How do we manifest culture in the real business world through actions, behaviors, and practices?
In the dynamic world of business where strategies evolve and technologies advance, there's a silent but universal force that dictates the rhythm of operations, shapes employees’ interactions, and defines a company's identity. Company culture reflects the shared core values and manifests them through the “culturally” accepted goals, attitudes, and practices that characterize an organization. Aspects such as working environment, company policies, and employee behavior can all contribute to company culture, as they are impacted by it.
Company culture can be more simply described as the shared ethos of an organization. It is the way people feel about the work they do, the values they believe in, where they see the company going, and what they are doing to get there. Collectively, these traits represent the character — or culture — of an organization.? ???????
How do we observe organizational Culture?
Organizational culture is often described as the invisible force that shapes a company's operations and employee interactions. But how can you observe it in action? Let us explore real-world examples that illustrate how culture becomes evident through behaviors and practices. Culture does not develop through formal announcements; it emerges through repeated and authentic actions. For instance, when a CEO publicly takes responsibility and actively involves employees in resolving a crisis, such behavior showcases a culture of accountability and teamwork. Similarly, when teams smoothly adapt to evolving client expectations, or when managers coach employees through their mistakes, it reflects the organization's adaptability and commitment to growth.
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How does culture make an impact on various aspects within the organization?
The influence of organizational culture extends far beyond the organization’s physical walls. It affects recruitment, employee retention, brand identity, and engagement rates. For instance, a remarkable 77% of workers take a company's culture into account before applying[1]. ?
Imagine a recent college graduate, Sarah, who is evaluating two job offers. While both companies offer similar roles and very similar pay and benefits, she selects Company “A” because it values work-life balance, supports personal growth, and fosters a collaborative atmosphere, all of which align with her career aspirations.
The Society for Human Resource Management (SHRM) reported that culture also plays a significant role in retaining employees 1/5 have left their job in the last five years and culture is the reason why SHRM, with approximately 65% of employees citing it as a key reason to stay in their jobs[2]. Conversely, a poor culture can drive 38% of employees to consider changing jobs. Companies nurturing a positive culture can enjoy up to a 72% Achievers increase in employee engagement rates[3].
Statistics show that when employees are engaged, absenteeism is lowered by 41%, productivity boosts by 17%, and turnover lowers by 24%[4].
Customer-centricity improves financial performance and provides a competitive advantage; a variety of studies show that increasing customer retention rates by 5%?increases profits by more than 25%[5].
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Tips for Improving Culture:
To enhance organizational culture and, subsequently, boost morale, job satisfaction, retention, and productivity, consider introducing/adopting/improving the following within your organization:
Core Values: Clear, guiding principles that unify actions and decisions.
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Open Communication: Transparent channels for sharing ideas and feedback.
Empowerment: Trusting employees with responsibility and decision-making.
Increase Cross-Functional Collaboration: Foster teamwork and diverse perspectives.
Innovation: Encouraging new ideas and adapting to change.
Inclusivity: Valuing diversity and creating a respectful environment.
Recognition: Acknowledging and appreciating employees' contributions.
Results Focus: Prioritizing performance, ethics, and mission alignment.
In conclusion, workplace culture influences nearly every aspect of an organization. It shapes the environment, the attitudes, and the behaviors within an organization, influencing its overall success. Positive culture contributes to employee well-being, organizational success, and long-term sustainability. As such, companies should invest in cultivating and nurturing a culture that aligns with their values and supports their mission and goals.
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