Impact Of Organizational Culture On The Procedure

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Impact Of Organizational Culture


1.0 Introduction to the topic 

One of the most important factors that have an impact on the operations and activities of an organization is its organizational culture. For example, the organizational culture decides the manner, in which workers interact at the workplace, brings its employees on the common platform, helps in creating its brand image and others. However, there are various other points as well, in which the culture of an organization has an effect on the accounting techniques and procedures used in accounting within the organization (Alvesson, 2016). This is because there are various procedures and techniques in accounting such as activity-based costing, activity-based budgeting, cost accounting, balanced scorecards, and others, which are applied in an organization. However, in the case of a passive and bad organizational culture, the use of these procedures and techniques is automatically affected. As a result, organizational culture directly influences the quality of the accounting information systems within an organization and its corporate reporting practices. 

The Grant Thornton is the sixth largest professional services network across the globe that is concerned with independent accounting as well as consulting member organizations that provide tax, advisory, and assurance to different private and public sector businesses (Grantthornton.com, 2018). However, the accounting procedures and techniques used within an organization are largely affected due to its organizational culture. In this literature review, the impact that organizational culture has on Grant Thornton’s accounting procedures and techniques is going to be evaluated. 

2.0 Present brief summary of the theory and discussion of progression in the field

2.1 Basics of Organizational culture

According to Hogan and Coote (2014), organizational culture can be referred to as the assumptions, the underlying beliefs, the values as well as the ways with which people or individuals in an organization interact with one another, which in turn contributes to the unique psychological and social environment of any organization. The shared values and beliefs within an organization have strong influences on the individuals of the organization and have an influence on the attitudes and behavior of the workers in an organization and various other activities such as the selection and use of accounting techniques and procedures. 

2.2 Issues involved in incorporating organizational culture

There are several issues, which an organization has to face in order to set up or incorporate a specific organizational culture (Bercea et al., 2017). Maintaining the organizational culture is itself a major issue or challenge for a company. Organizational culture should also be represented throughout a company constantly in order to reinforce a positive and optimistic culture in the company. Another issue is to involve the employees working in an organization for maintaining or incorporating a strong and sound organizational culture. This is mainly because employees are mostly reluctant towards embracing a new or a change to the existing organizational culture. Inaccessibility and shifting away from the traditional patterns of work is another factor that acts as a hindrance or an issue towards the incorporation of a good organizational culture.

2.3 Issues faced by Grant Thornton during incorporating organizational culture

From the analysis of the organizational culture at Grant Thornton, it can be determined that the organization considers its culture as one of its most valuable assets, which has steered it in the right direction for more than 100 years. However, there are several issues, which the organization has had to face, in order to incorporate and maintain its organizational culture. For example, increasing regulations and regulatory expectations have made it necessary for Grant Thornton to have a regulatory pressure on its culture (Grantthornton.com, 2018). However, in order to establish such a culture, the organization has faced the issue of employee resistance. There is a number of employees who have been reluctant towards accepting this culture, as they thought that pressure was being created on them and this would be of no good to them. Shifting away from the traditional method in which work was done in the company has been another issue in incorporating Grant Thornton’s current organizational culture. However, these issues have been resolved and the organization Grant Thornton now maintains a good organizational culture.



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