The secret of successful companies is in their strategies. Organizational culture is one of the most important and understanding it is essential to boost the culture of any business.
Having a motivated and committed team is a necessity for all companies, since it directly influences the performance of their collaborators and, therefore, the quality of their products and services.
The concept of culture in organizations began to be formed in the school of human relations, when through experiments the subjective aspects of organizational reality began to be recognized.
The social theorist Elton Mayo concluded that the environment has a significant impact on how individuals perceive the objective aspects of an organization and, from that moment, the elements that affect it began to be the focus of study.
Over time, it was shown that the teams that identify with the objectives of their companies are the ones that make the difference. That is why in this article we are going to tell you what organizational culture is, what its importance is and how you can improve it in your business.
What is the organizational culture?
The definition of organizational culture has varied over time. It has been the center of numerous investigations and its different approaches range from the different cultural manifestations (values, rites) to the role of the leader as a transmitter of culture.
However, experts tend to agree that it is an operating system to strengthen corporate identity ties.
Organizational culture is the set of beliefs, habits, practices and traditions shared by the members of an organization.
It exists in all companies, but it is not a controlled factor in all of them. Only the successful ones are those who care about creating a culture that identifies them and helps them pursue their goals.
All businesses can benefit from having a better culture, as disengaged workers are often inefficient, resulting in financial loss.
What is the importance of organizational culture?
Through the organizational culture, the principles that form the personality of the company are erected. In addition, it establishes the basis of all its processes, motivations, norms and values.
It is related to three fundamental aspects in an organization: its structure, its methods and the way in which its members are linked. The three points must be taken into account, since it is these failures that lead to an unmotivated team with no sense of belonging.
Externally, culture is related to the image projected by the organization. It is linked to terms such as social responsibility, ecological philosophy, among others.
In the internal sphere, it is related to the concept of organizational climate (environment generated by the workers and which is then reflected in their attitudes when interacting). Also with the measures implemented to improve the company’s relationship with its workers, as well as its welfare policies.
In both areas, coherence is essential, so that the worker can identify with what the company transmits socially.
What are the types of organizational culture?
The organizational culture varies according to the characteristics of each organization. This is the classification of social psychologist Roger Harrison, who divides it into four types:
standards oriented
It seeks security and stability above all else, which is why its policy is based on sanctions that seek strict compliance with the rules.
power oriented
The objective of these organizations is competitiveness, so all their decisions are aimed at maintaining and surpassing their position in the market. They are characterized by having an individual work dynamic and with little communication between the different areas.
results oriented
Their only priority is efficiency and optimization of resources, they set short-term goals and are characterized by saving resources.
people oriented
In this type of organization, the priority is the personal and professional development of the team. Its leaders encourage and reward motivation and creativity.
What parts make up the organizational culture?
- The : is the reason for being of a company. Why it exists and how its work contributes to the world.
- The philosophy: It is the axis that guides their decisions.
- The vision: It is the final objective that the company aspires to achieve.
- Values: are the principles that guide its social dynamics.
- The symbols: are all the designs that make up the company, including visual and auditory support.
- The rules: are related to the salary (bonuses, incentives), the code of conduct (behavior and formalities) and the operating procedures (type of methodology used: lean, agile).
- Control systems: especially in the case of organizations with a rules-oriented type of culture, these will be the processes that monitor what happens in the company with human capital at all levels.
- The sense of identity: the way workers perceive themselves.
- Rituals and routines: customs and traditions of a formal or informal nature (meetings, performance evaluations, among others).
- Stories and anecdotes: narrations that tell the emergence and growth of organizations and that are told to new employees.
- The power structure and dynamics between employees: related to the types of leadership (and the understanding of these through the business organization chart) and relationships (vertical and horizontal). It is also linked to internal communication issues.
What are the benefits of having an organizational culture?
Below we present the positive aspects of having an organizational culture and we share some recommendations so that you can take advantage of each of its benefits:
- It helps define the identity of the company. Specify the image you want to convey and what differentiates you from the competition.
- Provides motivation. Drive performance with engaged employees who achieve the best results.
- Promote values. It will be the factor that leads the members of the organization to act more efficiently and strategically.
- Attract the best talent. Organizations with a culture that makes their workers happy attract the most qualified staff.
How to establish an organizational culture?
To start developing the culture of your organization, you have to:
- Define the values, mission and vision: these are the principles that will guide the strategy. Therefore, the most important thing will be that they are well defined and that they reflect the spirit of the company.
- Evaluate possible changes: these processes require several revisions until a model that suits the organization is found. For this you can form discussion groups.
- Hire people who go with the company culture: during the selection process it is essential that the candidates demonstrate that they share the same values of the organization.
- Invest in the brand: allocate a budget for actions dedicated to strengthening the company’s identity.
- Think of ways to reinforce the culture: keep the team motivated with incentives and benefits in line with the company’s philosophy.
- Measure the results: develop surveys, foster a culture of feedback and re-evaluate what is necessary.
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How to improve the organizational culture of your company?
Even the smallest brands must have a mission and values that identify workers and make them feel part of it.
If what you are looking for is a motivated and committed team, you can implement some improvements in the culture of your organization. Here are some keys:
- Encourage feedback. A worker who feels heard will have a greater sense of belonging.
- Promote interaction between members. Socialization improves the closeness between team members and, therefore, communication.
- Generate dynamics. Workshops or activities to promote the values of the organization.
- Look for transparency. Maintaining open communication about future plans and goals is one way to engage workers.
- Reward good work and offer tools when mistakes occur. Recognizing achievements is a way to motivate the team and generate commitment. Also, see mistakes as part of the job and work on possibilities for improvement.
- Believe in autonomy. Demonstrating trust in workers will increase their personal satisfaction, as well as their commitment to the organization.
- Convey purpose. Passionately communicate the company culture so that employees can find motivation for their work.
Organizational Culture Examples
The most successful companies are known for their excellent strategies. Here are some of the best examples:
storecloud
We seek that each Latin American entrepreneur achieve their dreams and turn their brand into a story that transcends.
Faced with such a challenging mission, we work on the development of a high-performance team guided by four fundamental values: commit fully, speak your mind, execute with excellence and think big. We believe in feedback and seek continuous growth.
Coke
Its culture is aligned with the optimistic image of its brand. Their mission is to refresh the world, inspire moments of happiness and make a difference.
Their values: leadership (to shape a better future), integrity (transparency), collaboration (they believe in collective talent), passion (commitment in mind and heart), accountability (responsibility), diversity (betting on inclusion) and quality (seeking excellence).
Through their Manifesto for Growth, they committed to being a more transparent and direct company and articulated their vision around five aspects: planet, employees, partners, products and profit.
Spotify
Its principles are the same as those established in the Agile Manifesto (a document written in 2001 by programming experts and which proposed the values that inspired the different agile methodologies): valuing people more than processes.
Its particularity is in the structure. In its organization chart there are no hierarchical pyramids but it is made up of Squads (squads), Tribes (tribes), Chapters (chapters) and Guilds (guilds).
Their trial and error system, the organization of their teams (they managed to create their own Agile model) and the feeling of “collective responsibility” that they managed to promote in their workers makes them one of the best examples of organizational culture.
Cisco
It carries a model of organizational culture with a human sense and for this reason it has been certified as a “Great Place to Work”. The development of your workers is your…
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