Organizational culture is the soul of any company - it reflects its values, beliefs and behaviour. It is built by the interactions between employees and the ways they engage with the company's mission and goals. Improving organizational culture can be the key to achieving competitive advantage, as 82% of senior executives confirm.
Organizational culture is generally understood as all of a company’s beliefs, values and attitudes, and how these influence the behaviour of its employees.
The essence of organizational culture
What is organizational culture? It's more than just a structure - it's the soul of any company. It includes the way employees interact, their values and personal goals, and their interactions in the workplace. Therefore, understanding organizational culture is essential to achieving synergy between individual and organizational goals.
It is important to realize that employee engagement is a very important aspect. Task performance should not be reduced to "just a job" or "I have to make money somehow".
Developing an organizational culture requires mutuality and commitment. Employees must realize that the success of the company leads to technical and professional development.
Types of company culture
The organizational culture of each company is unique and determinant of its dynamics. Some companies feature a cooperative culture where team spirit is the key to achieving common goals. Others prefer an individualized approach where employees have their own goals and work independently to achieve them.
There are also formal organizational cultures that impose specific rules and expectations on employees, while others are more loose and flexible. Each approach reflects the values and priorities of the company.
Organizations can differ on many parameters, such as the degree of interdependence, the focus on sales, customers or employees, and the strategy for sharing knowledge and learning new technologies.
All these aspects not only define company culture, but also create it. It is important to understand that there is no one-size-fits-all model for a successful organizational culture - every company has its unique characteristics and challenges.
It is increasingly evident that a strong company culture is a key factor in the successful functioning of organizations, even for those with a large scale. It acts like oil to the engine, ensuring processes run smoothly and every employee acts in sync with the company's values.
Importance of organizational culture
Certainly, it is easier for the HR department to engage and motivate employees when relying on a healthy corporate culture. This consistency in company expectations and values makes the management process more efficient and transparent.
When all levels of the organization are committed to the organizational culture, it not only strengthens, but also becomes part of the company's core values. Such a strong organizational culture is more than an investment - it is a long-term strategy that produces positive results.
Deloitte research highlights that 94% of executives and 88% of employees recognise the importance of culture to successful business development. Companies with healthy cultures demonstrate higher levels of employee satisfaction and collaboration, as well as more robust values and performance at work.
A strong company culture makes organizations more flexible and resistant to change. The modern workplace requires rapid adaptation, especially with events like the COVID-19 pandemic. Companies that maintain a strong culture are able to unify remote teams and successfully manage change while maintaining their vision and goals, ensuring the sustainability and success of their business.
Company culture plays a key role in improving the work environment by creating a pleasant and stimulating environment for employees. Organizational culture creates common ground through clearly defined values and expectations that promote mutual understanding and employee well-being.
When each employee is clear about their role and clearly understands what is expected of them, it improves communication and team interaction. This aspect improves efficiency and harmony in the work environment while reducing the likelihood of conflict and ambiguity. Setting clear expectations boosts employees' self-confidence and removes the uncertainty associated with their duties, which is essential for their mental comfort.
A good company culture not only improves the working environment but also enhances the quality of work performed. In companies with a poorly defined culture, employees may have difficulty aligning with business values, which may require greater control and monitoring. Focusing efforts on strengthening company culture leads to greater employee autonomy and engagement, increasing their value to the company.
Building a strong company culture also facilitates the onboarding of new employees. By providing a clear framework of values and vision, the company can easily integrate new members into its values and way of working.
In addition, a good company culture fosters collective learning and development by creating a community where everyone's knowledge and expertise is valued. This not only improves work efficiency, but also supports the development of employees within the company.
Organisational culture - the key to success
A strong company culture is the key to creating a collaborative and motivating work environment that supports the engagement and success of everyone in the company. It is important to invest time and effort in strengthening company culture, as this will have a long-term positive effect on the business and employees.
Improving motivation: a strong company culture not only creates a pleasant working environment, but also increases employee motivation. When employees identify with the company's values and goals, they are more motivated to excel and contribute to the success of the organization.
Creating a sustainable competitive advantage: Companies with a strong culture distinguish themselves in the marketplace as employers of choice and offer better conditions for their employees. This not only attracts talent but also retains the highly skilled professionals who are the key to business success.
Improving customer relationships: company culture can also influence the way a company interacts with its customers. If employees are motivated and engaged, they are more likely to offer excellent customer service and create long-lasting relationships with customers.
Attracting innovation and creativity: A strong company culture creates a community where innovative ideas and creativity are valued. Employees feel free to share their thoughts and offer innovative solutions to various challenges, which can lead to more efficient processes and products.
Strengthening corporate identity: company culture strengthens corporate identity and creates a sense of belonging to the company. This is essential for building a united team and achieving common goals.
Final words
The foundation of a successful business is a strong team motivated by an excellent company culture. Even more so given today's modern workplace defined by global and diverse teams, increasing uncertainty and evolving work trends. It's no surprise, therefore, that many companies find it challenging to create and maintain the right culture to sustain the business over the long term.