Overt aspects are the formal aspects of an organisation. These are financial
resources, products, custo mers, formal structure, technology, policies,
procedures and rules. These are overt because they are visible (even to
outsiders and new joiners), documented, controlled through formal
management processes and explicitly designed to support the mission of the
organisation.

Covert aspects are the behavioural aspects of culture. These include beliefs,
assumptions and attitudes. Others are informal communication patterns,
informal team processes, informal influence and leadership, political
behaviour and interpersonal relations. These are no t directly u n der the control
of management, not always supportive of the organisation s mission, and not
readily visible to outsiders or new joiners.

A company’s strong culture will have both positive and negative effects on
organisational performance. Positive influences include:

• Identity
  A strong culture provides employees with a sense of identity and belonging. This can be motivational and impact positively on staff retention.
• Communication
  Culture can facilitate good communication and coordination.
• Reduced differences
  Differences between people, groups and members of staff within Invest Africa will be reduced.
• Regulation
  A strong culture will regulate behaviours and norms. Dominant values and attitudes will be reinforced.
• Image
  A strong culture will reflect the philosophy of the founder or the dominant group. This will provide an image and identity to the company affecting the way it is perceived externally.
• Strategy
  This has the potential to differentiate Invest Africa from its competitors and could be the basis for developing a competitive advantage.
  A strong culture will directly impact on the strategy of the organisation and its ability to react to change. Negative influences of Invest Africa strong culture include:
• Inflexibility
  Strong cultures can be deeply ingrained and difficult to change.
• Blinkered
  It could create a blinkered view which may prevent Invest Africa from learning new skills or taking on new challenges.
• Inappropriate values
  If the culture of InvestAfrica is based on inappropriate values it could cause the performance of the organisation to deteriorate. The effectiveness can also be hindered if Invest Africa s strong culture does not have positive attributes in relation to stakeholders and change.
• Conflict
  Strong cultures have the potential to cause conflict when the organisation is in contact with another. This is of particular concern for InvestAfrica Company given that future developments may involve a merger with another company. If conflict does arise it will significantly reduce the likelihood of that merger being successful.
• Environment
  If InvestAfrica Company’s strong culture is not aligned with the environment in which it operates it is unlikely to succeed.

• Unity
  A shared organizational culture helps to unite employees of different demographics. Many employees within an organization come from different backgrounds, families and traditions and have their own cultures. Having a shared culture at the workplace gives them a sense of unity and understanding towards one another, promoting better communication and less conflict. In addition, a shared organizational culture promotes equality by ensuring no employee is neglected at the workplace and that each is treated equally.
• Loyalty
  Organizational culture helps to keep employees motivated and loyal to the management of the organization. If employees view themselves as part of their organization’s culture, they are more eager to want to contribute to the entity’s success. They feel a higher sense of accomplishment for being a part of an organization they care about and work harder without having to be coerced.
• Competition
  Healthy competition among employees is one of the results of a shared organizational culture. Employees will strive to perform at their best to earn recognition and appreciation from their superiors. This in turn increases the quality of their work, which helps the organization prosper and flourish.
• Direction
  Guidelines contribute to organizational culture. They provide employees with a sense of direction and expectations that keep employees on track. Each employee understands what his roles and responsibilities are and how to accomplish tasks prior to established deadlines.
• Identity
  An organization’s culture defines its identity. An entity’s way of doing business is perceived by both the individuals who comprise the organization as well as its clients and customers, and it is determined by its culture. The values and beliefs of an organization contribute to the brand image by which it becomes known and respected.

• Unavoidable
  Every small business has a corporate culture, whether an owner is aware of it or not. While the owner is busy getting a business off the ground, the culture is growing at the same time, becoming an uneasy consensus of “how things are done.” Unfortunately, once this consensus becomes entrenched, it can be difficult to lead employees. The default culture becomes a drag on the owner’s efforts to move the company forward.
• Behaviour Driver
  Any culture, including corporate culture, institutionalizes behavioral norms. This “herd mentality” can discourage innovative thinking and individual initiative, especially if the company doesn’t value adaptability. Additionally, the leadership of a small business models behavior. A company’s management forms a “dominant coalition” that has a profound impact on corporate culture. If managers are at odds or negative, the institutional culture reflects that and encourages negativity in employees.
• Employees May not Accept it
  Employees can be leaders, too, even without legitimate power. Employee relationships form a social system and an informal organization that underlies the formal structure of a small business. This social system is “one of the most important factors of organizational culture,” the book says. An owner should be aware that no matter how much certain values such as hard work or responsibility are touted, if employees model contrary behavior, the corporate culture hurts the company.
• Difficult to Change
  The corporate culture gives employees a sense of identity and belonging that encourages participation in the company. A business doesn’t stand still, however. When an owner decides to make changes, it threatens employees’ identity. Some may see an opportunity, but it is natural for others to wonder what role they will have in the new situation. Others will fear a loss of status. Facing these uncertainties, employees may resent and resist change. Some may even become hostile.
• Misalignment
  No matter how glorious the words of a mission or vision statement, they cannot inspire employee action if the corporate culture will not support it. The culture provides the means of translating mission into action. Communication, relationships, interrelationships, empowerment, the sense that the true values of the organization are aligned with mission — all these determine whether employees can fulfill an owner’s vision for the small business.