A3 Business Culture
Culture refers to the shared values, beliefs and behaviours of a group of people. In terms of an organisation, this relates to the shared values, beliefs and behaviours of staff. Every workplace environment will have a different feel to it. Some may be positive, some negative, some very competitive and some very innovative. It is not just the leadership that have an influence on culture but there are strategies that leadership can use to alter the culture of their workplace to create an atmosphere that is more conducive to achieving their goals. Culture is often described as the personality of an organisation.
Mission, Vision, Values and Ethos
The business mission, vision, values and ethos can have an influence on the culture. These statements can make everybody feel part of a shared purpose, help people understand the purpose of what they are doing in terms of the bigger picture and outline expectations and activities for all.
Management Practices
Management practices may be influenced by the business culture. The intended culture as set out in the company vision may affect the way in which managers communicate and motivate staff to get on board with that vision. The implicit culture may also have an impact on management practices. A culture gap may exist in an organisation. This occurs when the shares values, beliefs and behaviours of staff are not in line with the intended culture. Management practices may include conducting a culture gap analysis to establish the reasons for the culture gap from the employee perspective, listening to staff and communicating a strong sense of empathy for their work related issues, establish allies and culture blockers who may either help or hinder the culture, having clear communication on the purpose of goals and tasks and by modelling good practice.
Management Styles
Management styles can have a direct impact on business culture. Leaders with a more autocratic style may limit the creativity, innovation and collaboration that many employees feel contributes to a positive culture. People may feel like their opinions are not valued or frustrated by the lack of opportunities to have freedom in their work. More democratic or laissez-faire leaders are likely to give more freedom, decision making power and opportunities for teamwork and collaboration to their staff. This can make people feel more valued which can in turn have a positive impact on the culture of an organisation. Leadership styles are very fluid and should adapt according to the needs of the team. It is important that the needs of a team are understood and leadership adapts to them. For example, there may be people who prefer a more centralised leadership approach.
Structure of the Workforce
Structure of the workforce refers to the way in which staff are organised into teams and hierarchies. A centralised organisational structure is one where decision making authority is held by a small number of people. In centralised structures, staff may feel that they are limited in their freedom to make decisions, collaborate and innovate. Decentralised structures delegate decision making to people throughout the organisation. Being given responsibility to make decisions, contribute to the firm’s overall goals through ideas and innovation and work collaboratively in teams can make people feel more valued, challenged in their role and motivated. This can result in a more positive culture.
How People Work
How people work may be affected by culture. A strong culture may result in people being more committed to the organisation’s goals and therefore their role in achieving them which can improve productivity. People may work better in teams and collaborate more which can draw out ideas which may improve the innovation of new products and services. The customer experience may improve through better interactions with more positive and enthusiastic staff which can improve brand image.
Policies and Procedures
Policies and procedures are a set of rules, processes and expectations for employees to follow in an organisation. When trying to establish a culture within an organisation, it is important to ensure that policies and procedures are in line with the company’s vision. This allows staff to fully understand the purpose of their actions which is a motivating factor.
Read about the impact of having policies in line with vision at Patagonia.
