An ideal organizational culture is that in which the employees are happy and comfortable at their workplace. Besides this, the leaders are satisfied with the performance of the team. And, the employees and management work cohesively towards the attainment of the objectives of the company.
A study of some organizations that are popular employers reveals certain common features in their culture code:
1. Open communication channels: Open and clear communication is the basis of any relationship. It is also instrumental in establishing healthy employer-employee relations. Those organizations that encourage open communication between employees and between employees and management have shown good camaraderie in the organization. This makes the environment relatively stress-free and light.
2. Transparency: If an organization is transparent in its dealings, it encourages loyalty among the employees. It is also a good practice to include employees in the decision making process. This motivates employees.
3. Autonomy: Organizations, whose culture is appreciated, generally empower their employees to innovate and work without micromanagement. The leaders trust their subordinates and they are given complete responsibility.
4. Recognition: Recognizing and rewarding merit in an unbiased manner is another factor that gives the employees a sense of belongingness to the organization.
5. A sense of belongingness: Since it is a normal practice to select individuals who fit into the culture of the organization, it is a good idea to provide the employees a sense of security and belongingness. This can be done by communicating, collaborating and aligning their interests.
6. Team before self: The importance of teamwork should be stressed. The employees should be encouraged to align their personal goals with the company’s objectives. The ideal culture will have all members of the organization to be driven by a common purpose rather than money. Healthy competition should be encouraged while discouraging negative/cut-throat competition.
7. Flexible: One thing constant in the business world is change. Changes are experienced in technologies used, the attitude of people, changes in the stock market, etc. Hence, the organization should be adaptable to these changes and the culture should accommodate the changed systems and perspectives.
8. Growth: An organization that provides its employees an opportunity to learn and grow fosters a greater level of loyalty. They are motivated to perform and provide results.
9. Feedback: Most companies whose culture is appreciated take the effort to ensure that it is not going off-track. One of the ways to do this is by taking regular feedback from employees, exit interviews, etc. to know how the employees perceive the environment of the organization. If it is found lacking, corrective action is taken.Organizations that include these features in their culture have shown that their employees have a higher level of commitment. In such Companies the attrition level is low; employees are motivated and contribute to the objectives of the organization. Additionally, the environment in the office is comfortable. All these factors enhance the productivity of the organization.
An organization may be perceived as having a bounded or detached culture. It is a good idea to analyze the culture of your organization and see where it features.
Features and Demerits of a bad organizational culture
There are certain characteristics that indicate that the culture of an organization needs improvement.
1. Unethical behavior of leaders: If the leaders follow unethical practices for the sake of increasing their profits, these practices percolate down to the employees. This creates a negative environment.
2. Poor communication between the employees: A red signal indicating a bad culture is when there is a lack of open communication between the members of the organization.
3. Lack of Discipline: Indiscipline in any kind of behavior in the organization indicates poor culture.
4. A highly competitive environment: In organizations with poor culture, there will be cut-throat competition among employees.
5. High Attrition: When there is a negative environment in an organization, more employees will tend to leave it.
6. No transparency: Most organizations where responsibility is not given to the team members and there is micro-management have poor culture.
If an organization sees any of these warning signs, it is time that the culture is improved. This is because these signals can lead to valuable employees leaving the organization; it can also lead to losing clients, etc. Besides, it is a cause for lowering the quality of output of the organization.