School of Information Systems

Organizational Culture

Think of organizational culture as a collection of values, expectations, and practices that guide the function and behavior of all team members within a project and a group of attributes that personalize the business. A good organizational culture shows positive characteristics that lead to improved performance, but a dysfunctional culture produces qualities that can interfere with even the most successful organizations. It is easy to confuse culture with corporate goals or mission statements; both help defines it; however, organizational culture is created through consistent and genuine behavior, not press releases or policy documents. Organizational culture can be seen when a CEO responds to the crisis, the team adapts to the demands of new customers, and the manager corrects the employee who made a mistake.

These shared values substantially impact the people in the organization and determine how they dress, act, and perform their jobs. Every organization develops and maintains its culture of providing behavioral guidelines and boundaries for its members. The organizational culture should include these characteristics and procedures to improve the status of the underlying company:

  • How an organization conducts business and deals with employees, customers, and a wider community.
  • Freedom is allowed in decision making, new idea development, and personal expression,
  • How power and information flow through that hierarchy, and To what extent are employees working on collective goals?

Organizational culture influences every aspect of a specific business, from punctuality and tone to contract terms and employee benefits. In a perfect world, the workplace culture is consistent with the employees, and the employees are more likely to feel comforted, supported, and valued. Culture-focused companies can also survive difficult times and changes in the business environment to become stronger, as the culture is a significant advantage when it comes to attracting talent and surpassing the competition; most workers consider the culture of the company before applying. Almost half of the employees with poor culture stability quit their current job due to low-wage opportunities in a worse – cultured organization. Organizational culture is one of the critical indicators of employee satisfaction and one of the main reasons why almost two-thirds (65%) of employees continue to work.

Because of its cultural priorities, consider Microsoft as an example, a technology-based company, a world-class performer, and an acclaimed brand. Known for its competitiveness under Steve Ballmer, Microsoft was actively transformed by Satya Nadella, who became CEO of the company in 2014, where he embarked on a program to refine the corporate culture on the base of continuous learning instead of credit accreditation, where employees are encouraged to improve themselves. Today, Microsoft has a market capitalization of $ 1 trillion and is again competing with Apple and Amazon as one of the most valuable companies in the world.

Reference :

https://www.achievers.com/blog/organizational-culture definition/#:~:text=Organizational%20culture%20is%20the%20collection,your%20company%20what%20it%20is

Filbert Sutanto, Marisa Karsen

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