Shaping a Thriving Workplace

What is organizational culture?

Organizational culture is the shared values, beliefs, and behaviors that shape how a company operates. It is the personality of an organization and is often described as the "way we do things here."  (Michael, 2013). Organizational culture can be positive or negative, and it can have a significant impact on employee engagement, performance, and satisfaction (Possibleworks, 2023).
 

Why is organizational culture important?
Organizational culture is important because it can have a significant impact on a company’s success. A strong, positive organizational culture can attract and retain top talent, boost employee productivity, and improve customer satisfaction (Workhuman Editorial Team, 2022). Conversely, a weak or negative organizational culture can lead to high turnover, low morale, and poor performance (Possibleworks, 2023).
 

How to define organizational culture
There is no single definition of organizational culture, but it is generally understood to be the shared values, beliefs, and behaviors that shape how a company operates (Michael, 2013). These shared values and beliefs may be explicit or implicit, and they may be communicated through formal policies and procedures or through informal norms and traditions (Michael, 2013).
 

The Four Main Types of Organizational Culture

• Clan culture:
  Clan cultures are characterized by a strong emphasis on teamwork, collaboration, and loyalty. Employees in clan cultures typically feel a strong sense of belonging to the company and are willing to go the extra mile for their colleagues (Kate, 2023).
• Adhocracy culture:
  Adhocracy cultures are characterized by a willingness to take risks and experiment. Employees in adhocracy cultures are typically creative and innovative, and they are constantly looking for new ways to improve the company (Kate, 2023).
  
• Market culture:
  Market cultures are characterized by a focus on results and competition. Employees in market cultures are typically driven to succeed, and they are always looking for ways to outperform their colleagues (Kate, 2023).
• Hierarchy culture:
  Hierarchy cultures are characterized by a clear chain of command and a strong emphasis on respect for authority. Employees in hierarchy cultures typically follow rules and procedures closely, and they are hesitant to challenge the status quo (Kate, 2023).

In practice, most companies have a hybrid organizational culture that incorporates elements of all four main types. The specific mix of cultures will vary depending on the company's industry, size, and values (Kate, 2023).
 

The Seven Core Elements of Organizational Culture
A strong organizational culture is essential for the success of any business. It can attract and retain top talent, boost employee productivity, and improve customer satisfaction (Workhuman Editorial Team, 2022). A weak or negative organizational culture, on the other hand, can lead to high turnover, low morale, and poor performance (Possibleworks, 2023).

There are seven core elements of organizational culture that are essential for creating a positive and productive work environment

• Core values:
  Core values are the fundamental beliefs that guide an organization's behavior. They should be clearly defined and communicated to all employees. Strong core values can help to create a sense of unity and shared purpose within an organization (Kate, 2023).
  
• Unified purpose:
  A unified purpose is the reason why an organization exists. It should be something that is meaningful to employees and that inspires them to do their best work. A strong unified purpose can help to align employees' goals with the organization's goals and create a sense of direction (Kate, 2023).
• Effective leadership:
  Effective leadership is essential for creating a positive organizational culture. Leaders should be able to set a clear vision for the organization and motivate employees to work towards it. They should also be able to create a culture of trust and respect (Michael, 2013).
• Efficient communication:
  Efficient communication is essential for keeping employees informed and engaged. Leaders should be able to communicate effectively with employees at all levels of the organization. They should also encourage open and honest communication between employees (Michael, 2013).
• Accountability:
  Accountability is the expectation that employees will take responsibility for their actions. It is important to create a culture of accountability where employees feel comfortable reporting mistakes and where they are held responsible for their performance (Kate, 2023).
• Recognition:
  Recognition is the act of acknowledging and appreciating employees for their accomplishments. It is important to create a culture of recognition where employees feel valued and appreciated. Recognition can take many forms, such as verbal praise, written awards, or financial incentives (Workhuman Editorial Team, 2022).
• A healthy environment:
  A healthy environment is one that is physically and mentally safe. It is important to create a work environment where employees feel safe to be themselves and where they are not subjected to harassment or discrimination. A healthy environment can also include things like flexible work arrangements and wellness programs (Workhuman Editorial Team, 2022).

By focusing on these seven core elements, organizations can create a positive and productive work environment that attracts and retains top talent, boosts employee productivity, and improves customer satisfaction (Possibleworks, 2023).
 
 
How Organizational Culture Impacts Employee Engagement and Performance
 
What is employee engagement?
Employee engagement is the level of enthusiasm, dedication, and commitment that employees have to their jobs and the organization they work for. Engaged employees are more likely to be productive, innovative, and satisfied with their work. They are also less likely to leave the organization (Michael, 2013).
 
How organizational culture affects employee engagement.
Organizational culture has a significant impact on employee engagement. A strong, positive organizational culture can boost employee engagement by creating a sense of belonging, purpose, and value. Employees who feel like they are part of something bigger than themselves are more likely to be engaged in their work. Additionally, employees who feel like their work is meaningful and that they are making a difference are also more likely to be engaged (Possibleworks, 2023).
 
A weak or negative organizational culture, on the other hand, can lead to low employee engagement. Employees who feel like they are not valued or respected are less likely to be engaged in their work. Additionally, employees who feel like their work is meaningless or that they are not making a difference are also less likely to be engaged (Possibleworks, 2023).
 
 
How to improve organizational culture
There are a number of things that organizations can do to improve their organizational culture and boost employee engagement. Here are a few tips:

• Define and communicate your core values.
  Your core values should be the foundation of your organizational culture. Make sure that they are clearly defined and communicated to all employees (Kate, 2023).
• Create a sense of purpose.
  Help employees understand why their work is important and how it contributes to the organization's goals (Kate, 2023).
• Empower employees.
  Give employees the autonomy to make decisions and the authority to take action (Kate, 2023).
• Recognize and reward employees.
  Acknowledge and appreciate employees for their accomplishments (Workhuman Editorial Team, 2022).
• Foster open communication.
  Encourage open and honest communication between employees and management (Michael, 2013).
• Create a healthy work environment.
  Make sure that the physical and mental work environment is safe and supportive (Workhuman Editorial Team, 2022).

 
The Role of HR in Organizational Culture
 
HR plays a critical role in shaping and maintaining a positive organizational culture. HR professionals can help to:

• Develop and implement policies and procedures that support the organization's core values (Michael, 2013).
• Train and coach employees on how to behave in a way that is consistent with the organization's culture (Michael, 2013).
• Create and administer employee engagement programs  (Possibleworks, 2023).
• Recognize and reward employees for their contributions to the organization's culture  (Workhuman Editorial Team, 2022).
• Investigate and address any concerns that employees may have about the organization's culture (Michael, 2013).

By following these tips, organizations can create a positive and productive organizational culture that boosts employee engagement and leads to improved performance.
 
 
HR professionals can help to create a positive organizational culture by:

• Creating a sense of purpose.
  Help employees understand why their work is important and how it contributes to the organization's goals.
  
• Empowering employees.
  Give employees the autonomy to make decisions and the authority to take action.
  
• Recognizing and rewarding employees.
  Acknowledge and appreciate employees for their accomplishments.
  
• Fostering open communication.
  Encourage open and honest communication between employees and management.
  
• Creating a healthy work environment.
  Make sure that the physical and mental work environment is safe and supportive.

 
By taking these steps, HR professionals can help to create a positive and productive organizational culture that attracts and retains top talent, boosts employee productivity, and improves customer satisfaction.
 
 
The Benefits of a Positive Organizational Culture
 
A positive organizational culture can provide a number of benefits to organizations, including:

• Increased employee engagement.
  Engaged employees are more likely to be productive, innovative, and satisfied with their work.
• Reduced employee turnover.
  Employees who feel valued and respected are less likely to leave the organization.
• Improved customer satisfaction.
  Employees who are happy and motivated are more likely to provide excellent customer service.
• Enhanced reputation.
  A strong, positive organizational culture can attract and retain top talent and boost the organization's reputation.

 
In addition to these benefits, a positive organizational culture can also lead to:

• Increased profitability.
  Organizations with a strong, positive culture are often more profitable than those with a weak or negative culture.
• Improved innovation.
  Employees who feel comfortable taking risks and experimenting are more likely to come up with new ideas and solutions.
• Increased resilience.
  Organizations with a strong, positive culture are better able to weather storms and setbacks.

 
 
Conclusion
 
HR professionals play a critical role in shaping and maintaining a positive organizational culture. By taking the steps outlined in this blog post, HR can help to create a work environment that is attractive, rewarding, and conducive to success.

Reference

Kate, H. 2023. Builtin. [Online]

Accessed on: https://builtin.com/company-culture/types-of-organizational-culture

[20 November 2023].

Michael, D. 2013. Harvard Business Review. [Online]

Accessed on: https://hbr.org/2013/05/what-is-organizational-culture

[20 November 2023].

Possibleworks, 2023. Possibleworks. [Online]

Accessed on: https://possibleworks.com/blog/how-organizational-culture-impacts-employee-engagement-and-performance/

[20 November 2023].

Workhuman Editorial Team. 2022. Workhuman [Online]

Accessed on: https://www.workhuman.com/blog/key-elements-of-organizational-culture/

[20 November 2023].