Importance of Organizational culture 📌🎯

Why is organizational culture important? 

Part 2 

 

In part one, the importance of organizational culture was discussed in related to employee engagement, talent retention, creating a strong brand identity and cultivating an environment which promotes innovation.  

All things considered, organizational culture commonly illustrates the standard operations happening within an organization (Lundy and Cowling, 1996). Since organizational culture is thought to be a key driver of innovation, productivity, and financial performance, a lot of researchers have been interested in studying it. (Blackwell, 2006)

Through this article productivity, employee turnover & overall impact will be discussed in the

context of organizational culture.
 

        Decreased employee turnover. 

Employees of today desire a workplace where they can feel safe and comfortable as well as compassionate, transparent leadership that they can be proud of. In this competitive labor market, many organizations are failing to recognize the cultural stakes. Creating a comforting and encouraging work environment is essential.  
Employees don't want to work for a company that doesn't support a healthy work-life balance or makes them feel like they're walking on thin ice. Improved work-life balance enables employees in companies that prioritize effective and efficient performance to make more significant contributions to the expansion and success of the company. (Naithani. 2010)It is vital to create an environment where every member of the company feels heard and seen. Loyalty comes easily to those who believe they are sincerely cared about.   

 
        Raised productivity. 

The efficiency with which a company uses its resources to produce goods or services is measured by its productivity. Afsar and Umrani (2019) explain that to ensure maximum productivity of the employees, appropriate organizational culture should develop. There is a significant relationship between organizational culture and productivity. By fostering employee involvement, boosting motivation, and improving the work environment, a healthy workplace culture can increase productivity. However, a bad culture can have the opposite impact, resulting in high turnover rates, low morale, and absenteeism.  
 

        Creates an overall impact on every aspect. 
 
Organizational culture has a lot of influence; it can have a good or bad effect on employee morale, recruiting efforts, sales, and profits. Those who wish to work for or do business with a company are drawn in by its strong corporate culture. It can lower turnover by motivating workers to be more cheerful and productive at work. Numerous research works on organizational culture have made great efforts to investigate the ways in which organizational culture can affect the performance of various organizations (Lu et al., 2013). 

Below is a great video explaining the depths of importance of organizational culture in a simplified way. The video was carefully sourced among countless other videos on the same topic due to its nature of explaining the importance of organizational culture with practical & proven ways.  

 

Finally, an organization’s culture affects all other aspects of business, from employee punctuality to the tone of employees’ verbal and written communications (Wong, 2020). 

Additional reading :

(PDF) Organizational Culture and Its Importance (researchgate.net)

 
References :

Afsar, B., & Umrani, W. A. (2019). Transformational leadership and innovative work behavior. European Journal of Innovation Management. 

Blackwell, S.S. (2006), “The influence of perception of organizational structure and culture on leadership role requirements: the moderating impact of locus of control and self-monitoring”, Journal of Leadership & Organizational Studies, Vol. 12 No. 4, pp. 27-49.

 

Lu, M., Nicholson, G., Schmid, F., Dai, L., Chen, L., Roberts, C. (2013). „A framework for the evaluation of the performance of railway networks”, International Journal of Railway Technology, Vol. 2, pp. 79-96. 

Lundy, O. and Cowling, A. (1996), Strategic Human Resource Management, Routledge, London. Available at :

https://books.google.com/books/about/Strategic_Human_Resource_Management.html?id=2Kg9AAAAIAAJ
 
Naithani, P. (2010). Overview of work-life balance discourse and its relevance in current economic scenario. Asian Social Science, 6(6), 148-155. 

Wong, K. (2020, May 7). Organizational culture: Definition, importance, and development. 

https://www.achievers.com/blog/organizational-culture-definition/