Organizational Behavior

Managing Organizational Culture Effectively

Introduction

Organizational culture refers to the shared values, beliefs, assumptions, attitudes,

and behaviors that shape the way people within an organization interact with one
another and with external stakeholders. It is the unwritten code that guides how
employees think, act, and make decisions on a day-to-day basis, and it influences
every aspect of the organization's operations, from how work is done to how
decisions are made.

Organizational culture is often described as a "way of life" within an organization, as

it shapes the attitudes and behaviors of everyone within the organization, from the
CEO to the newest hire. It is shaped by a variety of factors, including the
organization's history, leadership style, industry, and geographic location, among
others.

One of the key features of organizational culture is that it is largely unconscious and
implicit, meaning that it is not always explicitly stated or articulated. Instead, it is
often expressed through symbols, rituals, stories, and other nonverbal cues that are
deeply ingrained in the organization's day-to-day operations.

Why Organizational Culture Matters

Organizational culture is a critical element of any organization's success, as it can
influence everything from employee engagement and productivity to customer
satisfaction and financial performance. Here are some of the key reasons why
organizational culture matters:

1. Employee engagement: A positive organizational culture can improve employee

engagement by creating a sense of purpose, belonging, and community among
employees. When employees feel connected to their work and to the
organization, they are more likely to be motivated, productive, and committed to
the organization's goals.

2. Productivity: A strong organizational culture can also improve productivity by

creating a clear sense of direction and purpose. When employees understand the
organization's values and goals, they are better equipped to make decisions and
take actions that are aligned with those values and goals.

3. Retention: A positive organizational culture can also improve employee retention

by creating a supportive and engaging work environment. When employees feel
valued, supported, and engaged, they are less likely to leave the organization for
another job.

4. Customer satisfaction: Organizational culture can also impact customer

satisfaction by influencing how employees interact with customers. When
employees are aligned with the organization's values and goals, they are more
likely to provide high-quality customer service and build strong relationships with
customers.

5. Financial performance: Finally, organizational culture can impact financial

performance by influencing the organization's reputation, brand, and ability to
 attract and retain customers and employees. When an organization has a strong
and positive culture, it is more likely to be successful and profitable over the long
term.

Types of Organizational Culture

There are several different types of organizational culture, each with its own unique
set of values, beliefs, and behaviors. Some of the most common types of
organizational culture include:

⚫ Clan culture: Clan culture is characterized by a focus on collaboration, teamwork,

and employee engagement. Organizations with a clan culture often prioritize
employee development and support, and they may have a family-like atmosphere
that encourages teamwork and cooperation.

⚫ Adhocracy culture: Adhocracy culture is characterized by a focus on innovation,

creativity, and risk-taking. Organizations with an adhocracy culture may prioritize
experimentation and creativity, and they may be less hierarchical and more
flexible than other types of organizations.

⚫ Market culture: Market culture is characterized by a focus on competition, results,

and achievement. Organizations with a market culture may prioritize
performance and outcomes, and they may be highly competitive and results-
driven.
⚫ Hierarchy culture: Hierarchy culture is characterized by a focus on structure, rules,
and control. Organizations with a hierarchy culture may be highly structured and
hierarchical, with clear lines of authority and a focus on following established
processes and procedures.

Managing organizational culture effectively is an essential component

of building a strong and successful organization. In this article, we will explore how to
manage organizational culture effectively, including the key elements of a strong
culture, and the steps that leaders can take to create and sustain a positive culture.

Key Elements of a Strong Organizational Culture

To manage organizational culture effectively, leaders must first understand the key
elements that contribute to a strong and healthy culture. These elements include:

1. Core Values: Core values are the fundamental principles that guide an
organization and its employees. They represent the organization's identity and
purpose and help to differentiate it from its competitors. Core values should be
communicated clearly to all employees and should be reflected in the
organization's mission, vision, and goals.
2. Leadership: Leadership plays a critical role in shaping organizational culture.
Leaders must embody the core values and beliefs of the organization and model
the behaviors and attitudes that they expect from their employees. Leaders
should communicate the organization's culture and values clearly and
consistently and should hold themselves and their employees accountable for
upholding them.

3. Employee Engagement: Employee engagement is a measure of how invested and

committed employees are to the organization and its culture. Engaged employees
are more likely to be motivated, productive, and loyal to the organization.
Leaders can foster employee engagement by creating a positive work
environment, providing opportunities for professional development and growth,
and involving employees in decision-making processes.

4. Communication: Effective communication is essential for building a strong and

healthy culture. Leaders must communicate the organization's core values, goals,
and expectations clearly and consistently, and should provide regular feedback to
employees. Employees should feel comfortable sharing their ideas and opinions
with their leaders and colleagues, and should be encouraged to do so.

Steps for Managing Organizational Culture Effectively

⚫ Define and articulate the culture: The first step in managing organizational
culture effectively is to define and articulate it clearly. Leaders must identify the
core values, beliefs, and behaviors that are important to the organization and
communicate them clearly to all employees. Leaders should ensure that their
words and actions are consistent with the culture they are promoting.
⚫ Lead by example: Leaders must model the behaviors and attitudes that they
expect from their employees. When leaders demonstrate the values and
behaviors that are important to the organization, they send a powerful message
to their employees that the culture is important and worth emulating.

⚫ Hire for cultural fit: Leaders should hire employees who are a good fit for the
organization's culture. This means looking beyond a candidate's technical skills
and evaluating whether they share the values and beliefs of the organization.
When employees share the organization's values and beliefs, they are more likely
to embrace the culture and contribute to its success.

⚫ Encourage employee engagement: Leaders can encourage employee engagement

by creating a positive work environment, providing opportunities for professional
development, and involving employees in decision-making processes. Leaders
should also provide regular feedback to employees and recognize their
contributions to the organization's success.

⚫ Measure and monitor culture: Leaders should regularly measure and monitor the
organization's culture to ensure that it remains strong and healthy. This can be
done through employee surveys, focus groups, and other feedback mechanisms.
Leaders should use this feedback to make necessary changes to the culture and
ensure that it remains aligned with the organization's goals and values.

Examples of Effective Organizational Culture Management

1. Zappos: Zappos is an online shoe and clothing retailer known for its strong
organizational culture. The company has a "fun, quirky, and slightly weird"
culture that emphasizes customer service, employee engagement, and a
commitment to excellence. The company's culture is built on a set of 10 core
values, including "deliver WOW through service," "create fun and a little
weirdness," and "be humble." Zappos has been recognized as a top workplace
and has a low employee turnover rate, which is attributed to the company's
strong culture and commitment to employee engagement.
2. Southwest Airlines: Southwest Airlines is another company known for its strong
organizational culture. The airline has a "warrior spirit" culture that emphasizes
teamwork, fun, and a commitment to customer service. The company's culture is
built on a set of core values, including "work hard, play hard," "treat others with
respect," and "have a servant's heart." Southwest has been recognized as a top
workplace and has a strong reputation for customer service, which is attributed
to the company's strong culture.

3. Google: Google is a technology company known for its innovative and

collaborative culture. The company has a "Googley" culture that emphasizes
creativity, teamwork, and a commitment to making a positive impact on the
world. The company's culture is built on a set of core values, including "focus on
the user and all else will follow," "think big, but start small," and "aim to be the
best." Google has been recognized as a top workplace and has a reputation for
innovation and creativity, which is attributed to the company's strong culture.
4. Patagonia: Patagonia is an outdoor clothing and gear company known for its
commitment to sustainability and environmentalism. The company has a
"dirtbag" culture that emphasizes a love of the outdoors, a commitment to
environmentalism, and a focus on work-life balance. The company's culture is
built on a set of core values, including "build the best product," "cause no
unnecessary harm," and "use business to protect nature." Patagonia has been
recognized for its commitment to sustainability and has a reputation for quality
and environmental responsibility, which is attributed to the company's strong
culture.
5. Netflix: Netflix is a media streaming company known for its innovative and
performance-driven culture. The company values talent over process and
emphasizes freedom and responsibility in its culture. Netflix has a unique
approach to managing its culture, which involves giving employees significant
autonomy and trust. This approach has resulted in a highly engaged and
productive workforce, and the company has been recognized as a top workplace.

6. Toyota: Toyota is an automotive manufacturer known for its commitment to

continuous improvement and quality. The company has a culture that
emphasizes teamwork, respect, and problem-solving. Toyota's culture
management approach includes the Toyota Production System, which is a set of
principles and practices that promote efficiency, quality, and safety. This
approach has resulted in a highly efficient and effective manufacturing process,
and Toyota has been recognized as a leader in the industry.
7. Apple: Apple is a technology company known for its innovative products and
design. The company has a culture that emphasizes creativity, excellence, and
simplicity. Apple's culture management approach includes a focus on design
thinking and collaboration, which has resulted in some of the most successful
products in the industry. Apple has been recognized as a top workplace and a
leader in innovation and design.

Conclusion

Organizational culture is a critical element of any organization's success. It influences

employee engagement, productivity, retention, customer satisfaction, and financial
performance, among other factors. Managing organizational culture effectively
requires a deliberate and intentional approach, focused on reinforcing and
strengthening the values, beliefs, and behaviors that drive positive outcomes. By
doing so, organizations can build a strong and successful culture that supports their
goals and objectives.