Organizational Culture Explained in an Easy Way

Nowadays we hear a lot about organizational culture, but many people don't actually know what it means and its importance in an organization.

What is organizational culture?

This culture encompasses a company's behavior, moral and ethical values, as well as its beliefs, determinations and habits.

The concept is also responsible for leading internal and external practices in the organization.

The quality of the work environment is directly influenced by the way employees view the business, and it plays a crucial role in this.

Objectively, this culture is the face of the company. We, human beings, have a personality, values, principles, ideals and motivations.

Knowing how to define these characteristics is essential for our development as human beings in all areas of our lives.

A company also has them, and they are represented in its organizational culture, which is extremely important for its development.

When a company has a well-structured culture, employees identify with it.

As a result, they work with more commitment and enthusiasm, knowing that their beliefs and values are aligned with those of the company, not only in theory, but in practice as well.

With an efficient culture, it is possible to feel the satisfaction of employees and customers, this contentment is felt in the relationship between employees, in the organization's conduct and even in productivity.

It is worth highlighting that organizational culture impacts the recruitment process in different ways.

With it, it is possible to attract the best talents to the company, those whose values are aligned with those of the company and also the team.

What will bring more harmony, balance and good communication to the work environment will certainly bring positive results for those involved.

Main types of organizational culture

A company's culture is made up of several elements and aspects. All of these tools influence the recruitment and retention of talent.

There is a complexity in accurately determining all types of organizational culture.

However, there are 4 main models used by organizations that are more comprehensive and complete.

Please note below:

1. Power

THE Culture of Power It is characterized by the centralization of power in a leadership role, usually the owner, who performs different functions in the company.

In this culture, there is a hierarchy clear and very well defined. Among its main characteristics, we find competition, which is a consequence of the search for results.

Due to the focus on presenting results and achieving objectives, in this culture, employees end up not having autonomy, since there is a centralization of power.

This limitation can have negative impacts on the organization, such as a decrease in professional development, which is one of the causes of absenteeism.

Therefore, it is important to adopt actions that bring more flexibility in this organizational culture and in the distribution of tasks.

In order to have healthy competitiveness, empathy and thus, the professional growth of the employee and the development of the company will not be affected.

2. Role Culture

According to Neil Patel, it is represented by Apollo, the god of rules and orders. It is very similar to the culture of power, because there is a well-defined and clear hierarchy.

Its main characteristic is that it is based on the definition of the role or work to be done, and not necessarily on people.

The organizational chart explicitly defines the role of each employee.

One of its disadvantages is that there is less creativity and flexibility, since it is guided by rules and each employee must play their role.

On the other hand, there is an advantage: each person knows exactly what their role is in the company and what needs to be done.

3. Task Culture

This is one of the most interesting organizational cultures. Among its main focuses, we find, for example:

Collaboration;
Creativity;
Teamwork;
Troubleshooting.

In this case, the problems are identified, and then the company outlines the resources and strategies needed to find a solution.

Therefore, it has professionals specialized in each task. In addition, employees work on an equal footing and have more space to express their ideas.

This ends up stimulating innovation, creativity, a sense of collaboration and teamwork.

Therefore, the company ends up solving problems continuously and successfully.

4. People

THE People Culture is represented by the appreciation of talents present in the company. In this case, there is room for growth.

Furthermore, there is mutual respect and encouragement for quality of life and professional growth.

An interesting point to highlight is that the company hires an employee to help it achieve its goals.

As a result of this contribution, she receives a salary.

Likewise, the company has the role of helping its talents achieve their goals.

This organizational culture model has been used by many organizations today. This is because it serves to retain good talent in the company.

There are different satisfactory ways to implement this type of culture in the company, such as:

Through incentive programs;
Benefits;
Professional development programs;
Providing a welcoming, respectful and diverse work environment.

What are the components of organizational culture

The types of corporate culture reflect its main elements. Generally, it is linked to three important pillars: values, mission and vision.

However, its components certainly go far beyond these three concepts. We can highlight, for example, in addition to vision, mission and values, the following:

Practice – which enshrines the company’s value;
People – an important component in building organizational culture;
Narrative – every company has a unique story;
Place – it shapes culture.

The reference of these components were extracted from the book by John Coleman, the book portrays the story of the best and brightest young business leaders.

It's worth reading!

Benefits of a well-structured organizational culture

When organizational culture is implemented with purpose, it has powerful impacts on business processes.

From a strong culture, the company reaps many benefits such as:

More motivated workers with a sense of collaboration;
Reduction in turnover and absenteeism;
Positive organizational environment;
Diversity;
Talent retention;
Better results;
Recruitment aligning;
Brand reputation;
Productivity;
Decision making;
Increase in revenue;
Effective leadership;
Improves relationships between employees.

A company with this strong culture ends up being more competitive, which will bring other advantages and better business results.

A striking example of this concept is Google. Its culture is known worldwide and millions of professionals dream of working at the company.

Among the traits of Google's corporate culture is how employees are treated.

The company provides free meals, interaction spaces and other benefits that make the work environment attractive and different.

Apart from that, in the office, we found a lot of excitement and leaders, employees, trainees and interns working as a team, in shared environments.

When professionals realize that they are an important part of the company's growth, they become more collaborative and motivated in its processes.

It is precisely through the organizational culture that the company is able to convey these values.

Organizational challenges faced by companies today

Organizational culture and its importance have never been talked about as much as they are today.

The number of companies that are changing positions and processes in the workplace to promote this tool is growing.

However, given its importance, companies have faced some challenges in recent years: the home office and hybrid work model.

After the pandemic, these work models became common. However, it became difficult for employees to connect with the company.

This ends up being a major obstacle to strengthening this culture in the workplace and for the results to be felt.

When employees work outside the office, it can be harder to maintain a sense of community among coworkers.

Therefore, it is important for organizations to find a balance between new and old work patterns.

It is essential to outline strategies to strengthen bonds and connections between employees and the company.

THE organizational culture It is directly linked to the development and success of a company, whether in retaining talent, generating results, or managing and optimizing people.

Therefore, it is essential that the corporation determines its values and implements them, encouraging actions that enable employees to understand what they mean through their behavior.

Conclusion

The subject involving this concept is very broad and involves other elements such as, for example, levels of organizational culture and company identification.

Therefore, do not limit your research to this text alone, continue studying the subject.

If you have a company and you still don't know what your culture is, it's because it's not strong, perhaps because it's not being put into practice.

Define the company's main values, mission and vision, see if they are being put into practice and what can be done to improve.

If you are looking for a job opportunity, be sure to learn about a company's values, vision and mission to find out if they are aligned with yours.

Nara Sampaio March 31, 2023

Business