ORGANIZATIONAL CULTURE AND STRATEGIC ALIGNMENT IN FAST MOVING CONSUMER GOODS COMPANY
ORGANIZATIONAL CULTURE AND STRATEGIC ALIGNMENT IN FAST MOVING CONSUMER GOODS COMPANY

Summary/Abstract: The relationship between the organizational culture and the strategic alignment is subject of considerable interest and research. The aim of this paper is to investigate the effect of prevailed organizational culture to the degree of the strategic alignment between the goals of the management and that of the employees in a typical company in the global industry of fast moving consumer goods. In this industry, the turnover is measured in billions of dollars while the revenue earned strongly depends on the human capital. The successful operations are highly depended on the motivation of the people. The problem is that the employees are collocated in various parts of the Globe and companies have to create strong organizational culture that will lead all parts towards the achievement of the global goals, the long-term perspective and the vision of the entire group. The strong culture is important tool in achieving of the desired strategic alignment between the top management and the rest of the company. Idea is to create culture in which the corporate goals will sharpen the motivation of all parts of the company and the employees perform in an alignment with the strategic intent. The applied method of research is a combination of in-company observation and semi-structured interviews of the staff and the managers in two representative offices of one large multinational company, operating in the region of Western Balkans. The results reveal gap between the perception of the regional managers and that of their employees regarding some corporate practices and policies meant to foster the achievement the desired strategic alignment. The managers perceive the company as much more open and with clearer innovative climate and incentive practices, than the employees. If this trend continues, the company might face higher turnover rates and additional costs for training of the new employees and that, in such a highly competitive industry, can easily deteriorate the company’s market valuation.

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