The set of values, expectations, and practices that guide and inform the activities of all team members is known as Company culture. Consider it a collection of characteristics that define your organization. A great Company culture displays good features that lead to enhanced performance. In contrast, a dysfunctional company culture brings out characteristics that can deter even the most successful organizations.
Culture should not be confused with corporate goals or a mission statement, even if both can assist define it. Culture is built by persistent and real behaviors, not through news announcements or policy statements. When you observe how a CEO responds to a crisis, how a team adapts to new customer needs, or how management corrects an employee who makes a mistake, you can see Company culture in action.
What is Company Culture?
Company culture can be defined more simply as an organization’s shared ethos. It is how people feel about their work, the values they hold dear, where they see the firm headed and what they are doing to get there. These characteristics collectively represent an organization’s personality — or culture.
The culture of an organization is founded on principles drawn from fundamental assumptions regarding the following:
- Human nature. Are individuals fundamentally good or terrible, malleable or immutable, proactive or reactive? These fundamental assumptions give rise to attitudes about how employees, customers, and suppliers should interact and be managed.
- The organization’s relationship to its surroundings. How does the organization define its business and its constituents?
- Appropriate feelings. Which emotions should people be encouraged to express and which should be suppressed?
- Effectiveness. What metrics demonstrate if the organization and its constituent parts are performing well? Only when the culture is backed by an adequate business plan and a structure appropriate for both the business and the desired culture will an organization be productive.
Significance of Culture to your Company
Company culture influences every facet of your company, from punctuality and tone to contract conditions and employee benefits. When your company culture is in sync with your employees’ needs, they are more likely to feel at ease, supported, and respected. Companies that prioritize culture are more likely to weather difficult times and changes in the business environment and emerge stronger.
When it comes to attracting talent and surpassing the competition, culture is a critical differentiator. 77 percent of workers examine a company culture before applying. Nearly half would quit their current position for a lower-paying opportunity at a better-cultured corporation. The culture of a business is also one of the top predictors of employee happiness and one of the primary reasons that over two-thirds (65% ) of employees stay with their current employer.
How Does a Company’s Culture Function?
Company culture might be explicitly and purposefully fostered, or it can simply be the product of a series of decisions made over time. Employees that work in a firm with a strong culture understand the expected outputs and behaviors and act appropriately.
Some firms have a team-based culture that values employee engagement at all levels. In contrast, others have a culture that values formal, traditional, or hierarchical management.
When you work for a business with a traditional management style, your job responsibilities will be well defined. Still, there may be no prospects for advancement unless you go through a formal promotion or transfer procedure.
Employees in a more informal workplace frequently have the flexibility to take on new initiatives and positions as time allows.
Netflix is one example of a company culture encapsulated in its motto of “people before the procedure.” Netflix’s core principles are outlined in its company culture document: judgment, communication, curiosity, courage, passion, selflessness, innovation, inclusivity, integrity, and impact. Employees must uphold these values in all of their actions and interactions, resulting in a creative, collaborative, and successful firm.
Characteristics of a Great Organizational Culture
- Every organization’s culture is unique, and it’s critical to preserve what makes your company stand out. However, the cultures of high-performing firms typically reflect the following characteristics, which you should strive to cultivate:
- Alignment occurs when the company’s aims and the motivations of its personnel all pull in the same direction. Exceptional businesses work to ensure that their vision, purpose, and goals are always in sync.
- Appreciation can take numerous forms, including public kudos, a thank-you message, or a promotion. A culture of gratitude is one in which all team members routinely recognize and praise others for their accomplishments.
- An organization cannot function without trust. When there is a trusting culture, team members may express themselves and rely on others to support them when they try something new.
- Performance is critical because strong organizations foster a business-oriented culture. Talented people in these organizations motivate one another to succeed. The benefits, as demonstrated above, are increased profitability and productivity.
- In highly dynamic environments where change is constant, resilience is an essential trait. A resilient culture teaches leaders how to anticipate and respond to change with ease.
- Teamwork entails collaboration, communication, and mutual respect among team members. Employees will get more done and feel happier if everyone on the team encourages one another.
- Integrity, like trust, is essential for all teams that rely on one another to make decisions, evaluate results, and establish alliances. This facet of culture relies heavily on honesty and transparency.
- Organizations that innovate make the best use of available technologies, resources, and markets. A culture of innovation entails applying innovative thinking to all elements of your organization, including your own cultural efforts.
- Psychological safety gives employees the confidence they need to take risks and deliver honest feedback. Keep in mind that psychological safety begins at the team level, not the individual level. Therefore managers must take the lead in creating a secure workplace in which everyone feels comfortable contributing.