What Is Organizational Culture and How it Affects Employees and the Organization

One of the most important questions that people in organizations must ask themselves is what is organizational culture. This is more than just a semantic issue; indeed, it is one of the most important concepts in management studies and in organizational behavior.

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How do you get from being a group of individuals or a company to being an organization? The answer largely depends on how you choose to view your own cultural norms.

In most companies today, it's a matter of understanding and defining the existing organizational culture. Many managers and leaders assume that the culture of the company is a set of values and beliefs that are shared by all members of the organization.

However, it's worth noting that the culture may be a set of values and beliefs that a group of employees have come to embrace as their own, regardless of the leadership style or individual intention. While some cultures are in existence from the very beginning, others have started evolving toward more flexible, inclusive, and democratic values.

Cultural gaps between employees can arise for a variety of reasons. Workplace preferences regarding dress, grooming, and conduct are often dictated by assumptions about gender and power, and these behaviors are often misinterpreted as real cultural guidelines.

Leaders must take care when delegating work-related decisions. It is important for leaders to understand what is organizational culture and make sure that their subordinates also know what is expected of them.

Cultural diversity is a major challenge in many organizations. Some managers view cultural diversity as an opportunity for promoting self-improvement and a sense of belonging. On the other hand, some managers see cultural diversity as a problem that must be fixed.

With little regard for the potential ramifications of the chosen approach, organizations may choose to downplay the importance of what is organizational culture. This can have a devastating effect on morale and employee engagement.

What is organizational culture? It is based on attitudes and behaviors that employees hold toward one another, the work they do, and the organization itself. The four values that are most critical to organizational culture are: fair treatment and opportunity, respect, social responsibility, and freedom.

Fair treatment and opportunity represent principles that transcend individual considerations. Employees who are treated fairly and receive opportunities for advancement in line with their qualifications contribute to good culture, which is necessary for high productivity and quality performance.

Respect is a fundamental value that employees should universally practice. When employees are valued for their right to be heard and their views, they will feel free to speak up and act on behalf of their interests if the need arises.

Also, employees should be given the freedom to give feedback and develop open lines of communication with management and fellow employees. Employees who believe they are respected and given the freedom to speak up and act on their own interests contribute to good workplace culture.

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