Creating a Positive Organizational Culture towards Organizational Growth
What is Organizational Culture?
We all live in a culture that is bounded. It could be an evolution of beliefs, religions or even myths. Yet, since they day we were born, we have act according to the culture. Every country, region have a different and unique culture. Same applies to organizations. Different organizations have different organizational cultures.
Organizational culture is the collection of beliefs, values and methods of interaction that create the environment of an organization.(Indeed Editorial Team, 2022)
On their article, Organizational Culture: Definition and Why It's Important? (2022), the indeed editorial team have identified different types of cultures.
They are as follows:
Clan Culture
According to their description, this is a culture where people are friendly, responsible and respectful. These types of organizations leaders play a vital role. Team members are required to look at the leader as a mentor and it helps to build employee involvement and team building. This could more often be seen at smaller organizations than large organization according to their findings.
Adhocracy Culture
According to indeed editorial team, this refers to a culture that promotes innovation and creativity. These types of organizations will allow employees to do experimental testings. Many of research institutes could be a good example for these type of culture.
Market Culture
An organization with market culture values accomplishes tasks quickly and efficiently. These organizations often use competition to motivate both leaders and employees.(Indeed editorial team, 2022)
Many FMCG organizations will be a good example for these type of culture.
Hierarchy Culture
A hierarchy structure is where they have strict institutional procedures. Employees are expected to follow a hierarchy and follow procedures that are being set.
Dimensions of Organizational Culture:
(Awadh, A.M. and Saad, A.M., 2013)
As we can clearly see all these dimensions helps employees in different aspects. The best situations would be Individualism. Yet, it will not be 100% practical on current context of orgaizations.
Organizations mostly governed by goals and objectives. Hence, all these will not perfectly match with the employee. But the employee and the organization both can come to a ground and identify the difference and create the power distance.
What type of a culture do you have in your organization? Onto which dimension your oraganization culture could be matched?
Organizational Culture and Organizational Performance:
On their research The effect of competence, motivation and organizational culture on employee performance: the mediating role of organizational commitment, Rantesalu, A., Mus, A.R. and Arifin, Z., have taken organizational culture as well as organiational commitment into consideration to develop employee motivation and performance. They have identified that the organizational culture has a significatnt positive impact on employee performance.
On their research The role of organizational culture in the relationship of personality and organization commitment on employee performance. International Journal of Innovation, Creativity and Change, Arifin, A., Saputra, J., Puteh, A. and Qamarius, I., have also identified that the organizational culture has a significant positive impact on employee performance.
Conclusion:
References:
- Arifin, A., Saputra, J., Puteh, A. and Qamarius, I., 2019. The role of organizational culture in the relationship of personality and organization commitment on employee performance. International Journal of Innovation, Creativity and Change, 9(3), pp.105-129.
- Awadh, A.M. and Saad, A.M., 2013. Impact of organizational culture on employee performance. International review of management and business research, 2(1), pp.168-175.
- Indeed Editorial Team (2022), Organizational Culture: Definition and Why It's Important? Available on https://www.indeed.com/career-advice/career-development/organizational-culture . Accessed on 08.04.2024
- Kuswati, Y., 2020. The influence of organizational culture on employee performance. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(1), pp.296-302.
- Michael D. Watkins (2013), What Is Organizational Culture? And Why Should We Care?. Available on https://hbr.org/2013/05/what-is-organizational-culture . Accessed on 8.4.2024
- Rantesalu, A., Mus, A.R. and Arifin, Z., 2016. The effect of competence, motivation and organizational culture on employee performance: the mediating role of organizational commitment.
This is a fantastic exploration of organizational culture! Although having a robust organizational culture benefits the company, does it have the potential to reject prospective talent that may not naturally fit the mold that is already in place?
ReplyDeleteHi Nufail Thank You. In my opinion it depends on organizational culture. If the organization has a hierarchy culture, it will be challenging for employees to showcase their talent. If you are in other cultures specifically Clan and Adhocracy you definitely can showcase your talents. Isn't it?
DeleteA well written article, Tharushi and you have made some valid points. I don't particularly see any challenges in organizational culture if it is implemented well as you've discussed very thoroughly in your blog. Though I do believe there can be potential drawbacks and challenges on organizational culture depending on the context and nature of the organization.
ReplyDeleteGood article. Yes, with open communication, trust, collaboration, and a shared vision, we can cultivate a organization culture to attracts top talent for innovation, resilience, and sustainable growth.
ReplyDeleteExactly. That is the employer branding organizations can create through a positive organizational culture. Though it is very underestimated, organizational culture can do lot of things for the betterment of the organization indeed.
DeleteNice Article , The High-Performance Work Practices (HPWPs) idea suggests that performance management, employee involvement, and training promote performance. When adopted in a supportive culture, these techniques boost employee engagement and performance.
ReplyDeleteNice Article , The High-Performance Work Practices (HPWPs) idea suggests that performance management, employee involvement, and training promote performance. When adopted in a supportive culture, these techniques boost employee engagement and performance.
ReplyDeleteYes this is a wonderful article! The editorial team identified four types of organizational cultures: clan culture, adhocracy culture, market culture, and hierarchy culture. Clan culture is characterized by friendly, responsible, and respectful leaders, often found in smaller organizations.I understood that the Adhocracy culture promotes innovation and creativity, often seen in research institutes. Market culture values efficiency and competition, often seen in FMCG organizations. Hierarchy culture follows strict institutional procedures.
ReplyDeleteHi Amesha. Yes. That article was great learning for organizational culture.
DeleteGreat Article Hi Tharukshi, Some groups of talented people might not be interested in a rigid hierarchy because they like flatter systems better. HRM can change how they hire people so they can find people who work well in hierarchical settings and show them how they can move up in the company.
ReplyDeleteExactly Dilshad. Having a flatter hierarchy level works in most of the organizations. HRM will definitely need the support of the business to make the decision. That is where the organizational culture comes into play. If the senior management believes in rigid hierarchy, HR will be compelled to go ahead with the same.
DeleteYes. Businesses with a positive organizational culture tend to be more successful than less structured companies because they have systems in place that promote employee performance, productivity and engagement. Having a strong company culture motivates everyone to do their best work.
ReplyDeleteDefinitely. Organizational culture always link with the working environment. Studies have proven that people will retain if you have a good working environment. It really helps to retain workforce who are experienced.
DeleteGood Article. Organizational culture is an essential ingredient in effective performance management. By fostering alignment, feedback and communication, trust and fairness, performance-based incentives, and continuous improvement, a strong culture can help organizations achieve their performance goals and drive sustained success over the long term.
ReplyDeleteAgreed. It really helps the organization to create a very good employer brand as well. Even with our own experience, we all know organizations that has positive or negative culture. But how? It is based on experience shared by employees in it. Hence, you will create a good employer branding through that to. Like you correctly said, this will be useful in long run.
DeletePerfect writing Tharukshi. Investing in a positive workplace culture is an investment in the success of the organization too. It isn't just about creating a feel-good atmosphere but should be a strategic investment that fuels the company's success by attracting and retaining top talent, boosting innovation and engagement and driving better business results.
ReplyDeleteThat is perfectly correct. This is a fact that many organizations do not focus. Creating a workplace that keeps employees happy. A place that employees will consider as a happy place. Most of the time of a human being is spent at workplace. Creating a positive environment for them is much needed.
DeleteFostering a positive organizational culture is paramount for achieving sustainable growth and success within any company. An organization's culture serves as the foundation upon which its values, beliefs, and behaviors are built, influencing every aspect of its operations and interactions.
ReplyDeleteThe other important point I have not specified here but we can say is the employer branding. You can become a good employer, people seek working for. For an example in local context organizations such as MAS, 99X Technologies.
DeleteCulture of the organization always impact to the employees performance as you have mentioned. Positive impact of the culture they received will help to improve their creativity, and job satisfaction. Best employees will increase the production and goodwill of the company and positive impact from the culture will encourage them.
ReplyDeleteExactly Salindri. Creativity and innovations are modern drivers of organizations. When you have an organizational culture that accepts that will have a steady growth in challenging and competitive working environment. The culture has to be a combination of Clan and Adhocracy culture.
DeleteAbsolutely! Organizational culture plays a crucial role in shaping the environment and behavior within an organization. By fostering a positive culture that values creativity, innovation, and employee empowerment, organizations can enhance employee performance and ultimately contribute to their growth and success.
ReplyDeleteTharukshi your article on organizational culture is truly commendable. Your thorough exploration of various cultural types and dimensions within organizations offers valuable insights into workplace dynamics. I appreciate the depth of research and clarity of presentation in shedding light on this complex topic. Keep up the excellent work in providing valuable knowledge and insights to your readers!
ReplyDeleteGreat overview of organizational culture and its impact on employee performance! You've covered the key dimensions and types of cultures really well. Totally agree that fostering a positive culture can lead to better employee engagement and motivation. Keep up the great work!
ReplyDeleteTrue Minoshi. As I have mentioned on my article. Creating a positive culture will have a great value in the long run of the organization.
ReplyDeleteCreating a positive organizational culture is the cornerstone of sustainable organizational growth. When employees feel valued, empowered, and supported, they are more motivated to contribute their best efforts. Great article.
ReplyDelete