7.DEVELOPING ORGANIZATIONAL CULTURE
Organizational cultures can be as unique as personalities, with a leader’s perceptions and values playing a significant role in what the culture is and how it develops.
Truly, strong leadership is the key to developing and maintaining an authentic organizational culture that values and demonstrates care for employees, but employees should always be a part of the process that shapes it.
Out of strong leadership, culture should organically grow and be communicated to employees, who reinforce the culture through their behaviors.
Because so much of organizational culture is embedded in unspoken behaviors, mindsets, and social patterns, some leaders struggle to identify the necessary components of a strong organizational culture and how to grow the culture they want.
An effective organizational culture is one in which employees are motivated, engaged, performing at a high level, and able to work together to achieve a common goal. There is a strong social component to it that, when it functions properly, helps to build trust within teams and between teams and senior leadership.
Culture helps build an organization’s identity, shapes and conveys its values, and keeps its vision coherent. For this reason, it is a necessary part of the process to establish alignment between culture and business strategy.
Culture should be interwoven with all aspects of a company’s strategy so that each supports and reinforces the other to ensure alignment. All policies, procedures, benefits, and perks should be shaped by culture, reflect an awareness of employee needs, and connect the dots between organizational values and the work employees do.
While we can look at other organizations and identify the cultural strengths that have helped make them successful, or consider the cultural missteps that have hurt them, it’s important to always keep in mind: culture cannot be copied.
To build strong cultures that reinforce more of the behaviors we want to see at all levels of the organization, leaders need to craft cultures that go beyond surface-level perks and benefits.
This requires real effort and foresight on the part of leadership, as well as a strong conviction that the well-being of your employees matters.
Sand volleyball and ping-pong tables aside, team-building is an important function of organizational culture. The team you build should be able to work effectively and harmoniously together, with the shared goal of moving the company forward.
They should also feel good about the work they are doing and invested in and part of the success of the organization.
The surface-level perks listed in job descriptions may attract applicants, though, with more employees working remotely now, their appeal is likely more limited. But it is really how you treat employees and your ability to create a shared vision and sense of purpose that will help you engage employees and grow your organization.
The ideal culture will create a work environment where employees feel that leadership values their health and well-being, they feel inspired to succeed, they feel encouraged to grow and develop personally and professionally, and they feel their feedback is valuable to the success of the company.
Organizational culture has to develop in an authentic way to produce these results. This is why it is so important for leaders to set the tone for a culture that values people over profits by truly caring for their employees.
In turn, employees will care for their organizations.
References:
Chatman, J.A. and K.A. Jehn. "Assessing the relationship between industry characteristics and organizational culture: How different can you be?." Academy of Management Journal 37 (1994): 522–553.
David, Stanley M. Managing Corporate Culture. Cambridge, MA: Ballinger Pub. Co., 1984.
Deal, Terrence E., and Allan A. Kennedy. Corporate Cultures: The Rites and Rituals of Corporate Life. Reading, MA: Addison-Wesley, 1982.
Frost, Peter J., Larry F. Moore, Meryl R. Louis, Craig C. Lundberg, and Joanne Martin, eds. Organizational Culture. Beverly Hills, CA: Sage, 1985.
Graf, Alan B. "Building Corporate Cultures." Chief Executive, March 2005, 18.
Hofstede, Geert. Cultures and Organizations: Software of the Mind. New York: McGraw-Hill, 1991.
Kilman, Ralph H., M.J. Saxton, and Roy Serpa, eds. Gaining Control of the Corporate Culture. San Francisco: Jossey-Bass, 1985.
Kotter, J.P. and J.L. Heskett. Corporate Culture and Performance. New York: Free Press, 1992.
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I found the author's emphasis on employee engagement as a key driver of organizational culture development to be particularly insightful (Schneider, 2017). My own experience working in a highly engaged team supports this idea, as we consistently exceeded performance goals and fostered a positive and collaborative work environment. Additionally, research by Saks (2006) suggests that strong organizational culture can lead to increased employee satisfaction and reduced turnover. This further underlines the importance of prioritizing culture development initiatives.
ReplyDeleteThank you for your insightful comment, and I appreciate your emphasis on the crucial role of employee engagement in shaping organizational culture. Schneider's work (2017) indeed provides valuable insights into the intricate relationship between engaged employees and the development of a positive workplace culture.
DeleteYour personal experience adds a real-world perspective to the discussion, highlighting the tangible benefits of fostering a highly engaged team, such as exceeding performance goals and creating a collaborative work environment. It aligns well with the idea that engaged employees are more likely to contribute positively to the overall organizational culture.
Moreover, your reference to Saks (2006) strengthens the argument for prioritizing culture development initiatives. Saks' research indicating a connection between a strong organizational culture, increased employee satisfaction, and reduced turnover emphasizes the long-term benefits of investing in cultural initiatives. It's a noteworthy point for organizations aiming not only to enhance their workplace culture but also to retain valuable talent.
In discussions about organizational culture, these references contribute to a more comprehensive understanding of the subject. They provide a theoretical foundation and empirical evidence that supports the practical implications of fostering a positive and engaging workplace culture. If you have any more insights or references to share, I'd be interested in continuing this enriching conversation.
For small enterprises in particular, culture can be a crucial factor. While an undesirable corporate culture can impede growth or even lead to business collapse, a healthy culture can boost employee commitment and productivity. When they first launch a new company, many entrepreneurs have an inbuilt tendency to assume a lot of responsibilities. However, the dictatorial management style that the business owner employed well in a relatively small company may become harmful when the company expands and hires more staff.(Encyclopedia.com, 2014)
ReplyDeleteAbsolutely! The impact of corporate culture on the success of small enterprises cannot be overstated. A healthy culture is like the backbone of a growing business, fostering commitment and productivity among employees.
DeleteIt's interesting to note that the management style that works well in the early stages of a small company may need to evolve as the business expands. The shift from a hands-on, dictatorial approach to a more inclusive and collaborative management style is crucial. As a company grows and hires more staff, a culture of open communication, shared values, and mutual respect becomes paramount.
Entrepreneurs must recognize the importance of establishing a positive culture from the outset. A toxic culture can indeed impede growth and even lead to the downfall of a business. On the flip side, a nurturing and inclusive culture can attract top talent, enhance employee satisfaction, and contribute significantly to long-term success.
In essence, acknowledging the evolving nature of corporate culture and adapting management styles accordingly is key for small enterprises aiming for sustained growth and success in the dynamic business landscape.