Organisations are more than just bottom lines, balance sheets and business plans. 

When dozens, hundreds or thousands of individuals work towards a shared goal every day, you can’t overlook the power of culture. 

Broadly speaking, organisational culture (or workplace culture, company culture, etc.) refers to how people in this group interact and communicate. 

To expand on that, organisational culture typically includes shared company values, leadership styles, the business’s mission, and the overall attitudes of internal stakeholders.  

Strong vs. weak organisational cultures 

A company’s culture can be strong (good, healthy, sturdy, etc.) or weak (poor, toxic, bad, etc.).  

Consider an organisation where employees: 

• Feel empowered to contribute to the discussion 
• Function effectively as a team 
• Are consistently recognised and rewarded for their work 
• Receive good compensation and have a clear path to progression 

We’d probably assume that a workplace like this has a strong organisational culture. 

Now let’s consider an organisation where employees: 

• Are micromanaged 
• Receive compensation they feel is inadequate 
• Are not encouraged to share knowledge 
• Are rewarded for working unpaid overtime with an annual pizza party 

We could suppose that this organisation’s culture is weak. 

Of course, the most tried-and-tested method for determining the health of an organisation’s culture is through employee engagement (i.e., whether people are enthusiastic about and involved in their work). 

A well-constructed employee engagement survey, along with some other key metrics, is one of the best ways to measure that.

How important is a strong organisational culture? 

A happy, motivated workforce is a real asset to an organisation: if employees are giving it their all at work, they’ll be a lot more productive. In contrast, if they’re watching the clock and doing the bare minimum, productivity will suffer. 

To underestimate the impact of organisational culture would be a mistake. It doesn’t matter how you spin it – put simply, a strong culture is a net plus for your business: 

Improve your culture, improve your company 

When your organisational culture is strong, everyone benefits. Employees are happier. The business is more profitable. Customers are more satisfied. And leaders can be confident that the people making up their organisation are united behind a single vision. In other words: it’s a win on all fronts. 

Want to learn how to foster an environment where employees can thrive? Speak to a Personal Group engagement expert or subscribe to more of our blogs. 

• It influences the quality of talent you can attract and keep. A 2019 Glassdoor survey revealed that 77% of job-hunting employees consider culture before even applying. When they do join, 65% cite company culture as one of the main reasons for staying in the job. And if it deteriorates, 71% start looking for jobs elsewhere. 

• It keeps employees happy. And happy employees, according to a University of Warwick study, are around 12% more productive. 

• It also means better work performance. A 2017 Gallup report found that highly engaged business units see a 41% reduction in absenteeism, a 17% increase in productivity and 21% greater profitability