How organizational culture defines a business’ success or failure

In today’s working world, we have, now more than ever, come to understand how an organization’s culture defines a business’ success or failure. Culture used to be a vague or unwritten term and seen as something nice to have, and the culture was not something consistently carried by the management and staff. However, times have changed. The awareness of the impact a positive culture has on the viability of an organization is increasingly growing.

The importance of understanding organizational culture
An organization consists of people from diverse ethnic backgrounds and cultural heritages, diverse personalities, and a range of personal experiences that shape the people.

When such diverse people are together in a working environment, all these factors manifest themselves in numerous ways. First, a dominant set of norms will emerge, determining how the people accomplish their work within the organization, eventually forming the culture.

Organizational Culture shapes attitudes and behaviors in wide-ranging ways, and its effects become quickly persistent. Cultural norms define what is encouraged, discouraged, accepted, or rejected within a group. Moreover, employees’ workplace experiences inevitably determine an organization’s profitability.

So, when management understands the culture’s behavior, it will positively impact employees. A prerequisite is appropriately aligning the culture with personal values, drives, and needs to influence employee morale and productivity positively. When done so, it will then unleash tremendous positive energy toward a shared purpose and foster an organization’s capacity to thrive.

So how does an organization get to know its cultural profile?
It is clear: Organizations need to shape their culture step-by-step to arrive at an aspirational target.
A culture must resonate with the employees who resemble the dominant culture and the subcultures that naturally form within an organization. Employees need to feel they can identify with that culture, accept it, and embrace it for an organization to thrive.

The scientific tool of Management Drives measures organizational culture quickly. And the result is easily understood and practically integrated into existing structures through a step-by-step approach.

Based on decades of research and instigated by positive psychology Dr. Clare Graves, Management Drives identifies six cultures, revealing an organization’s culture – not in a categorizing way, but a unique integrated manner.

The six cultures the Management Drives tool identifies are as follows:

Social Culture (green)
Social culture is about the connection among people, focusing on relationships and a working environment where people listen to each other and help and support each other. It is teamwork that unites the employees in social culture.

Visionary Culture (yellow)
The visionary culture is compassionate about working for the world’s long-term future, emphasizing innovation and knowledge, exemplified by idealism. Employees are united through shared ideals, exploring new ideas and alternatives, and having fun.

Enterprising Culture (orange)
The enterprising culture focuses on achievements and results, ambition, and strategy. Employees aspire to achieve a top performance, and the drive for success unites the people. Therefore, leaders in an enterprising culture emphasize goal accomplishment.

Task-Oriented Culture (blue)
The task-oriented culture focuses on structure, and planning and organizing define this culture. Executing with caution, being prepared, and a work environment as a place for predictability where employees are risk-conscious and think things through carefully is typical for the task-oriented culture. Cooperation unites the employees, and the leaders emphasize shared procedures, planning ahead, and sticking to agreements.

Authoritative Culture (red)
Decisiveness, strength, and boldness define the authoritative culture. The work environment is competitive, where employees strive for personal advantage. Substantial control unites the employees in the workplace, and the leaders emphasize dominance and confidence.

Bonding-Culture (purple)
The bonding culture is a workplace where a shared mission and identity unite the employees, where they feel protected, and where mutual trust is essential. The working environment is predictable, and the leaders emphasize the continuity.

Unleashing organizational potential on all levels
Once management truly understands the importance of having a positive organizational culture and knowing its current culture profile, it is time to integrate further and live the desired culture.

Because it is now more evident than ever: embodying an organizational culture across all departments and among all employees unleashes organizational potential. Moreover, it paves the way for a thriving business, bringing positive employee morale and profitability to the entire organization.

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