Organisational culture in a company – what it is and how to build it

Have you ever wondered why some companies have extremely productive, creative and committed teams, while others struggle with a lack of motivation and high staff turnover?

For what reason do some organisations even attract and retain the best talent, while others are constantly trying to find and retain good employees? The key to success in this case is a well-built company culture. From this article you will learn:

• What is organisational culture in a company?
• What is the importance of organisational culture?
• How do you build an organisational culture in your company?

Chapter 1

Organizational culture in a company – definition

Organizational culture is a unique system of values, beliefs, behaviors, norms and symbols that define a company and influence the way its employees act.

In other words, it is the invisible thread that connects people within an organisation and influences their attitudes and behaviour.

Organisational culture in a company refers to the set of values, norms, beliefs, customs and ways of behaving that characterise the functioning of an organisation. It is a comprehensive system of symbolic patterns of behaviour that form a community of employees and influence the way in which the organisation achieves its objectives and makes decisions.

Definition of organisational culture in a company

A company’s organisational culture consists of the following elements:

• company values – the core beliefs that guide an organisation’s actions; these can include elements such as ethics, equality, social responsibility or sustainability,
• norms – the rules by which employees are expected to behave; these can be defined through work standards, communication rules or a dress code,
• behaviours – the actions that employees undertake on a daily basis; behaviours can also be defined as the realisation of values and norms that apply to employees,
• symbols – elements that have a symbolic, representative meaning for the organisation – e.g. the company name, logo or slogan,
• rituals – repeated activities, such as regular meetings, evaluations or employee integrations.

Chapter 2

The importance of organizational culture

Organizational culture plays a key role in the functioning of companies, influencing many organizational aspects, as well as employee behavior and attitudes. Understanding the importance of organizational culture is essential to effectively managing a company and achieving strategic goals.

Organisational culture is crucial to the proper functioning of an organisation. It influences aspects of the company such as:

Chapter 3

Building an organizational culture

Find out what the process of building an organizational culture looks like and what the key elements are.

Building an organisational culture is a process that requires commitment, time and constant attention. When building your organisation’s culture, keep in mind aspects such as:

Selecting the right employees

Selecting the right members of your organisation is the first step in building your company culture. How do you select employees who fit the specifics of your brand and the values it represents? First of all, define what you are looking for before recruiting for your chosen position. Determine what the ideal candidate should be. While basic assumptions such as skills and experience are important, the personality traits and values held by the candidate are also extremely important in the context of recruitment.

The staff recruitment process will help you understand whether a candidate fits with your company and its culture. This will help you determine how the person handles situations typical to your company and what is most important to them in their job. Above all, an interview and a recruitment task will help here.

In addition, it is a good idea to check references before making a final decision and hiring the selected candidate. Feedback from previous employers will give you a better understanding of what her work is like and whether she meets the established requirements. This will reduce the risk of potential losses resulting from hiring an unsuitable person with low levels of commitment or low productivity.

When hiring a new person, introduce them to the company culture. To do this, you can use onboarding programmes, mentoring or regular meetings with leaders. This will help the new employee understand what you expect of them and how they can contribute to the success of your organisation.

Implementing values in day-to-day operations

Values are the foundation on which an organisation should base its decisions and actions. Values should also influence employee behaviour and relationships. In order to create a strong, positive organisational culture, it is therefore crucial to implement values into the company’s daily work and activities.

In the first instance, however, you need to clearly define your company values. They should reflect the company’s mission statement and the beliefs you and your employees represent. Once you have defined your values, you need to communicate them at all levels of the organisation – so that all your employees know and understand them. You should also communicate values during the recruitment process. This way, you will find employees who share the same beliefs – in line with the company culture.

In addition to communicating values, it is very important to implement them in your daily activities. Values should therefore be taken into account in the individual decision-making processes and the daily tasks assigned to employees. Your team members should be aware that the organisation’s values are an integral part of their work. The importance of values, on the other hand, can be emphasised by team leaders, among others. They should set a top-down example to the rest of the team and consistently implement the organisation’s values. As functionaries, they can influence employees’ attitudes and behaviour.

Providing feedback – feedback

Feedback from employees is also extremely important in creating an organisational culture. When they are given the opportunity to express their opinions and can participate in dialogue, their commitment and sense of belonging increases. So how do you get feedback from team members?

First of all, create open channels of communication and encourage your employees to give you feedback. This will make it easier for your members to communicate their ideas and opinions. Moreover, they will see that their opinion really does matter. Open channels of communication include, for example, regular meetings, surveys, suggestion boxes (also anonymous) and online communication platforms (e.g. Microsoft Teams).

When gaining feeback, remember to respond to it appropriately. Show your employees that their opinion counts – respond to their opinions, suggestions and ideas. Use their opinions and initiatives to optimise your company’s processes, policies and culture.

In addition to employee feedback, feedback to team members is also important. Evaluate their work and ideas, guided by the principles of constructive criticism. In turn, you can use, among other things, regular employee evaluations to assess your team’s performance.

Openness to change

Organisations that are open to change are often more innovative and better able to cope with unexpected difficulties. This aspect is very important in terms of building a company culture. How do you introduce it into your organisation?

First of all, show your employees that your company is a place that focuses on their continuous development. Introduce the necessary organisational innovations, organise training, workshops and brainstorming sessions that will inspire your team members to seek out new ideas. Also, encourage your employees to experiment and take risks – this will give them the chance to find new solutions and adapt to a changing business environment.

Rewarding employees

Rewarding employees is, according to Herzberg’s theory, a way to increase their satisfaction and motivation. It also provides an excellent opportunity to express your appreciation for their work, achievements and contribution to the success of the company. So how do you reward employees?

Remember to recognise the achievements of your team members on a regular basis – both long and short term. Rewarding achievements can take many forms, such as a public or private thank you, a bonus, a development opportunity or extra time off. Personalisation is very important in this context – as a different form of reward will be valuable for each employee. Do not forget to reward individual members of the organisation consistently and according to clearly defined criteria. They should be fair and in line with the company’s goals and values.

Retaining talent

Talented employees are the lifeblood of any company. For this reason, it is worth making every effort to ensure that they stay with your company for as long as possible. The right organisational climate is very important in this context. To create the right organisational culture that encourages talented employees to stay with your company, remember to:

• Understand what motivates your employees – each employee has their own unique motivations and goals. Understanding these and tailoring aspects of the job, such as career paths and bonus schemes, to them will help you retain talented team members.
• Invest in employee development – employees who see that they can develop are more likely to stay in their jobs. It is therefore worth investing in the development of your team members – such as training, workshops or language courses.
• Create a positive working environment – everyone likes to be where they feel respected, valued and at the same time can be themselves. A positive working environment, free of conflict and misunderstandings, can effectively attract and retain talented employees.
• Offer competitive salaries and benefits – although salary is not everything, a competitive rate and attractive benefits can help retain talented employees. So make sure you are providing your team members with appropriate terms and conditions that are satisfactory to them.
• Show prospects – employees, especially those who are strongly focused on their development, want to know what the future holds for them at your company. Therefore, systematically talk to your members and inform them of the career path planned for them and potential development opportunities.

Promoting teamwork

Promoting teamwork is another aspect that is important in terms of building a company culture. This is because teamwork:

• Strengthens a sense of belonging – teamwork fosters relationships between employees, which enables strong bonds to be formed and, as a result, gives a sense of belonging. This, in turn, can increase employee engagement and loyalty.
• Increases efficiency and productivity – employees who can work together tend to be more efficient and productive. This is because, as part of a team, they can share their skills, so they can make better use of them and perform better.
• Stimulates creativity – teamwork means bringing together different perspectives and experiences. This combination, in turn, can stimulate employee creativity, resulting in new ideas and solutions.
• Reduces conflict – team members working together are usually better equipped to resolve conflicts constructively. This has a positive impact on the atmosphere in the workplace.
• Facilitates goal attainment – team members working together (due to their combined competencies and skills), are usually able to complete their assigned tasks more quickly and efficiently and thus, achieve individual company goals.

Building an organisational culture is a long and demanding process that requires commitment – both from leaders and other employees. However, these efforts are necessary and worthwhile. This is because it is possible to create an organisational culture that will increase employee motivation, commitment and satisfaction, resulting in the consistent and successful achievement of the organisation’s goals.