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Organisational culture: The importance of culture

Roy Edwards

organisational culture


In the blog last week, we began our new series on organisational cultures by considering a definition of this concept. This week we will briefly explore six reasons why culture is important to both the organisational image and the welfare of employees.



The six key reasons why culture is important


Employee engagement

First, a developed culture helps increase employee engagement with the organisation by driving a sense of common purpose and clearly defining expectations. This can lead to higher levels of motivation, and smoother interpersonal relationships that in turn increase productivity.


Turnover rate of staff

Secondly, culture can decrease the turnover rate of staff as people feel valued by the organisation. Consequently, such people are more likely to remain in the organisation longer-term. Recruiting people to the organisation can be one of the main challenges, so did reducing turnover saves time, effort, and significant costs.


Productivity

Then, a developed organisational culture can elevate productivity across the organisation by providing the necessary incentives to encourage cooperative teamworking, sensitivity to quality, and a focus on time constraints.


Brand identity

Yet another advantage of the organisational culture is that it presents a strong brand identity that enhances a positive public image of the organisation. Organisations with a strong brand identity also tend to attract more business and greater customer loyalty.


Job satisfaction

Next, culture has a transformational power on employees as feeling valued enables the development of a sense of accomplishment and job satisfaction. Employees that are appreciated tend to find managing change more comfortable than those who feel neglected or used as simple cogs in a wheel. In other words, such employees are more open to transformational change.


Cooperative environment

Finally, culture can promote a healthy team environment as it establishes a sense of common workflow while guiding cooperative decision making. Indeed, a transparent culture unifies employees that then helps people to work together more purposefully.



 

Question 1

Who are the primary drivers of the organisational culture?


Question 2

How does the organisational culture promote employee motivation?


Question 3

What shapes the development of organisational cultures?


 


We shall explore Question 3 in the next blog.

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