Organizational Culture

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Southern New Hampshire University *

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Management

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Apr 3, 2024

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Organizational Culture Anthony Kingery I evaluate companies' cultures and give a detailed report to show where I assess them. Company culture is important to a company's success, so things like workplace morale and a company's profits can be related. Company culture impacts how employees feel about working at your establishment and it even impacts how the public views your company. If you have a strong organizational culture, you will attract and keep top talent, keep employees engaged and motivated, and even make more money. But if your culture is toxic, you will get high turnover rates, low morale, and deficient performance. Companies should focus on an employee's well-being. When an employee feels like their company takes care of them, values their input, and cares about them as a person in return they will be more productive. It is a win for everyone. Moseley (2022) Evaluation Company X has 363 employees who were asked to respond to the annual employee engagement survey. Of the 363 surveys that were distributed, 300 employees responded. They are asked several questions, and they rank their opinion 1 through 5, 1 meaning you strongly disagree, 2 meaning you agree, 3 for neutral, 4 meaning you agree, and 5 meaning you strongly agree. There has been some good insight gained from these surveys but overall, Company X has room for improvement. First, we can assess the areas that scored more favorable according to Company X Cultural Assessment Data. The category that scored the highest score is communication. The statement follows; I feel comfortable approaching management when facing an issue at work and feel that it will be addressed in a timely manner. This statement scored a 4.9 so communication is not something Company X needs to worry about. Another high-scoring category is Growth Opportunities, the statement follows; There is an opportunity for advancement within the organization, this scored a 4.5. Expectations is another category that scored high, the statement follows; My role and responsibilities in the organization are made clear to me by my manager or supervisor, this scored a 4.4. I am not surprised this one scored high, this can be related to communication. Another 2 sections that scored well are job security and professional development. These are 2 particularly important categories to score high on, job security and professional development are particularly important to employees. Many employees care about professional development, as it can help them advance withing their own company and even take that development elsewhere. Job security helps with workplace morale, when profits are low, when companies face things like bankruptcy or layoffs it makes very uncertain times. When a company is thriving and employees feel like they have job security, that provides a sense of security to everyone. These are the categories are examples of where your company is excelling, and these attributes will strengthen organizational culture. Now let us address some of the lower-ranking categories that have room for opportunity. The lowest ranking category is Vision Statement: I am aware of the organization’s vision statement as it aligns with my personal goals. This ranked at a 1.9, I do not know if this will directly impact productivity or workplace morale, but it is important to make sure everyone knows your mission statement. The next category is employee benefits, which is concerning because employee benefits are especially important

to people. This ranked at a 2.2 showing there is a clear dissatisfaction with the benefits. Work-life balance is another category that scored low, at 3.2. This scored neutral, but every company should aim to make this category higher. If employees feel like they do not have a good work-life balance, they can become burnt out very easily and this will impact effort, motivation, and productivity. All these ratings give insight into how employees feel, and these topics the categories covered can negatively impact organizational culture. This whole survey scales organizational culture, the first question is; I am aware of the organizational culture as it aligns with my personal values and goals. This was rated a 3, being neutral. 40% rated the culture statement as a 1, 5% rated it as a 2, 10% rated it as a 3, 5% rated it as a 5, and the following 40% of the employees rated it as a 5. In Company X’s annual productivity report, the following data was gathered; earnings per unit was at 9% above target and the labor Cost per Unit was 2% below target. Profit per Employee was 6.4% below target and overtime hours was 4.2 hours per week per employee. Lastly, the absenteeism Rate was 2.9 days per month per employee. (Company X Cultural Assessment Data) This survey has done an incredible job showing us Company X’s strengths, what you can improve on, and the weaknesses. Clear communication and role expectations are clear strengths vital to an organization, bad communication and unclear expectations can negatively impact productivity. Growth opportunities and appreciation are also in the higher range as one of our strengths. These are two good categories to have as strengths, people feeling appreciated ties into workplace culture. If the staff do not feel appreciated, they will more than likely become dissatisfied with their employer. A lot of people also leave companies because they apply for a position with higher pay and more responsibilities because there was no opportunity at their current employer. People know there are opportunities for them to expand themselves and expand their career. Job security also scored high, which means people feel safe and know that there is enough business to keep them employed. Effective communication, being acknowledged and appreciated, and having opportunities to grow are all connected to workplace culture. Employees at Company X feel appreciated, which can directly impact retaining top talent, increased employee engagement, and it can also encourage high performance. Great Place to Work-Certified company studied workplace dynamics and the role management plays in shaping them. An employee survey included the question, "What is the most important thing that your manager or company currently does that would cause you to produce great work?" Respondents answered in their own words, providing a variety of responses, but a clear pattern was recognized. 37% of respondents said that more personal recognition would encourage them to produce better work more often. The study showed that affirmation, feedback, and rewards are most effective for motivating employees to do their best work. HASTWELL (2023) Some of the lower ranking categories are important as well and need to be addressed. Worklife balance and employee benefits ranked lower. If people do not feel like they have a decent work life balance, this can cause employees to get burnt out. People here are also not satisfied with the benefits, which includes pay, time off, and insurance. If employees feel like they are underpaid and do not have good benefits, they may seek employment elsewhere to find good pay and benefits. People do want to like

where they work, but most of them prioritize taking care of their families and finances. The lowest scoring category would be vision statement, which means they do not know the vision statement, or they do not feel like it aligns with their personal beliefs. This could also be pointing out that current or previous leadership did not drive the vision or the values of the company, this can hinder growth if not addressed. When people join a company, they bring their own values with them, and the degree to which their values align with the values of the company's culture powerfully affects their performance and productivity. Those who do not share the same values with an organization will eventually leave the establishment. Either we are not educating the staff at Company X values or reconsider some of our values to better align with more people at Company X. Most successful teams share the same values; these can include tolerance, fitting in with the team, loyalty, hard work, committing to excellence, and a desire to beat the competition. With this being our lowest ranking category, it should be addressed as soon as possible. Hogan (2017) Recommendations There are many things the new HR manager can implement for Company X to address the lower scoring categories from the survey. A manager has a significant role in shaping culture, their decisions, actions, and how they interact with their teams profoundly influence the work environment. The first thing that should be addressed is the company's vision and values, and how it aligns with the team. First, we should survey Company X employees and see what their values are, identify common themes, and add to the vision statement accordingly. Many studies have shown that companies and organizations that develop a strong culture where people have high levels of agreement across a variety of attributes, that also emphasizes adaptation and innovation are significantly more likely to be financially successful. But some argue that data based on workplace culture cannot be quantified. But more and more studies are showing that if people are satisfied with their jobs and the workplace culture is good, they are more productive and drive profit. Chatman (2024) This does not mean to take everything gathered and add it into the companies' values and vision statement, use it to get a general consensus, so you cannot add each individual's opinions, values, or vision. This can come off as biased and not a true representation of the data. Then you will need to be able to display these values as the HR manager and lead your team to have the same vision. When managers genuinely embrace and exemplify the organization's core values, their behavior becomes a beacon that guides others. Managers stand at the forefront of cultivating a positive organizational culture. Managers are more than just a boss; they are leaders who can drive change. Inclusive leadership practices, such as promoting diversity and fostering an environment of respect, are potent tools in molding a vibrant culture. Price (2023) A manager who consistently communicates and reinforces these values highlights their significance in practical terms, inspiring employees to align their actions accordingly. It is a manager's job to educate employees on the vision statement, sell the vision to your team, and lead by example. Managers who

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effectively communicate expectations, provide regular feedback, and celebrate instances of values- aligned behavior contribute to a culture of engagement and motivation. Company X already has effective communication but there was a disconnect when it came to the vision statement and getting to know and understand their employees' values. I highly recommend collecting appropriate data concerning your employees' values, revamping, or adding to your current vision statement, and then selling the vision as leader. Price (2023) Other categories that need to be addressed are benefits and work-life balance. These were both ranked at the lower end, which means we can conclude from this survey data that Company X ’s employees feel like they are working too much, not spending enough time with their family, and they are dissatisfied with their pay and benefits. If Company X wants to attract new talent, retain talent, and keep all employees satisfied you will have to meet their basic needs. People need to provide for their families and people want to feel like they have enough time for both work and their family and friends. My recommendation for this would be investing in your employees' wages and offering more competitive benefits. If this is not possible due to budgets, then you can first invest in better health benefits and a little more vacation time, this will address work life balance. Then you can give anual raises based on productivity and display of company values. If increased productivity is present, this individual will be driving more profits, which could justify a raise. This will also create incentives for displaying company values and carrying out the company’s vision. Giving associates more vacation time and better insurance will show we care about their work-life balance and their well-being. Giving raises based on productivity and displaying company values will motivate employees to work hard and embody our values. Service Express inc is a company that developed concepts to address company culture and employee engagement, SEI has a philosophy that is service centric; they believe that if the company looks after their employees’ interest, then they in return will look after the customer’s interest and profits will follow. SEI leadership team intentionally creates and maintains an inspiring organizational culture conducive for employee development and innovation by sharing company stories and narratives. One of SEI’s co re objectives is employee satisfaction, this includes competitive pay, time off, and opportunities for advancement. SEI’s stated vision is dedicated to helping people achieve their personal, professional, and financial goals. SEI has seen an increase in company culture and the employee turnover rate has fallen from the high of 20 percent to an average of about 10 percent. Chen (2015) I predict that if you consider this research and my recommendations, these areas of concern will score a lot higher. The areas where Company X scored higher are all vital to running a successful business, but the areas where the score was lower can impact business in a negative way. Addressing their pay, benefits, and work-life balance will make your associates feel like they company is taking care of them and in return they will have more buy into the company and work better. Also, giving raises based on productivity and embodying company values will encourage people to be more efficient and know, understand, and live out the companies' values and vision. Lastly, we need a leader and a leadership team that will drive company culture and values daily, new and current managers need to be know the vision, sell the vision, and reward their staff when displaying company values, culture, and the vision.

CITATIONS: Corey Moseley (2022) Why organizational culture is important Why organizational culture is important (jostle.me) Company X Cultural Assessment Data https://learn.snhu.edu/content/enforced/1470247-MGT-20135- XA175-OL-DAC-CFA.24DA01/course_documents/Cultural%20Assessment%20Data.pdf?ou=1470247 Robert Hogan (2017) The consequences of culture: how values impact organizational effectiveness https://eds-p-ebscohost-com.ezproxy.snhu.edu/eds/detail/detail?vid=0&sid=42321d9b-5491-443d- bc17- 2f15eacf63ae%40redis&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d#db=edsbig&AN=e dsbig.A506828094 CLAIRE HASTWELL (2023) Creating a Culture of Recognition https://www.greatplacetowork.com/resources/blog/creating-a-culture-of-recognition Marita Price (2023) The Key Role of Managers in Shaping Organizational Culture https://www.linkedin.com/pulse/key-role-managers-shaping-organizational-culture-marita-price/ Basil K.C. Chen (2015) Crafting Organizational Culture: ‘Getting the Boss to Work for You https://sk- sagepub-com.ezproxy.snhu.edu/cases/crafting-organizational-culture-getting-the-boss-to-work-for-you Jen Chatman (2024) Leveraging Organizational Culture https://sk-sagepub- com.ezproxy.snhu.edu/video/leveraging-organizational-culture

Organizational Culture

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