Importance of Organizational Culture & Qualities of Healthy Organizational Culture
Organizational culture is defined as the set of values, beliefs, attitudes, systems, and norms that guide and affect employee behavior within an organization. Employees, customers, suppliers, and investors all have different perspectives on how the organization and its brand are seen. Culture is formed via consistent and real behaviors (Wong, 2023).
Organizational culture has a significant impact on revenues, profits, recruiting, and staff morale, both positively and adversely. People who have an intention to join and engage in working in an organization are drawn in by a positive company culture. It can motivate people to be more efficient and cheerful at work while decreasing turnover. Furthermore, culture functions as the finest recruiter, recruiting competent applicants who wish to work for a company (Fonseca, 2023).
Importance of Organizational Culture
Employees desire to connect with their coworkers as well as the company's mission and basic principles. Employees also seek a nice work environment. And it appears that businesses desire the same thing. According to Deloitte research, 94% of executives and 88% of employees agree that a distinct corporate culture is critical to economic success (Bloznalis, 2022). Following are main two benefits of establishing a healthy organizational culture;
1. Attraction and Retention of Employees
A positive work culture is founded on valuable employment, open communication, and core beliefs. When employees are welcomed by a positive workplace culture, they are more likely to stay. To recruit and retain the best people, organizations must immerse new hires in a positive company culture that really embraces their fundamental values. This allows employees to easily identify with the entire business and their specific work roles. When organizations implement company rules that improve an employee's experience, employees feel more comfortable in their roles with culture (Bloznalis, 2022).
2. Increasing of Employee Engagement
A truly positive workplace culture changes and develops attitudes of employees, and it has systems set up to manage issues that could lead to a toxic culture. Employees are effectively undertaking their work roles in an organization where such cultures are in place and established over a time (Bloznalis, 2022).
3. Increases Employee Performance
When an organization's culture is solid, broadly conveyed, and maintained, it is able to have greater competitive advantage in the industry. Employees are motivated and give their best output to the corporate goals when they feel valued in an organization, when they feel they have some influence over their professions, when feel appreciated and when feel they have the ability to make decisions to achieve higher goals. Strong corporate cultures also provide opportunity for people to advance. Providing promotions, career development programs, or further training can help to keep employees motivated, which increases performance (Fonseca, 2023).
4. Increase Productivity
Creating a healthy organizational culture that accommodates employees' individual needs and work styles can boost productivity and performance. Create a successful organizational culture, and attractive employee benefits will follow. These perks, whether they are workspaces or benefit packages, have an impact on your employees' enjoyment, and consequently their engagement and productivity. According to Gallup's study, organizations with more engaged employees have higher productivity – up to 18% higher. While any given organizational culture will evolve and shift as the organization expands, leadership teams should take initiatives to align their corporate culture with the company's aims (Heinz, 2023).
Qualities of a Healthy Organizational Culture
Culture is unique for a particular organization and it makes organization special. However, the cultures of high-performing organizations typically reflect the characteristics such as alignment, appreciation, trust, performance, teamwork, integrity, innovation & psychological safety (Wong, 2023).
1. Alignment : Alignment occurs when the organization's aims and the employees’ motivations pull in the same direction. Exceptional organizations work to ensure that its vision, purpose, and goals are always in sync.
2. Appreciation: A culture of appreciation is one in which all team members routinely recognize and praise others for their contributions.
3. Trust: An organization cannot function without trust. When there is a trusting culture, team members may express themselves and rely on others to support them when they implement innovations.
4. Performance: Performance is critical because strong organizations foster a business-oriented culture. Talented personnel in these organizations motivate one another to achieve higher profitability and productivity.
5. Teamwork: Teamwork entails collaboration, communication, and mutual respect among team members. Employees will get more done and feel happier if everyone on the team encourages one another.
6. Integrity: When teams rely on one another to make decisions, analyze results, and build partnerships, integrity is essential. This facet of society relies heavily on honesty and transparency.
7. Innovation: A culture that fosters creativity make employees to think and work innovatively.
8. Psychological Safety: This gives employees the confidence they need to take chances and provide honest feedback. Managers must take the lead in creating a secure workplace where everyone feels comfortable contributing. Psychological safety begins at the team level, not the individual level (Wong, 2023).
Conclusion
Organizational Culture is highly impacting on the performance and many other sensitive areas in the corporate world. Culture is unique to a particular organization and having a healthy organizational culture avails many benefits to both organization and its employees. In order to attract best employees, to increase employee engagement, performance and productivity, healthy culture of the workplace is very important.
References
Bloznalis, S. (2022) Workplace culture: what is it and why is it important in 2023? [Online]
Available from: https://www.workhuman.com/blog/workplace-culture/ [Accessed 18 August 2023].
Fonseca, N. (2023) How does company culture impact employees? [Online] Great Place to Work.
Available from: https://www.greatplacetowork.ca/en/articles/how-does-company-culture-impact-employees [Accessed 18 August 2023].
Heinz, K. (2023) Why is organizational culture important: 4 keys benefits.[Online]
Available from: https://builtin.com/company-culture/why-is-organizational-culture-important [Accessed 18 August 2023].
Wong, K. (2023) Organizational culture: definition, importance and development.[Online]
Available at: https://www.achievers.com/blog/organizational-culture-definition/ [Accessed 18 August 2023].
A healthy organisational culture is very important to promote employee productivity in organisations as you have clearly described here.
ReplyDeleteIn an organization with a healthy culture, employee engagement is at a good level as shown in the article. Work creation, production etc. are meaningful and safety while trust, integrity teamwork are increasing, Organizational culture helps improve workflows and guides the decision-making process. It also helps teams overcome barriers of ambiguity.
ReplyDeleteEmployees have a sense of belonging, they will feel empowered, and their productivity levels improve. Employees are more likely to go the extra mile if they are invested in the company.
ReplyDeleteOrganizational culture is an important aspect of modern business. It affects the way your employees work, how customers interact with your business and how your company functions internally. A culture that promotes productivity and innovation is a culture that will thrive. The benefits of a strong organizational culture are too many to list, but the most important one is likely the most obvious one
ReplyDeleteIn the corporate world, organizational culture has a significant impact on performance and many other delicate areas. A given organization's culture is distinctive, and having a positive organizational culture offers many advantages to both the firm and its personnel. A positive workplace culture is crucial for luring in the top candidates and improving productivity, performance, and employee engagement.
ReplyDeleteThis is most appropriate to the current business world rather conventional businesses. Since most of the companies are facing VUCA environment. Best organization culture is a proactive tool to participate all stakeholders best values against through VUCA environment.
ReplyDeleteOrganizational culture is the backbone of any successful company. A positive culture promotes employee engagement, collaboration, and innovation. It's not just about perks and benefits, but about creating an environment where employees feel valued and motivated to give their best. Companies that prioritize their culture tend to have lower turnover rates and higher productivity.
ReplyDelete