Sashi had been eagerly awaiting this moment—a dream role at XYC Corp! Although she felt the usual first-day jitters, she was confident in her skills and ready to prove her worth, just as she had many times before. But within a week, it became clear that something was seriously wrong. The environment was toxic, marked by verbal abuse, mistrust, and disrespect. Her excitement quickly turned to despair, as she realized that continuing in such a setting was untenable. How could she have known the company’s culture would be so harmful?
In stark contrast, Ana’s experience at ABC Corp was like stepping into a warm, welcoming home. From day one, her boss and colleagues made her feel valued, and by her second week, she was already contributing to a key project while still onboarding. The biggest surprise came in week four when she received a recognition award at the town hall, solidifying her impact as a new hire.
Sashi and Ana’s experiences represent two extremes on the cultural spectrum for new hires. Existing employees, too, can encounter cultural shifts as they move within the organization or between leaders. Micro-cultures are very much a reality in many companies. A toxic culture is not only damaging but also costly, leading to low morale, high turnover, and significant expenses related to replacement, severance, and more. Yet, toxic environments persist in organizations like XYC Corp. Why? Negative work environments impact employees’ mental well-being and ultimately harm the organization’s Net Promoter Score (NPS).
What is Organizational Culture?
Organizational culture is a company’s DNA—shaping its identity and actions through shared beliefs, values, and norms. It is especially palpable during challenging times. The COVID-19 pandemic jolted people. It emphasized the need for supportive environments, bringing mental health and well-being to the forefront.
Culture Traits
1. Leaders’ Reactions to Crisis Situations How leaders respond to crises can significantly shape organizational culture. For example, during tough times, one company might opt for layoffs, while another might reduce hours or temporarily cut pay. Employees take note of these patterns, especially during challenging periods.
2. Focus of Leaders and Managers The subtle cues from leaders—such as the activities they prioritize and their demeanor in one-on-ones—can profoundly impact culture. In large organizations, subcultures within teams often have a more dominant effect on employees than the overall company culture.
3. Events and Ceremonies These are opportunities to reward and recognize employees whose behavior aligns with the company’s values. For instance, weekly town halls with peer-to-peer recognition can promote a culture of encouragement, respect, and healthy competition.
4. Talent Development and Promotion Patterns Talent practices help reinforce culture. Clear and unbiased promotion criteria ensure employees feel valued and recognized. Identifying and eliminating pockets of bias or unfair practices is crucial for maintaining a positive culture.
Types of Organizational Culture
Measuring and Managing Culture
‘If you can’t measure you can’t manage it” – Peter Drucker
Culture is a culmination of a multitude of factors and hence requires deliberate effort taking into consideration a multi-pronged approach. Organizations should consider implementing regular pulse culture surveys. These surveys not only track the overarching company culture but also provide insights into the unique microclimates within teams.
Steps to Measure and Manage Culture:
1. Assess the Current State: Craft questions that gauge the existing cultures and subcultures within the organization. Pay attention to any discrepancies between espoused beliefs and actual behaviors.
2. Identify the Need for Change: Analyze the survey results to pinpoint areas needing improvement. Understand where the cultural gaps lie and what changes are necessary.
3. Implement Change Management: Follow a structured change management process to introduce sustainable changes. This includes clear communication, involving stakeholders, and continuously monitoring progress.
4. Foster Continuous Improvement: Culture is not static. Regularly revisit and refine cultural initiatives to ensure they remain aligned with the organization’s goals and the evolving needs of employees.
Signs to Watch For
Be alert if employees share sentiments like:
- “Everyone is nice, but nothing ever gets done.”
- “The pay is good, but we can’t seem to take any breaks.”
- “So many projects are going on; we can’t finish anything properly. Work keeps piling on.”
These issues highlight potential problems in leadership, workload management, and strategic alignment, all of which can erode a positive culture if left unchecked.
Conclusion
While both culture and strategy have their own places, a strong, positive culture fuels a company’s growth and transformation. It shapes employee behavior, fosters engagement, and drives productivity.
