Organizational culture is a collection of beliefs, expectations, and practices that guide and inform the activities of all team members. Consider it as a set of traits that characterize your company.
If you think of your company as a living organism, organizational culture is what gives it its personality. The characteristics and values of a company define it. Organizational culture is a continual process in which the organization evolves to comprehend what is good for the company and its employees, much as our opinions and qualities change and improve through time.
The leadership style, the company’s attitude to difficult situations, the company’s contact with employees and customers, and other factors reflect organizational culture. Depending on what you value in your company, culture can be competitive, innovative, employee-first, research-driven, or innovative.
Why is organizational culture important?
Organizational culture may be found in all of the places and papers you interact with, such as your employment contract, onboarding, rewards programs, and benefits, among other things. It all boils down to how you handle your people. They will perform better and eventually help the firm expand if they are comfortable and aligned with the company’s ideals. It is a key factor in hiring because it is a predictor of employee happiness and retention. According to a Glassdoor poll, 77% of employees research a company’s culture before applying.
Employees are also likely to choose a lower-paying job rather than stay at a company with a poisonous culture, according to a study on organizational culture and its business relationship. According to the survey, organizations with a positive culture see average revenue growth of more than 15% in three years and are 2.5 times more likely to see stock prices rise.
Qualities that define organizational culture:
- Trust: It is critical to establish a culture of trust for employees to feel at ease in your organization. It provides them the freedom to explore, invent, and learn new things while knowing they have the support of their team.
- Teamwork: The spirit of teamwork is one of respect and transparency. When your team members work together, everyone is happier at work and willing to put in more effort. As a result, both individual team members and the team as a whole perform better.
- Alignment of company goals: It’s a win-win situation that leads to growth when your company’s aims line with your employees’ goals.
- Breed Innovation: Employees will be motivated if the organizational culture supports trust and teamwork. They’d think outside the box and try new and different approaches to assist you in reaching new heights.
- Gratitude: Employees should be rewarded for their hard work via promotions, bonuses, or even a short thank you note.
- Transparency: Be open and honest with your staff. Inform them of your objectives and setbacks. Communicate it in a way that shows you care about your employees’ well-being.
- A Space to speak up: Make it clear to your staff that they may speak out if they have an issue at work without fear of punishment.