This is because of the understanding that the ability to understand the culture and leadership style of an organization determines to a large degree the capacity to understand strategic management of an organization. Organizational culture and leadership form two critical factors that impact strategic management and the path an organization is likely to pursue. Every manager in a corporation is faced with one principal aim; increasing the shareholders’ wealth by improving on the bottom line. To attain these objectives, a firm has to develop a clear delineation and paucity of the effects of the fixed assets and current assets has on the returns and risks. These underline the culture and financial management in organizations.
Working capital management in this subtext will refer to the management of current assets. According to Naila, the management of current assets differs from that of fixed assets in 3 principle aspects; fixed assets are for periods extending more than a year while current assets are held for less than a year, large holdings of current assets, especially as concerns elements such as cash, strengthens the liquidity position but also reduces overall profitability. Leadership and culture influence the choice of decisions made in an organization in regard to planning, management of resources and execution of decisions. The central objective of leadership in an organization is aimed at driving the envisioned forms of practices within an organization. This takes into consideration all the other related policies and strengths that an organization has the capacity to exploit for its mutual benefit and that of the employees.
These include both the financial and non-financial components and touch on the culture of the business. The underlining of leadership and culture within the operations of an organizational unit are key drivers in the enhancement of business success. The aspect of leadership should not radically impact the culture of an organization. These important aspects of organizational operations can best translate to the benefits when they perfectly complement each other. It can be confidently stated that from the above discussions, leadership and culture of an organization are critical pointers to the management style in an organization and should be structured in a way that does not conflict or tend to change the other radically. A cocktail of benefits can be realized from such initiatives.