Posted on: Jun 10, 2024
What is Organizational Culture Development?
Organizational culture development refers to the process of shaping and nurturing the values, beliefs, and behaviors that define the environment of an organization. This kind of development is especially crucial for big, international and multi-tiered companies such GBS (Global Business Services) or SSC (Shared Services Centers), as a strong organizational culture can significantly enhance employee engagement but also productivity and overall business performance by, among others, optimizing the delivery of services across different departments and geographies. Implementing robust organizational culture development strategies in such settings promotes a shared sense of drives innovation and ensures that the organization can adapt smoothly to dynamically changing BSS market demands.
The process of organizational culture development involves a strategic approach to embedding the desired culture throughout the organization. This includes clear communication of the company’s vision and values, consistent leadership behavior, and aligning organizational practices and policies with the desired culture. Companies invest in organizational culture development to create a cohesive and predictable work environment where employees feel safe, valued, motivated to contribute to the company’s success.
What are the 4 types of Organizational Culture?
Understanding the different types of organizational culture is essential for effective organizational culture development. There are four primary types of organizational culture, each with unique characteristics and implications for the workplace:
- Clan culture
- Description: Clan culture is a family-like or tribe-like type of corporate environment that emphasizes consensus and commonality of goals and values. In this culture, teamwork, participation, and consensus are highly valued.
- Characteristics: High engagement, strong commitment, and a sense of loyalty among employees. There is a focus on mentoring, nurturing and doing things together.
- Adhocracy culture
- Description: Adhocracy culture is dynamic and entrepreneurial, focusing on innovation and risk-taking. Companies with this type of culture value creativity and are willing to take risks to achieve their goals.
- Characteristics: Flexibility, adaptability, and a readiness to experiment. Employees are encouraged to take initiative and think outside the box.
- Market Culture
- Description: Market culture is results-oriented, with a focus on competition, achievement, and getting the job done. Organizations with this culture emphasize productivity, profitability, and goal achievement.
- Characteristics: High emphasis on winning, meeting targets, and outperforming competitors. Employees are driven by success and often face high pressure to deliver results.
- Hierarchy culture
- Description: Hierarchy culture is structured and controlled, with a clear set of procedures and well-defined roles. Companies with this culture prioritize efficiency, stability, and doing things right.
- Characteristics: Formalized structure, clear lines of authority, and a focus on efficiency and reliability. There is a strong emphasis on rules, procedures, and standardized processes.
Why Organizational Culture Development is so important?
The importance of organizational culture development cannot be overstated, particularly in the context of GBS, SSC, and BSS sectors. Here are some reasons why it is crucial:
Employee engagement and retention
A positive organizational culture fosters a sense of belonging and alignment with the company’s values and goals. This increases employee engagement and reduces turnover, as employees are more likely to stay with an organization where they feel valued and understood.
Productivity and performance
When employees are engaged and motivated, their productivity increases. A well-developed organizational culture aligns the workforce towards common objectives, leading to improved overall performance and achievement of business goals.
Attracting talent
In a competitive job market, like we have in Modern Business Services Sector a strong organizational culture can be a significant differentiator, sometimes more than compensation and other benefits. Companies known for their positive culture are more attractive to top talent, helping them to recruit and retain the best employees.
Innovation and adaptability
A culture that promotes innovation and flexibility enables an organization to adapt to changes in the market and industry. This is particularly important in the fast-paced GBS, SSC, and BSS sectors, where staying ahead of trends and technological advancements is crucial.
Client satisfaction
Employees who are engaged and aligned with the company’s values are more likely to deliver exceptional customer service. A positive internal culture often translates to a positive customer experience, enhancing the company’s reputation and customer/client loyalty.
Organizational cohesion
A well-developed organizational culture creates a sense of unity and purpose within the company. It helps to break down silos, promote collaboration, and ensure that everyone is working towards the same goals.
Conclusion
In conclusion, organizational culture development is a strategic priority for companies in Business Services Sector. By understanding and fostering the right type of culture, organizations can improve employee engagement, boost productivity, attract top talent, and achieve long-term success. Investing in organizational culture development is not just about creating a pleasant work environment. It is about building a strong foundation for sustainable growth and competitiveness in the market.
Author:
Edyta Krzemińska
PR & Marketing Lead
