Since `Culture eats Strategy for breakfast’, it goes without saying that today, focus on Culture within organisations has gained importance.
Organizational culture refers to the shared values, beliefs, behaviours, and practices that characterize how things are done within an organization. It encompasses everything from how employees interact with each other to how they approach their work, how decisions are made, and how the organization communicates its vision and goals.
Organizational culture can significantly impact various aspects of a business, including employee engagement, productivity, innovation, and overall success.
- Positive organizational culture leads to higher employee engagement and results in lower turnover / attrition rates.
- Conversely, a toxic or misaligned culture can lead to dissatisfaction, high turnover, and a lack of motivation.
- A culture that encourages collaboration, open communication, and innovation typically fosters higher productivity.
- Conversely a rigid or overly hierarchical culture might stifle creativity and limit productivity, as employees may feel restricted or disengaged.
- Organizations with cultures that emphasize risk-taking, creativity, and continuous improvement are often more innovative and adaptable to change. They pivot quickly and respond to market shifts efficiently
- The culture within an organization also impacts how employees interact with customers. A culture that values customer service, empathy, and responsiveness will likely result in better customer experiences and stronger relationships.
- Organizations with a culture that overlooks customer concerns or treats clients as an afterthought may struggle with customer satisfaction and retention.
- Culture heavily influences leadership styles and decision-making. For example, in a culture where leadership is viewed as collaborative and inclusive, decision-making tends to be more participatory and transparent.
- In a more authoritarian culture, decision-making is often centralized, and leaders may make unilateral decisions without much input from others.
- A strong and positive culture can make a company more attractive to potential employees, especially those who value alignment with the organization’s core values. A good cultural fit can be just as important as a competitive salary for many candidates.
- Companies with a toxic or dysfunctional culture may struggle to attract top talent and can experience negative branding in the job market.
UGRs, or Unwritten Ground Rules, refer to the informal, often unspoken rules that shape behaviour within an organization. These are the shared understandings, beliefs, and norms that influence how employees interact with each other and approach their work, but they are not officially documented or communicated in company policies.
While organizational culture refers to the broader values and behaviours that define how an organization operates, UGRs are the more subtle and often unrecognized part of that culture. They can be positive or negative and may vary across departments, teams, or even between individuals within the same organization.
An organization may officially promote collaboration, but if the unwritten rule is that only senior leaders' opinions are valued in meetings, then employees may refrain from contributing their ideas, even if they have relevant input.
Officially, an organization may encourage work-life balance, but the UGR may be that employees who leave on time are seen as less committed. As a result, employees might work overtime to avoid the perception of not being dedicated.
The official stance might be open communication and transparency, but if the unwritten rule is that feedback is only given through informal channels (like gossip or hearsay), it can create confusion and mistrust.
Officially, the company might state that employees are recognized for their contributions, but the UGR could be that recognition is only given to those who "fit in" with the senior leadership team’s preferences or style.
UGRs are a powerful, often overlooked element of organizational culture. They shape behaviour, influence decision-making, and can either support or undermine the formal values of the organization. By recognizing and addressing UGRs, organizations can create a more cohesive, productive, and aligned workplace culture.
Reach out to us if you wish to run a diagnostic on your Organizational culture to identify the UGRs (desirable as well as undesirable)
And let us collaborate to take your culture to the desired level!!