Impact of organisational culture: Understanding the effects of organisational culture on business

Did You Know? 🤔

Organisational culture is not just about the way things are done in an organisation, but it's also a key driver of business performance. Let's dive into the fascinating world of organisational culture!

Understanding Organisational Culture 🌐

Organisational culture refers to the shared values, beliefs, and practices that shape and guide the behaviour of members within an organisation. It's like the 'personality' of a company, influencing how employees interact with each other and with the outside world.

Theories of Organisational Culture 📚

There are several theories that attempt to explain organisational culture. For instance, Edgar Schein's model suggests that culture exists at three levels: artifacts (visible organisational structures and processes), espoused values (strategies, goals, philosophies), and basic underlying assumptions (unconscious, taken-for-granted beliefs and values).

Another theory, Charles Handy's model, categorises organisational culture into four types: power culture (centred around one key individual), role culture (employees have clearly defined roles), task culture (teams are formed to solve particular problems), and person culture (individuals are central).

Example: In a power culture, decisions are often made quickly without consultation, as they're typically made by one key individual. In contrast, in a task culture, decisions are made collectively by the team.

Influence of Culture on Business Performance 📈

Organisational culture significantly impacts business performance. A positive, strong culture can lead to increased productivity, employee satisfaction, and bottom-line results.

Cultural Values in Operation 🔄

Cultural values are the core principles and ideals upon which an organisation is based. They guide the behaviour of individuals within the organisation. For instance, a company that values innovation will encourage its employees to take risks and think outside the box.

Influence of Cultural Values on Leadership Styles and Business Structures 🏢

Cultural values also shape leadership styles and business structures within an organisation. For example, in a culture that values hierarchy and order, you might find a more autocratic leadership style and a tall organisational structure.

Example: In a company that values teamwork and collaboration, the leadership style is likely to be more democratic, and the organisational structure may be flat, promoting open communication and collaboration.

Influence of Cultural Values on Productivity 🚀

A positive organisational culture that aligns with the values of the employees can boost productivity. Employees are likely to be more motivated and committed when they feel valued and part of a community.

Impact of Organisational Culture 💥

The culture of an organisation can have far-reaching effects, impacting not only the business itself but also its employees and the wider community.

Effect of Organisational Culture on Business 🏦

Organisational culture can affect various aspects of a business, from its public image to its bottom line. For example, a company with a culture of transparency and honesty is likely to have a good reputation, attracting more customers and talented employees.

Example: Tech giant Google is renowned for its positive organisational culture, which promotes innovation, flexibility, and a good work-life balance. This has not only made Google a desirable place to work but has also contributed to its immense success.

Management Style Variation in Different Cultures 🔄

The culture of an organisation can influence the management style. In a power culture, the management style may be autocratic, while in a task culture, it may be more democratic or laissez-faire.

Preferred Organisational Culture 💼

The preferred organisational culture to work in can vary greatly depending on an individual's values and work style. Some may thrive in a competitive, high-pressure culture, while others may prefer a relaxed, collaborative environment.

Benefits of Ethical Behaviour for Organisations 🌟

Organisations that promote ethical behaviour tend to have better reputations, higher employee morale, and are more likely to comply with regulations. This can lead to increased profitability and long-term success.

Example: Companies like Patagonia, which are known for their ethical practices and commitment to sustainability, often have loyal customer bases and high levels of employee satisfaction.

In conclusion, organisational culture is a powerful force that can shape a company's success. Understanding and harnessing this force can lead to improved business performance and a happier, more productive workforce.