Exit Strategies In Credit Risk Management
Firms often give loans or extend credit over extended periods of time. The credit extended may continue for years and even decades. It is possible for the management of the company to change during this period. It is also possible for the cash flow position of the company to change during this period. Hence, it […]
Benefits of Enterprise Risk Management
In the previous article, we have discussed the concept of enterprise risk management (ERM) and how it is different from traditional risk management. We also discussed how enterprise risk management (ERM) is now being adopted by an increasingly large number of companies across the world. This large-scale adoption is because of the various benefits which […]
Will Capitalism Destroy Itself?
Karl Marx was one of the most influential philosophers and economists during the 18th century. His ideas relating to economics are profound and have an enormous impact on the world today. The amazing thing about Karl Marx was that he was able to predict the crisis that capitalism would go through. Even though Marxism and […]
Concept of Reinstatement in Reinsurance
Ceding insurance companies take reinsurance in order to protect themselves from massive losses that may occur when catastrophes occur. The problem is that when these catastrophic events do occur, the maximum limit of the reinsurance contract is breached. As a result, ceding insurers may find themselves without any coverage in the middle of the year. […]
Loss Occurrence Clause in Reinsurance
Most reinsurance treaties are structured in an excess of loss format. This means that the reinsurer is liable to pay the ceding insurer only when losses exceed a certain amount. For example, the reinsurer is liable to pay the ceding insurer all losses which are above $1 million. If the losses are below $1 million, […]
An organization is nothing but a common platform where individuals from different backgrounds come together and work as a collective unit to achieve certain objectives and targets. The word organization derived from the Greek work “organon” is a set up where people join hands to earn a living for themselves as well as earn profits for the company. An organization consists of individuals with different specializations, educational qualifications and work experiences all working towards a common goal. Here the people are termed as employees.
The employees are the major assets of an organization and contribute effectively in its successful functioning. It is essential for the employees to be loyal towards their organization and strive hard in furthering its brand image. An organization can’t survive if the employees are not at all serious about it and treat their work as a burden. The employees must enjoy whatever they do for them to deliver their level best.
The attitude, traits and behavioral patterns which govern the way an individual interacts with others is termed as culture. Culture is something which one inherits from his ancestors and it helps in distinguishing one individual from the other.
Every human being has certain personality traits which help them stand apart from the crowd. No two individuals behave in a similar way. In the same way organizations have certain values, policies, rules and guidelines which help them create an image of their own.
Organization culture refers to the beliefs and principles of a particular organization. The culture followed by the organization has a deep impact on the employees and their relationship amongst themselves.
Every organization has a unique culture making it different from the other and giving it a sense of direction. It is essential for the employees to understand the culture of their workplace to adjust well.
In organization A, the employees are not at all disciplined and are least bothered about the rules and regulations. They reach their office at their own sweet time and spend their maximum time gossiping and loitering around.
This organization follows employee friendly policies and it is mandatory for all to adhere to them. It is important for the employees to reach their workplace on time and no one is allowed to unnecessarily roam around or spread rumours.
Which organization do you feel would perform better ? — Obviously organization B
The employees follow a certain culture in organization B making it more successful than organization A.
No two organizations can have the same culture. The values or policies of a non-profit organization would be different from that of a profit making entity or employees working in a restaurant would follow a different culture as compared to those associated with education industry or a manufacturing industry.
Broadly there are two types of organization culture:
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