Is Organisational Culture Important?
February 2024

 

 

 

At the very beginning of my journey, even before CEE Ltd had a name, I was talking to a very good friend about organisational culture. Having worked in the NHS for the majority of my adult career, the importance of an organisation having strong values, positive role-modelled behaviours and an empowering culture, has always been prominent. Even if the actual experience was at times, not a direct reflection of the national policy, the understanding of the benefits of a positive organisational culture, was always there. 

 

However, my friend didn’t really feel that it was as a priority in the private sector. I found this really interesting. I always felt that if an organisation’s success was dependent on the workforce, then investing in an organisation’s culture would be a priority. We debated for a while. The main argument against my view was the need for financial profit, and to please the stakeholders. Is this the purpose of the private sector? Are the two sectors that different? However, we found that the common element was that in order to achieve the organisational objectives, regardless of sector, people are required. Yes, in the era of AI and robotic workforces, some roles that were occupied by humans have now become obsolete, however, the robots haven’t taken over completely...... yet. 

 

So until then, an organisation, any organisation that employs staff, requires a working environment that fosters open communication, collaboration, respect and support. Where everybody feels part of a team, and leaders recognise the importance of personal and professional growth. Where there is a shared commitment from the entire workforce to the achievement of the organisation's mission and values. 

 

There have been lots of research studies that have shown an association between workplace culture and productivity /outcomes. The phrase found to be most commonly used to describe organisational culture in these studies is 'the way things are done around here'. This simple phrase describes the usual, normative behaviour that people experience within an organisation, in order to define its culture.

 

In recent times, the number of cases in the news that have referred to a 'toxic' culture, has increased substantially. This term was originally defined by Bailie et al, in 1989 and was linked to an organisation that didn't listen to or value their employees, and where leaders drove the organisational agenda, which resulted in low morale and high turnover. Behaviours that are said to be prevalent within this type of culture are discrimination, exclusion and bullying. The term has since evolved into describing an environment that negatively impacts on the success of an organisation. 

 

The opposite approach, a 'nourishing' culture, describes an organisation that embeds empowerment and autonomy, whilst demonstrating effective communication between leaders and employees. Promoting an environment whereby employees feel valued and their self-worth is recognised and appreciated. All of which drives the successful delivery of the organisational objectives. 

 

So, is getting the organisational culture right, an important priority? I believe it is vital to any organisation regardless of sector. Don't get me wrong, financial balance, effective use of capacity and resources, and ensuring all stakeholders or service users are happy, are also important, but none of these would even matter if the employees didn't do a good job.

 

I would love to hear your views  - if you would like to send me any questions or comments, please use the form below. 

 

Bye for now,

 

 

 

 

 

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