Understanding Workplace Culture: Why It Matters and How to Improve It

Category: HR Insider | Date: | Total Views: 26


Workplace culture refers to the overall environment that guides your workplace and what are the values emphasized there. It's about how communications happen, how decisions are made and how employees are treated and motivated. 

Importance of Culture in the Workplace

A strong workplace culture is a key factor in helping a business grow and succeed. Here are a few reasons on why workplace culture is so important:

  • It directly impacts the employee satisfaction, motivation, and retention
  • It is essential for building trust and improving team work
  • It enhances brand reputationattracting top talent and retaining customers.

In short, it is the way through which you get better employee retention and can build a business that is sustainable in the long term.

Types of Cultures in Workplace:

Organizations need to adopt different types of culture as required by their end goal and current needs. Most times it's the combination of all of these cultures according to the department, their goals and needs:

Workplace CultureKey CharacteristicsStrengthsChallenges
Hierarchical CultureFormal structure, clear authority levels, rules and proceduresStability, efficiency, accountabilityCan be rigid, slow to adapt, less innovation
Collaborative CultureTeamwork, open communication, strong relationships, shared goalsHigh employee engagement, loyalty, strong cooperationRisk of groupthink, slower decision-making
Innovative CultureCreativity, risk-taking, adaptability, focus on new ideasEncourages innovation, agility, competitivenessCan lack stability, higher risk of failure
Competitive CultureResults-driven, goal-oriented, focus on outperforming rivalsHigh performance, motivation, achievementCan create stress, rivalry, burnout

Positive and Negative Workplace Culture

What is a Positive Workplace Culture?

A positive workplace consists of cultivating an atmosphere where the employees feel respected, appreciated, inspired and challenged. It focuses more on productivity without much pressure and stress
Some good workplace cultures include:

  • Learning and career opportunities.
  • Assist in work-life balance.
  • Feedbacks and open communications.

What is a Negative Workplace Culture?

Negative workplace culture also known as the toxic workplace culture can be described as an environment where the employees do not feel valued, supported or safe.

Some examples of negative workplace culture include:

  • Inefficient communication
  • No opportunity to grow
  • Excessive workload

Factors Shaping Workplace Culture

  • Values:
    Company values should align with the employer’s and employee’s actions otherwise they will be nothing more than empty words.
  • Leadership
    Supportive and transparent leadership allows the creation of an environment with healthy trust.
  • Environment
    Physical and digital workspaces influence collaboration and productivity.
  • Employee Engagement:
    Engaged and active employees bring forth innovative ideas.
  • Well-Being
    A healthy culture reduces stress and promotes mental and physical well-being.

Improving Workplace Culture

So, how can workplace culture be improved?

  • Define and live by core values.
  • Train leaders to be empathetic and transparent.
  • Encourage open communication and feedback.
  • Recognize and reward achievements.
  • Support employee well-being with flexible policies.

Workplace culture is essential for the overall happiness and well being of the employees along with the success of the company. An ideal workplace culture is one that values its people, and creates an environment of trust. Every company should strive for an environment that allows the employees to grow while also being productive.


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