Organizational culture constitutes the values, practices, and expectations that inform and guide the actions of all members of the organization. It is a critical factor in an organization’s success and development as it helps develop positive traits for its success. Companies with healthy organizational cultures are more likely to record revenue and significant stock growth (Al-Madadha, Al-Adwan, & Zakzouk, 2021). Each organization has its own culture, which facilitates the delivery of good results as targeted. Positive traits that improve organizational performance are always achieved from excellent cultural practice. Dysfunctional cultures result in qualities that hinder an organization’s success (Lee, Howe, & Kreiser, 2019). The study will help determine the importance of good organizational culture for the success of any organization. It will analyze and evaluate the following: What shapes a corporate culture, how trust is perceived in every working place, the sort of personality that should be hired in an organization, and how leadership affects a corporate culture; further, it includes the relationship between the chosen topic and other subject areas while also identifying the gaps in existing knowledge and outlining areas for future study. The study will help determine the need to formulate an excellent organizational culture, its benefits, and the consequences of having a deficient culture.
What Shapes an Organizational Culture
Culture is customarily taken too lightly by many companies who ignore it and think it will sort itself when given enough time. The factors which shape the culture include the nature of the business and the clients or customers (Metwally, Ruiz-Polomino, & Gartzia, 2019). Employees’ behavior is significantly impacted by the market, purpose, and operations within an organization. As a result, the organizational culture is influenced, and employees’ feelings are shown (Rarenko, 2021). In research by Metwally et al. (2019), the nature of business affects culture, although not directly linked with employees. Financial corporations, banks, and stock brocking organizations rely on demand, supply, and market coverage. Al-Madadha et al. (2021) agree with the findings and assert that when the market collapses, these organizations have no otherwise but to dismiss the employees. The workforce members become uncertain about their jobs in such organizations, thus interfering with the organizational culture.
Clients affect the organizational culture both directly and indirectly. In research by Lee et al. (2019), all organizations work hard to meet the clients’ needs, for example, the catering industry. They tend to operate within the client’s timeline, thus affecting its culture. In another research by Maamari & Saheb (2018), the findings were that when customers are upset, they tend to take out the anger on employees. In turn, the employee’s behavior is altered, thus affecting those around them. When clients are happy, they tend to thank the employee who uplifts the team, thus shaping the organizational culture.
Trust in Every Working Place
In every workplace, trust advocates for the enjoyment of working by the employees where they enjoy mutual respect and psychological safety. According to Klynn (2021), trust is essential to healthy company culture as it improves productivity, communication, and teamwork. She identifies the types of trust as capability, character, and communication. Capability trust grows when there is confidence in an employee’s ability, skills, and knowledge, thus showing competence. Character trust indicates a certain expectation from the employees and conviction regarding what they promise to do and can be relied upon to accomplish the task. Communication trust implies the willingness to share information, maintain confidentiality, admit to errors, and tell the truth. Klynn (2021) states that trust is vulnerable and must be earned between two employees, and an employee and a manager. In every culture, trust varies as different types of people are involved, making it hard to build and sustain it. Sometimes, it is hard to know if one might have unintentionally broken trust with colleagues.
In every organization, trust is achieved through appreciation and reinforcement especially on the behaviors portrayed within the organization, thus varying from each workplace. Eikeland (2015) states that every workplace has its trust level. Some have low trust while others have good relationships between the employees and the organization. In a low-trust environment, the employees and the organization are always affected (Håkansson, 2022). It is hard and almost impossible for one to be productive in an environment they are not trusted. In environments where employees are not doubted, they tend to be more productive and innovative, thus making the organization prosper (Eikeland, 2015). According to Håkansson (2022), trust needs to be mutual and not one-sided, as both parties need to trust one another. Building trust has advantages, like improving employee satisfaction, communication, and productivity, as well as drawbacks, since some may take it for granted.
Personality in an Organization
When applying for a job, professional success and experience is what one believes the interviewer is targeting to see. Many times, what ensures one gets the desired position is the personality traits that are always unique and make someone the right fit. In their research, Matz & Harari (2020) state that the personality traits that need to be hired in an organization include a multitasker, strategist, decider, and team player. Tisu & Lupșa (2020) agree that, in small business settings, employees are rarely employed to perform a single task, thus requiring a multitasker. Every business needs a strategic thinker who can help identify long-term solutions. In times of great need, deciders can make a value judgment for the company since business leaders can be involved in every minor decision (Tisu & Lupșa, 2020). Employees value workers who can collaborate with others despite varying personalities to accomplish a task.
In research by Do & Kim (2017), candidates typically get hired if they possess the following traits; hardworking, flexible, self-motivated, and able to work under pressure. The qualities concur with what Smith & DeNunzio (2020) Kathrine indicated, with only a few differences. Even if one is a team player, a multitasker, a strategist, or a good decider, their personality does not count if one cannot work under pressure (Do & Kim, 2017). Hiring managers select an individual who possesses several vital characteristics and not only one. Smith & DeNunzio (2020) conversely state that hiring managers also choose individuals who are almost similar to them, thus being biased. Chances are high for individuals who possess most likely traits from the others, thus portraying the halo effect.
How Leaders Affect Organizational Culture
Leaders are considered an essential factor in shaping a company’s culture. The research by Tanner (2022) leaders helps frame the company’s values and goals. Here, world-class leaders portray the spirit of positivity and fairness, thus providing an example worth following. Leaders can set some employees’ expectations while allowing them to freely exchange ideas (Meyer & Zelin, 2019). They are tasked with taking severe looks at how well employees are engaged in work and correct where mistakes can be seen. Those in power are the ones who have the most effect on an organization’s culture, as they are commonly involved in guiding an organization (Tanner, 2022). Leaders can be instrumental as they create primary mechanisms used in cultural change. The new cultural norms include how they react to crises and what criteria they use to reward employees.
An organizational leader ensures that work is performed both proficiently and successfully. Leaders use different techniques to ensure the employees carry out their duties with uttermost positivity. A leader is usually equipped with adequate knowledge regarding what type of culture is required within the organization to help in the competitive market (Tanner, 2022). They are required to establish good workplace culture which is beneficial to everybody. In research by Meyer & Zelin (2019), it does not work since different cultures can succeed in various organizations. Certain cultural elements such as poor time planning and workers’ poor treatment negatively affect an organization (Lindsey, 2016). The only solution to this is putting in place a good leader with a vision to set up an excellent organizational culture beneficial to the company.
A good organizational culture is usually shaped by factors such as the nature of the business and customers. Employees’ behavior is generally affected by the success or failure of the organization. When the market collapses, the first affected are the employees, as the organizations require to reduce their financial use. Customers affect the culture by offering criticisms that demoralizes the employees or congratulates them, ultimately affecting the organization’s culture. Trust in a workplace is achieved when strategies such as listening more than speaking, showing appreciation, and reinforcing desired behaviors are practiced. Various feedback tools need to be used, thus ensuring every worker has the chance to air their views. Within an organization, the most preferred personalities include a multitasker, a strategist, a decider, and a team player. Hiring managers at times prefer employees with similar traits as them. Leaders are vital in shaping a company’s culture as they help frame company goals. They are tasked with ensuring that work is performed successfully and proficiently. Good leaders need to be in place to ensure the organizational culture is positive.
Current company cultures can be assessed by walking around and conducting interviews. Today’s most common organizational culture problems include conflict, under-equipped supervisors, and employees being bored and discouraged (Ryan, 2016). The solution to these drawbacks is listening to employees and building trust, coaching and supporting the supervisors as they take on their new roles, and being truthful to avoid conflict (Ryan, 2016). The significant gaps in existing knowledge regarding organizational culture include lacking a language for culture, a measurement for culture, an understanding of culture change, and a lack of a clear connection of the strategic plan to culture change.
For any future study, the following suggestions are essential: Building upon my research findings and tackling other unanswered aspects of the problem. The limitations of this current review need to be addressed keenly. Lastly, more methodological work must be employed to identify the importance of an excellent organizational culture to the company’s success.
Al-Madadha, A., Al-Adwan, A., & Zakzouk, F. (2021). Organisational culture and organizational citizenship behavior: The dark side of organizational politics. Organizacija, 54(1), 36-48.
Do, J., & Kim, K. (2017). Employee reactions different in the type of places – an aspect of workplaces –. The SIJ Transactions on Industrial, Financial &Amp; Business Management, 05(02), 01-04.
Eikeland, T. (2015). Emergent trust and work-life relationships: How to approach the relational moment of trust. Nordic Journal of Working Life Studies, 5(3), 59.
Håkansson, H. (2022). Contradictions of ordered trust: Trust-based work and conflicting logics in municipal care. Nordic Journal of Working Life Studies.
Klynn, B. (2022). Lead reader today. Building a culture of trust.
Lee, Y., Howe, M., & Kreiser, P. (2019). Organisational culture and entrepreneurial orientation: An orthogonal perspective of individualism and collectivism. International Small Business Journal: Researching Entrepreneurship, 37(2), 125-152. Web.
Lesmeister, M. (2019). Working with others: Developing trust and cooperation. EDIS, 2005(8).
Lindsey, J. (2016). How can leaders cultivate an organizational culture of creativity and innovation, particularly in the academy?. Journal of Leadership Studies, 10(1), 76-77. Web.
Maamari, B., & Saheb, A. (2018). How organizational culture and leadership style affect employees’ performance of genders. International Journal of Organizational Analysis, 26(4), 630-651.
Matz, S., & Harari, G. (2020). Personality–place transactions: Mapping the relationships between big five personality traits, states, and daily places. Journal of Personality and Social Psychology.
Metwally, D., Ruiz-Palomino, P., Metwally, M., & Gartzia, L. (2019). How ethical leadership shapes employees’ readiness to change: The mediating role of an organizational culture of effectiveness. Frontiers in Psychology, 10.
Meyer, C., & Zelin, A. (2019). Bystander as a band-aid: How can organizational leaders as active bystanders influence culture change. Industrial and Organizational Psychology, 12(3), 342-344.
Rarenko, a. (2021). Book review: A closer look at organizational culture in action / ed. by S.D. Göker. – London: IntechOpen, 2021. – 140 p. Social sciences and humanities. Domestic and foreign literature. Series 11: sociology, (4), 130-145.
Ryan, L. (2016). The five most common culture problems — and their solutions. Forbes.
Smith, R., & DeNunzio, M. (2020). Examining personality—job characteristic interactions in explaining work outcomes. Journal of Research in Personality, 84, 103884.
Tanner. (2022). How does leadership influence organizational culture | o.c. Tanner. O.c. tanner – appreciate great work.
Tisu, L., & Lupșa, D. (2020). Personality characteristics, job performance and mental health: The mediating role of work engagement. Personality and Individual Differences, 153, 109644.