Organizational Culture

What is organizational Culture

organizational culture as "the collective programming of the mind which distinguishes a member of one group from another". It is evident from this definition that organizational culture is a shared group phenomenon that results from how a group interacts with its environment (Hofstede 1991) 

Edgar Schein’s Model of Organization Culture

                    Figure 1, Source : MIT Management

Edgar Schein studied organizational culture and development for the most of his career. He was a professor at the MIT Sloan School of Management before. According to Schein, workplace culture evolves gradually as a result of several organizational changes, employee learning from prior experiences, and employee attitudes. In the 1980s, the Schein model of organizational culture was created. Its three levels, which are sometimes represented by a pyramid, demonstrate the ways in which various aspects of culture are impacted. These levels are:

• Artefacts: These are the aspects of the company that are simple to observe, hear, and interact with; examples include dress requirements, job titles, office supplies, amenities, and conduct. Schein's organizational culture pyramid places artifacts at the top, suggesting that changing them won't result in a big cultural shift and that they may only provide a limited understanding of an organization.
• Espoused values: These are the statements made about the company by the employer and the workforce. Examples include an employee charter, a values or mission statement, and employee behavior reports. Examining them provides some, but not much, understanding of the culture of an organization.
• Assumptions/underlying beliefs: These concealed beliefs provide a better understanding of the culture of the organization held by employees. These are the intangible ideals, like knowing that working remotely is OK but still feeling that being in the office is necessary to succeed. Although they are followed, some behaviors that result from these values are typically not acknowledged. This is the lowest point on Schein's pyramid.

Why Organizational Culture is Importance

• Improved Recruitment Efforts: It might be difficult to find suitable talent, especially in the current market where there are so many emerging companies. Many people have changed their hiring and job search criteria as a result of this. More than one-third of workers said that if the company culture didn't suit them, they would pass up their ideal job opportunity. Establishing a robust company culture can enhance recruitment endeavors and attract high-caliber individuals.
• Smoother Onboarding: Strong company cultures are typically associated with more seamless onboarding processes. This is because repeatable procedures are in place to guarantee that newly hired staff members get access to the materials they require during the transition phase to help them adjust and fit in with the office culture.
• Decreased Turnover: In today's competitive market, many firms may find it challenging to retain their employees. A good company culture can reduce turnover by fostering a feeling of belonging and inclusivity while respecting the variety of your sector. It's important to take the time to establish good cultural values that align with your firm's goals, since approximately 38% of employees say they would like to quit their employment because of a bad company culture, and 60% of employees have left or would leave a job due to poor leadership.
• Increased Productivity: Employees put forth more effort at work when they are content and happy with their jobs. Employees may not always be aware of organizational culture, but it nonetheless permeates every aspect of their everyday workdays. Establishing a robust corporate culture that is in line with your goals can boost worker productivity, which will raise overall output.

The Benefits of Organization Culture

Creating or developing an organizational culture has several advantages. One of the main advantages of an organizational culture is recruitment. 

• Build a competitive advantage: Having a strong organizational culture provides you the advantage in attracting more clients and staff.
• Make recruitment easier: Organizational cultures that are known to be supportive may have an edge in the hiring process since they are hard to replicate.
• Improve retention: Because it is presented to potential applicants early in the hiring process, organizational culture attracts the right people.
• Improve performance: Good business outcomes are typically brought about by positive company cultures.

How does leadership influence organizational culture?

One of the main factors affecting company culture is leadership. Actually, the chief executive officer or president frequently establishes the standard for how the entire company will operate. Leaders that actively shape the culture of their organizations foster strong work environments with transparent and efficient communication. Employees are accountable for embracing the established culture and upholding the organization's procedures once it has been formed.

Without participation from founders or executives, organizational culture will develop, but it may not be a healthy or productive culture. If a culture isn't supportive in the ways that employees want it to be, even with leader participation, it might not have a good effect on the employee experience.

How to change Organizational Culture

Both managers and staff have the power to actively mold the culture of their company, fostering a happier and more efficient work environment. Changes in culture can be famously challenging, depending on the size of the organization and the history of the business. A workplace culture's common values and presumptions can occasionally get stale or impede new developments. But altering an organization's culture might have a positive financial impact that justifies the change.

It takes time for culture changes to take hold, especially in large enterprises where ingrained cultures exist. An organization's culture may be changed, though, if its leaders are dedicated to the effort, regardless of how long it may take. Changing the culture of an organization can take several months to several years on average.

Companies with Great Culture 

•    CAA
•    Cisco
•    Google
•    IBM
•   Warby Parker

References

Published by Meredith Somers Feb 9 2023 MIT Management https://mitsloan.mit.edu/ideas-made-to-matter/5-enduring-management-ideas-mit-sloans-edgar-schein

Hofstede, G. (1984). Cultural Dimensions in Management and Planning. Asian Pacific Journal of Management 1,88-99

Schein, E. H. (1990). Organizational culture. American Psychologist, 45(2), 109–119. https://doi.org/10.1037/0003-066X.45.2.109

Workhuman Nov 20 2023  https://www.workhuman.com/blog/companies-with-great-culture/

Organizational Culture July 14 2021 By Mike Clayton https://www.youtube.com/watch?v=F_jEJBjE_J4&t=29s