Human Behavior in Organization Topic 8 Organizational Culture
Human Behavior in Organization Topic 8 Organizational Culture
Human Behavior in Organization Topic 8 Organizational Culture
Learning Outcomes:
INTRODUCTION
A great organizational culture is the key to developing the traits necessary for
business success. Its profound effects resonate directly with the business’s bottom line:
companies with healthy cultures are 1.5 times more likely to experience revenue growth
of 15 percent or more over three years and 2.5 times more likely to experience significant
stock growth over the same period. However, despite these advantages, only 31 percent
of HR leaders express confidence in their organization's current cultural landscape,
indicating a significant gap between aspiration and realization. On this note, achieving an
optimal culture proves to be a formidable challenge, evidenced by a staggering 85 percent
failure rate among organizations attempting cultural transformation.
Organizational culture affects all aspects of a business, from, as simple as, the
punctuality of employees to intricate details like contractual agreements. When the
cultural fabric of a workplace seamlessly integrates with the values and needs of its
workforce, employees are more likely to experience a sense of belonging, support, and
appreciation. Moreover, companies that prioritize nurturing a positive culture exhibit
resilience in navigating through adversities and adapting to shifts in the business
landscape.
Organizational culture is the set of values, beliefs, attitudes, systems, and rules
that outline and influence employee behavior within an organization. The culture reflects
how employees, customers, vendors, and stakeholders experience the organization and
its brand. In essence, culture is not merely a set of abstract principles but a living entity
that breathes life into the organizational ethos and guides the collective actions and
decisions of its members.
Each organization has a unique culture, but most fit within one or more categories
including:
1. CLAN CULTURE
Imagine a workplace as a big family. In this kind of culture, people are friendly, and
supportive, and treat each other with respect, just like how family members might behave.
Companies with a clan culture often see their leaders as mentors and encourage
everyone to work together as a team. It is common in smaller companies where everyone
knows each other well. They focus on making sure everyone feels good and healthy while
also challenging them to do their best. Clan cultures often prioritize their human resources
department, focusing on teamwork and including everyone in decision-making. Tradition
and loyalty are cherished values, anchoring the organization in a shared sense of identity
and purpose.
2. ADHOCRACY CULTURE
This is all about creativity and thinking outside the box. Companies with an
adhocracy culture tend to maintain an innovative, dynamic, and creative work
environment. They encourage employees to experiment and take risks, seeing their
leaders as calculated risk-takers. These organizations are driven by a relentless pursuit
of growth and evolution, constantly seeking new avenues for expansion and product
development. Success for them is about being able to anticipate what people want and
creating new solutions to meet those needs. They are always trying to grow and develop
new products to stay ahead.
3. MARKET CULTURE
Picture a workplace that is all about getting things done quickly and efficiently, like
a well-oiled machine. Individuals align their efforts with clear goals, driving toward tangible
outcomes that bolster the organization's market position. In a market culture, competition
is a big motivator for both leaders and employees. Everyone is focused on reaching
specific goals, and success is measured by how well the company does in the stock
market and against its competitors.
4. HIERARCHY CULTURE
This is where things are more structured and follow strict rules and procedures.
Leaders in these organizations make sure everyone sticks to the plan and does things by
the book. They emphasize the importance of following protocols diligently, ensuring
efficiency and consistency in outcomes. Processes are meticulously controlled, and
systematic problem-solving is the norm, underpinning the organization's operational
effectiveness. Think of it like a bureaucratic system where everyone follows the rules to
ensure that things run smoothly and as expected.
2. Improve employee retention – culture is one of the main reasons that 65% of
employees stay in their jobs. Culture is often cited as one of the primary reasons why
employees stay in their jobs. When employees feel a sense of belonging, purpose, and
alignment with the company's values, they are more likely to remain loyal and committed.
High employee retention not only saves on recruitment costs but also fosters continuity,
knowledge retention, and a sense of stability within the organization.
3. Improve brand identity – 38% of employees report wanting to change their job due
to poor company culture. Your company's culture is a reflection of its brand. A positive
culture can enhance your brand's reputation as an employer of choice, attracting not only
potential employees but also customers, partners, and stakeholders who want to
associate with a company that prioritizes its people. Conversely, a poor culture can
tarnish your brand's identity, leading to negative perceptions and potentially damaging
consequences for recruitment, customer loyalty, and overall business success.
Every organization’s culture is different, and it’s important to retain what makes
your company unique. However, the cultures of high-performing organizations
consistently reflect certain qualities that you should seek to cultivate:
• Alignment comes when the company’s objectives and its employees’ motivations are
all pulling in the same direction. Exceptional organizations work to build continuous
alignment with their vision, purpose, and goals.
• Appreciation can take many forms: a public kudos, a note of thanks, or a promotion.
A culture of appreciation is one in which all team members frequently provide recognition
and thanks for the contributions of others.
• Trust is vital to an organization. With a culture of trust, team members can express
themselves and rely on others to have their back when they try something new.
• Performance is key, as great companies create a culture that means business. In these
companies, talented employees motivate each other to excel, and, as shown above,
greater profitability and productivity are the results.
• Innovation leads organizations to get the most out of available technologies, resources,
and markets. A culture of innovation means that you apply creative thinking to all aspects
of your business, even your own cultural initiatives.
• Psychological safety provides the support employees need to take risks and provide
honest feedback. Remember that psychological safety starts at the team level, not the
individual level, so managers need to take the lead in creating a safe environment where
everyone feels comfortable contributing. Now that you know what a great culture looks
like, let’s tackle how to build one in your organization.
1. How a company or business does its work and treats employees and customers
This refers to how a company conducts its operations and how it treats its employees
and customers. It's about the values, attitudes, and behaviors that are encouraged and
exhibited within the organization. For example:
- Google is known for its inclusive work environment and emphasis on employee well-
being through perks like free meals, onsite healthcare, and flexible work hours.
This aspect concerns the degree of freedom and independence employees have in
making decisions within their roles. It reflects the trust and empowerment given to
employees. For instance:
- Other companies, like Netflix, empower employees with significant autonomy and
responsibility, allowing them to make decisions relevant to their work without constant
supervision.
3. How information is conveyed to employees and customers
This involves how information flows within the organization and how it is
communicated to both employees and customers. Effective communication fosters
transparency and understanding. For example:
- A company might have regular team meetings, newsletters, and open-door policies to
ensure that employees are well-informed about company updates and decisions.
- Zappos, an online shoe retailer, is known for its emphasis on communication and
customer service. They encourage employees to freely communicate with both customers
and each other, fostering a culture of responsiveness and accountability.
- Southwest Airlines is renowned for its strong commitment to customer service and
operational efficiency. Employees are empowered to go above and beyond to ensure
customer satisfaction, creating a positive reputation for the company.
- Similarly, Apple is known for its commitment to innovation and product excellence.
Employees are encouraged to strive for perfection in their work, leading to products that
consistently meet high standards and customer expectations.
Expressing organizational culture through these means helps define the identity and
values of a company, shaping its reputation and guiding its interactions with stakeholders.
The power of positivity can be especially helpful to those who need a little boost in
employee morale. Positivity can boost the productivity of an individual and enhance the
quality of work. Negative talk (gossip, complaining, and criticizing) can bring down even
the best organization. It’s toxic to your culture, and your bottom line, so don’t let those
Negative Nellies drag you down. If we focus on the negativity, it hinders the performance
of each individual in the organization.
Skills and competencies are important, but behaviors are often rooted in one’s
personal values. Have your team explore their values and share them with their
colleagues. It is eye-opening for staff to discover how their values impact them as a
person, and what is important to their teammates. Be sure to hire employees who model
behaviors that fit your values. If shared values are present, it shows better communication
and teamwork to pursue a common goal. It also creates a strong sense of unity and trust
within the organization, which leads to success.
When giving feedback, be specific, focus on the observed behavior, and describe
the impact it had. It’s important to address conflict and how to have comfortable
conversations. Most people love giving positive feedback but dread the tough stuff. It’s
natural for us humans to stay away from things that are risky or unpleasant. If you’re used
to structuring your feedback and developing a strong level of trust amongst your team,
the tough stuff won’t feel so difficult anymore.
4. FOLLOW-THROUGH
Following through builds trust and shows your commitment to getting the job done.
Consider when your residents have a special request or a complaint, don’t you want your
employees to resolve the issue and follow up afterward? If you agree, then you need to
model this behavior to your employees too. Because follow-through shows people that
they can rely on you, are responsible, honest, and sincere, and that you demonstrate that
you respect other people’s time.
If you want your people to care about your residents, not just check tasks on a list,
then you must care about your people! And show them that you do.
At first glance, this sounds like focusing on the positive, and it is, but it’s more than
that. Let’s use recruitment as an example, when you are focused on strengths and what’s
going well, you’ll want to look towards your superstar employees to find out: How did we
find them? What about them makes them special? How do we keep them? How can we
replicate what’s most important? If it was a referral, consider ramping up your referral
process. If they came from a local school, consider increasing your presence at this
school. If it was someone who randomly applied online, how did they find you? What
search terms were used? Ask them what it was that attracted them to you.
7. SET EXPECTATIONS
All employees should know what is expected of them and in a field where we are
struggling to retain employees past the honeymoon phase, setting expectations right from
the start is critically important. Explain the importance of the organizational culture and
the mindset that comes with being person-centered and focused on continuous
performance improvement.
If you’re committing to continuously improving, and not falling behind the times,
you’ll need to have systems in place to constantly evaluate and look for opportunities.
You’ll also want to make sure that your current processes or procedures aren’t causing a
bottleneck or hindering employees from doing the right thing.
9. CREATE OPPORTUNITIES FOR COLLABORATION
We hear time and time again that teams are working in silos and that they aren’t
working together to meet the resident’s needs. It’s important to create opportunities for
team members to collaborate with each other. Collaborating enhances communication
and information sharing. Collaboration also encourages creativity and innovation by
bringing together diverse perspectives and ideas.
10. BE CONSISTENT
Starting and stopping new things all the time will never lead to movement and it
can cause employees to distrust management. The flavor of the month clubs aren’t
effective, and no one likes a boss who says one thing and does another. It is better to
pick one thing and follow through on it than to try all ten, only to get overwhelmed and
give up. Consistency fosters trust, and a consistent boss can make their employees feel
confident in their leadership and more likely to trust their directions and decisions.
Stories paint a picture; they evoke emotion. Stories help people relate; they make
an idea come to life. Next time you are working on updating the careers section of your
website, your employee orientation, or even a simple newsletter, try including real-life
stories that provide insight into your culture. Stories are a powerful marketing tool. Telling
stories and giving examples increase engagement and make the content more
memorable. It makes it easier for people to understand complex information.
Good ethics is good business: Why have so few seen the memo?
So often we hear about unethical and egregious behavior of organizations and their
leaders that seem intent on screwing their customers, lying, cheating, and perhaps
laughing all the way to the bank. Yet, there are many ways organizations can create a
culture that supports and nurtures ethics. In the end, good ethics is good business.
Closely adhering to the following important and easy-to-remember strategies can help
create a culture of ethics.
All organizations have both spoken and unspoken rules and guidelines about how to
act. This includes everything from attire, attitudes, and behavior toward colleagues,
customers, and the public. The culture can differ radically—even within the same
organization. Many of the cultural norms and expectations of an organization are never
expressed in writing but are implied. Setting clear expectations for behavior among all
members of an organization is the first step toward a more ethical organizational culture.
Example:
Starting at a tech company, you notice engineers wear jeans and t-shirts despite
a business casual dress code, reflecting the company culture. In meetings, interrupting
others is discouraged, though not explicitly stated. These unspoken norms guide
behavior. To promote an ethical culture, the company should clearly communicate these
expectations, fostering mutual respect among employees.
Example:
This is a pretty simple truth, yet it is often easier said than done. Organizations must
be mindful and intentional about what behaviors they want to reinforce and what
behaviors they do not want to be reinforced. Offering opportunities for recognition,
awards, and social reinforcements for desirable ethical behaviors can go a long way.
Certainly, these rewards or reinforcements must be thoughtfully considered and delivered
with careful attention to both the intended and unintended consequences of using them.
Example:
Managers publicly recognize and praise employees for ethical behavior like
honesty and teamwork, reinforcing these values. Unethical actions are swiftly addressed,
without reward or recognition, signaling they're not tolerated.
Institutions can help by offering workshops, easy-to-use reference materials, and peer
or mentor consultations to develop effective ethical decision-making and behavioral skills,
as well as strategies for resolving ethical dilemmas or troubles.
Example:
Example:
A company establishes an ethics hotline where employees can seek guidance and
advice on ethical matters anonymously. Additionally, they offer regular training sessions
on ethical decision-making and provide access to online resources and materials. This
ensures that employees have the necessary tools and support to act ethically in their
roles.
1. Excel in recognition
Recognizing the contributions of all team members has a far-reaching, positive effect
on organizational culture. Experts agree that when an organization makes appreciating
employees part of its culture, important metrics like employee engagement, retention, and
productivity improve.
Making recognition part of your culture means it should be frequent, not something
saved for milestones or work anniversaries. Companies who invest in consistent social
recognition see a remarkable business impact: they are four times more likely to increase
stock prices, twice more likely to improve NPS scores, and twice more likely to improve
individual performances.
Last but not least, leadership needs to take center stage in your recognition efforts,
as they’re the cultural trendsetters for your entire company. Incorporate a recognition talk
track into your leadership training and share top tips with managers on how to recognize
others and why it matters.
Example:
Creating a culture that values feedback and encourages employee voice is essential.
Failing to do so can lead to lost revenue and demotivated employees.
First, collect feedback using listening tools that make it easy for employees to express
what they’re feeling in the moment, like pulse surveys and workplace chatbots. Pulse
surveys are short questionnaires sent to employees through an engagement platform.
They're anonymous and easy to complete, allowing team members to express
themselves freely. On the other hand, workplace chatbots are AI-powered programs
designed to facilitate communication and streamline tasks within a workplace setting.
They use natural language processing to interact with users, provide information, answer
questions, automate routine tasks, and even collect feedback.
After collecting feedback, analyze the results and take action while the findings are
relevant. This strengthens your culture and leads to benefits like higher employee
fulfillment and greater profitability. According to a Clutch survey, 68 percent of employees
who receive regular feedback feel fulfilled in their jobs, and Gallup found that
organizations with managers who received feedback on their strengths showed 8.9
percent greater profitability. And watch for more subtle expressions of feedback, like body
language. Managers should treat all conversations with employees as opportunities to
gather and respond to feedback and act as trusted coaches.
Example:
Building a strong workplace culture is in the hands of team leaders and managers. If
your workplace culture prioritizes certain values and your leadership team doesn’t
exemplify them — or displays behaviors that go against them — it undermines the effort.
Team members will recognize the dissonance between stated values and lived behaviors.
They may even start to emulate negative behaviors, believing they are rewarded by
management.
Your leadership team can help build the right culture by prioritizing it in every
aspect of their work lives. This includes openly discussing the organization’s culture and
values and incorporating employee feedback into their cultural advocacy efforts. While 76
percent of executives believe their organization has a well-communicated value system,
only 31 percent of employees agree. When employees see leaders living your culture,
they’ll follow suit.
Example:
Your company’s values are the foundation of its culture. While crafting a mission
statement is a great start, living by company values means weaving them into every
aspect of your business. This includes support terms, HR policies, benefits programs, and
even out-of-office initiatives like volunteering. Your employees, partners, and customers
will recognize and appreciate that your organization puts its values into practice every
day. You can also recognize employees for actions that exemplify your values to show
that they’re more than just words and incentivize employees to build the value-based
culture you want to see.
Example:
A company integrates its core values into support terms, HR policies, and benefits
programs. For instance, it offers paid volunteer time, aligning with its value of community
engagement. Regularly, it acknowledges employees who embody these values,
reinforcing their importance beyond mere words and motivating others to uphold them,
nurturing the desired value-based culture.
Building a workplace culture that can handle adversity requires establishing strong
connections between team members, but with increasingly remote and terse
communication, creating those bonds can be challenging. Encouraging collaboration and
engaging in team-building activities — even when working remotely — are two effective
ways to bring your team together and promote communication.
Look for and encourage shared personal interests between team members as well,
especially among those from different generations who might otherwise have a difficult
time relating to each other. This can create new pathways for understanding and empathy
that are vital to improving communication, creativity, and even conflict resolution.
Example:
Great workplace cultures are formed by employees who are continually learning and
companies that invest in staff development. Training initiatives, coaching, and providing
employees with new responsibilities are all great ways to show your team that you’re
invested in their success.
Example:
Example:
During the onboarding process, a company emphasizes its core values and culture
through interactive workshops and discussions. New hires learn about company practices
and procedures that align with these values, ensuring a shared understanding and
commitment to the organization's culture from the start.
Example:
It is important to understand that work culture is not only about the behavior of its
employees but also about the values the organization believes in. It is how people interact
with each other and function in an organization when no one is watching them.
Many factors can affect company culture, but the most common influences include the
following:
● Management attitudes - This refers to the overall outlook and approach that
managers within a company have towards their work, their employees, and the
organization's goals. It encompasses their leadership style, communication methods,
decision-making processes, and how they handle challenges and opportunities.
● Employee treatment - This encompasses how employees are regarded, respected,
and valued within the organization. It includes aspects such as fair compensation,
opportunities for growth and development, work-life balance, recognition of
achievements, and the overall work environment, including whether it's supportive or
toxic.
● Company beliefs - These are the core values, principles, and philosophies that guide
the actions and decisions of the organization as a whole. Company beliefs often shape
the culture, priorities, and long-term strategies. They can include commitments to
innovation, sustainability, diversity and inclusion, customer satisfaction, or community
engagement, among others.
● Benefits and perks - These are the additional rewards or advantages provided to
employees beyond their regular salary or wages. Benefits can include health
insurance, retirement plans, paid time off, parental leave, flexible work arrangements,
wellness programs, educational opportunities, and various other incentives designed
to attract, retain, and motivate employees. Perks are often non-monetary and may
include things like free meals, gym memberships, company events, or commuter
benefits.
Company leaders can influence work culture through the organization's values and
initiatives and how they treat their customers and staff. Follow these steps to create a
positive culture:
Determine your organization's mission and values, and try to incorporate these into
everything the company does. Clear core values can add meaning and purpose to
employees' work and can improve performance and motivation. When establishing
values, define what’s important to the company and its people and determine how that
fits into the company culture.
Try to ensure your employees and managers have open communication and are
transparent about their decisions. Supervisors in positive cultures often are approachable
and accessible to their staff, and they give frequent feedback on employee performance.
Employees who can communicate openly and share ideas with their managers often feel
more valued, so try to give them communication tools, such as feedback boxes and team
messaging platforms.
Rewarding your employees for outstanding performance can make them feel
appreciated and continue producing quality work. Employees who get recognized for their
hard work may be more motivated, engaged, and loyal to the company. Employee
recognition can include:
● Verbal praise
● Reward systems for meeting goals
● Bonuses
● Employee of the month
● Awards, like gift cards
● Extra time off
6. Be flexible
8. Have fun
Allow your employees to relax and have a sense of humor around the workplace.
This aspect of a positive culture can lower stress levels and make employees look forward
to coming to work each day. Encouraging employees to have fun at work can also
energize them and lead to more creativity and innovation. Ways to promote fun include
group or team-building activities, office decor, a relaxed dress code, and celebrations for
achievements.
Give your employees the tools and opportunities to learn new skills and develop
professionally. Companies with growth opportunities may have better employee
satisfaction and productivity. Consider establishing clear ways for employees to get
promotions, which you can base on performance or meeting certain goals. Promoting
from within can let employees know upward mobility in the organization is possible. An
organization's professional development plan might include:
10. Be compassionate
Managers and company leaders in positive cultures often are kind and empathetic
toward their employees. They understand their staff's needs and help them through
challenges. Employees who work under compassionate leaders may feel respected and
think the company cares about them.
11. Be helpful
Encourage managers and employees to help their coworkers complete projects, make
decisions, and overcome challenges. Employees who feel their supervisors are helpful
and friendly can be more loyal and likely to help others as a result. A positive culture is
supportive and makes employees feel like they have the resources and assistance to
accomplish their tasks. Ways to be more helpful include:
● Listening actively
● Offering and asking for feedback
● Creating instructions, resources, or guides for teams to reference
● Being approachable
The benefits of creating a positive work culture within your organization include
increasing:
1. Job satisfaction: Employees often are happier when working for companies that
invest in improving their well-being because they feel more valued.
2. Employee retention: Employees may be more likely to want to stay with a company
they feel treats them well and gives them the proper resources to succeed. If they
enjoy their work and the people they work with, employees also may be less likely to
explore other career options.
3. Recruiting: A positive culture can help improve the reputation of a company, which
may make more talented professionals seek it out when looking for a new job. This
also can allow companies to be more selective with who they hire, which can help
improve other factors, such as retention and productivity.
4. Motivation and productivity: Professionals who enjoy their work environment and
have strong relationships with their coworkers and managers may be more likely to
work harder and have a better attitude. Being invested in a company may make them
feel more passionate about how much success it has.
5. Collaboration: A positive company culture often prioritizes teamwork,
communication, and interaction among coworkers. These factors all can improve how
well a team collaborates on projects because team members may feel more
comfortable and willing to ask for help.
6. Employee well-being: Being in a positive environment that allows employees to grow
and rewards them for performing well can help reduce the stress and anxiety they may
feel in the workplace.
The opposite side of not having or creating a positive work culture within your
organization includes:
1. Connect Employee Work to Purpose: When employees understand how their work
contributes to the overall mission and goals of the organization, they feel a sense of
purpose and fulfillment. This connection motivates them to perform at their best and
fosters a greater commitment to the organization's success.
2. Create Positive Employee Experiences: Positive employee experiences, from the
recruitment process to day-to-day interactions, contribute to a culture of engagement
and satisfaction. By prioritizing employee well-being, providing opportunities for
growth and development, and creating a supportive work environment, organizations
can enhance the overall employee experience.
3. Be Transparent and Authentic: Transparency and authenticity build trust within the
organization. When leaders communicate openly about decisions, challenges, and
successes, employees feel valued and respected. Authentic leadership fosters a
culture of honesty, integrity, and accountability, which is essential for maintaining a
positive work environment.
4. Schedule Regular and Meaningful Communication: Regular communication,
whether through team meetings, one-on-one check-ins, or company-wide updates,
keeps employees informed and engaged. Meaningful communication involves
listening to employee feedback, addressing concerns, and soliciting input on important
decisions, which helps employees feel heard and valued.
5. Encourage Frequent Employee Recognition: Recognizing and appreciating
employee contributions is key to boosting morale and motivation. Whether it's a simple
"thank you" for a job well done or a formal recognition program, acknowledging
employee efforts fosters a culture of appreciation and reinforces desired behaviors.
~Fin~
Prepared by:
GROUP 6