Defining organizational culture is one of the easiest and yet most difficult tasks. Is it the shared values between employees? Is it the atmosphere that the management wants within a company?
The answer is a combination of all the elements. Ultimately, organizational culture is the atmosphere that employees face every day. Every facet of one’s professional life contributes to organizational culture, from interactions with colleagues to communication with seniors.
Ambika Wadhwa, who presently serves as the Head of People and Culture of Gourmet Investments, understands the connection between organizational culture and employee performance better than most.
Active in the HR industry for over two decades, Ambika has worked with various teams and has observed the impact that organizational culture can have on different sets of workers.
“In my view, organisation culture is very critical to employee and team performance. Culture helps set the tone of acceptable and unacceptable behaviours at the workplace. Each interactive behavior drives motivation and engagement at the workplace,” Ambika shared.
Talking more on the topic, Ambika explained how a positive culture can lead to better performance, while a toxic culture paves the path for bad results. “If organizational culture aligns with the goals and values of both the business and its employees, it becomes a powerful enabler of high performance,” she added.
The building blocks of a positive organizational culture
The connection between employee performance and organizational culture is not a new narrative for most. It is almost an expected fact that happy employees lead to improved results.
Most companies in India seem open to the idea of a positive organizational culture. That said, it also leads to the question of what makes an organization’s culture a positive one. How exactly can a company be sure that the environment they have created is genuinely motivating its employees?
Luckily, Ambika has the perfect answer to this.
“A positive organizational culture typically adopts a transparent medium of communication,” Ambika explained, “along with the below-mentioned traits:
- Shared Values: A strong alignment between personal values and organizational values fosters loyalty and commitment.
- Two-Way Feedback: Employees feel heard and valued when their input is actively encouraged and acted upon.
- Constructive Dialogue: A culture that promotes respectful discussions builds trust and collaboration.
- Fair Rewards: A culture where employees are rewarded fairly for their contributions, whether through bonuses, promotions, or verbal appreciation
- Mental and Physical Health: Programs and resources that promote health, such as wellness initiatives, counselling, and fitness options, help employees stay productive.
- Diversity of Thought: A positive organizational culture attracts different perspectives that are embraced, fostering innovation and creativity.
- Equity: Employees are treated fairly, regardless of background or identity in a positive culture.
- Belonging Pride: Employees feel valued as individuals and part of the team in an atmosphere where camaraderie and friendships are celebrated.”
Considering Ambika’s response, it is easy to identify the key factors that take an organization’s culture on a positive path. A company needs to be open with its employees, listen to their concerns, and show proper appreciation for their efforts.
Acknowledging the organization’s employees as valuable resources that need to be cherished is the first step in creating an environment where performance can thrive.
It is also crucial for employers to acknowledge that a positive organizational culture is highly dependent on continuous maintenance and thorough involvement. People from different hierarchical levels must unite to make it a reality.
“Building a culture is an every-day conscious effort on the leadership team’s part. Once the identified set of culture priorities are established, internal ambassadors are identified who live and breathe these established behaviors,” Ambika explained.
“Shaping culture is a top-down and bottom-up effort, requiring leadership alignment and employee involvement. It’s a continuous process, not a one-time initiative, and it evolves with the organization’s needs. Success depends on embedding culture in every aspect of the organization, from hiring to daily practices”
The Role of the Leadership
In most companies, employees look to their leaders when it comes to organizational culture. Anyone who is part of the higher levels of a company’s hierarchy bears the huge responsibility of ensuring that the culture they foster is contributing to better performance.
This requires that the leadership evaluate the company’s existing culture thoroughly and how it is impacting its employees. Are they happy with the methods of communication and feedback? Do they enjoy the environment they spend every working day in? This needs to be assessed thoroughly through “surveys, focus groups, or cultural audits.”
Once the assessment is done, it is crucial to be certain of the Key Performance Indicators (KPIs) involving the company’s culture. “Measure employee engagement, retention, collaboration, and customer satisfaction to evaluate cultural health,” Ambika stated about what to look for.
More than anything, the organizational culture needs to be flexible enough to adapt to the changing demands and needs of its employees. An organizational culture is based around basic human behaviors and, as such, needs to be able to accommodate both emotional and social challenges that can arise in a country like India.
Many tried and tested methods are known for increasing an employee’s engagement with the organization and allowing for easier distribution of company knowledge and policies. These include mentorship programs and buddy initiatives that can prepare employees for their future in the company while also showcasing how much the leadership values them.
The bad with the good
The path to hell may be paved with good intentions, and not every plan might actually lead to positive changes with the company. While leadership and HR professionals might be intent on creating an engaging atmosphere, they can also find themselves committing mistakes that can backfire spectacularly.
One thing that should never be overlooked is that organisational culture is not something that can be forced. It is unrealistic to expect employees to change their methods in one day simply to obtain an ideal organizational culture.
As an HR professional, you want the employees to be communicative. But that also means assauging their fears regarding possible repercussions if they do speak up. Providing employees with their own space is also important for them to feel comfortable while working in order to truly contribute to the work.
“In my view, HR should not try and become ‘agony aunts/uncles’ and consciously avoid joining any ‘employee groups.’ Lot of organization leaders expect HR to be eyes and ears of the organization by ‘spying’ and HR shouldn’t fall prey to this expectation,” Ambika explained.
“They should ideally be the custodians of culture and foster positive internal advocacy. HR shouldn’t hesitate to call out bad/toxic behaviours and help build culture by seeking inputs from people themselves. HR shouldn’t assume culture is intangible, and we should be looking at all forms of engagement survey reports, happiness/emotional quotients, attrition, retention data, and so on and so forth. Continuous reinforcement is the key. HR can’t look at culture building as a one-time activity only.”
While creating a positive organizational culture is imperative, HR professionals should also remember to maintain the integrity of a professional environment. Healthy relationships in both personal and professional lives require concrete boundaries that allow individuals to thrive and contribute positively.
Driving performance with organizational culture
With rising workplace awareness, organizational culture has become a key contributor to a company’s growth. A positive work environment has become necessary for employees to ensure their own progress.
Providing employees with a culture where they can thrive leads to increased employee retention. It also allows employees to feel more invested in the company’s goals and more inclined to share their thoughts and take initiative.
When fostering a positive organizational culture, an HR professional doesn’t always need to take the right step. Learning from those missteps and listening to employee feedback is just as important as creating the perfect plan and achieving the dream environment.
Remembering the good with the bad is the most effective way to create a positive organizational culture that drives employee performance.