Why Do Businesses Need a Solid Organizational Culture?

By | May 5, 2023

When people think of company culture, they think of employee benefits, dress codes, and open office spaces. While these aspects are important, one element of company culture is often overlooked: organizational culture. Organizational culture is the glue that holds a company together. It shapes how employees interact with each other, view their work, and interact with customers.

Defining organizational culture – the what and why
There isn’t a single, definitive answer to the question of what organizational culture means since the concept can be complex and nuanced. However, corporate culture generally pertains to the shared values, beliefs, and norms that define how a particular organization functions. It encompasses things like the company’s mission statement, it’s values and employee behaviors, how it handles conflict and criticism, and even the types of jokes that employees tell one another.

Organizational culture is vital because it helps to create a sense of identity for employees and provides a guide for how they should behave when interacting with colleagues. It also contributes to an organization’s overall tone or atmosphere, making it more or less welcoming to new employees. Finally, it can be instrumental in helping a company to achieve its goals, as it sets the expectations and motivates employees towards success.

What makes for a great organizational culture?
A great organizational culture is based on trust and respect. Employees need to trust that their managers will make good decisions that are in the company’s best interest, and they need to trust that their colleagues will work cooperatively towards common goals.

Managers must respect their employees’ time and abilities and provide clear expectations and regular feedback. To achieve common objectives, colleagues must appreciate each other’s contributions and work together. Employees who feel trusted and respected are more likely to be productive and loyal to their organization.

Benefits of having a strong organizational culture
Having a strong organizational culture can have many benefits for both employees and the organization as a whole. Other positive things to expect include the following:

1. Increased productivity and efficiency – When employees share common values and understand the company’s goals, they can work together more effectively and produce more results.

2. Reduced employee turnover – People are likelier to stay with a company with a strong culture that they feel proud to be a part of.

3. Greater creativity and innovation – When employees feel connected to their company’s mission and purpose, they are more likely to develop new ideas and solutions.

4. Improved customer satisfaction – Customers are more likely to be loyal to companies with a strong culture that aligns with their values.

5. Higher employee morale – Employees who feel like they are part of something bigger than themselves tend to be more engaged and motivated.

Developing a cohesive organizational culture that excels
Developing a great organizational culture takes time and effort. It starts with creating an effective mission statement and core values, then communicating these to employees and modeling them in their behavior. Managers should also be intentional about developing relationships with their teams and fostering an environment of trust and respect.

Some essential tips for developing a cohesive organizational culture that excels include:

1. Set clear and consistent expectations for employees – employees need to know what is expected of them to do their jobs well.

2. Encourage communication and collaboration among employees – working together towards a common goal is more effective than working in silos.

3. Celebrate successes together – employees will be more invested in the organization’s success when they feel like they are part of something that is successful.

4. Foster a sense of community among employees – employees who feel like they are part of a community will be more likely to work together cooperatively.

5. Encourage learning and development – investing in employees’ learning and development will help them grow professionally and contribute more to the organization.

6. Provide recognition and rewards – recognizing employees’ hard work and achievements will help to keep them engaged and motivated.

7. Listen to employee feedback – managers should take the time to listen to what employees have to say and consider their input when making decisions.

Key Takeaways
Organizational culture is essential for any company that wants to be successful and achieve its goals. It sets the tone for how employees interact with each other, how they approach their work, and how customers perceive the business.

Creating the right mission statement and core values, communicating them to employees, and modeling them in their own behavior are essential steps toward building a great organizational culture. Employee engagement, when done correctly, has countless advantages for both the worker and the company.

A content collaboration with:
Catherine vanVonno is the President and CEO of 20four7VA, a trusted remote staffing company. She oversees the overall growth and success of the company, leads the short and long-term strategies, and manages the company’s finances. She also directs the management team when it comes to daily operations, brand management and marketing, client relations, strategic planning, and business development areas.