Organizational Culture and the Training Engagement Equation

Many leaders say they put their employees first and foster an organizational culture in which employees can thrive. Unfortunately, most employees report that their organization is just fine, summing it up with, “There are worse places to work. »

People react to their surroundings. The vital organizational task is to create a culture in which employees can thrive, are prepared to serve customers effectively, and operate efficiently to achieve organizational success.

The task of gaining insight into organizational dynamics and the realization that organizational culture can positively or negatively impact organizational performance is not new. This goes back to the concept of institutionalization whereby an organization takes on a life of its own far beyond the original vision of the founders. Although the concept of culture is not new, there is an evolving set of culture assessment tools and frameworks.

To assess the culture of an organization and its impact on the financial performance of that organization, there are three workplace metrics that form the boundaries of four specific organizational cultures. These four organizational cultures in turn set the stage for the development of the Financial Model of Organizational Culture, or FMOC.

This model provides insight to predict the financial performance of an organization based on its culture. The goal is to develop an action plan to improve the culture of the organization and, more importantly, the financial performance of the organization.

Ultimately, it is the quality of employees within an organization that will determine the fate of an organization. Employees have always been the difference between a truly successful organization and a mediocre entity. The main driving force that brings people to a concert hall is to hear enchanting music performed by skilled musicians whose skills and talents are on display. Highly trained employees produce quality results and provide quality service that meets consumer needs. Highly qualified employees, managers and support staff are the lifeline of an organization.

Organizations with cultures that focus on their employees and invest in their future will achieve a higher level of financial success in the long term than organizational cultures that view employees as mere costs to be cut in times of hardship.

The path to FMOC

An organization has three common elements: people, an objective or purpose, and a structure (i.e. any phenomenon created by the members of an organization) that defines and limits the behavior of the members of an organization. .

Without people, a purpose or goal, and some form of structure, there is no organization. Of the three elements, people are the most important factor because without them the other two elements cease to exist.

When all three elements come together, an organization forms and develops a culture that influences every aspect of the production process. Culture is defined by three parameters of the workplace:

  1. Management attitudes and practices.

These can be gauged by the overall degree of trust between managers and non-managers. An adversarial relationship between managers and non-managers tends to develop when managers focus too much on operational and financial matters while ignoring or paying limited attention to employee well-being.

Dissatisfied employees deliberately engage in many behaviors that reduce job performance and limit productivity. Fertile ground for improving work performance and productivity can only be created when individuals are respected for who they are and placed in positions that complement their strengths. And make no mistake: increased productivity is the catalyst behind a society’s socio-economic achievements.

From a strict organizational perspective, the right managerial attitude can bring to life a management philosophy or culture that will increase the organization’s chances of success by establishing a work environment in which individuals will constantly want to give their best. ‘themselves.

  1. The organizational environment among employees.

The environment can be gauged by the extent of cooperation, internal politics, and patronage within the organization. A highly politicized work environment will eat away at collegiality and undermine productivity. Left unchecked, it will eventually stifle innovation, cripple productivity, and destroy the organization. The long-term viability of any organization will depend on its mastery of internal politics and patronage. Any organization that does not base its performance and compensation on merit will sink into mediocrity and possibly risk dying out in a competitive environment. Merit must be rewarded. Favoritism should be discouraged.

  1. The tasks performed within an organization.

This factor can be assessed by asking whether a task has meaning for this individual. In many organizations, most employees do not understand how their work contributes to the goals and vision of the organization. On the other hand, organizations that create an environment where individuals feel their work is important and that their organization provides a positive benefit to the community pave the way for innovation and creativity. When innovation and creativity flourish, so do workplace performance and productivity. As managers and employees work together with a common vision focused on improving organizational performance, the financial condition of the organization will begin to thrive. Optimizing organizational performance is the criterion by which to assess the quality of an organization.

Using the three workplace parameters, we can identify four distinct organizational cultures:

Crop A:

  • There is a relationship of trust between managers and non-managers.
  • Cooperation between individuals and departments and units is encouraged; politics and patronage are discouraged.
  • Individuals feel that their actions have a significant impact on the organization and that their organization stands for excellence and that its policies are based on ethical behavior and practices.

Culture B:

  • Two of the three elements of culture “A” are present. For example, there is trust and cooperation, but the tasks may not make sense to the individual.

Culture D:

  • One of the three elements of the “A” culture is present. For example, tasks may be meaningful to the individual, but there is no trust or cooperation in the culture of the organization.

Culture F:

  • None of the three elements of organizational culture “A” are present.

From these four measurable and distinct organizational cultures, we can present the FMOC model (Figure 1).

According to the FMOC model, organizations that have a type “A” culture should financially outperform other organizations with similar resources. Financial measures that can be used to test this hypothesis include earnings per share, sales volume, return on equity, stock price, operating costs, and net income. With respect to policy recommendations, the FMOC model suggests that managers should continue their current practices.

Organizations that have a type “B” culture should be financially competitive with other organizations with similar resources. The recommended policy for these organizations is to incorporate the missing “A” organizational culture element into their organizational culture and thereby form an “A” type culture.

Organizations that have a “D” type culture are expected to underperform their competitors. The recommended policy for these organizations is to develop a type “B” or “A” organizational culture.

Organizations that have an “F” culture are expected to perform significantly worse than their competitors. The recommended policy for these organizations is to incorporate the missing elements of the “D”, “B” and “A” organizational cultures.

FMOC links the culture of an organization to the financial position of that organization and provides management with a methodology to improve the financial position by adopting a management philosophy that promotes an “A” or “B” culture.

The human factor

At the heart of the FMOC is a common thread that connects each of the three critical workplace parameters and ultimately determines whether an organization will possess an “A”, “B”, “D” or “F” culture. What is that?

The human element is the most important factor in any organization. The quality and attitudes of the people within an organization set the stage for its achievements. An organization that invests in its employees will achieve a higher level of financial success. This investment in human capital must begin with the hiring process and continue throughout the employee’s tenure in the organization.

Simply put, it is the employees who make the difference between the success or failure of the organization and what influences the quality of the employees is the training provided to them.

Management commitment to training

From a practical perspective, management’s commitment to training depends on leaders’ belief that training will produce or improve products and services. Training adds significantly to the output value of a product or service when it is directly linked to the strategic objectives set by management. If training is tied to organizational strategy, it encourages managers to support training because they know it will have a major impact on the organization’s competitiveness and success.

Another variable that influences management support for training is the extent to which training has been proven or measured to improve employee productivity and performance. Using these variables, an equation can be used to capture management’s commitment to training (Figure 2).

In short, to understand organizational performance, one must understand the human factor within an organization. The quality of people in an organization at all levels determines the success or failure of the organization because an organization is nothing more than the systems that the members of the organization have created. The superiority of any creation ultimately depends on the abilities of its creators.

An organization can only achieve great feats in a working environment where greatness can flourish. At the heart of organizational success is the quality of the members of the organization.

Daniel Wentland is the author of five books on employee education and development. He is a visiting professor at the College of Education and Human Development at Jackson State University in Jackson, Mississippi. Comment below or email editor@CLOmedia.com