How does an organizational culture develop?

How does organizational culture affect team performance? How to develop the culture of your team?

It is important to understand the organizational culture of your organization in the workplace. It’s the glue that binds your employees to the company. Employees who understand what it means to work for you and why they work for you will be more engaged and engaged.

Lack of understanding about this often leads to increased turnover rates and increased costs when hiring replacements, both at the executive (CEO) and operational level, not only in terms of HR cost , but also time that could have been saved if the agreement had been reached much earlier.

This article will provide a framework for analyzing your organization’s organizational culture, how it has developed over time, aided by various external influences.

What is Organizational Culture?

Organizational culture refers to shared values, beliefs, norms and practices. These values ​​guide the behavior and attitudes of employees towards their work. They also shape the way they interact with each other and with their environment.

Culture is a complex concept that has multiple dimensions. There are three main aspects of organizational culture: Values, Behaviors, and beliefs. The first two are internal, while the third is external.

Examples of Workplace Culture

When managing organizational culture, leaders must develop the following four elements: values, behaviors, beliefs and structure.

Values: A set of standards or principles by which we make decisions and determine how to handle situations. We generally associate these values ​​with ethics, morality, honesty, integrity, reliability, fairness, justice, respect, compassion and responsibility. Each manager must communicate to his subordinates the values ​​of the company. Otherwise, there will be confusion among staff as to what is expected of them.

Behaviours: It refers to our actions as part of our daily work routine. It includes tasks, procedures, responsibilities, policies, etc. If these do not align with company values, the results can be counterproductive. For example, if your office values ​​are “honesty” and “benevolence,” but your boss expects you to lie to clients or cheat people with money, that would be a sign that you have not communicated these values. Many organizations have specific guidelines for employee behaviors.

Beliefs: What do we believe that makes us who we are? In particular, they refer to our perceptions of truth. It involves assumptions, opinions, ideas, facts, feelings, memories and expectations. It shapes our attitudes towards others and towards ourselves and determines the way we act. Our values ​​and beliefs can conflict with those of an organization, leading to stress. Such conflicts are normal when dealing with different cultures.

Structure: Employees need clear rules and regulations under which they operate. These help them track their mission and goals, set priorities, and manage time effectively. When goals and strategies are clear, it becomes easier to carry out the activities necessary to achieve them.

Some companies use formalized processes to train their new hires and track their performance. Some have developed extensive communication systems to ensure that information flows freely between all parts of the business. However, most companies still work outside the framework prescribed by top management. To effectively communicate your values ​​and beliefs to your employees, it helps to know your values ​​and beliefs. Next, please clarify what you expect of employees by communicating with them.

In addition to having clarity about values ​​and beliefs, you need to convey them consistently across different parts of the organization. One way to do this is to develop training materials for recruits to understand the expectations before entering the work environment. Another strategy is to send regular emails to all staff, reminding them of key messages. Managers can also set up meetings to discuss critical issues such as pay raises, layoffs, downsizing, or other significant changes. Finally, everyone must feel involved in decision-making; otherwise, employees may become confused about what is going on rather than feeling empowered.

Why is organizational culture important?

The organizational culture in the workplace can make or break the success of any business. A well-planned organizational culture has been shown to significantly increase a company’s competitiveness. Without a well-defined culture, an organization will have difficulty achieving its goals.

Companies with strong cultures are more successful than those without a clearly defined set of standards. This is partly due to quality production processes. Yet another part is because new employees go through a rigorous training process where they learn more about the Toyota culture, how it works, and how to act in accordance with the desired culture. This helps them integrate well into the larger group and understand what kind of behavior is expected of them.

Additionally, a strong workplace culture makes employees feel valued and respected. This is important because when people feel like their contributions are not recognized or appreciated, employees contribute less motivation and effort. When people don’t feel valued, they become frustrated, which makes it harder for them to improve their performance.

A strong corporate culture also promotes teamwork. According to research, the most important factor that determines employee engagement is participation in decision-making. In other words, if you don’t let your workers participate in setting the company’s direction, it becomes very difficult for them to buy into your company’s values. This means that if your employees aren’t engaged and feel like their opinions matter in determining the future of the business, they won’t stick around long enough to help you achieve your strategic goals. Teamwork is one of the keys to success in business. If you want your organization to succeed, it must foster a team environment where people feel free to share ideas and support each other.

Organizations should recognize and reward top performers, but there is little evidence that performance reviews improve long-term organizational effectiveness (Zohar et al., 2008). Additionally, organizations should focus on improving morale rather than performance outcomes alone (Baum and Kramel, 2006), because poor morale undermines productivity.