Organization and Team Culture Drag Performance Every Time

Read this article because it reveals how organization culture and team culture profoundly impact employee performance and overall workplace success.

• Organizational culture shapes employee interactions and performance, fostering belonging and motivating alignment with company goals.
• Positive team culture enhances engagement and productivity, encouraging collaboration, trust, and innovative problem-solving among employees.

This post is the fifth in a series on equal employment opportunity versus diversity and inclusion versus workplace culture. Click here to start at the beginning of the series. 

Understanding Organization Culture and Its Impact on the Workplace

Organization culture is the backbone of any successful organization or team and shapes employee interactions and performance. It encompasses shared values and beliefs, which lead to behaviors that drive engagement and influence performance outcomes. A strong culture fosters a sense of belonging by motivating employees to align their personal goals with the organization’s mission. In turn, all outcomes, whether wins or losses, accrue to the employee and employer. 

In organizations with strong cultures, employees are more likely to feel valued and engaged, which can lead to increased retention and loyalty. This connection between culture and employee performance is significant, as studies indicate that a well-defined culture can account for over a quarter of employee effectiveness. Ultimately, the behaviors nurtured within the organizational environment are reflected in the quality of work and customer satisfaction.

Leaders nurture culture by consistently communicating core values, modeling desired behaviors, and by rooting out policies and norms that undermine core values. As you consider your own workplace, think about how organizational culture shapes your daily experience, whether it encourages collaboration, embraces diverse experiences and perspectives, or supports continuous learning. The impact of a strong culture is profound, influencing not just individual performance but also the success of the entire organization.

The Role of Values and Mission in Shaping Culture

A clear mission articulates what the organization stands for and what it aims to achieve. When employees feel that their work contributes to a greater purpose, they are more engaged and motivated. They are even more motivated when they see the connections among their role, the work of the organization and their personal values and goals. The connection between the individual and the company’s mission creates a mutually beneficial environment.

In the same vein, when an organization’s values are actively promoted and integrated into daily operations, they become more than just words on a wall; they become part of each employee’s lived experience at work. Moreover, when an organization consistently operates through the lens of its values, its brand is strengthened. This cultural reinforcement gives existing employees the information they need to make important life and professional decisions regarding their tenure with the organization. It also gives prospective employees the information they need as they consider whether they can align themselves enough with the organization to have a positive career experience while in their employ. In essence, the alignment of company values and mission, organizational culture, and individual goals and values is fundamental for cultivating a thriving workplace.

Fostering a Positive Team Culture for Enhanced Engagement

When an organization creates strategies to acquire aligned employees, it must also deliberate on what it means to foster a culture that supports real employee engagement and productivity. In order to harness the knowledge, skills, and abilities of individual contributors into innovation and productivity, leaders must be deft facilitators, be willing to encourage diverse perspectives, and be able to manage and normalize conflict. 

Conflict and disagreement over methods and priorities strengthens the iterative process, and you only get the kind of conflict and disagreement that can be turned into productive outcomes when the people on the team respect one another’s legitimacy on the team, know the organization respects righteous conflict, and have leaders who remind them that every voice, including unique perspectives, will be heard and valued. 

When team members prioritize respect, collaboration and trust for each other, they create an environment where individuals feel encouraged to share ideas and take risks. This sense of belonging teaches employees what to expect, enhances loyalty, and leads to higher individual and collective performance levels.

As you consider these fundamental elements of organizational and team culture, I invite you to ponder the following questions and communicate the answers across your organization:

• Are diversity and inclusion reflected in your organization’s culture? 
  • Was the decision regarding whether diversity and inclusion would be a value an intentional one?
  • How was the decision regarding whether diversity and inclusion would be a value made, i.e., a top-down decision, a shared leadership decision, organization-wide discussion, etc?
  • How are your leaders communicating, embodying and role-modeling your organization’s position on D&I? Is your organization intentional about how it communicates all of its values, including those related to D&I?
  • Is your position on D&I clear to your employees, stakeholders, and customers? Do you feel comfortable clearly stating what it is to any of these groups?
  • Do you feel comfortable clearly stating your personal values on D&I at your job or in any professional setting?
  • In your opinion, how strong is employee engagement in your organization? Is employee engagement a cultural strength? Would you use this information in your recruiting strategy?
  • In your opinion, how would you characterize your organization’s culture as a factor in innovation, profitability, and employee turnover?

In conclusion, organizational culture is a pivotal element that shapes the dynamics and success of any workplace. A strong, well-defined culture fosters employee engagement, enhances performance, and strengthens loyalty. By consistently communicating core values, aligning personal goals with organizational missions, and promoting a culture of collaboration, organizations can create a thriving environment that employees benefit from as much as they do.