What is the Clear Correlation Between the Culture and Organization Performance?

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This guest column is by Yogesh Sood, CMD, Blanchard Research & Training India LLP

A company which stresses on innovation, teamwork, and welfare of the workforce, performs better than one which is identified by stability, aggressiveness and a strong emphasis on outcome. According to a research published by the Wall Street Journal, organisations with a positive culture generally earned greater profits in the long run and those that laid little importance on improving their culture turned less profitable eventually. Even, successful companies without a positive culture are likely to see a decline in their performance over a period of time ultimately. A culture that engages and motivates employees results in company’s bottom line performing efficiently.

Innovation and Productivity

Every employee at work is unique, and putting them in a prison of a large number of Do’s and Don’ts is counterproductive and reduces job satisfaction. On the contrary, employees who receive more freedom to innovate tend to be motivated, involved and satisfied at work.  Innovation generates a sense of accountability and responsibility with employees showing increased awareness of organisational strategic objectives.

A welcoming & pleasant environment opens to ideas and autonomy leads workers to thrive at work and increases job satisfaction whereas, a dull workplace where innovation, creativity, and initiative are discouraged provides little satisfaction or motivation.

Knowledge Sharing and Productivity

In the past, machines were thought to be main assets of an organisation, but with ever changing technology and needs, it is the knowledge that has become of vital importance. It is the workforce that owns this important quality which refers to their ideas, creativity, experience and expertise.  Sharing of this knowledge stored within the chests of individuals increases the effectiveness of operations. A culture which promotes knowledge sharing experiences a healthier development of their employees and one that doesn’t would eventually incur increased costs on Training & Development.

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Teamwork and Productivity

Teams are known to be capable of producing a higher quality of work within a shorter time span. The psyche of collective responsibility along with an individual one helps to reduce stress levels and allows greater concentration towards the job at hand. A common goal, coupled with a defined role removes redundancies and increases workflow. Small additions to common team goals made by team members give a sense of accomplishment to individual team members and helps boost morale. Employees with a high morale tend to be confident and continuously keep on honing their knowledge and skills which in turn benefits the process and the organisation.

Inclusion and Productivity

Good management and greater efficiency are inseparable. A culture geared at motivating its employees by incorporating various strategies of inclusion is the one that notices the highest efficiency rates. Involving all the members of the organisation in its goal setting decisions harbours a feeling of involvement within the employees who in turn invest greater and dedicated efforts in accomplishing their tasks. An opportunity to develop oneself within the organisation is also critical in keeping the employees motivated.

Communication and Productivity

Communication is vital to better results. People remain at the heart of an efficient mechanism as it is them who interact both with the technology and the clientele.  The importance of Communication is understood at points when communication breaks down. If the production department is unaware of a sudden increase in sales projections from the sales department, a complete brand may suffer. Communication is also fundamental to a good customer service. When a client keeps on receiving notifications for bills already paid, he would consider discarding the entire services. Therefore, a good inter-departmental communication policy ensures maintenance of an efficient flow of information and reduces redundancy.

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Conclusion

A good organisational culture lies at the heart of a sustainable business growth. From increasing efficiency to nurturing the competent staff, a company’s productivity remains directly proportional to its culture.

Disclaimer: This is a guest post. The statements, opinions and data contained in these publications are solely those of the individual authors and contributors and not of iamwire and the editor(s).

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