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Organisational culture refers to the shared values, beliefs, norms, and practices that inform and dictate how individuals in an organisation act toward other employees, customers, and other stakeholders. It therefore encapsulates the working environment, communication styles, leadership practices, means of decision-making, and an approach to work.
Effect on Individual and Organisational Behaviour
Organisations can embrace an organisational culture and values by opening up channels of communication, employee participation, and practices aligned with core values. Leaders have to exhibit model behaviours that support such kinds of positive norms and behaviours. Regular or institutionalised training and workshops create a regime that leaves a sting, while recognition or reward for value-driven actions stimulates adherence.
Additionally, soliciting staff input ensures culture dynamically responds to the needs of the workforce, and incorporating cultural values into the hiring process ensures alignment at the outset. This integrated approach builds strength in coherence and fosters a positive, values-driven environment.
Leaders impact the organisational culture through their behaviors, choices, and communication. Organisational norms are significantly influenced by the values and priorities of leaders.
Industry pressures, customer demands, and the expectations of industries influence organisational cultures to live up to environmental pressures and demands on organisations.
Mechanistic structures might lead to cultures that are formal and highly hierarchical, whereas organic ones might lead to innovation and collaboration.
Employee demographics, age, gender, and cultural influences introduce diverse perspectives that evolve and shape values.
An organisation’s mission and long-term vision directly determine its values and drive its culture.
Evolutionary longevity reveals the culture within legacy practices, traditions, and the beliefs of the founders as the organisation changes.
Societal norms, regulation, and technological advancement keep promoting organisations to adopt and reflect the values of the greater culture.
Positive cultures emphasizing teamwork, innovation, and values motivate employees to enhance better business outcomes.
Customer-centric organisations are trusted and loyal. Organisations make market reputations better.
Cultures which support innovation and nimbleness respond to changes in the market more rapidly and thus retain competitive advantages.
Ethical cultures reflect societal expectations, enhancing stakeholder relationships and the arrival of socially conscious investors.
Distinct cultural characteristics such as outclassing customer service or employee welfare create a competitive advantage and differentiate the brand.
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