Organisational culture: the key to an organisation’s identity and performance
Organisational culture is a fundamental concept in the field of management and leadership. This glossary entry will explore the topic of organisational culture in depth by delving into the definition, identifying the elements of culture and explaining its importance to the success of organisations.
The definition of organisational culture: Organisational culture refers to the common values, assumptions and beliefs shared by the members of an organisation or company. These cultural characteristics are often both conscious and unconscious and influence the behaviour and decisions of employees in the work environment.
Elements of organisational culture:
- Values: an organisation’s values represent the fundamental beliefs about what is considered important and desirable. These values can form the basis for behavioural norms and decisions within the organisation.
- Assumptions: Organisational cultural assumptions are the fundamental ideas and beliefs about how the world and the organisation work. They influence how challenges are evaluated and resolved.
- Beliefs: An organisation’s beliefs are deeply held convictions about what is and is not possible. These beliefs can strongly influence an organisation’s willingness to innovate and take risks.
The importance of organisational culture:
- Identity and togetherness: organisational culture defines the identity of an organisation and creates a sense of belonging among employees. It helps to motivate and inspire employees.
- Guiding behaviour: The culture of an organisation has a significant influence on how employees behave. It can form the basis for performance standards, ethics and social behaviour.
- Customer focus: A positive organisational culture that focuses on customer satisfaction can improve the quality of products and services and promote customer loyalty.
- Competitive advantage: A strong organisational culture can help the organisation to stand out from the competition and be uniquely positioned.
- Change management: Organisational culture is a decisive factor in change processes. It can significantly influence the acceptance of change and the willingness to work together.
Cultural change: In some cases, it may be necessary to consciously change the organisational culture in order to meet the changing demands of the market and the organisation. This requires time, effort and the involvement of all levels of the organisation.
Conclusion: Organisational culture is of central importance for the success of an organisation. It influences the behaviour, decision-making and identity of an organisation. Consciously cultivating and shaping the organisational culture can help to increase performance, employee satisfaction and competitiveness.