Why is Organisational Culture so Important for your Company’s Success?

How much effort do you dedicate to creating a culture for your company? Do you know the impact it can have on your workforce and, consequently, on the success of your business? Corporate values are the backbone of a work environment and help to create the culture you wish to develop among your team. Different types of work cultures exist but their outcomes can be quite different. As we will see, many advantages result from building a positive and strong workplace culture. The main benefit is its influence on your company’s success. In this article, deskbird is focusing on the reasons why organisational culture is so important and how it can impact your business.

Definition of organisational culture

What is organisational culture? This is a difficult question and there is actually no official definition for it. To give you an idea, culture is often described as a mix of values and beliefs. They are the very essence of a company. Corporate values define a consistent way of working and behaving for employees and leaders. It can be observed in various ways like:

• employees’ policies;
• the office space design;
• leadership behaviours;
• people interactions;
• the business strategy and structure;
• the company image and identity;
• etc.

This is a company aspect that can evolve over time and, actually, it should. There are many reasons why employers should rethink their work culture. For example, you might want to adapt to new ways of working (the hybrid work model, a more people-centric approach, the introduction of flexi-time, etc.). Also, since businesses with a strong culture tend to be more successful, you might realise dedicating more time to this aspect can improve the overall success of your business.

How can organisational culture have such an impact on your company’s success? It affects many key points of your organization’s functionality, culture, and productivity which, when combined together, can result in either positive or negative outcomes. We will develop this topic but first, let’s discover what are the 4 main types of work culture.

➡️ Discover how to create a Positive Workplace Culture and help your business to succeed!

4 main types of culture in the workplace

Every employer has a different point of view when it comes to managing people and their business. Some may focus on results while others concentrate their efforts on creating innovative products or services, no matter the risks they might have.

However, certain types of culture are created depending on the industry they operate in. The military sector is a good example as it can only work with a specific type of culture because of the high risks involved. Even though there are many, here are the four main organisational culture types:

• adhocracy culture;
• hierarchy culture;
• clan culture;
• market culture.

In a company promoting an adhocracy culture, leaders encourage employees to take risks and to reveal their full potential in terms of creativity and innovation. Brain-storming sessions allow employees to share their ideas and consolidate their skills. This culture tends to be observed in start-ups and tech companies, such as Facebook.

Businesses in the medical, military or in finance fields (among others) are often based on a hierarchical culture. Sometimes considered as the opposite of adhocracy culture, these industries avoid taking risks by establishing a clear chain of command. Employees operating in a company with a hierarchy culture are not required to use their creativity or agility to adjust to unplanned situations.

A clan culture is often seen in small or family-owned businesses, where collaboration and teamwork prevail. The structure is less hierarchical and greater value is placed on each worker since it is easier to pay attention to their work and to their needs. Workforce engagement tends to be higher within these companies. However, a clan culture can be difficult to maintain as soon as the business grows.

Last but not least, a market-oriented culture focuses on results and customer satisfaction. Innovation also plays a big part in this type of culture. The disadvantage of market culture is that its high expectations and lack of a people-centric approach, often lead to a high employee turnover.

➡️ To know more about how to retain your team members, read our article about the current Employee Exodus.

Influence and benefits of strong corporate values

Employee engagement

A strong culture provides clear expectations to employees and helps them establish their purpose within the company. They know how things should be done and which behaviours to adopt which leads to more motivation in addition to a better engagement. Furthermore, not only sharing the same values and focusing on the same goals creates a deeper connection with the company but also with other team members. A workforce that is engaged and works together with a shared objective is likely to be more productive and helps create a more positive atmosphere.

Collaborative environment

People-centric cultures that value the well-being of their employees are likely to ease the decision-making process and improve workflow. This enhances productivity and creates a collaborative environment where exclusion is less of an issue. Indeed, employee inclusion is a very important topic that shouldn’t be minimised, especially if you work with hybrid teams. Therefore, strong values can support the development of a healthy, collaborative environment.

Workforce retention

Culture also determines how people feel in their work environment. This influences how they perform and their motivation to continue working for the company. Thus, this should be taken into account during the hiring process. A business with corporate values that matches its employees helps increase workers retention. Since employee well-being plays a large role in whether or not a candidate accepts a job, salary is not always what matters the most. In the long run, creating a Positive Workplace Culture may help improve workforce retention more than increasing salary rates.

The attraction of new talents

The inner values are what count, also in recruiting. When recruiting new talent, you don’t want to hire anybody, you not only want to hire the best fit for the position but also the company. The expansion of hybrid work models helps find new team members in any location worldwide. However, organisational culture also plays a big part in attracting new talents. As mentioned above, people are focusing more on the culture of the business they are applying for. This is a win-win for all. Hiring somebody that shares the same ways of doing and seeing things increases the chances of growth.

Brand identity

How employees perceive your company can influence your success but your public image and reputation do too. Are you confident about working with a business that has high workforce turnover? We doubt it. The same goes for your clients. They are more eager to trust and support companies with values that are similar to theirs. On one hand, negative workplace culture can alter your reputation and impact the growth of your business. On the other hand, a strong culture can have the opposite effect and trigger success.

Company’s success

Corporate values influence all those key aspects (employee engagement, collaborative environment, workforce retention, the attraction of new talents, brand identity) and many others. When they are merged together, they can have a real impact on your company’s success. Therefore, businesses should focus on creating a positive and employee-centric culture that jumpstarts growth, success, and employee retention

Do you have strong corporate values within your company? Is your organisational culture clear for your employees? We hope this article helps you better understand the influence it can have on the success of your business. If you don’t have a clear corporate culture, we highly recommend you start to focus on this aspect of your business. Would you like to improve the current culture in your work environment? Here is another article to support you and provide you with clear guidelines to build a culture in the workplace.