Organizational culture

Organizational culture refers to the philosophies, attitudes, beliefs, behaviours and practices that define an organization. Culture influences the behaviour of employees; reflects the thought process of the organization and reveals how things get done there. A new employee joining the company is taught formally and informally as to what is important to the organization and the appropriate way of perceiving, thinking and acting on a day to day basis. Further, culture also affects how people experience an organization , buying from it as a customer or partnering with it as a supplier.

Culture is everywhere. If you were to walk up to the reception area of a company's office, the way you are attended to, how employees move around- whether professionally with a purpose or hanging around gossiping will reveal about the culture of the organization (gives hints about what happens or does not happen in the organization). An appropriate organizational culture, attuned to its goals, aims and objectives can be a great competitive advantage for the company, impacting its effectiveness and success.

The importance of culture in an organization cannot be overemphasized as it shapes the decisions that the company considers as "right decisions", "appropriate behaviour", the way interaction happens with each other, the speed & efficiency with which things get done, the organization's capacity and receptiveness for change and so on. Seemingly invisible, culture reveals the unique personality of the organization, differentiating it from others on a wide range of matters from internal policies and procedures to public relations and customer interactions.

Organizational culture, not only influences the day-to-day experience of employees but also the public perception and brand image of a company. The vision statement, policies, logos, office design, wages, benefits, and the way employees are treated are all reflections of the culture of the company. The organizational culture, also called corporate culture in corporations can be classified into (a) dominant culture and (b) sub culture. Dominant Culture is a set of core values shared by a majority of the organization’s members while the set of values shared by a minority is referred to as subculture. The key to success is ensuring that the organization’s culture, strategy, environment and technology are well aligned.

In this regard, the leadership can strategize and work towards nurturing the appropriate culture keeping  the "end in mind" What is the vision for the business? What are the key strategies? What kind of culture will help drive those strategies? What behaviours will complement and support the process and which behaviours are not acceptable? What steps can be taken to promote a culture of innovation?

Organizational culture is manifested in the form of leadership behaviours, organizational processes and symbols. Leaders’ behaviour not only reflect the culture but also shape it. Therefore leaders need to be vigilant and ensure that their behaviour is in line with the espoused intent and values of the organization. After all, culture is typically created by a founder or top-level managers that is then nurtured over the years by the dominant groups, senior employees, and interest groups. If there is disharmony between what leaders say and practice, it cannot be expected to take deep roots. As for example, you keep talking about the importance of punctuality but senior leaders practice IST ( Indian stretched time)! 

 Similarly processes and systems need to be reviewed and critically examined to ensure that they are in alignment with the culture you are aspiring to build for the organization. As for example, if the organization wishes to develop a culture of trust and empowerment but has a system of obtaining approvals from 10 hierarchical levels before a decision can be taken on a capital expenditure. Both are contradictory and need to be resolved / corrected . In this regard, inputs can be taken from employees and other stakeholders/experts from outside the organization as well for formalizing suitable processes.

Symbols are also important to give the correct signals to the rank and file. As for example, the Japanese introduced uniforms for all employees right from the CEO to the last employee to signify the uniformity in purpose and contribution of everyone in their individual roles. Suits for executives and a separate cafeteria for them may give a totally different message from the culture you would like to cultivate in the organization.

A culture of recognition builds trust and security, and employees are more motivated to continue doing great work. In this culture, the company recognizes and applauds the good contributions of its employees both monetarily and in other forms. Employees feel that the company values their contributions to the success of their organization. According to a study by Bersin & Associates, “companies with higher recognition cultures have as much as 30 per cent lower voluntary attrition rates.” Therefore leaders would do well to appreciate good work. Even at home, a spouse or a child is upset when their contribution (may be cooking a wonderful meal or coming second in class) is not acknowledged. More so, an employee who is not recognized feels slighted and is not motivated to do consistently good work.

In conclusion, it is to be reiterated that a suitable and healthy organizational culture is crucial to the success of an organization. It takes hard work to build it; sharedness of common core values and intensity of commitment to them are all part of building culture.

This post is a part of #BlogchatterA2Z 2023