Business Times

Corporate culture – the unseen factor

By Fayaz Saleem

The corporate culture of an organization, intangible and unseen though it were, has an enormous impact on the success of the organization. Although large organizations have succeeded in building and maintaining their image over the years in a manner that their very names evoke interest and curiosity in the professional theatre, there are yet many more large, mid-sized and small organizations that have not yet realized the power of corporate culture, the message they are unconsciously impressing upon others who cross their paths in every sphere of life and business, one of vitality, energy and success or a culture that falls far short of it.

To most people, culture simply means “the way we do things around here ….” Any shift in the status quo is seen as a threat to be resisted and not an opportunity. Few realize that it is the success of the culture that drives the success of the organization, attracting talented and ambition driven people necessary to carry out the mission and vision of its leaders.

An important factor that is the most unnoticed is that employees have feelings and emotions. Changes must take place and people struggle with change and with each other due to change. Management must make decisions, but not in isolation of workers. For the leadership to be in touch with the essence of the organization and its people creates cooperation, a powerful force that generates.

team/group/individual agendas that allows workers to think for themselves and use initiatives without being dictated to or await instructions. The onus is solely on management which must drive culture and create the positive work environment through communication and trust. For an organization to forge ahead leaders would need to encourage workers to think that to get something, one must give something.

What actually is culture? An unseen, hidden force? How could one identify the culture of the organization whilst being steeped in it? Would one be able to recognize a good or a bad culture? Can we change? Do we wish to change? Aren’t we comfortable as we are?

Culture is built upon many factors that interlock into each other to form a solid base. It is a process of policies and procedures, values, partnership and creativity, the work plan and processes, levels of decision making and empowerment, the social system and the behaviour, habits and attitudes of its workers. These factors are mutually responsive to one another but the leadership has the most power and impact than any other factor. The leadership is responsible therefore to create a positive and attractive organizational culture that would become a way of life within.

On the most basic level, culture is observable as a set of behaviours. Examples of culture at this level include the degree of formality with which employees conduct themselves, the organization’s dress code, and the type of technology used. Beneath the level of observable behaviours are the values that underlie behaviour. Though these values determine behaviour, they cannot be directly observed. At an even deeper level are the assumptions and beliefs that determine values. While an organization or individual’s values may remain within awareness and can be stated, assumptions and beliefs often exist beneath the surface and out of conscious awareness.

Being aware of an organization’s culture at all levels is important since culture defines behaviour. Some cultures may be creative oriented, socially oriented or task oriented whilst some may have a strict business environment. In some companies teamwork is the key whilst in others, individual achievement is encouraged and valued. An organization’s culture also determines the way in which employees are rewarded. The accessibility of management and the ways in which decisions are made are reflections of an organization’s culture as well. If management does not take the time to understand the culture that motivates an organization, problems are inevitable. New procedures and activities will be very difficult to implement if they do not mesh with the organization’s culture.

Internal competition could breed behaviour that could pit labour against labour or labour against management - the We vs Us syndrome. Negative attitudes could drain the energy of an organization. Leaders must ensure a positive environment and managementstyle. Astute leaders would recognize this and define processes that would draw in energy to the workplace and ensure that its employees understand the common goal and a shared fate to build success.

Steps to ensure that individuals are responsive to the goals and operating procedure of the organization start with the hiring process. Managers can foster the development of a positive culture by employing people who share the same values and vision that the organization represents. Their expectations should be supported by the words and actions of managers who regularly let people know how their work is important to the organization. Individuals should be given assignments that are consistent with their strengths and interests, and opportunities for continued learning and growth should be provided as well.

Most employers would agree without hesitation that matching individuals to organizations is a crucial part of success for any company. The match between people and the companies for which they work is determined by the kind of organizational culture that exists. The degree to which an organization’s values match the values of an individual who works for the company determines whether a person is a good match for a particular organization. Not only would individuals need to fit the organization, managers need to have a solid understanding of the dynamics of culture and how to transform it so that they can direct activities in a manner that gets results.

Some ways to continually transmit the culture of an organization in a productive way include initiating networking opportunities, having corporate “rituals,” and using symbolic language when referring to the organization’s mission. Firm-sponsored social events and mentorship programs are effective as well. Working on such a basic, the organization would refine the individual to merge into its culture by induction, training, development and motivation. A strong social bonding would link the other factors to produce the energy required to solidify the organization’s personality or culture.

The bottom line for managers who want to create a culture of success is to start with creating a positive environment. Bring in people whose values are in line with the organization’s culture, and continue to acknowledge success and involve the whole organization in maintaining an environment that allows people to enjoy working hard to meet the company’s goals. A look at smart businesses would indicate that time and effort has been spent to instill the expected behaviour at all levels.

A culture change could be brought in by developing a quality culture for a part of the organization that could be brought in to other areas of the organization. A culture change can even be brought about by one dedicated person not afraid of change in as much as bad culture could be brought in by one individual or group that could permeate the whole organization.

The internal environment of a business can predict its achievement or failure. Assessing the health of the organization’s culture rests on its leaders and managers since traditional autocratic style of management have been replaced by supervisory and leadership styles of management. Culture is set by the organization’s leaders and permeates from top to bottom. Whist large companies have developed their cultures over the years, a curious phenomenon today is that there are companies that are highly respected with a long market standing who were yet unable to attract the candidate of their choice even though they were willing to meet every demand of the candidate and more.

This highly confusing state has manifested several times in the head hunting arena where top firms have found it unexplainable that prime candidates who to all intents and purposes should have been the perfect fit and who show initial interest then decline attractive assignments for no apparent reason. Discreet and tactful inquiry has revealed that there are quality individuals who prefer to remain in their current positions in the face of very attractive offers because of their negative perceptions of the offering organization. Invariably such perceptions have a valid base as there is no smoke without a fire!

Having spent vast sums on business plans and strategies, infrastructure, manpower and preparing themselves continuously to be competitive, these organizations have missed the most valuable criteria – the image they have built and culture within that they have projected. An intangible whiff of a culture and this results in others not wanting to be a part of this firm. Where would such a perception lead the organization in the long run? Any organization that has faced quick staff turnover or is having difficulty in drawing in top talent would need to take immediate note. Its leaders would need to contemplate long and hard on the image and culture being projected to those outside of it and would need to take immediate steps to address the hidden, unseen but powerful forces that govern image and culture before it begins to hurt the foundation of the organization.

(The writer is a veteran headhunter who is also MD/Principal Consultant, Executive Search Ltd/Appointments of International Management Specialists).

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