ORGANIZATION THEORY AND DESIGN

STRENGTHENING ORGANIZATIONAL CULTURE

TOPIC OUTLINE

1. Five Things That Are Essential In Building A Strong Organizational Culture

2. Strategies For Strengthening Organizational Culture
3. Changing Organizational Culture

FIVE THINGS THAT ARE ESSENTIAL IN BUILDING A STRONG

ORGANIZATIONAL CULTURE

Most of the time, the terms corporate culture and organizational culture are used
interchangeably, as both refer to the collective values, beliefs, and principles within a
company.

Corporate culture and organizational culture are essential to improving business

performance. However, corporate culture typically focuses on the ways of operating and
functioning that lead to maximum profit while organizational culture focuses on the well-
being of the employees in the company.

Aside from gaining profit, businesses must also pay attention to establishing a great
organizational culture and strengthening it, as a strong organizational culture can
encourage and help employees in terms of productivity, unity, and loyalty to the
company.

Organizational culture is established with consideration and conscious intent towards the
people and is built slowly over time—not just a quick decision or big list of dos and
don’ts.

HERE ARE FIVE THINGS THAT ARE ESSENTIAL IN BUILDING A STRONG

ORGANIZATIONAL CULTURE:

1. MISSION, VISION AND VALUES

Mission and vision are not mere statements composed just for formality. Between
every mission and vision statement of a company are goals that aim to be achieved.
Hence, it should be taken seriously, and understood by every employee.

When combined with the right values and strategies that align with the business
objective, it can serve as a guideline for the mindsets and behaviors of the people to
accomplish the goals together.

1
2. TRANSPARENCY
Giving your employees an idea and sufficient information about the plans, strategies,
responsibilities, and updates of the company is one indication that you place
importance on your employees and that you value them.

A monthly all-hands meeting is a great way to discuss plans or achievements from the
past month with everyone, while at the same time keeping them fully informed and
engaged to make sure that nobody feels left behind or in the dark.

3. COMMUNICATION
Along with transparency, proper communication is the key to avoiding any
misunderstandings. Take advantage of the high tech communication tools available
today.

Organized communication channels keep the internal process running smoothly and
help in establishing a good relationship between team members. Effective
communication is a two-way street, allowing your employees to voice out their opinions
and ideas. Keeping everybody in the organization updated can motivate them to be
proactive—reducing the risk of having conflicts and communication breakdowns.

4. UNITY AND COLLABORATION

Informed employees are more involved and empowered, proving that cooperation
plays a vital role in achieving unity within the team and promoting strong
organizational culture through collaboration on projects.

However, personal space is also important. Instead of micromanaging, give your

people the freedom to manage and execute their duties and responsibilities by letting
them be creative on their own way.

5. OPPORTUNITIES
People tend to get bored of their work when it becomes repetitive, meaning there is
nothing new for them to achieve or do and things are no longer exciting for them.
When employees think and feel that they are not learning new things or skills
anymore, it triggers them to seek new opportunities outside the company.

Let them grow and gain new skills as you invest in them by providing opportunities
and training that will be beneficial for both the company and the employee. This can
also promote loyalty within the company as they would feel valued and important.

In establishing a strong culture, both the employees and management understand what
is expected of them and will act in accordance with the core values. Organizational
culture is usually based on the type of the business and the industry it belongs to.

Many factors influence a strong organizational culture, but the five points listed above
will provide a firm foundation for strengthening or improving an organization’s culture.

2
STRATEGIES FOR STRENGTHENING ORGANIZATIONAL CULTURE

Artifacts communicate and reinforce the new corporate culture, but we also need to
consider ways to further strengthen that culture.

• ACTIONS OF FOUNDERS AND LEADERS - Founders are often visionaries whose

energetic style provides a powerful role model for others to follow.

Leaders also influence organizational culture by role modelling actions that are aligned
with the cultural norms they are communicating. They must use language that reinforces
employees’ assumptions about what is important. Symbols and ceremonies are important
influencers of culture.

• INTRODUCING CULTURALLY CONSISTENT REWARDS - Reward systems

strengthen corporate culture when they are consistent with cultural values. The idea is to
align rewards to the cultural values the company wants to reinforce.

Many organizations are adopting reward systems that account for both ‘what’ and ‘how’
employees achieve. “What” are the measurable results. “How” is the way that results
were achieved. This is where character comes in. Organizations that nurture and
reinforce a positive character in their organizational culture typically achieve better
results.

• MAINTAINING A STABLE WORKFORCE - organizations depend on a stable

workforce to communicate and reinforce the dominant beliefs and values.

An organizational culture can also serve as the company’s identity. The values and beliefs
of an organization contribute to the brand image of the organization that becomes known

3
and respected, which is why it is important for the leaders of the organization to follow
the rules and regulations, as well as to be viewed as an example to all the team members.

• MANAGING THE CULTURAL NETWORK - Organization culture is learned, so an

effective network of cultural transmission is necessary to strengthen the company’s
underlying assumptions, values, and beliefs. Company magazines and other media can
also strengthen organizational culture by communicating cultural values and beliefs more
efficiently.

• SELECTING AND SOCIALIZING EMPLOYEES - It is the process of learning about

the company’s culture and adopting its set of values. This process begins long before the
first day of work. They realize that a good fit of personal and organizational values
makes it easier for employees to adopt the corporate culture. A good person–organization
fit also improves job satisfaction and organizational loyalty because new hires with values
compatible to the corporate culture adjust more quickly to the organization.

The recruitment process of the organization must be structured to attract people with the
same beliefs and values that constitute its culture. No company can build a coherent
culture with people that do not possess or are not willing to embrace the same beliefs and
values.

CHANGING ORGANIZATIONAL CULTURE

Whether merging two cultures or reshaping the firm's existing values, corporate leaders
need to understand how to change and strengthen the organization's dominant culture.
Changing organizational culture requires the change management toolkit.

Corporate leaders need to make employees aware of the urgency for change. Then they
need to "unfreeze" the existing culture by removing artifacts that represent that culture
and "refreeze" the new culture by introducing artifacts that communicate and reinforce
the new values.

6 STEPS TO CHANGE ORGANIZATIONAL CULTURE

1. CLARIFY VALUES
Values are the foundation of organizational culture. Any culture change must being
with clarity about what leaders in the organization value and how those values will
drive success. Help leaders identify their personal values and create connections
between their personal values and the organization’s values.

2. REINFORCE THE VISION

Vision should answer the question “where are we going”. Successful culture change
does not require a new vision. What is required is to ensure that the vision paints an
inspiring picture of the future that draws on the values embraced by leaders in the
organization. Make sure everyone in the organization is clear on the vision and values
– and how those elements lead to the success of the organization as a whole.

4
3. EMPOWER BEHAVIORS ALIGNED TO VALUES AND VISION
Changing behaviors, particularly leader behaviors, is the key driver achieving a
culture change. Behaviors create experiences for the people in organizations. Those
experiences are the day-to-day reality of the culture. Defining the behaviors is critical.
Even more critical is removing the obstacles to aligned behavior.

4. ALIGN CONVERSATIONS UP AND DOWN THE ORGANIZATION

Get people talking! Leaders should be discussing values, vision and behavior – and
their link to organizational success. Communication is key and leader driven
communication is critical. These conversations should be woven through team
organizational meetings, team meetings, one to one performance conversations. These
themes can also be repeated in internal communication.

5. TARGET EFFORT ON HIGH IMPACT AREAS

Weave the values based culture into high impact organizational structures. This may
be your compensation plan, behavioral competency model, performance management
process, and / or interviewing process. Think about training for your managers in the
specifics how to lead in a values based culture.

6. EMPHASIZE SUCCESS, REWARD CHANGE

Publicize your success. Make sure you communicate major “wins” back to the
organization. This builds momentum and converts the doubters. Also, ensure that
recognition is aligned to your values. Think about formal programs as well as
individual recognition.

5
6