Organisational Culture

An Organisational Culture plays a significant role since it shapes employees behaviours, attitudes and interactions  and influence everything from performance, innovation to employee retention and over all success of a business. 

The words ' Organisational Culture' refer to the beliefs, values, symbols, language, and even norms that help shape the behavior and day-to-day activities of people in a company or institution. To put it simply, it is the personality of an organisation. Otherwise, one could even say that it is the way things are expected to be done withing the organisation.

Key Elements of Organisational Culture:

1. Beliefs—Assumptions and convictions that are taken as true within the organisation.

2. Values—Core principles or standards that guide decision-making (e.g., innovation, integrity, customer focus).

3. Symbols and Language—Logos, slogans, dress codes, or even specific jargon used internally.

4. Norms—Unwritten rules about how employees should behave.

5. Routines—Regular practices such as weekly meetings, awards, and onboarding processes.

6. Leadership Style—The behavior and attitudes of leaders, which often set the tone for the rest of the organisation.

To get a better understanding of the organisatoinal culture we will look in to a few authors who commented and carried this from one step to another in the history.

Although there are several prominent authors who have extensively commented on and contributed to the understanding of organizational culture. Edgar Schein is often considered the "father" of organizational culture, with his work on the three levels of culture under

• 1, Artifacts 

• 2. Espoused values

• 3. Basic underlying assumptions 

Edgar H. Schein:
Schein's work on organizational culture mainly emphasized that organizational culture acts as a significant barrier to both change and understanding how this aspect was crucial for effective leadership. In his eyes a leader must understand the culture of the organization before making changes. They must also work collaboratively and invest in resources and assets to further both analyze and improve organizational culture. 



Another prominent author is Geert Hofstede who described organisation culture as the programming of the human mind by which one group of people distinguishes itself from another group - the set of shared beliefs, values, and norms that distinguish one group of people from another.
• Geert Hofstede

Hofstede's cultural dimensions theory provides a framework for understanding how cultural values influence organizations. His dimensions include power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, long-term vs. short-term orientation, and indulgence vs. restraint






• 
  
• John Kotter is a famous author where his work centers on organizational change, and he emphasizes the importance of culture in supporting or hindering change initiatives. He developed a 8-step model for leading change, highlighting the need to create a sense of urgency, build a guiding coalition, and anchor new approaches in the culture. Further he emphasis that leaders create change by developing strategy and vision
• John Kotter
• John Kotter's theory is widely used framework for leading organizational change. It provides a structured approach to implementing significant changes within a company, focusing on both the process and the people involved. Here's a breakdown of the eight steps:
• 

  
  
  
• 1. Create a Sense of Urgency:
• This step involves highlighting the need for change and making it relevant to employees by emphasizing potential problems or missed opportunities
• 2. Form a Powerful Coalition:
• Building a team of influential individuals who are committed to the change and have the necessary skills and experience to drive it forward is important under these steps
3. Develop a Vision and Strategies: 
Creating a clear and compelling vision for the future of the organisation and developing strategies to achieve that vision was introduced


4. Communicate the Change Vision:
Effectively communicating the vision and strategies to all employees, ensuring they understand the need for change and their role in it


5. Empower Action:
Removing barriers that might hinder progress, such as outdated systems or processes, and encouraging employees to take ownership of the change


6. Generate Short-Term Wins:
Achieving quick, visible successes to build momentum and maintain employee motivation was also considered as important


7. Consolidate Gains and Produce More Change:
Building on the initial successes to drive further change and avoid complacency.


8. Anchor Changes in Corporate Culture:
Making the new ways of working a permanent part of the organization's culture, ensuring that the changes are sustainable.

Another famous is Frederic Laloux who shared his views as that organisations evolve in the same way that human consciousness does and he describes five stages of organisaional structure and culture as follows:

1. Red (impulsive) – Characterised by enforcing authority through power. Focus is on division of labor, top-down authority

2. Amber (conformist) – A common understanding of what is right is internalised according to what the majority believe and think. Focused on replicable processes, a stable organisation chart

3. Orange (achievement) – Organisational members perceive the world as predictable, and understood via rationality and scientific method. Characterised by – innovation, accountability, meritocracy.

4. Green (pluralistic) – Inclusion and equality drive this type of organization, relationships and affiliations are important and shape the organisational culture. Empowerment, values-driven culture, and stakeholder value are key.

5. Teal (evolutionary) – The world is seen as neither fixed nor machine-like. Instead, it’s viewed as a place where everyone is called by an inner voice to contribute based on their unique potential. Characteristics include self-management, wholeness, evolutionary purpose.

According to Frederic Laloux, he provides a clear picture of how culture may evolve in an organization. further he emphasis on adopting more human centric and soulful, practices that optimise engagement and trust in an organisation.

In todays' world organisations adopt to different organisational cultures depending their requirement.

References:

Achievers. (n.d.). Employee Rewards and Recognition Programmes | Cloud-based Employee Success Platform Software. [online] Available at: https://www.achievers.com.

Geared for Growth. (2024). Home. [online] Available at: https://gearedforgrowth.biz.

Nih.gov. (2001). Home - Books - NCBI. [online] Available at: https://www.ncbi.nlm.nih.gov/books.

BDC (2023). What Is Organizational Culture. [online] BDC.ca. Available at: https://www.bdc.ca/en/articles-tools/entrepreneur-toolkit/templates-business-guides/glossary/organizational-culture.

Boogaard, K. (2022). The 4 types of corporate culture, explained. [online] Work Life by Atlassian. Available at: https://www.atlassian.com/blog/teamwork/types-of-corporate-culture.

Pena, S. (2021). How to describe your company culture. [online] Ideas. Available at: https://www.wework.com/ideas/professional-development/creativity-culture/how-to-describe-your-company-culture.

How does Organisational Culture impact on Business Strategy

Organizational culture and business strategy are closely connected with each other. A work culture is the set of shared values, norms, expectations, and beliefs that unites members of an organization. Business strategy is an organization’s set of decisions, plans, and actions to achieve its goals.

Organizational culture has a significant influence on the decisions, plans, and actions of an organization. It shapes how employees think, act, and make decisions. For example, if an organization has a culture of innovation, employees will be encouraged to come up with creative solutions to problems and take risks. On the other hand, if an organization has a culture of risk aversion, employees may be less likely to take risks or come up with creative solutions.

Organizational culture also affects the implementation of business strategy. If a business strategy is in line with the organization’s culture, it will be more likely to be successfully implemented. For example, if a business strategy is focused on innovation and the organization has a culture of innovation, employees will be more likely to embrace the strategy and work towards achieving its goals.

Therefore, it is vital to recognize the value of a strong organizational culture and its benefits for a achieving successful results from business strategies.

Benefits of an Effective Organizational Culture

There are several benefits to a solid and positive organizational culture that will align with business strategies. Following are a few of them:

Improved Employee Engagement

A strong organizational culture can help increase employee engagement, improve employee morale and motivation, and ensure higher job satisfaction and performance levels.

Employee Retention

An influential organizational culture can reduce employee turnover and help build a loyal, productive workforce. When employees feel valued and appreciated, they are more likely to stay with the company, leading to lower costs associated with recruiting and training new staff.

Increased Productivity

An effective organizational culture helps to increase productivity by creating an environment that encourages collaboration and innovation. When employees feel valued and know their contributions are appreciated, they are more likely to be productive and go the extra mile.

Creativity and Innovation

A positive work environment encourages employees to work together and to take the initiative. An optimistic culture welcomes lateral thinking and is open to new ideas, leading to increased creativity and innovation. Furthermore, such a work culture is better at problem-solving and offers an opportunity for new products and services.

Better Customer Service

Customers can expect to be treated with respect, courtesy, and responsiveness and to have their needs met quickly. A solid organizational culture also sets expectations for employees in terms of how they should interact with customers, including being friendly, helpful, and knowledgeable, ensuring a positive experience and making them likely to return. In addition, improved customer service can lead to increased customer loyalty, more referrals, and improved profitability.

Enhanced Organizational Reputation

A positive organizational culture can help improve the company’s reputation, leading to improved brand recognition and a strong competitive edge. An established corporate culture helps differentiate the business from competitors and attract talented individuals to join the team.

Attributes of a Strong Work Culture

A strong work culture is an environment in which employees feel valued and supported and they rust their colleagues and supervisors. It is based on mutual respect and collaboration and encourages creativity and innovation.

References :

Synergita. (n.d.). Synergita - Employee Performance Management Software. [online] Available at: 

Dewar, K. (2025). Organizational Culture: Definition, Importance, and Development. [online] Achievers. Available at: https://www.achievers.com/blog/organizational-culture-definition/.

Joly, H. (2022). Does Your Company’s Culture Reinforce Its Strategy and Purpose? [online] Harvard Business Review. Available at: https://hbr.org/2022/06/does-your-companys-culture-reinforce-its-strategy-and-purpose.

AON (2024). The Impact of Organisational Culture on Business Performance. [online] www.aon.com. Available at: https://www.aon.com/apac/insights/blog/impact-of-organizational-culture-on-business-performance.

A, W.L. (2025). How Does Organizational Culture Impact Business Strategy? [online] Blogs | Resources. Available at: https://www.synergita.com/blog/performance-management-software/how-does-organizational-culture-impact-business-strategy/.

Types of Organisational Cultures

Understanding culture with the organisation is important since it creates healthy and productive work environment while attracting and retaining talented persons with experience.

There are four main types of organisational cultures which is categorizes competing values framework. They are

• Clean Oraganisational Culture

• Adhocracy Oraganisational Culture

• Market Oraganisational Culture

• Hierarchy Oraganisational Culture

Every organization is different, and all of them have a unique culture to organize groups of people. Yet few people know that every organization actually combines a mix of four different types of organizational culture under one leading cultural style, according to research by business professors Robert E. Quinn and Kim S. Cameron at the University of Michigan.

The Clan Culture: This culture is rooted in collaboration. Members share commonalities and see themselves are part of one big family who are active and involved. Leadership takes the form of mentorship, and the organization is bound by commitments and traditions. The main values are rooted in teamwork, communication and consensus. 

The Adhocracy Culture: This culture is based on energy and creativity. Employees are encouraged to take risks, and leaders are seen as innovators or entrepreneurs. The organization is held together by experimentation, with an emphasis on individual ingenuity and freedom. The core values are based on change and agility. 

The Market Culture: This culture is built upon the dynamics of competition and achieving concrete results. The focus is goal-oriented, with leaders who are tough and demanding. The organization is united by a common goal to succeed and beat all rivals. The main value drivers are market share and profitability. 

The Hierarchy Culture: This culture is founded on structure and control. The work environment is formal, with strict institutional procedures in place for guidance. Leadership is based on organized coordination and monitoring, with a culture emphasizing efficiency and predictability. The values include consistency and uniformity. 

References :

Kenton, W. (2024). Organizational Structure for Companies with Examples and Benefits. [online] Investopedia. Available at: https://www.investopedia.com/terms/o/organizational-structure.asp.

Miro (2025). Types of Organizational Structures: Detailed Guide | Miro. [online] https://miro.com/. Available at: https://miro.com/organizational-chart/types-of-organizational-structures/.

Institute of Directors (2025). What is an organisational structure? [online] Institute of Directors. Available at: https://www.iod.com/resources/company-structure/what-is-an-organisational-structure/.

www.impactmybiz.com. (2024). The Four Types of Organizational Cultures Explained. [online] Available at: https://www.impactmybiz.com/blog/four-types-of-organizational-cultures-explained/.

Thompson, K. (2022). Four Types of Culture. [online] ReviseSociology. Available at: https://revisesociology.com/2022/10/14/four-types-of-culture/.

Organisational Structures

Organisational Structures are important to a business since it provides a framework for how tasks are divided, roles are assigned and to communicate effectively with communicational flows within the company.

A well-defined structure helps streamline operations smoothly and to increase the efficiency and also to ensure everyone works towards the same objective. Further it clarifies roles and responsibilities, improve communication and impacts on culture and employee behavior finally leading to optimize how work is done to achieve business goals.

Key Components of an Organizational Structure:

Hierarchy: Defines the levels of authority and reporting lines within the organization.

Roles and Responsibilities: Clearly outlines what each employee or team is responsible for.

Communication Channels: Determines how information flows between different parts of the organization.

Departmentation: Groups employees based on function, product, geography, or other criteria.

Decision-Making Authority: Specifies who has the power to make decisions at different levels.

Organisations adopt different types of structures based on their requirements and they can be categorized as follows :

Types of Organizational Structures:

Functional:

Employees are grouped by their specialized skills and expertise (e.g., marketing, sales, finance).

Divides a company based on their specialized functions, where each department is led by a Functional Manager who oversees the employees with related skills and experience reporting to the Top Management.

 

Divisional:

Divides the organization into semi-autonomous units based on products, markets, or regions.

Divides a company into semi-autonomous units or divisions based on factors such as products, geography or customer groups allowing faster strategies and decision making which improves responsiveness of a business.

Matrix:

Employees report to both a functional manager and a project or product manager.

A matrix organizational structure can be categorizes as multiple reporting lines and cross functional collaboration aiming to achieve the goals of an organisation.

Flatarchy:

Minimizes management layers and 

employee empowerment.

In Flat Organisational structure there are few or no hierarchical levels between employees and leadership

Network:

A more flexible structure with decentralized decision-making and collaboration across teams.

Importance of Organizational Structure:

Efficiency: A well-defined structure streamlines operations and improves productivity.

Clarity: Provides clarity on roles, responsibilities, and reporting lines.

Communication: Facilitates effective communication and collaboration between teams.

Goal Achievement: Aligns all parts of the organization towards achieving common objectives.

Adaptability: A good structure can be adapted to changing business needs and market conditions.

In essence, a strong organizational structure is the backbone of any successful company, providing the framework for efficient operations, effective communication, and the achievement of its goals.

Reference :

Institute of Directors (2025). What is an organisational structure? [online] Institute of Directors. Available at: https://www.iod.com/resources/company-structure/what-is-an-organisational-structure/.

Einstein, B. (2025). How to Adapt Your Organizational Structure. [online] Business Insights Blog. Available at: https://online.hbs.edu/blog/post/organizational-structure.

Olmstead, L. (2022). 7 Types of Organizational Structures +Examples, Key Elements - Whatfix. [online] The Whatfix Blog | Drive Digital Adoption. Available at: https://whatfix.com/blog/organizational-structure/.

Kenton, W. (2024). Organizational Structure for Companies with Examples and Benefits. [online] Investopedia. Available at: https://www.investopedia.com/terms/o/organizational-structure.asp.

The Role of Leadership in Shaping the Organisation

 

Leadership  is playing a critical role in shaping organizational culture. Culture refers to the shared values, beliefs, behaviors, and norms that influence how people within an organization interact and work. Leaders act as both architects and enforcers of this culture. 

Here's a breakdown of how leadership shapes culture:

1. Setting the Vision and Values

Leaders will define and communicate the organisation’s vision, mission, and core values. These elements will become the foundation of the culture. When leaders keep consistently align their actions with these values, it strengthens their importance throughout the organisation.

2. Leading by Example 

Leaders serve as role models or examples for other employees. Employees observe how leaders behave and often mirror that behaviour. For example, if a leader emphasizes transparency, collaboration, and respect, those values are likely to spread across the team.

3. Shaping Norms Through Decision-Making

The decisions made by leaders 0n who gets hired, promoted, or rewarded should be communicate what is truly valued. For instance, if innovation is rewarded, a culture of creativity and risk-taking may emerge.

4. Communication Style

How leaders communicate, both their tone and frequency, sets the tone for organisational dialogue. Open and honest communication will build a culture of trust, while secrecy or inconsistency may lead to fear or confusion.

5. Reinforcing Culture Through Policies and Practices

Leadership influences systems like performance reviews, onboarding processes, and employee recognition. When these systems are in line with the culture, they reinforce it. Mis-alignment can cause confusion and resistance.

6. Responding to Challenges and Change

How leaders respond in times of crisis or change displays the true culture of the organisation. Resilient, ethical leadership during difficult times builds a strong, values-driven culture.

7. Encouraging Engagement and Inclusion

Leaders who value employee input, feedback, and diversity create a more inclusive and collaborative culture. Empowering employees helps build a sense of belonging and commitment.

8. Sustaining and Evolving Culture

Culture is not static. Good leaders regularly evaluate and adapt their cultural strategies as the organisation grows or faces external changes, ensuring long-term relevance and effectiveness.

References :

The Role of Leadership in Shaping Organizational Behaviour. (2023). The Economic Times. [online] 22 Oct. Available at:https://m.economictimes.com/jobs/c-suite/the-role-of-leadership-in-shaping-organizational-behaviour/articleshow/104631813.cms.

The Role of Leadership in Shaping Organizational Behaviour. (2023). The Economic Times. [online] 22 Oct. Available at:https://m.economictimes.com/jobs/c-suite/the-role-of-leadership-in-shaping-organizational-behaviour/articleshow/104631813.cms. A, W.L. (2023). How Leadership, Culture & Organizational Structure Impact Business Performance. [online] Blogs | Resources. Available at: https://www.synergita.com/blog/performance-management-software/how-leadership-culture-organizational-structure-are-interconnected/.

Miraglia, Y. (2024). THE ROLE OF LEADERSHIP IN SHAPING ORGANIZATIONAL CULTURE. Journal of Organizational Culture, Communications and Conflict, [online] 28(3), pp.1–3. Available at: https://www.abacademies.org/articles/the-role-of-leadership-in-shaping-organizational-culture

Building a Strong Organisational Culture

 

Building a strong Organisatioal culture is the base for long-term success of the business along with employee satisfaction and to be align with the business goals.

Following actions can be considered in building a strong Organisational Culture

1. Define Core Values and Purpose

• Clarify mission and vision: Know what your business stands for and where it’s going.

• Identify core values: These should reflect what matters most to your company — not just words on a wall, but principles to live by.

Involve employees in defining values to be gain for the business

 2. Hire for Culture Fit (and Add)

• Recruit people who are along with your values and can enhance your culture with diverse perspectives.

• Use behavioral interviews to assess alignment with core values.

 3. Lead by Example

• Culture starts at the top, therefore Leaders must model their behaviors consistent with the company’s values.

• Leadership should also be accountable and transparent to others

4. Communicate Clearly and Consistently

• Regularly reinforce the mission and values through:

  • All-hands meetings

  • Onboarding

  • Internal communication tools (e.g. Slack, newsletters)

5. Recognize and Reward Value-Aligned Behavior

• Publicly acknowledge team members who exemplify company values.

• Bind all performance evaluations, promotions, and rewards to cultural behaviors—not just KPIs.

 

 6. Create Psychological Safety

• Encourage open communication, feedback, and innovation.

• Make it safe for people to speak up without fear of punishment.

 

7. Actual involvement and bring in Belonging

• Build traditions, rituals, and events that connect people.

• Prioritize diversity, equity, and inclusion initiatives.

 

8. Continuously Evolve

• Culture isn’t static. Solicit regular feedback (surveys, town halls).

• Be willing to adapt values and behaviors as your organization grows and changes.

 Involve employees in defining values to gain buy-in.

 

 

References :

Dewar, K. (2025). Organizational Culture: Definition, Importance, and Development. [online] Achievers. Available at: https://www.achievers.com/blog/organizational-culture-definition/.

Akinpelu, A. (2024). Council Post: Building A Strong Organizational Culture. Forbes. [online] 12 Aug. Available at: https://www.forbes.com/councils/forbescoachescouncil/2024/03/06/building-a-strong-organizational-culture/.

Parikh, N. (2024). Ultimate Guide to Organisational Culture And Building a Solid Team. [online] Talk Magnet. Available at: https://www.talkmagnet.com/blog/organisational-culture/.

A, W.L. (2025). How Does Organizational Culture Impact Business Strategy? [online] Blogs | Resources. Available at: https://www.synergita.com/blog/performance-management-software/how-does-organizational-culture-impact-business-strategy/.

Meyer, E. (2024). Build a Corporate Culture That Works. [online] Harvard Business Review. Available at: https://hbr.org/2024/07/build-a-corporate-culture-that-works.

Culture vs. Strategy : Which drives Success

Both strategy and culture are essential to an organization's success, but culture is frequently regarded as the main motivator since it influences how strategy is carried out and ultimately decides its success. 

Employee engagement, which is in line with values and guarantees acceptance, is necessary for a strong, positive culture. This increases the likelihood that strategic initiatives will be carried out successfully and accomplish their intended objectives. But since strategy gives the company direction and a roadmap, a successful business requires both a clear strategy and a strong culture.

If we go in to more detailed 

Strategy:

Defines the direction: Strategy outlines the goals, objectives, and plans for an organization.

Provides a roadmap: It guides decision-making and resource allocation.

Sets the course: It establishes the path for achieving desired outcomes.

Culture:

It Shapes behavior:

Culture 

dictates how people interact, make decisions, and approach their work.

Drives execution:

A strong culture fosters buy-in, motivation, and commitment to the strategy.

Influences adaptability:

A positive culture can help organizations adapt to change and overcome challenges.

Attracts and retains talent:

A desirable culture can be a major factor in attracting and retaining top talent.

Impacts innovation:

A culture that encourages creativity and collaboration can foster innovation.

The Interplay:

Culture enables strategy:

A strong culture ensures that the strategy is effectively communicated, understood, and embraced by everyone in the organization.

Strategy informs culture:

Strategic decisions can shape and reinforce certain cultural values and behaviors.

Mutual reinforcement:

When culture and strategy are aligned, they create a powerful force for success.

In conclusion, culture is frequently regarded as the more fundamental driver, even though strategy and culture are both crucial. It's the "how" behind the "what," and while a weak culture can undermine the most brilliant strategy, a strong culture can make even a flawed strategy work. According to a number of sources, a business must have both a strategy and a culture in order to succeed, but the culture frequently dictates whether the strategy will be carried out successfully and meet its objectives.

References :

Shaun (2024). Culture vs. Strategy: Why Culture Always Wins and How to Get it Right. [online] The Strong Life Project. Available at: https://www.thestronglifeproject.com/blog/culture-vs-strategy-why-culture-always-wins-and-how-to-get-it-right/ [Accessed 31 Jul. 2025].

Brown, J. (2016). Strategy vs. Culture: The Debate Rages On. [online] Benedictine University. Available at: https://online.ben.edu/programs/msmob/resources/strategy-vs-culture-the-debate-rages-on.

Beez-consulting.com. (2025). Culture vs. Strategy: What Really Drives Organizational Growth? [online] Available at: https://www.beez-consulting.com/blog/culture-vs-strategy-growth-levers [Accessed 31 Jul. 2025].

Al-Fahim, A. (2024). Journal of Entrepreneurship & Organization Management Opinion The Influence of Organizational Culture on Strategic Decision- making Processes. [online] doi:https://doi.org/10.37421/2169-026X.2024.13.503.

Importance of Organisational Culture in a Workplace

 

A Company culture defines and identify how employees interact with each other, work together, and grow in a work place. A positive culture promotes teamwork, boosts the morale, and attracts top talent which is important for an organisation in long run. It creates an environment where employees feel valued and supported, leading to higher engagement and productivity which will enhance the company values in long run.

Culture creates and shapes the company’s identity, whole reflecting its values and priorities. Employees can mingle better with the company’s goals when they experience a strong sense of belonging to the organisation. This creates a path towards loyalty and increase efficiency.

Culture will influences how customers, owners and shareholders  perceive and view the organization as a whole. A healthy workplace culture drives innovation along with collaboration, leading to better problem-solving and business outcomes with satisfied employees working for the company.

Investing in culture strengthens employee relationships, improves retention, and builds a foundation for long-term success. Prioritizing a positive culture creates a ripple effect, benefiting both the workforce and the business.

References :

Dewar, K. (2025). Organizational Culture: Definition, Importance, and Development. [online] Achievers. Available at: https://www.achievers.com/blog/organizational-culture-definition/.

Indeed Editorial Team (2023). Organisational Culture Importance: Benefits and Examples. Indeed Career Guide. [online] 18 Jan. Available at: https://uk.indeed.com/career-advice/career-development/organisational-culture-importance.

Ryba, K. (2023). The Importance of Organizational Culture: Research & Tips. [online] www.quantumworkplace.com. Available at: https://www.quantumworkplace.com/future-of-work/importance-of-organizational-culture-research.

Kidd, C. (2024). Five Benefits Of A Strong Organizational Culture | Fortune Management. [online] www.fortunemgmt.com. Available at: https://www.fortunemgmt.com/post/five-benefits-of-a-strong-organizational-culture.

Strategic Decision Making

In business, strategic decision-making defines the path forward for organisations. Unlike routine choices, strategic decisions determine a company's direction, growth, and ability to adapt to change and to surview. For business leaders, mastering this approach is essential to align decisions with long-term goals of the organisation.

Strategic decision-making is the process of making high-impact choices that are being set with an organization's actions with its long-term vision. Unlike routine or operational decisions, which address immediate needs, strategic decisions are forward-looking and influence the direction of the entire business. These decisions typically involve setting up priorities, allocating resources of the business, and determining the best paths to achieve the key objectives.

At its core, strategic decision-making requires analyzing both external and internal factors to ensure that each choice strengthens the organization's competitive position and prepares it for future challenges. This approach helps strategic leaders navigate complex business landscapes with a clear purpose, enabling the organization to grow, adapt, and thrive over the period of time.

Importance of Strategic Decision Making 

• Actions of the business can be aligned with the long term goals

• Enhance the strategy of the business gain competitive advantage

• Efficient resource allocation

• Reduce Risk and manage efficiently

References :

Ziemba, D. (2025). Strategic Decision Making: Key Concepts and Examples. [online] Strategic Decision Making: Key Concepts and Examples. Available at: https://www.spiderstrategies.com/blog/strategic-decision-making/.

Indeed Career Guide. (2024). What is strategic decision making? (With examples). [online] Available at: https://uk.indeed.com/career-advice/career-development/strategic-decision-making-examples.

Quantive (2024). Strategic decision making - A guide for organizations. [online] Quantive.com. Available at: https://quantive.com/resources/articles/strategic-decision-making.

Rosenzweig, P. (2015). What Makes Strategic Decisions Different. [online] Harvard Business Review. Available at: https://hbr.org/2013/11/what-makes-strategic-decisions-different.