In a business world so concentrated and competitive, company culture tends to be one of the few clear identifiers that can help an organisation stand out. Culture is not only positive and effective; if it is neglected, it can lead to disaster.
The leaders of the most successful companies live their culture every day and make every effort to communicate their cultural identity to their employees and potential new hires. They are clear about their values and how they define their organisation and how it is run.
Organisational culture is defined as the behaviour and measures employees take to create a positive environment that helps the company succeed. It goes beyond improving the overall performance of the organisation; it also provides a strategic and competitive advantage by sharing and upholding beliefs and values. Organisational culture guides the mission and goals of a company and makes it important to define what is what.
A strong and positive corporate culture is indispensable to build organisational resilience. Ethical leaders uphold the standards of a positive organisational culture. It is the duty of managers to communicate the mission, goals and core values of the company. Managers can show employees how to embody these values and contribute to a corporate culture, both internally and externally.
Managers must be able to promote a positive organisational culture to keep their employees motivated and engaged. With the right leadership, this positive culture can spread in the workplace. In this article, we will discuss some of the ways leadership can affect organisational culture.
Effective leadership is one of the most important foundations for building a great organisational culture. Whether influenced by others (positively or negatively), based on leadership style or the implementation of strategies, effective or ineffective, leadership influences and builds an organisational culture in the workplace. Because leaders influence authority and titles, they also set the tone for organisational culture. It is not about happy hour or how many ping pong tables fit in an open-plan office. Positive corporate culture comes from the top down and must be implemented at all levels of the organisation.
According to Harvard Business Review, a corporate culture expresses values, beliefs, common assumptions, and group norms in the workplace. It includes several elements of the company, including the work environment, the mission statement of the company, core values, leadership style and work ethic. A corporate culture is a rich hive that attracts and cultivates talent and binds employees to the leadership vision.
When an organisation builds a thriving culture, it fosters an environment of trust and cooperation. A strong culture brings benefits such as more trust and cooperation, fewer disagreements and more efficient decision-making. Culture provides an informal control mechanism, a strong sense of understanding with the organisation and a common understanding of why employees matter.
Research by CultureIQ found that employees rated the overall quality of their businesses, including collaboration, the environment and values, 20% higher in companies with a strong culture. Companies that have been named as the best places to work tend to have a strong, positive corporate culture that helps their employees to feel and to perform their best work. Employees in organisations with clearly defined cultures justify their behaviour at work because it fits the culture.
Many personnel experts agree that a strong corporate culture is one of the best ways to attract potential employees. Studies show a clear correlation between employee satisfaction and their corporate culture. The corporate culture is so influential that more than half of employees are willing to take a pay cut to work for an organisation with a positive company culture, a LinkedIn survey suggests.
As the pandemic forces organisations to change the way they work, a positive workplace culture has become an urgent priority for businesses. With Millennials and GenX prioritising work environments, it is time for companies to foster a culture of cohesion that works for all employees. This massive shift in workplace culture is an opportunity for companies to reassess their priorities and create a work environment where employees feel safe, engaged, inspired, and productive, whether at home, in the office, or on the front line.
When leaders don’t stop to think about culture, their companies develop one by chance rather than by design.
Amar Bhidé
Building a positive business culture does not mean that employers should abandon what their company stands for. Instead of expecting employees to complete a 180, employers should work to improve the current corporate culture. Changing the existing corporate culture requires hard work, perseverance and commitment.
Ask employees what they do and don’t like about their current culture and work environment. If the corporate culture needs to change, managers have a responsibility to share this information with employees.
Organisations are expected to promote a positive culture and healthy employees. Balancing personal values with the drive and needs of culture releases an enormous amount of energy and a common goal that fosters an organisation’s ability to thrive.
Culture evolves in response to change and opportunity. Founders and influential leaders set new cultures in motion and shaped values and assumptions that persisted for decades. Over time, leaders in organisations shape culture through conscious and unconscious action, often with unintended consequences.
It is common for leaders who want to build powerful organisations to confuse the culture. Broken crops are often the by-product of poor leadership rather than strong leadership and can be repaired and rebuilt. This means laying the foundations with good principles, but the wrong kind of culture can prevail faster than one could imagine.
