Company Culture: What Is It and How Can You Improve It Within Your Organisation

Company culture refers to the shared norms, values, beliefs and behavioural patterns within an organisation. It encompasses how employees interact, communicate and collaborate. A strong company culture promotes engagement, motivation and satisfaction among employees, influencing the performance and success of the company. It can create a positive working environment where innovation, collaboration and creativity are encouraged.

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Over the past decades, various theoretical models and frameworks have been developed to understand and analyze corporate culture. Here are three of the most commonly used models:

1. The Competing Values Framework (CVF): This model classifies corporate cultures based on two dimensions: internal versus external focus and flexibility versus stability. It identifies four culture types: Clan (focused on collaboration and employee engagement), Adhocracy (focused on innovation and risk-taking), Market (focused on competition and achieving results), and Hierarchy (focused on structure and efficiency).
2. Schein's Model of Organizational Culture: This model emphasizes the shared basic assumptions and values that form an organization's culture. It consists of three levels: artifacts (visible elements such as symbols and rituals), espoused values (stated beliefs and norms), and basic assumptions (unconscious, deeply held beliefs that influence the culture).
3. Denison Model: This model measures corporate culture based on four main dimensions: involvement (the degree of employee commitment and motivation), adaptability (the organization's flexibility and responsiveness), consistency (internal coherence and alignment of processes and procedures), and mission (clear vision and direction).

A strong company culture brings several benefits and side effects. Consider, for example:

1. Employee satisfaction and engagement: A strong company culture creates a positive work environment where employees feel valued and can identify with the company's goals and values. This leads to higher employee satisfaction and engagement, which in turn can lead to higher productivity, lower turnover rates, and an improved employee experience.
2. Organizational coherence and performance: It can also ensure that a common understanding and direction emerges within the organization. Employees share the same norms, values, and behavioral patterns, creating a sense of cohesion and unity. This promotes effective cooperation, communication, and decision-making, which leads to improved organizational performance and the achievement of objectives.
3. Attracting and retaining talent: A strong company culture can play an important role in attracting and retaining talented employees. Potential employees are drawn to organizations with a positive and supportive culture that encourages their personal and professional growth. Moreover, employees who feel comfortable within the company culture are more likely to stay with the company, allowing the organization to retain talent and ensure continuity.

A company can actively influence its corporate culture through various strategies. It starts with defining desired norms, values, and behaviors that should reflect the culture. This definition must be communicated and embedded throughout the organization, for example, through training, workshops, and internal communication. It is important that top management plays a crucial role by setting a good example and supporting the desired culture in their decisions and actions. In addition, promoting open communication, employee involvement, and encouraging team-building activities can contribute to shaping a strong corporate culture. The reward system can also be adjusted to stimulate and appreciate desired behavior. Creating a culture that motivates employees, keeps them engaged, and enables them to fulfill their potential is essential for the success and growth of an organization.

The HR team contributes to a positive corporate culture by developing and implementing policies and programs that support organizational values. They facilitate effective communication, provide training and development for employees, promote diversity and inclusion, encourage work-life balance, and create a healthy work environment. In this way, employees feel valued and supported.

Of course, there are many different types of systems that can contribute to this. When we specifically look at talent management tooling, it plays a crucial role in fostering a positive company culture. These tools can help identify, attract, develop, and retain talent within an organization. Talent management software and platforms offer functionalities such as talent acquisition, performance management, competency assessment, career development and succession planning. With these tools, companies implement structured, objective processes and support employees in growth and development. This cultivates a culture of learning, growth, and appreciation, motivating employees to utilize their skills. Talent management tooling facilitates transparency and communication between employees and managers, promoting openness and collaboration. The tools help create an environment where employees can realize their potential and thrive. They contribute to a positive company culture and stimulate engagement and performance within the organization.

Measuring is knowing. That's why with the Learned Survey module you can easily send out continuous surveys that help you measure employee satisfaction and engagement. With real-time insights you can immediately see whether your HR initiatives have the desired impact on improving your company culture. Interested in improving your company culture? Read here how Learned's Performance Management module can help you.