technologies that allow to optimize business processes; applying a customer-centric approach, that is, customer orientation; improving the effectiveness of communications between employees; growth in funding. Expert assessment of the influence of endogenous factors on the development of organizational culture of enterprises was performed. Based on the expert survey, the intensity of the use of internal communication channels was determined and the level of development of the organizational culture of the enterprises was evaluated. Priority directions of improving the management of organizational culture of enterprises are proposed.

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Organizational culture is an important characteristic of the enterprise, which determines, first and foremost, the personality of the company, that is, how it differs from others. Therefore, organizational culture occupies a leading position in the enterprise management system and becomes a key object of modernization. The purpose of this study is to diagnose the current state, identify trends and prospects for the organizational culture of enterprises on the basis of expert interviews. An empirical study of the barrier revealed, which impede the effective development of the organizational culture of enterprises, including: functional disruption impedes data exchange; lack of digital platforms to manage large databases; lack of digital competence of staff; lack of generally accepted definition of client orientation; misunderstanding of the essence of the client-oriented approach to the formation of organizational culture; the company's inability to communicate with customers. It is established that the main obstacles to the transformation of the organizational culture of companies in the conditions of digitalization of the economy include: low level of employee involvement; lack of financial resources; imperfection of organizational structure; lack of clear vision and support for leadership; misunderstanding of digital trends; failure to make the necessary changes to the organizational culture; underdevelopment of IT infrastructure; lack of digital skills; lack of databases. It is proved that there is a direct correlation between the organizational culture of enterprises and financial results. Ways of transformation of organizational culture are defined: improving the qualification of employees, which must meet the modern requirements of functioning of enterprises; introduction of digital technologies that allow to optimize business processes; applying a customer-centric approach, that is, customer orientation; improving the effectiveness of communications between employees; growth in funding. Expert assessment of the influence of endogenous factors on the development of organizational culture of enterprises was performed. Based on the expert survey, the intensity of the use of internal communication channels was determined and the level of development of the organizational culture of the enterprises was evaluated. Priority directions of improving the management of organizational culture of enterprises are proposed.

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Available abstract

Organizational culture is an important characteristic of the enterprise, which determines, first and foremost, the personality of the company, that is, how it differs from others. Therefore, organizational culture occupies a leading position in the enterprise management system and becomes a key object of modernization. The purpose of this study is to diagnose the current state, identify trends and prospects for the organizational culture of enterprises on the basis of expert interviews. An empirical study of the barrier revealed, which impede the effective development of the organizational culture of enterprises, including: functional disruption impedes data exchange; lack of digital platforms to manage large databases; lack of digital competence of staff; lack of generally accepted definition of client orientation; misunderstanding of the essence of the client-oriented approach to the formation of organizational culture; the company's inability to communicate with customers. It is established that the main obstacles to the transformation of the organizational culture of companies in the conditions of digitalization of the economy include: low level of employee involvement; lack of financial resources; imperfection of organizational structure; lack of clear vision and support for leadership; misunderstanding of digital trends; failure to make the necessary changes to the organizational culture; underdevelopment of IT infrastructure; lack of digital skills; lack of databases. It is proved that there is a direct correlation between the organizational culture of enterprises and financial results. Ways of transformation of organizational culture are defined: improving the qualification of employees, which must meet the modern requirements of functioning of enterprises; introduction of digital technologies that allow to optimize business processes; applying a customer-centric approach, that is, customer orientation; improving the effectiveness of communications between employees; growth in funding. Expert assessment of the influence of endogenous factors on the development of organizational culture of enterprises was performed. Based on the expert survey, the intensity of the use of internal communication channels was determined and the level of development of the organizational culture of the enterprises was evaluated. Priority directions of improving the management of organizational culture of enterprises are proposed.

Key concepts: Organizational culture, Business, Knowledge management, Competence (human resources), Organizational engineering, Organizational commitment, Organizational learning, Digital transformation

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