What is organisational culture?

14. 05. 2023

What is organisational culture?

Graham Andrewartha| Director| MCA group

The organisational culture at one of our client organisations was quite traditional and hierarchical. Decisions were typically made by upper management and there appeared to be little collaboration between departments. As a result, there were considerable silo areas that caused conflict in many parts of the business. This resulted in an atmosphere where employees felt uncomfortable speaking up or challenging authority—as they knew they would likely face retribution from their superiors should they do so. Working in partnership with the CEO and the staff we were able to assist them to better align their cultural habits, reduce the silos and conflict.

Organisational culture is a central feature of every company, no matter its size. It is the shared values and beliefs that define how all employees interact with each other and their customers. These shared values can influence a business’s performance; its success or failure, depending on how well they are maintained by the leadership team and staff.

All organisations need to balance innovation, collaboration, competition, and formality. It is important to ensure that these are all in alignment with each other in order to create an environment where everyone feels comfortable working together toward common goals.

Additionally, it is important for organisational cultures to be regularly evaluated in order to make sure they remain relevant and up-to-date in our rapidly changing world. See our experience in organisational culture and organisational change: https://mca-group.com.au/services/development/

Culture change for better performance

Cultural change can have a direct impact on employee morale and productivity, as well as the external image of a company. However, it is not always easy to effect changes within an organisation’s culture. Change is an important focus for businesses looking to improve their performance and remain agile in the face of change of context. It has the potential to drive huge improvements in productivity, employee engagement, customer service, and many other areas that are essential for business growth. However, it can also be a challenging process as it requires careful planning and implementation. Robert Richman is his book, The Culture Blueprint: A Guide to Building the High-Performance Workplace, says, “A less-than-optimal business culture is always the result of many factors that operate together as a system, and they’re usually invisible.”

Creating and sustaining organisational culture

Organisational culture change is a complex and dynamic process that can be difficult to navigate. It requires careful consideration of both employees and the organisation itself, as well as having a strong plan in place for enacting the necessary changes. A successful organisational culture change requires extensive research into what does and does not work for an organisation, clear communication with all stakeholders, and an understanding of how culture affects the bottom line. It is crucial to start with assessing your current culture before building your preferred culture.

Culture and Performance

The culture defines every aspect of business operations, from new hires to employee engagement, customer service and profitability. As a result, change in organisational culture is often necessary for companies to stay competitive, remain relevant and drive growth. However, making changes to a company’s culture can be difficult as it involves shifting the attitudes and behaviours of all involved. It involves transforming a business’s existing culture, values, and behaviours in order to better meet the needs of the organisation as it evolves.

Change requires careful consideration of the motivations, approaches and strategies employed when attempting to affect a cultural shift. A successful culture change can have a range of positive impacts on organisational success, such as improving employee engagement and satisfaction, boosting morale and enhancing productivity.

It is very instructive to assesses how the culture is seen now and as a preferred future.