Modern-day organizations stand for the service & work more than profits. Being a profit motive venture isn’t enough in the modern world. Organizations come up with various strategies to get into that perfect organization mold. In an organization, leaders establish an internal norm of behavior consisting of its core values and beliefs to shape attitudes, behaviors & understanding of the workforce, this is called the organizational culture. In any organization, success depends on the team. Moving towards this success, keeping the workforce happy, in other words, job satisfaction is a necessity. Companies have failed miserably due to company cultural issues as well as failing companies have done billion-dollar pivots because of great teams and cultures. Great teams are built with motivated individuals who are excited to wake up in the morning to work for a single target.
2.0 Organizational Culture
Leaders and fellow employees follow a set of norms, Values & perspectives which they truly believe in; This is called organizational culture. The founding team sets, Leaders set and the teammates follow. This is the soul, the personality of an organization. This company culture sets how people act in a simple involuntary task as well as in major practices. Corporate culture consists of assumptions, norms, beliefs, values, and artifacts within an organization and its members. (McNamara, 2006)
Organizational culture is different from one organization to another. Even two similar businesses can have corporate cultures that lie on opposite sides in the spectrum. Google has a culture where there are no open doors, the lowest level worker chats over a coffee with the CEO, there are no right or wrong answers. But in Microsoft, The Bing team is totally the opposite. there is a team hierarchy, set tasks, and a more formal work environment (until recently Microsoft restructured the whole company). Modern-day belief is if an organization is not performing, it’s not only the organization structure which needs to be changed, it’s also the company culture. (“Basic Overview of Organizational Culture”, 2020)
3.0 Types of corporate cultures
Just like culture changes from town to town, country to country, Corporate cultures differ from organization to organization depending on many features & factors. There are 4 main types of organizational cultures.
This is commonly seen in schools, Colleges & universities, or even in hospitals. Here there’s a significant career development environment where employees climb the corporate ladder with skills and paper qualifications retained in the organization for long. (“Basic Overview of Organizational Culture”, 2020)
Sporting team/ Baseball team Culture
This is commonly seen in investment firms & advertising firms where each individual is treated as an individual agent with their respective skillset. These individuals are highly demanded and are involved in fast-paced & high-risk organizations. (“Basic Overview of Organizational Culture”, 2020)
This is commonly seen in military or law firms. Employees begin from the base and try & adapt to fit into the system. Here the upper level and seniority are preferred as high valuations. (“Basic Overview of Organizational Culture”, 2020)
This is commonly seen in automobile companies. The workforce has no set agenda, longevity in their tasks. Job safety is bare minimum where they can be laid off if the organization is at risk. These businesses risk massive projects and opportunities are given based on the sector of specialization. (“Basic Overview of Organizational Culture”, 2020)
4.0 Levels of corporate culture and its factors
There are 3 levels of corporate culture in any organization. First is the prominently visible factors like symbols, Slogans & ceremonies, etc. These display the cultural values of an organization. The second is invisible. This includes the goals, objectives, certain philosophies & strategies for the organization to conquer. The third is the Benefits and values of the workforce. The page everyone is at any given point. (“Levels of Organizational Culture | Organizational Behavior and Human Relations”, 2020)
Various factors can showcase the firm’s culture to its stakeholders. Such factors will be visual artifacts or events which create cultural values such as symbols of an organization. Organizations use indications & symbols to denote the cultural position the organization holds. Such an example can be using green color to showcase they promote green tech and follow an environmentally friendly approach when doing business. Another example can be companies having events to praise their employees and make them shine among their peers. An organization’s vision & mission plays a huge role in promoting organizational culture. These are the factors which showcase the fundamentals of the company culture in a given organization.
5.0 Importance of Organizational Culture
Organizational culture influences all areas of the business. It influences the finances, HR, and even day to day operations. All these reflect the sales, turnover rates, revenue, & even the longevity and stability of an organization. Here are a few benefits of having a strong organizational culture. A strong culture assists in attracting top talent & adds young blood to the organizational body. This forces the employees who’re set in their confirm zones to push their limits and race with them. The natures Survival of the fittest theory will be proven as the people who can’t stand with the phase will drop and the cream will be left in the company. The company culture influences the satisfaction of the customers as well as delivering the best for the customers and retaining them. All the above results in the stability of the company and generate revenue. Eventually, the organization will be in great shape to expand to other markets and increase its growth. (“9 Benefits of a Strong Corporate Culture – Gavel International”, 2020)
6.0 Influence of Organizational culture on organizational activities
Many activities can influence positive corporate & organizational culture.
Productivity drives businesses to thrive in success. Culture impacts productivity. Math is clear, this adds up with employees who’re happily working at their fullest resulting in a surge in the overall productivity of the organization.
A strong corporate culture impacts on the clarity and integration of the organization. The goal will be clear and the whole workforce can clearly focus on the common goal. This will widen the relationships and communication channels resulting in an increase in productivity. Besides all these, what is more, important is when organizations have a strong culture, there is more control over company resources resulting in decisions to be taken efficiently. The accuracy of these decisions made is far better compared to an organization with a weak culture. (“How Culture Affects Productivity – HR.com”, 2005)
When we take examples of large organizations that practice a healthy corporate culture, they have extraordinary outcomes. Eg. Google. These companies prioritize their workforce when it comes to any operation. Most of these companies treat employees over their customers; eventually, the workforce treats customers their best in daily operations. When the culture is strong, employees turn in to advocates to produce their best. This increases the quality of the organization & outcome productivity. Besides that, a strong company culture also cuts down extra operational costs because the lower-level managers and workers take more accurate decisions for the betterment of the company. “A” players always seek “A” players, Not “B” or “C” players, therefore the company loyal employees refer their best network links and make better decisions when recruiting new members for the company.. Business reputation grows through corporate culture. Therefore the organization gets an opportunity to recruit the most suitable talents to the company which makes the operations of recruitment more straightforward and efficient. (James & Nyongesa, 2012)
Corporate culture massively involves sales performance in an organization. In a for-profit company, the main goal is to maximize profits. It is critical to make sure that corporate culture aligns to enhance the sales performance of the company. Corporate culture will directly affect the decision-making process. When the culture aspires the workforce to freely take decisions they are more likely to take on the ground critical decisions to increase sales. For example, a salesperson can take a decision to give a discount if the company culture has promoted transparency of internal product information and this person has ownership. Talking about transparency, that must include educating the workforce what not to do as well. For example, If the company promotes a special product, it’s better to keep every salesperson on the same page when selling aligning to the company selling norms.
As mentioned earlier, organizational culture affects the productivity of the workforce. Once the workforce is productive and efficient the production will run at a maximum efficiency level which the supply will be steady without any shortcomings. A good corporate culture promotes the quality of service for the customers. It can be a post-purchase service or pre-purchase service. A world-class service will have a higher tendency to convert a customer and post-purchase service will increase customer retention and spread positive word of mouth. This will also promote brand loyalty among customers. (Collins, 2020)
7.0 Job Satisfaction
Whether it is profitable or nonprofitable it’s very important to make a peaceful environment for the employees and a positive feeling or perception towards the work in an organization. Employee satisfaction is something to make sure because the productivity of the organization is in employees’ hands. Unsatisfied employees and low productivity make a huge impact on organizational activities. Therefore, the creation of job satisfaction has become a massive importance in today’s organizations.
According to business psychology, job satisfaction is massively concerned since it is a potential place to lead employees to many psychological issues. For example, if the workplace is not clean, noisy, and has many distractions, workers may feel physically and mentally ill. Job satisfaction depends on and changes from person to person. It solely depends on each individual’s perceptions & requirements. (Judge, Weiss, Kammeyer-Mueller & Hulin, 2017)
Meaning an effective job satisfaction merely is not maintaining employee job satisfaction, but all aspects in work including the working environment.
8.0 Importances of job satisfaction
Employes are the most important resource in an organization. Many types of research have proven this. Keeping them satisfied will strengthen the company. One of the important things about job satisfaction is it will reduce the turnover rates. HRM is the most expensive when it comes to recruitment. When the workforce is happy they will tend to stay in the company cutting down HRM costs. A happy workforce means individuals’ productivity is maximized, which means the overall company productivity will be topped. This will bring more revenue to the organization. Job satisfaction makes the employee loyal to the company and works towards one objective. They will promote goodwill among peers, friends, and family resulting in a meaningful lifestyle. Job satisfaction is crucial for a company. (“How Important is Job Satisfaction in Today’s Workplace?”, 2017)
9.0 Factors that affect Job satisfaction
In an organization, job gratification of employees cannot just be achieved by the job they execute. Various other reasons affect the job satisfaction of workers. Therefore when managing a corporate environment to accomplish high job satisfaction, these features should also be well thought upon.
The condition of the working environment is the initial factor. The corporate environment is where a worker spends most of their time in a week, therefore, it is necessary to maintain the best working conditions. For example, it is essential to have a spacious work area, adequate light, and ventilation as well as a favorable working mindset in an organization. Another feature is the chance employees have to rank themselves higher and to get promotions. Worker job satisfaction is built when the employees have chances to improve their skills and aim for higher positions based on skill progresses. Therefore, sustaining the opportunities for development can affect job satisfaction. (Hill, 2019)
The other factor that affects job satisfaction is esteem and affairs with other employees and managers. It is vital to uphold a pleasing and disciplined work attitude between workers towards each other to preserve a peaceful and dynamic workplace; this will result in an increase in job satisfaction. Lastly, monetary rewards can also stimulate job satisfaction. If a worker is not paid fittingly for the work capacity they take, their efficiency reduces due to demotivation. This may affect the labor turnover rate. Therefore, it is important to certify that all employees are rewarded properly and pay raises are given when essential based on their degree of goal achievement. (Hill, 2019)
10.0 Relationship between organizational culture and job satisfaction
In an organization, its corporate environment has a weighty effect on the worker’s job satisfaction and insights. Therefore in any organization, making a culture that worker gratification is critical.
The well-being of corporate culture has a substantial effect on job satisfaction. If the organization has a full-on precise culture with rules and regulations, commands and judgments, etc., the satisfaction of workers might not be at the expected level. In such cultures, job satisfaction may be low and workers may incline to be less effective or even leave the organization. This damages the performance and status of the organization. But if the organization culture is solid where all workers are handled equally, more liberty to state ideas and innovative thinking patterns are encouraged, if the organization provides with skill progress, performance appraisals, etc., the worker’s level of job satisfaction will increase and the turnover rates and efficiency will also be promising. Furthermore, through various researches, it is confirmed that when the worker is given liberty to innovate and voice their ideas, it generates an image in the worker’s mind that he or she is a part of the corporation and is being heard. This significantly raises the degree of job satisfaction. Therefore it is vital to adapt such attributes to the corporate environment for an effective organization condition. Organizational values that are only fixated on revenue and tasks will have less job satisfaction as to cultures that similarly give importance to the organization’s goals as well as the needs of workers. (Habib, Aslam, Hussain, Yasmeen & Ibrahim, 2014) In an organization, when there are continuous flops and high turnover rates, organizations are most likely to make changes in the structure or management behavior in organizations. But most business psychologists state that the failure of an organization starts due to its cultural values and practices most of the time. Since most organizations fail due to the absence of job satisfaction which can be of workers at any rank and job satisfaction has a tight connection with the corporate environment and is influenced by it. Therefore it is vital to understand that there is a substantial bond between the organizational environment and job satisfaction and for the accomplishment of a corporation, managing corporate culture to attain total job satisfaction is important. (Habib, Aslam, Hussain, Yasmeen & Ibrahim, 2014)
The organization’s success is tightly tied up with the corporate culture & its workforce job satisfaction. Many businesses and try to maximize their efficiency & profitability by maintaining a healthy corporate culture by promoting their values and norms. No matter how healthy you are, if your skeleton is not strong, you will be bedridden. Likewise, if the company’s workforce is not healthy, happy, and strong both physically as well as mentally, it will not move towards success.
As a leader, it is important to take all factors and elements regarding the above-discussed points and attend each individually to optimize to its maximum. This process will sum up a strong company culture and a satisfied workforce ensuring the longevity of the organization.
12.0 Reference List
- 9 Benefits of a Strong Corporate Culture – Gavel International. (2020). Retrieved 7 September 2020, from https://www.gavelintl.com/9-benefits-of-a-strong-corporate-culture/
- Basic Overview of Organizational Culture. (2020). Retrieved 6 September 2020, from https://managementhelp.org/organizations/culture.htm
- Collins, K. (2020). Corporate Culture: How it Affects Sales Performance. Retrieved 9 September 2020, from https://www.ecsellinstitute.com/sales-coaching-blog/corporate-culture-how-it-affects-performance
- Habib, S., Aslam, S., Hussain, A., Yasmeen, S., & Ibrahim, M. (2014). The Impact of Organizational Culture on Job Satisfaction, Employees Commitment and Turn over Intention. Advances In Economics And Business, 2(6), 215-222. doi: 10.13189/aeb.2014.020601
- Hill, B. (2019). What Are the Factors Affecting Job Satisfaction?. Retrieved 8 September 2020, from https://smallbusiness.chron.com/factors-affecting-job-satisfaction-20114.html
- How Culture Affects Productivity – HR.com. (2005). Retrieved 9 September 2020, from https://www.hr.com/en/communities/organizational_development/how-culture-affects-productivity_eacudb4q.html
- How Important is Job Satisfaction in Today’s Workplace?. (2017). Retrieved 8 September 2020, from https://www.villanovau.com/resources/hr/importance-of-job-satisfaction-in-the-workplace/
- James, M., & Nyongesa, W. (2012). The Impact of Organisational Culture on Performance of Educational Institutions. International Journal Of Business And Social Science, 3(08).
- Judge, T., Weiss, H., Kammeyer-Mueller, J., & Hulin, C. (2017). Job attitudes, job satisfaction, and job affect: A century of continuity and of change. Journal Of Applied Psychology, 102(3), 356-374. doi: 10.1037/apl0000181
- Levels of Organizational Culture | Organizational Behavior and Human Relations. (2020). Retrieved 6 September 2020, from https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/levels-of-organizational-culture/
- McNamara, C. (2006). Field guide to consulting and organizational development.
About the author : Stanlyya
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