Factors That Affect
ORGANIZATIONAL CULTURE
PRESENTED BY NEW DELHI INSTITUTE OF MANAGEMENT
CULTURE IS A GROUP OF PEOPLE’S WAY OF LIFE. “We are what we repeatedly do.” ARISTOTLE
ORGANIZATIONAL CULTURE IS A GROUP OF EMPLOYEES’ WAY OF LIFE. “We are what we repeatedly do at work.” (ARISTOTLE)
WHAT FACTORS affect
organizational culture?
1 TOP MANAGEMENT PRINCIPLES How the management runs the business affects the policies, procedures and rules set for employees.
Howard Schultz is passionate about building a company that treats people with
DIGNITY AND RESPECT Image courtesy: Joe Pugliese
Result :
Starbucks is treasured for its exceptional customer service. Source: Forbes
2
NATURE OF THE BUSINESS The purpose, market and operations of a company has an impact on employees’ behavior.
100% 90% 80% 70% 60% 50% 40% 30% 20%
Over 80% of the staff are under 40
Why do McKinsey consultants join and leave the firm young?
10% 0%
The nature of the business requires employees to work long hours and travel a lot, which leads to burnout and high staff turnover. Source: Quartz
3 COMPANY VALUES, POLICIES AND WORK AMBIENCE Employees develop the values emphasized in policies, procedures and work environment.
Gian obje t cts
Sports faciliti es
HOW DOES PIXAR
stir the creativity of their animators?
Toy s
ts u h titveead osf a e r C insubicle c
ic Artislltart wa Source: Disney
4
The clients that the company serves somehow shape organizational culture.
CLIENTS AND EXTERNAL PARTIES
Many call center agents in India have to work on a graveyard shift due to time zone differences between the BPO employees and their western clients. As a result, agents tend to experience high levels of stress and its related disorders.
Source: NCBI
5
RECRUITMENT AND SELECTION The type of employees hired by an has an effect on its culture organization
RECENTLY THE TREND IS TO RECRUIT AND KEEP A DIVERSIFIED WORKFORCE. In the tech industry, the most diverse companies in terms of gender are: GENDER DIVERSITY (OVERALL)58% 55% 51%
49%
PANDORA
45%
INDIEGOGO
MEN
60%
42%
EBAY
40%
61% WOMEN
39%
LINKEDIN Source: Fortune
6 COMPENSATION PRACTICES
If employees are fairly compensated positive culture can exist in an organization.
A study conducted in 2013 showed that
60% of employees
said compensation was the biggest contributor to job satisfaction.
Source: BNA
"It is behavior of your company and its people that form your reputation, and your reputation is your brand.“ -Dave Allen-
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