What is Organizational Culture

What is Organizational Culture
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What is it: Organizational Culture is a set of values ​​and attitudes, implicit or explicit, divided by the team of a company. The cult is something largely intangible and in most cases is only understood by who is inside it. In addition, these values ​​can be as diverse as possible influencing negatively or positively the way in which the company is managed.

What is a Good Organizational Culture:

There is no right and wrong within the universe of organizational culture (logically, within the ethical and legal limits). What exists are cultures that are helping the business to develop and others that are pulling it down. For example, if your company has a very strong sales culture but with little concern for the customer relationship and new competitors come in offering a better service with closer relationship and wins your market, this will slow you down. But if you have a strong selling culture and your business is a retailer with little differentiation, maybe that's good for your business.

Examples of organizational culture manifestations:

A company's culture is manifested in hundreds of millions of ways, from a little vocabulary detail to the organization of your office, department names, and everything. Anyway, in order to try to make some beginners a little tangible, I will demonstrate a small list of elements that are usually influenced by culture:
  1. Vocabulary used
  2. Colors, logo
  3. Profile of hired employees
  4. Office Organization
  5. How the team deals successfully
  6. How the team deals with failure
  7. Events that are celebrated
  8. Relationship between bosses and subordinates
  9. Time of arrival and departure from the office
  10. Expense and refund policy

Benefits of a Strong Organizational Culture:

The general rule is that the stronger the culture, the less formal management will be required and vice versa. A strong culture is one that is understood and followed by the majority of the team, without needing many rules and official orders for it. When you have a strong culture, you will have the following benefits in your business:
  1. Better decision making: A team that lives the culture of the business knows how to set priorities exactly and therefore makes decisions faster and with greater quality.
  2. Lower turn-over: If you are clear on the culture of your business, you will be able to hire employees who have the right profile and this will decrease your turnover.
  3. Better Performance and Satisfaction: Team who feel united by a unique culture and it makes sense for everyone to feel more comfortable working and doing their job better.
  4. Higher business results: If your culture is strong and aligned with your business, this will positively affect your bottom line in the long run.

How to Build a Strong Organizational Culture:

Although much has been said about companies with strong culture and all the benefits of it, little is said about the elements needed to achieve this state of performance. Of course, the first step in building a strong culture is for the business management team to understand its importance and believe that this is a decisive factor in the outcome. After this, we will list some elements that are typically present in reference companies:
  1. Recognition of the importance of culture
  2. Alignment of culture with results
  3. Alignment of culture with personality and history of founders and leading leaders
  4. Repeat communication
  5. Constancy of purpose
Much of the culture is related to the attitudes of the company's leadership, so it is no use creating a beautiful plan and a well-made communication if leadership actions are against the proposed culture.

Examples of Employee Handbook:

Currently, the most famous and used communication element in companies around the world is the employee manual. It serves to introduce the company's culture and operating rules to new employees, but also to remind the old ones about what is valued in the business. Reading different examples of manuals will provide you with good examples of how companies deal with different situations and help you choose the profile of your business.
In this link, in English, you will have dozens of different download and inspiration manuals: https://tettra.co/culture-codes/handbooks/

Main Books on Culture:

In addition to the employee handbooks, another good source of inspiration for thinking about the culture you would like to stimulate in your business is the great books that tell of success stories and companies that have succeeded in creating a great alignment between culture and result.
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