Glossary
Organisational Culture
Every workplace has its own unique personality – a set of unwritten rules, values, and behaviours that shape how people interact and work together. This personality is the core of the organisational culture, a powerful factor that affects everything from employee engagement to the company's results.
What does organisational culture mean?
Organisational culture is the complex system of shared assumptions, values, norms, symbols, and behaviours that characterise an organisation and distinguish it from others. It is the collective mentality and the underlying beliefs that guide how members think, feel, and act in their work and in their relationships within the organisation. The culture is manifested in everything from leadership style and communication patterns to decision-making, routines, and the physical work environment – often summarised as ”the way we do things around here”.
Examples of different leadership styles:
Why is organisational culture important?
A strong and consciously shaped organisational culture is crucial for long-term success:
- Affects employee engagement: A positive culture increases motivation, job satisfaction, and loyalty.
- Guides behaviours: Serves as an informal guide for decision-making and action, often stronger than formal rules.
- Attracts and retains talent: An attractive culture is a key factor in recruiting and retaining the right employees.
- Drives performance and innovation: A culture that encourages collaboration, learning, and new thinking improves the organisation's results and adaptability.
- Shapes the brand: The culture affects how the organisation is perceived externally by customers, partners, and the public.
- Enables change: An adaptable and positive culture facilitates the implementation of strategies and change initiatives.
What characterises organisational culture?
Organisational culture is created and maintained (consciously or unconsciously) through a variety of factors:
- Leadership actions: Leaders act as role models, and their behaviours set the tone.
- Communication: How information is shared, the openness of dialogue, and the channels used.
- Recruitment and onboarding: Who is hired and how they are introduced to the organisation's way of working.
- Reward systems: What is recognised, encouraged, and rewarded in the organisation.
- Stories and symbols: The stories, rituals, and symbols that convey values and norms.
- Structure and processes: How work is organised and how decisions are made.
- Work environment: Both the physical and the digital environment affect interaction and behaviour.
Changing an organisational culture is a long-term process that requires conscious and consistent work from management and commitment from the entire organisation.
In summary, organisational culture is the soul or DNA of the organisation – a deeply rooted force that permeates the entire business and has a crucial impact on its success and long-term sustainability.