What is the significance of organizational culture

Employees try their level best to perform better than their fellow workers and earn recognition and appreciation of the superiors. It is the culture of the workplace which actually motivates the employees to perform. Every organization must have set guidelines for the employees to work accordingly. The culture of an organization represents certain predefined policies which guide the employees and give them a sense of direction at the workplace.

Every individual is clear about his roles and responsibilities in the organization and know how to accomplish the tasks ahead of the deadlines. No two organizations can have the same work culture. It is the culture of an organization which makes it distinct from others. The work culture goes a long way in creating the brand image of the organization. The work culture gives an identity to the organization.

In other words, an organization is known by its culture. Tags: company culture , company identity , company mission , company values , company vision , employee engagement , employee management , field service , field service employees , field service industry , field service management , fieldedge , healthy culture , hvac industry , organizational culture. We use cookies to personalize content and ads to make our site easier for you to use.

We also share that information with third parties for advertising and analytics. By using this site, you agree to our Privacy Policy. Paulynn Opurum July 1, Industry Experts. Below, we will dive deeper into: Why organizational culture is so important to the longevity of your field service business and the perception of your company as a whole. How important it is to nail your organizational culture and to make sure that everyone abides by the same set of expectations.

Unfortunately, nearly one in three newly hired employees' leaves voluntarily or involuntarily within a year of hiring, and this number has been increasing steadily in recent years. Searching for employees who will fit in seamlessly can have drawbacks.

The biggest mistake an organization can make is to paint an inaccurate picture of itself as it tries to attract candidates. If new hires discover they have been sold a bill of goods, they will not be happy; they will probably not stick around, and, while they are around, morale will decline.

Another possible drawback is that people are more reluctant to take negative actions against people like themselves. As a result, mediocre workers are more likely to stay employed if they share the cultural values. Similarly, although an organization's comfort level is palpable when the culture is aligned, experts say, too much comfort can result in groupthink and complacency. Onboarding teaches newcomers the employer's value system, norms and desired organizational behaviors.

Employers must help newcomers become part of social networks in the organization and make sure that they have early job experiences that reinforce the culture. These programs are key mechanisms employers can use to motivate employees to act in accordance with the organization's culture and values. For example, if teamwork is a core value, bonuses should value teamwork and not be based on individual performance. Employers should also put the spotlight on those who personify the company's values.

Employees who share values and aspirations tend to outperform those in environments that lack cohesiveness and common purposes. Performance management programs can greatly affect corporate culture by clearly outlining what is expected from employees as well as by providing a feedback tool that informs employees about proper behavior.

Conflicting messages regarding corporate culture may create distrust and cynicism, which can prompt, or help employees justify, actions as deleterious as embezzlement. Experts say that cultural inconsistencies may also cause workers to grow discouraged, to believe management is disingenuous, to doubt statements from higher-ups and to be less inclined to give their best effort. Organizations may be investing significant time and money in creating a culture but may not be reaping the commensurate rewards—especially if executives, supervisors and rank-and-file employees have differing perceptions of the company's culture.

Employers must therefore ensure that the organization clearly and consistently communicates its culture to all employees. Assessing organizational culture is a crucial step in developing sound strategies that support enterprise objectives and goals.

But how do you measure something as potentially tough to describe as culture? After identifying the key dimensions of culture such as values, degree of hierarchy, and people and task orientations, performing these next steps will help organizations assess culture:. Cultural assessments, and other activities such as cultural audits and degree feedback, may also help uncover cultural inconsistencies.

Then leaders and can eliminate the inconsistencies. For example, if customer service is a focus of the company's culture, evaluate how much time employees spend visiting customer sites, how much interaction they have with customers, what customer service training they receive and other indicators of a customer service focus.

Employers that emphasize cultural fit in their recruitment and selection process can be vulnerable to discrimination claims if they are not careful. Employers should ensure that hiring practices and selection decisions based on a cultural fit rationale do not result in discriminating against any applicants who may not be "just like" the selectors.

Employers should also be aware that certain types of organizational cultures for example, cultures that are highly paternalistic or male-dominated may tend to perpetuate disparities in promotions, compensation and other terms of employment.

Those disparities may violate anti-discrimination laws. Research suggests that national culture has a greater effect on employees than the culture of their organization. Organizational leaders should understand the national cultural values in the countries in which the organization operates to ensure that management and company practices are appropriate and will be effective in operations in those countries.

National cultural differences should be considered when implementing organizational culture management initiatives in global businesses. Managers must be able to respond to nuances in communication styles, as well as deal with different expectations that employees have of their leaders across national cultures.

Not meeting those expectations may doom the global organization's chance for success in particular countries. These issues become even more complex in global business mergers. Success in international mergers depends on the merged organization's willingness to enable people with different cultural perspectives to engage in meaningful and valuable discussions about the new business.

The PMQ teaches managers to lead effectively, giving HR more time to meet the demands of the workplace. You may be trying to access this site from a secured browser on the server. Please enable scripts and reload this page. Toolkits Understanding and Developing Organizational Culture. Reuse Permissions. Page Content. This article covers the following topics: The importance of having a strong organizational culture. The employer's role in fostering a high-performance culture.

Definitions of organizational culture. In the U. To avoid losing the interest of top candidates, prioritize creating a company culture that conveys a strong and enticing brand image.

A strong candidate experience starts with your company culture. Winning organizational cultures prioritize employees and their relationship to the company and its goals, which creates a positive employee experience.

These individuals are likely to be engaged with and passionate about their work, two positive attributes that job seekers can pick up on. Your employees will reward you for it with increased productivity and performance. Your company culture will directly impact how you structure your workspace, treat your employees and organize your benefits packages.

Create a winning organizational culture and enticing employee perks will follow. These numbers speak for themselves, but it bears repeating: a strong corporate culture increases employee productivity and performance.