How is Organizational Culture structured? 4 Simple Steps
Leaders must appreciate their role in maintaining or evolving an organizational culture. Bearing in mind, a deeply embedded and established culture illustrates how people should behave. And in that case, this can greatly help employees achieve their goals.
In turn, this behavioral framework ensures higher job satisfaction. Especially when an employee feels a leader is helping him or her complete a goal (Tsai, 2011). From this perspective, organizational culture, leadership, and job satisfaction are all inextricably linked.
Look, your work environment is one of the biggest factors to determine how much you like your job and how good you are at it. For sure, you can work alongside people who are friendly.
You’re also much likelier to be happy if they’re willing to compromise and complete their tasks on time. Particularly, while at your job than someone who works in a toxic environment. And, by an extension, your life outside of your workplace as well.
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As the adage goes, “People leave bosses, not jobs.” And that’s why employees care deeply about the environments they work in. So, if you want your employees to be excited to come to work and put in their best efforts, you need to cultivate an organizational culture.
But, not just any culture, it’s a culture that encourages and enables them to do so. An essential reality for both everyone’s well being and your company’s overall success.
What is Organizational Culture?
An organizational culture, commonly referred to as company culture, refers to an organization’s internal “character.” While including elements such as shared values, attitudes, and goals.
Your company mission, for example, influences your organization’s culture because it defines the ultimate purpose everyone is working toward. So, how much do you (if you are an executive or someone with decision-making power) care about your employees?
How well do people get along, and what actions do you or your H.R. team take when they don’t? What is your overall atmosphere like? In short, company culture is a top-notch indicator of whether you will be satisfied or miserable in a new position.
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Similar to how your business has a customer-facing brand persona, your company also has an internal “personality” that reflects its values in action (e.g., diversity, teamwork, mental health, understanding that work isn’t everything).
Why is company culture important, though? Organizational culture is so essential to a company’s success that 66% of respondents to a Fast Company survey noted that it’s the most important factor they consider when applying for a job.
The Characteristics of Organizational Culture
As I mentioned, there are numerous characteristics that define organizational culture. Whereby, it can include an organization’s expectations, experiences, and philosophy. As well as the values that guide member behavior.
The culture is then expressed in member self-image, inner workings, interactions with the outside world, and future expectations. And in business terms, other phrases are often used interchangeably. Including “corporate culture,” “workplace culture,” and “business culture.”
Equally important, culture is based on shared attitudes, beliefs, customs, and written and unwritten rules. All of which have been developed over time and are considered valid. It also includes; visions, values, norms, systems, symbols, language, assumptions, beliefs, habits, etc.
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Simply stated, according to the jmexclusives organizational culture, it’s “the way things are done around here.” That’s how the above definitions of culture express how the construct plays out in the workplace.
Other definitions stress employee behavioral components. And even how organizational culture directly influences the behaviors of employees within an organization. Under this set of definitions, organizational culture is a set of shared assumptions that guide what happens in organizations.
Another key characteristic is how it defines the appropriate behavior for various situations. It affects the way people and groups interact with each other, with clients, and with stakeholders. Sometimes, it may even influence how much employees identify with their organization.
What differences influence a workplace culture?
It’s important to realize, organizational culture is not stagnant. Members of an organization develop a shared belief around “what right looks like.” And this they do so as they interact over time. As they learn what yields success and what doesn’t.
When those beliefs and assumptions lead to less than successful results, the culture must evolve for the organization to stay relevant in a changing environment. But, changing organizational culture is not an easy undertaking.
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At times, employees are often resistant to changes and can rally against a new culture. Thus, it is the duty of leaders to convince their employees of the benefits of change. As they show through collective experience with new behaviors that the new culture is the best way.
The new culture should operate well in order to yield success. And as such, leaders can create, and also be created or influenced by, many different workplace cultures. These differences can manifest themselves in a variety of ways including, but not limited to:
A. Person Culture and Market Culture
In reality, how members of an organization conduct business, treat employees, customers, and the wider community are strong aspects of a person’s culture and market culture. Person culture is a culture in which horizontal structures are most applicable.
Each individual is seen as more valuable than the organization itself. This can be difficult to sustain, as the organization may suffer due to competing people and priorities. Market cultures are results-oriented, with a focus on competition, achievement, and “getting the job done.”
B. Adaptive Culture and Adhocracy Culture
Generally speaking, the extent to which freedom is allowed in decision making, developing new ideas, and personal expression are vital parts of adaptive cultures and adhocracy cultures.
Adaptive cultures value change and are action-oriented, increasing the likelihood of survival through time. Adhocracy cultures are dynamic and entrepreneurial. With a key focus on risk-taking, innovation, and doing things first.
C. Power Culture, Role Culture, and Hierarchy Culture
By the same token, how power and information flow through the organizational hierarchy and system are aspects of power cultures, role cultures, and hierarchy cultures.
Power cultures have one leader who makes rapid decisions and controls the strategy. This type of culture requires strong deference to the leader in charge. Where individuals know their jobs, report to their superiors, and value efficiency. As well as accuracy above everything else.
Hierarchy cultures are similar to role cultures, in that they are highly structured. They focus on efficiency, stability, and doing things right.
D. Task Culture and Clan Culture
How committed employees are towards collective objectives are parts of task cultures and clan cultures. In a task culture, teams are formed with expert members to solve particular problems.
A matrix structure is common in this type of culture, due to task importance and the number of small teams in play. Clan cultures are family-like, with a focus on mentoring, nurturing, and doing things together.
How to Structure an Organizational Culture
Business leaders are vital to the creation and communication of their workplace organizational culture. However, the relationship between leadership and culture is not one-sided. Don’t take your employees for granted?
How do you feel when your boss doesn’t recognize you for your work? Or even only provides feedback when you do something incorrectly? It probably doesn’t motivate you to do better next time. In fact, you might want to go somewhere else where higher-ups appreciate you.
While leaders are the principal architects of culture, an established culture influences what kind of leadership is possible (Schein, 2010). So, how do you build a positive company culture? Your business can:
1. Express Gratitude to Your Team
You should thank your employees for their hard work. Give feedback of all kinds gracefully, including positive. Companies with a strong organizational culture have 72% higher employee engagement rates. So, it’s in your best interest to express gratitude as often as possible.
You can showcase gratitude through various outlets. Verbally acknowledging someone’s success is always an excellent way to go, but you can compliment doing so with an award, a shoutout in the company newsletter, or recognition on digital signage displayed throughout your building.
Also, think of goals on a smaller scale, too. For one thing, they provide individual teams in your workforce with clear directions. Like how to structure their activities and measure their performance.
2. Help Employees Work Toward Goals
Goal-oriented organizations provide their employees with a mission to rally around. If you don’t have one already, draft a company mission statement that outlines your business’s purpose. A good example is the Asana Mission Statement.
Whereas, Asana’s mission statement is “To help humanity thrive by enabling all teams to work together effortlessly.” Perse, this mission statement guides the task management platform’s broader business practices and endeavors.
Basically, the company wants to help other businesses manage their workloads. So, the features it produces help its customers streamline workflows and enhance internal communication.
3. Promote Health and Wellness
Your company can prove its loyalty to and concern for its employees by prioritizing their emotional, physical, and mental health. And in a nutshell, such benefits include mental health services and catered healthy lunches.
You’ve undoubtedly seen or heard of companies with on-site gyms. Some companies have even workout classes (or those that at least provide gym memberships). There’s a reason employees stay at those companies, and their employer’s emphasis on health and wellness plays a role.
Your employees are invaluable in achieving your company’s goals. That’s why you can’t lose sight of their individual development. If you view them primarily as an expense to manage or reduce, your organization will suffer along with them.
4. Invest in Your Employees
It’s important to remember, a company that understands this fact and embraces employee development will have a much healthier organizational culture.
For instance, Adobe makes efforts in Celebrating Pride with #AdobeForAll. While recognizing its LGBTQ + employees and providing a place for them to socialize. And also recognizes innovative employees at an annual banquet. Offering tuition reimbursement for those who want to continue their education.
Likewise, L.L. Bean offers paid time off to volunteer and sponsors employee excursions (such as camping and kayaking). Its managers conduct regular one-on-one meetings with employees to discuss their career goals.
This means that a company that treats its employees as individuals is one people who want to work and do their best. That said, you can see the other 6 examples worth following in terms of organizational culture.
What are Organizational Subcultures?
At times, rather than changing an entire organizational culture, an organization can become more adaptable and agile. Simply, by allowing certain types of subcultures to emerge.
To enumerate, organizational subcultures (download PDF guide) are groups whose common characteristic is a shared norm or belief (Boisnier & Chatman, 2002). Organizations may, therefore, become more agile by allowing subcultures to emerge.
For instance, members of enhancing subcultures may decide to adhere to the dominant organizational culture values. Even more enthusiastically than members of the rest of the organization.
The Good, The Bad, and The Misunderstandings
In general, an organizational subculture is classified as; enhancing, orthogonal, or counterculture. Each of them exemplifying a different level of congruence with the dominant culture’s values (Martin & Siehl, 1983).
As an example, members of orthogonal subcultures can both embrace the dominant culture’s values. While they hold their own set of distinct, but not conflicting, values. And in addition, members of a counterculture may disagree with the core values of the dominant culture.
At the same time, counterculture members can hold values that directly conflict with core organizational values. But, these organizations may not be adaptive enough to ensure their long-term survival.
What type of organizational culture should you build?
There is a widespread agreement that organizational cultures do exist. And that they are a key driver in shaping organizational behaviors. However, pinpointing an exact definition of the concept is a difficult undertaking.
As such, an absolute definition would allow for a more rigorous study of organizational culture. But also increase the general understanding of how it influences other organizational outcomes. Such as productivity, employee engagement, and commitment.
Undoubtedly, when it comes to culture:
It is constantly being created, changed, and splintered to ensure the success of its parent organization.
Some company culture examples can even include horizontal culture. Now that horizontal culture is very popular amongst startups because titles don’t mean much.
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On the other hand, you can as well talk of the conventional corporate culture. A more traditional approach that many companies are trying to lean away from. Obviously, because it leaves little room for flexibility.
Last but not least, you can also consider a team-first corporate culture (which allows employees more autonomy). So, in simple terms, your organization’s culture may be unique unto itself. But all in all, it’s essential for your employees’ satisfaction and your bottom line to cultivate a positive one.
Your company’s success is much more likely if it creates an environment that makes employees want to stay. - Enplug.com.
With that in mind, what is your current organizational culture? Please mind sharing it with us in the comments section.
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Note Briefly: “Part of this article was originally published at Enplug“. And the Image is by jmexclusives from Pixabay.
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