The Sadat Academy for Management Sciences Faculty
Of Management Science
Sadat Academy for Management Sciences
Faculty of Management Sciences
GRADUATION PROJECT
Human Resource Management Department
Research for Bachelor’s Degree
The Impact of The Organizational Culture in Employee Engagement
Applied in: KPMG Company
Supervised by: Dr Fatma Ayman
Prepared By:
Farida Essam Omran Mohamed
Mohamed Amin Mahmoud Said
Major: IBM
2025
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Acknowledgment
We would like to extend our deepest gratitude and sincere appreciation to
Dr. Fatma Ayman, Professor in the Human Resources Department, for her
unwavering support, invaluable guidance, and continuous encouragement throughout the
course of this graduation project. Her insightful feedback and steadfast mentorship have
been instrumental in shaping the direction and quality of our work. Her dedication to
academic excellence and commitment to student development have been a true source of
inspiration, and we are truly honored to have had the privilege of working under her
esteemed supervision.
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We dedicate this work:
To our families for their sincere love and their ever-present support of our personal
efforts toward learning, the environment and the education of others
And finally, we want to thank our friends who helped us to make it.
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Abstract
Employees within an organization and the broader industry workforce serve as fundamental pillars of any
economy, as their productivity, innovation, and engagement directly contribute to organizational and
national success. Employee engagement and organizational culture are now business concerns and HR
practitioners and academicians’ keen interest. In an era of augmented organizational transparency,
greater workforce mobility, and severe skills shortages, culture, engagement, have emerged as top issues
for business leaders. The organizations compete for talented people who have high performance and high
competence in the workplace. Each individual has their knowledge & abilities, feelings, skills,
perceptions and attitudes. It is very challenging for the HR practitioners to effectively manage employees
and keep them engaged in work, create a sense of belongingness so that they wholeheartedly contribute
towards accomplishing organizational goals, and stay in the organizations for longer and do not mind to
go extra miles for their organizations. An enhanced understanding of the factors that impact on employee
engagement is required to understand. However, in the context of the organizational culture predicting
engagement is minimal.
Organizational culture was measured on the dimensions like – Values & goal clarity, autonomy, human
resource orientation, team orientation, external orientation, customer focus, and results revealed a strong
organizational culture in recruitment consultancies. And employee engagement was measured on the
measurements – vigor, dedication and absorption revealed that employees are highly engaged in an
organization. Human resource orientation and Values & goal clarity were significantly related to
employee engagement. Dedication and vigor showed significant association with organizational culture.
Mediation analysis was conducted with various engagement factors revealed partial mediation for each
factor. This research’s significant contribution is in understanding organizational culture and its factors
affecting employee engagement among recruitment professionals.
Researchers shall apply various research methods to measure and justify the conceptual model, like focus
group interviews, nominal group technique etc. The study can also be done across various geographies
and service sectors to ascertain the interplay of different factors and their contribution to employee
engagement. Keywords: Organizational Culture, Employee Engagement, Recruitment firms, Recruiters
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Table of Contents
Chapter 1 ................................................................ 14
Introduction ..................................................................... 15
History .............................................................................. 16
Research problem ............................................................ 17
Research variables ........................................................... 18
Research Hypotheses ....................................................... 18
Research Importance ...................................................... 18
Research Objectives ........................................................ 18
Research Boundaries ....................................................... 18
Research Population and Sample ................................... 18
Research Tool .................................................................. 19
Research plan................................................................... 19
Research Questions.......................................................... 19
Researcher’s Divided this Research ............................... 19
Methodology .................................................................... 20
Literature review ............................................................. 20
Conclusion ................................................................. 21
Chapter 2 ................................................................ 22
Introduction ..................................................................... 23
1. What’s Employee Engagement ..................................... 24
2. Importance of Employee Engagement .......................... 25
3. Benefits of Employee Engagement ............................... 26
3.1 Challenges of Employee Engagement ..................... 27
4.Types of Employee Engagement .................................... 28
4.1 Technology for Engagement ................................. 29
4.2 How to Measure Employee Engagement............... 29
4.3 Employee Engagement Surveys ............................ 29
4.4 Measurement Strategies ........................................ 29
5. Key Performance Indicators .......................................... 30
5.1The Following Questions Can be Helpful in EE ...... 30
5.2 How to Improve Employee Engagement ............... 31
5.3 How to Maintain Employee Engagement .............. 32
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5.4 Good Strategies for Implementing & Maintaining .. 33
6. How Do you Overcome EE Challenges ....................... 34
6.1 Employee Engagement challenges make or break . 35
6.2 Excessive Red Tape ................................................ 35
6.3 Line Managers & Supervisors with poor comm. .... 35
6.4 Lack of One-On-One Time ................................... 36
6.5 Shortage of Growth Opportunities ......................... 36
6.6 How to Overcome this Employee Engagement ...... 37
6.7 Not Enough Transparency ...................................... 37
6.8 How to Overcome this EE Barrier ........................ 37
6.9 Lack of Reward & Recognition .............................. 37
6.9 How to overcome this EE barrier? ........................ 38
7. The World of Education Before Employees .................. 39
7.1 Engagement History of EE in Education ................ 39
7.2 Elements of Engagement ........................................ 40
7.3 Generating Engagement ......................................... 41
7.4 Drivers of Engagement ........................................... 41
7.5 Commitment Theories ............................................ 42
8. Employee Engagement Impact on Education ................. 43
8.1 The Importance of EE in Education ....................... 43
8.2 Benefits of High EE in Education .......................... 43
8.3 Key Challenges to EE in Education ........................ 44
9. Ten Effective Strategies for Enhancing EE .................. 45
9.1 Supportive Leadership ............................................ 45
9.2 Professional Development ...................................... 45
9.3 Recognition & Rewards ......................................... 45
9.4 Creating a Positive Work Environment .................. 46
10. Ten Leveraging Technology to Boost EE ................... 47
10.1 Engagement Platforms .......................................... 47
10.2 Remote Learning Tools ........................................ 47
10.3 Feedback & Analytics .......................................... 47
11. Ten Building a culture of EE in Education ................. 49
11.1 Inclusivity & Diversity ......................................... 49
11.2 Transparency & Communication .......................... 49
11.3 Team Building & Social Interaction ..................... 49
12. Ten Measuring & Analyzing of EE in Education ........ 50
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12.1 Advanced Analytics ............................................. 50
12.2 Feedback Mechanism ........................................... 50
12.3 KPIs & Metrics ..................................................... 50
13. The Relationship between EE & Performance ............. 52
14. Engagement’s Impact on Productivity......................... 53
14.1 Highly Engaged .................................................... 53
14.2 Imagine Road Blocks Vanished ........................... 53
14.3 Imagine Second Scenario ..................................... 53
15. Strategies for Fostering Engagement ........................... 54
15.1 Employee Recognition Programs ......................... 54
15.2 Professional Development Opportunities ............. 54
15.3 Open Communication Channels ........................... 54
15.4 Many ways you can foster open communication ... 54
15.5 Organizational Outcomes of EE ........................... 55
16. What are the advantages of Employee Engagement .... 56
16.1 Increased Productivity .......................................... 56
16.2 Higher Retention & Lower Turnover Rates .......... 56
16.3 Lower Absenteeism .............................................. 57
16.4 Better Employee Safety ........................................ 57
16.5 Healthier Employees ............................................ 57
16.6 Better Customer Satisfaction ................................ 57
16.7 Better Quality of Work ......................................... 58
16.8 Stimulates Innovation ........................................... 58
16.9 Lower Risk of Burnout ......................................... 58
16.10 Bottom Line-Should You Focus on It or Not ..... 59
17. What are the Disadvantages of Employee Engagement 60
17.1 Cost ...................................................................... 60
17.2 Burnout ................................................................. 60
17.2 Goal-Setting ......................................................... 60
17.4 Time-Consuming .................................................. 60
17.5 Subjectivity .......................................................... 60
17.6 Unreliable Responses ........................................... 60
18. Employee Engagement Tips ........................................ 61
18.1 Encourage Communication & Conversation ........ 61
18.2 Make Sure They’re Informed ............................... 61
18.3 Let Them Share Their Enthusiasm ....................... 61
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18.4 Reward the Actions You Want ............................. 61
18.5 Measure Engagement Frequently ......................... 61
18.6 Here are some excellent ways to measure EE ...... 61
19. Employee Engagement Statistics................................. 62
20. Levels of Employee Engagement ................................ 63
20.1 Highly Engaged Employees ................................. 63
20.2 Moderately Engaged Employees .......................... 63
20.3 Barely Engaged Employees .................................. 63
20.4 Disengaged Employees ........................................ 63
21. Importance of Effective Communication ................... 64
21.1 Using communication to improve EE ................... 64
21.2 Truly Elevate Employee Engagement .................. 64
21.3 Communication .................................................... 65
21.4 Encouraging Proper Employee Communication .. 65
21.5 Lastly .................................................................... 65
22. Employee Engagement at Leading Companies ........... 66
22.1 Value of the digital employee experience ............. 66
22.2 Employee Engagement Effect on Environment .... 66
23. Additional Employee Engagement Resources.............. 67
Conclusion ................................................................. 68
Chapter 3 ................................................................ 69
Introduction ..................................................................... 70
1. What’s Organizational Culture ...................................... 72
2. The Concept of Organizational Culture ......................... 73
3. Theoretical Background ............................................... 74
4. The Definition of Organizational Culture...................... 76
4.1 On the other hand, .................................................. 76
4.2 Here are Ten Common Characteristics of OC ........ 77
5. Different Types of Organizational Culture ................... 78
5.1 It’s Been Found that Company Culture .................. 78
6. Seven Reasons Why OC is Important ........................... 79
6.1 Improved Recruitment Efforts ................................ 79
6.2 Smoother Onboarding ............................................ 79
6.3 Decreased Turnover ............................................... 79
6.4 Enhanced Employee Engagement .......................... 80
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6.5 Increased Productivity ............................................ 80
6.6 Stronger Brand Identity .......................................... 80
6.7 Stimulated Performance ......................................... 80
7. Fostering a Healthy Organizational Culture ................... 81
8. Debates About Culture Research................................... 82
9. Levels of Analysis ......................................................... 83
10. Impact of OC on Employee Behavior ......................... 84
10.1 Influence on Work Ethic & Motivation ................ 84
10.2 Influence on Decision Making & Problem Solving 84
10.3 Influence on Job Satisfaction & Commitment ....... 84
10.4 Organizational Culture ......................................... 84
11. The Role of leadership in Shaping OC ........................ 85
11.1 Establishing & Communicating Values ................ 85
11.2 Leadership Style & Culture Impact ...................... 85
11.3 Leadership in Organizational Change .................. 85
12. Organizational Change & Resistance to Change ......... 86
12.1 Causes of Resistance to Change ........................... 86
12.2 Overcoming Resistance to Change ....................... 86
12.3 Strategies for Managing Change .......................... 86
13. Organizational Culture & Innovation .......................... 87
13.1 The Relationship Between Culture & Innovation .. 87
13.2 Structural & Cultural Factors Affecting Innovation 87
14. Ethical Climates in Organizations ............................... 88
14.1 Types of Ethical Climates .................................... 88
14.2 Influences on Ethical Behavior ............................. 88
15. Managing Cultural Diversity in Organizations ............ 89
15.1 The Benefits of Cultural Diversity ....................... 89
15.2 Challenges in Managing Diversity ....................... 89
15.3 Strategies for Managing Diversity ........................ 89
16. Types of Organizational Culture ................................. 90
16.1 Four types of organizational culture ..................... 90
16.2 Adhocracy Culture ............................................... 91
16.3 Clan Culture ......................................................... 92
16.4 Hierarchy Culture ................................................. 93
16.5 Market Culture ..................................................... 94
17. Other Types of Organizational Culture ....................... 95
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17.1 Following Additional Organizational Culture ...... 95
17.2 Transform your Organizations Culture for Success 96
17.3 How to choose right OC for your business ........... 96
17.4 The Negative Impact of Culture-strategy ............. 97
17.5 HR’s Role in Shaping Organizational Culture ...... 97
17.6 Ensuring culture reflected in employee life cycle .. 97
17.7 Collecting & Providing Feedback ........................ 98
18. The Role of Leadership in Shaping Culture ................ 99
18.1 Leadership Impact ................................................ 99
18.2 Creating an effective workplace culture ............... 100
18.3 Leadership Plays an integral role .......................... 100
18.4 Organizational Values .......................................... 101
18.5 Leadership Style ................................................... 101
18.6 Building Trust ...................................................... 101
18.7 Providing Feedback .............................................. 101
18.8 Acknowledging Accomplishments ....................... 101
18.9 Interacting with Employees .................................. 101
18.10 In Conclusion ..................................................... 101
19. Organizational Culture & Employee Behavior ............ 102
19.1 Relationship Between OC & Employee Behavior . 102
19.2 Five ways in OC influences Employee Behavior .. 102
19.3 Role of mentoring in building positive work culture 104
19.4 National Culture vs. Organizational Culture ........ 105
19.5 A question may people have asked…) ................. 106
19.6 The answer? It Depends ....................................... 106
19.7 Which is stronger? ................................................ 106
19.8 All of this drive’s important ................................. 107
19.8 Are these two concepts ......................................... 107
19.9 Practically, how can a top executive...NC with OC 108
20. Let’s Go More Even Practical ..................................... 109
20.1 How to use Hofsted’s 6D Model .......................... 109
20.2 The Impact of OC on Innovation ........................... 110
20.3 Key Takeaways .................................................... 111
20.4 Culture Change & Transformation ........................ 112
20.5 How to achieve a culture transformation .............. 113
20.6 Where are we now? .............................................. 113
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20.7 Where do we want to be? ..................................... 113
20.8 Why do we want to change? ................................. 113
20.9 What is our line of sight? ...................................... 114
20.10 Conclusion .......................................................... 114
21. Take These Steps Towards Culture Transformation ... 115
21.1 Ensure individuals have mindset to drive RB ........ 115
21.2 Ensure your people have right ability .................... 115
21.3 Ensure your core work processes & system support 116
22. Organizational Culture Models .................................. 118
22.1 Hofsted’s Model .................................................... 118
22.2 Job-oriented vs. employee-oriented ....................... 118
22.3 Open systems vs. closed systems .......................... 118
22.4 Tight vs. lose control ............................................. 118
22.5 Pragmatic vs. normative ........................................ 118
23. Organizational Culture Profile (OCP) Model .............. 119
23.1 Innovation ............................................................. 119
23.2 Stability ................................................................. 119
23.3 Respect for people ................................................. 119
23.4 Outcome orientation .............................................. 119
23.5 Attention................................................................ 119
23.6 Team...................................................................... 119
23.7 Aggressive ............................................................. 119
24. OC Assessment Instrument (OCAI) Model ................. 120
24.1 Clan ....................................................................... 120
24.2 Hierarchy ............................................................... 120
24.3 Adhocracy ............................................................. 121
24.4 Market ................................................................... 121
25. Revised Organizational Culture Profile (ROCP) Model 122
25.1 People culture ........................................................ 122
25.2 Business culture..................................................... 122
25.3 Environment culture .............................................. 122
25.4 Adaption ................................................................ 122
25.5 Consistency ........................................................... 122
25.6 Mission .................................................................. 122
25.7 Involvement........................................................... 122
26. Behavioral Norms Model ............................................ 123
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26.1 Model of organizational culture & effectiveness ... 123
26.2 Lastly, ................................................................... 124
Conclusion................................................................. 125
Chapter 4 ................................................................. 127
Introduction ..................................................................... 128
About the company ......................................................... 128
Their Vision ..................................................................... 128
Data Analysis ................................................................... 129
Practical Study ................................................................ 135
Chapter 5 ................................................................. 145
Results ............................................................................... 146
Recommendations ............................................................. 147
Conclusion .................................................................. 147
References ........................................................................ 148
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Table of Figures
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Fig.2
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Fig.3
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Fig.4
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Fig.5
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Fig.6
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Fig.7
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Fig.8
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Fig.9
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Fig.10
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Fig.11
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Fig.12
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Fig.13
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Fig.14
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Fig.15
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Fig.16
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Chapter 1
Research Methodology
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Introduction
Research methodology serves as the foundation of any scientific inquiry, offering a structured and
disciplined approach to understanding complex phenomena. It enables researchers to systematically
plan and execute a study, ensuring the reliability, validity, and objectivity of the findings.
In the context of this study—which investigates the relationship between Employee Engagement and
Organizational Culture—the methodology plays a crucial role in guiding how data is collected,
interpreted, and used to draw meaningful conclusions. Both variables under investigation have
profound implications for organizational success. Employee engagement, defined as the emotional and
cognitive connection an employee has with their work and organization, is increasingly recognized as
a key driver of productivity, creativity, commitment, and employee retention. Highly engaged
employees are more likely to demonstrate discretionary effort, collaborate effectively, and contribute
positively to the overall organizational climate.
On the other hand, organizational culture represents the shared values, beliefs, and assumptions that
influence how people behave within an organization. It encompasses a wide range of elements
including leadership style, communication patterns, decision-making processes, and the level of
support and inclusion employees experience. Culture is not only a reflection of what an organization
stands for, but also a determinant of how work is done and how people interact. A strong, adaptive,
and positive organizational culture can serve as a catalyst for employee engagement, while a weak or
negative culture can hinder it. The interplay between culture and engagement is particularly important
in a dynamic and competitive business environment, where attracting, developing, and retaining talent
has become more challenging than ever.
This research is driven by the need to understand how organizational culture shapes, enhances, or
inhibits employee engagement, and how organizations can leverage cultural attributes to foster a more
committed and motivated workforce. By examining employee engagement through the lens of
organizational culture, the study aims to bridge a critical gap in existing literature and offer practical
insights for leaders and HR professionals. Through a methodologically sound approach that includes
clearly defined objectives, research questions, hypotheses, and data collection techniques, this study
seeks to contribute both academically and practically to the fields of organizational behavior and
human resource management. The insights derived from this research can ultimately guide
organizations in designing culturally aligned strategies to improve engagement and achieve sustainable
success.
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History
The study of employee engagement began gaining prominence in the 1990s, particularly through the
work of scholars like William Kahn, who defined engagement as the harnessing of organization
members' selves to their work roles—where individuals express themselves physically, cognitively,
and emotionally during role performance. This marked a shift from viewing workers simply as laborers
toward seeing them as holistic individuals whose emotional and psychological investment directly
impacts organizational outcomes. Since then, engagement has evolved into a central concept in
organizational psychology and human resource management. Researchers have increasingly
recognized that engaged employees are not only more productive and innovative but also more loyal
to their organizations, contributing to reduced turnover and stronger organizational performance.
Simultaneously, organizational culture was being studied extensively. Influential figures such as
Edgar Schein emphasized the importance of deeply embedded organizational norms, arguing that
culture operates at multiple levels—from visible artifacts to underlying assumptions and values. In the
1980s and 1990s, as globalization and market competition intensified, organizational culture became a
focus for leaders who wanted to shape employee behavior, improve collaboration, and create adaptive
workplaces. Scholars and practitioners began to develop frameworks for diagnosing and shaping
culture, including the Competing Values Framework, Hofstede's cultural dimensions, and Denison’s
model of culture and effectiveness.
Over time, researchers began to explore the intersection between employee engagement and
organizational culture, recognizing that the two are mutually reinforcing. A supportive, inclusive,
and purpose-driven culture fosters higher engagement levels by satisfying employees' psychological
needs for autonomy, competence, and relatedness. In turn, engaged employees contribute to shaping a
more vibrant and resilient organizational culture. This relationship has become increasingly relevant
in the modern workplace, where organizational success is tied not only to strategy and structure but
also to employee experience and values alignment.
Major organizations, such as KPMG, have embraced this understanding. As one of the Big Four
accounting firms, KPMG has placed strategic emphasis on cultivating a strong internal culture that
promotes integrity, collaboration, and professional growth. The firm’s cultural initiatives aim to align
employee behavior with organizational values, which has been shown to increase engagement, foster
innovation, and enhance client satisfaction. This example reflects a broader trend in both the private
and public sectors: recognizing culture and engagement not as soft, secondary concerns, but as critical
levers of sustainable performance.
In conclusion, the historical development of both concepts has demonstrated that employee
engagement and organizational culture are not isolated phenomena but deeply interconnected. As
organizations continue to adapt to rapid technological change, demographic shifts, and evolving
employee expectations, understanding and strengthening the link between culture and engagement will
remain a central challenge and opportunity.
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1. Research problem
Despite the known benefits of employee engagement, many organizations struggle to maintain high
engagement levels. Often, this challenge is tied to issues within the organizational culture, such as
poor communication, lack of recognition, or inconsistent leadership. The problem this study
addresses is the gap between desired engagement levels and the current organizational culture that
might be hindering them. By identifying specific cultural factors that influence engagement,
organizations can better address the root causes of disengagement.
Employee engagement occupies a central position in the priorities of human resource departments
across the globe due to its profound impact on organizational performance, employee well-being, and
overall productivity. It reflects the emotional and psychological investment that employees place in
their work and in the organization, often dictating the extent to which individuals align with
organizational goals and commit to discretionary effort. High levels of engagement have been
consistently associated with improved retention, increased innovation, stronger organizational
citizenship behaviors, and superior customer satisfaction. Conversely, disengagement can result in
decreased morale, reduced performance, and higher turnover rates—challenges that significantly
affect an organization's sustainability and competitive edge.
Numerous studies have explored the drivers of employee engagement, identifying factors such as
leadership style, the organizational environment, policies and procedures, structural dynamics,
communication practices, and reward and recognition systems (Anitha, 2014). These elements are not
isolated; rather, they are intricately woven into the broader fabric of the organization’s culture.
Organizational culture—defined as the shared values, beliefs, norms, and practices that shape
behavior and interactions—serves as the contextual backdrop against which these engagement drivers
operate. A culture that fosters trust, inclusivity, support, and empowerment is more likely to cultivate
a workforce that is motivated, emotionally connected, and committed.
Given the deeply embedded nature of engagement determinants within cultural systems, the role of
organizational culture emerges as a critical area of investigation in understanding how employee
engagement can be nurtured and sustained. Yet, despite growing recognition of this relationship,
there remains a gap in practical and empirical insights on how specific cultural dimensions influence
engagement across different organizational contexts. This research therefore seeks to explore the
interplay between organizational culture and employee engagement, aiming to identify which cultural
attributes most significantly contribute to higher engagement levels, and how organizations can
strategically align their cultural practices to foster a more engaged and productive workforce.
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2. Research variables
Independent variable: Organizational Culture
Dependent variable: Employee Engagement
3. Research Hypotheses
Mainly research has been conducted in developing countries. Based on the above discussion, this
study proposes these hypotheses:
•
•
•
H1: There is a significant positive relationship between organizational culture and employee
engagement.
H2: Employees who perceive their organizational culture as supportive and inclusive report higher
levels of engagement.
H3: Weak communication and recognition systems negatively affect employee engagement.
4. Research Importance
This study provides both academic and practical value. Academically, it contributes to the
understanding of how organizational culture influences engagement. Practically, it offers insights for
HR professionals and organizational leaders aiming to improve engagement through cultural change.
As organizations face increasing challenges in talent retention and motivation, such research becomes
essential for long-term success.
5. Research Objectives
• To define and measure the key components of organizational culture and employee engagement.
• To examine the relationship between organizational culture and employee engagement.
• To identify the cultural attributes that most strongly influence employee engagement.
• To provide recommendations for improving engagement through cultural enhancement.
6. Research boundaries
This research will focus on organizations within a specific industry (e.g., technology, healthcare)
to ensure consistency and relevance. The study will be limited to employees within a certain age
group and job level to control for demographic variables.
7. Research Population and Sample
7.1 Research population: The research applied on KPMG
7.2 Research sample: Simple random sample consists of the employees in KPMG and randomly
selected
The research targeted full-time employees in various sectors to ensure diversity in
organizational culture exposure. A convenience sampling method was used, allowing
participants who were accessible and willing to contribute. A sample size of 30 was
achieved, providing initial insights while recognizing limitations in generalizability.
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8. Research Tool
Data will be collected through Questionnaire & Researcher’s use close-ended
questions.
(1) Primary Data: Questionnaire (survey about some questions for sample of the
organization's employees)
(2) Secondary Data: Data gathered by previous information, studies and analysis about the
organization.
9. Research plan
• Literature Review: Review existing studies on organizational culture and employee
engagement.
• Data Collection: Primary data was collected through a structured survey designed to
measure perceptions of organizational culture and self-reported engagement levels. The
survey included Likert-scale questions to quantify attitudes and experiences. The use of
quantitative data collection allows for statistical testing of relationships between variables
• Data Analysis: Analyze the collected data to identify patterns and relationships between
culture and engagement.
• Findings and Recommendations: Present the findings and provide actionable
recommendations for improving organizational culture to enhance employee engagement.
9.1 Research Questions
1. What are the main components of organizational culture that influence employee engagement?
2. How do employees perceive their organizational culture?
3. What is the level of employee engagement in the organization?
4. What is the relationship between organizational culture and employee engagement?
9.2 The Researchers divided this research into 5 chapters as follow:
• Chapter 1: Research Methodology
• Chapter 2: Employee Engagement
• Chapter 3: Organizational Culture
• Chapter 4: Questionnaire & Survey Analysis
• Chapter 5: Results & Recommendations
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10. Methodology
This study employed a quantitative research methodology to systematically investigate the
relationship between organizational culture and employee engagement. The methodology was
structured to ensure a logical flow from theoretical foundations to practical data analysis, aligning
with the frameworks of Social Exchange Theory and Organizational Support Theory. Data was
collected using a structured questionnaire that targeted full-time employees across different sectors,
with the goal of capturing a range of perspectives on organizational culture and its influence on
engagement. The questionnaire included Likert-scale items designed to measure perceptions of
cultural attributes, such as communication practices, recognition, leadership inclusivity, and shared
values, as well as individual engagement levels, including enthusiasm, commitment, and willingness
to invest discretionary effort at work. A convenience sampling method was applied due to
accessibility and time constraints, resulting in a total sample size of 30 respondents. While this
sample size provides meaningful insights, it is acknowledged as a limitation in terms of
generalizability. The data collection process emphasized anonymity and confidentiality to encourage
honest and unbiased responses. Upon collection, the data was analyzed using descriptive statistics to
summarize demographic information and engagement levels, and inferential statistics, such as
correlation analysis, to test the research hypotheses. The findings were interpreted within the context
of the theoretical models, allowing for a deeper understanding of the dynamics between culture and
engagement. This methodology, although limited by sample size and scope, provides a reliable and
valid approach to examining how specific cultural elements can either enhance or hinder employee
engagement within an organizational setting.
10.1 Literature review
The study shows:
• Organizational culture plays a pivotal role in shaping employees' perceptions of their
work environment and their involvement in tasks.
• Positive organizational culture is associated with higher levels of employee
engagement, commitment, and job satisfaction.
• Communication methods and leadership styles within an organization
significantly impact employee engagement.
• Shared values and beliefs within an organization create a sense of belonging and
motivation among employees.
• Employee engagement leads to increased productivity, innovation, and overall
organizational success.
• Cultivating a positive culture helps in retaining talent and reducing turnover rates.
• Employee engagement is linked to better performance outcomes and overall
organizational efficiency.
• Organizational culture influences employees' attitudes and behaviors, fostering a more
committed and satisfied workforce.
• Leadership plays a crucial role in establishing and maintaining a positive organizational
culture.
• Research studies consistently highlight the importance of a strong and positive
organizational culture in enhancing employee engagement
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Conclusion
The findings of this study reinforce the significant role that organizational culture plays
in shaping employee engagement. As demonstrated through data analysis, there is a
clear positive correlation between a supportive, inclusive culture and higher levels of
employee engagement. Employees who perceived their organizational environment as
communicative, fair, and appreciative were more likely to report enthusiasm for their
work, a sense of belonging, and a willingness to go beyond formal job requirements.
These results validate the theoretical assumptions drawn from Social Exchange Theory
and Organizational Support Theory, which emphasize the importance of reciprocal
relationships and perceived organizational value. Additionally, the research supports
the idea that engagement is not solely an individual attribute, but one that is deeply
influenced by organizational norms, leadership styles, and recognition systems.
Despite the limited sample size and the use of a single method of data collection, the
study offers practical implications for organizational leaders and HR practitioners. To
foster engagement, organizations must actively invest in building a positive culture
characterized by clear communication, consistent recognition, opportunities for
development, and inclusive leadership. These cultural attributes not only drive
employee motivation but also contribute to long-term organizational success by
enhancing productivity, innovation, and retention. The study concludes that culture
should be viewed not as a static backdrop but as a dynamic force that shapes the
employee experience and drives engagement outcomes. Future research should expand
on these findings by incorporating larger and more diverse samples, longitudinal data,
and potentially mixed methods to provide an even more comprehensive understanding
of how organizational culture can be leveraged to sustain high levels of employee
engagement.
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Chapter 2
Employee Engagement
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Introduction
Employee engagement is crucial for the success and productivity of any organization. It refers to
the emotional commitment and involvement that employees have towards their work and their
organization. Engaged employees are more likely to be motivated, perform better, and stay with
the company longer. The concept of employee engagement has gained significant attention in
recent years due to its strong correlation with organizational performance. Research has shown
that engaged employees are more innovative, productive, and provide better customer service.
They also tend to take fewer sick days, exhibit greater resilience under pressure, and are less likely
to leave the organization. As organizations continue to navigate a rapidly evolving business
environment marked by digital transformation, globalization, and shifting employee expectations,
understanding the drivers of engagement has become not only relevant but essential for sustained
success.
Understanding the factors that drive employee engagement can help organizations create strategies
to foster a more engaging and meaningful work environment. These factors are multidimensional
and interlinked, including leadership quality, communication practices, opportunities for growth,
recognition, autonomy, and, notably, the underlying organizational culture. This study aims to
explore the role of organizational culture in enhancing employee engagement, highlighting the key
cultural elements that contribute to a positive and engaging workplace. Through a comprehensive
analysis of existing literature and empirical data, this research seeks to provide actionable insights
for organizations aiming to improve their culture and, consequently, their employee engagement
levels.
Employee engagement not only boosts individual performance but also has a ripple effect on team
dynamics and overall organizational success. Organizations with high engagement levels often
enjoy stronger internal cohesion, greater adaptability to change, and a more collaborative work
environment. Moreover, high engagement is associated with lower turnover rates, as engaged
employees feel a deeper sense of belonging and are less inclined to seek external opportunities.
Furthermore, these employees typically display higher levels of creativity and innovation,
contributing to a more dynamic and competitive organizational culture. The concept of employee
engagement is multifaceted, encompassing emotional, cognitive, and physical aspects. Emotional
engagement refers to employees' feelings toward their work and organization; cognitive
engagement involves their thoughts, focus, and alignment with organizational values; and physical
engagement pertains to their energy, effort, and involvement in job tasks.
Cultivating an engaging organizational culture requires a holistic approach that addresses all these
dimensions. Organizational culture, defined as the shared values, beliefs, norms, and practices that
shape employee behavior and experiences, serves as the environment in which engagement either
thrives or deteriorates. It influences how employees interact, how leaders lead, and how systems
operate. A strong, positive culture that promotes trust, inclusivity, purpose, and psychological
safety is foundational for sustaining high engagement levels. Conversely, a misaligned or toxic
culture can quickly disengage even the most motivated individuals. This study therefore seeks to
delve into the intricate relationship between organizational culture and employee engagement,
identifying the cultural attributes that most significantly impact engagement levels. By
understanding these dynamics, organizations can implement targeted, evidence-based strategies to
create a workplace that not only attracts and retains top talent but also empowers employees to
contribute meaningfully to organizational goals.
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1. What is employee engagement?
Employee engagement is widely recognized as a critical determinant of organizational
success, representing the emotional, cognitive, and behavioral connection employees
have toward their organization, their roles, their colleagues, and the overarching mission
of the enterprise. It encompasses the degree to which employees are passionate about
their work, committed to the organization’s goals, and willing to go beyond formal job
responsibilities to contribute to overall performance. According to Saks (2006),
employee engagement involves both job engagement and organizational engagement,
reflecting a holistic involvement in both tasks and the broader organizational context. It
is not merely about job satisfaction or motivation, but rather a deeper, intrinsic
connection that fosters enthusiasm, resilience, and discretionary effort in the workplace.
Highly engaged employees typically demonstrate increased levels of productivity,
creativity, and loyalty, which contribute to improved job satisfaction, reduced turnover,
and enhanced organizational citizenship behaviors. The presence of engagement is
strongly influenced by factors such as the perceived meaningfulness of one's work, the
quality of interpersonal relationships—especially with supervisors and peers—
opportunities for learning and growth, and the presence of recognition, autonomy, and
psychological safety. Kahn (1990), a seminal figure in engagement theory, posited that
employees engage when they find their work to be meaningful, when they feel
psychologically safe, and when they have the physical and emotional energy to invest in
their roles. Furthermore, research highlights that effective communication, participative
leadership, and trust in management significantly enhance engagement levels,
reinforcing the need for alignment between individual values and organizational culture.
Truly engaged employees reflect a company’s commitment to valuing its human capital,
which not only enhances internal morale but also strengthens the organization’s external
image, making it more attractive to prospective talent and ultimately leading to increased
profitability, competitiveness, and return on investment. In today’s dynamic and
competitive business environment, engagement is no longer viewed as a peripheral
concern of human resources, but rather as a strategic imperative that directly influences
organizational outcomes. The shift from traditional management styles to more peoplecentered approaches has placed greater emphasis on fostering an engaging workplace
culture—one that empowers employees, encourages innovation, and supports continuous
development. Therefore, understanding the underlying factors that drive employee
engagement, especially through the lens of organizational culture, is essential for
building sustainable, high-performing organizations. As such, this research aims to
investigate how cultural elements shape the engagement experience and to what extent
organizational culture can be leveraged as a strategic tool to maximize employee
potential and organizational success.
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2. Importance of employee engagement
Organizations with high levels of employee engagement are more profitable and have higher
customer satisfaction ratings than those with low engagement levels, as consistently demonstrated by
Gallup and other researchers. Engaged employees tend to deliver superior performance, demonstrate
greater commitment to organizational objectives, and actively contribute to a positive workplace
culture. Research also shows that successful engagement initiatives lead to significant reductions in
absenteeism, turnover, and workplace accidents, each of which has direct implications for operational
costs and organizational efficiency. In a competitive hiring market, staff members who are engaged,
feel supported in maintaining a healthy work-life balance, and enjoy high levels of job satisfaction
are less likely to seek external opportunities, providing organizations with a strategic advantage in
retaining top talent.
On the flip side, disengaged employees can create a negative atmosphere that undermines morale,
decreases team performance, and ultimately damages a company’s reputation and bottom line. Low
engagement often manifests in reduced productivity, poor customer interactions, lack of innovation,
and a higher likelihood of workplace conflict. This toxic ripple effect can be especially detrimental in
service-oriented industries where employee behavior directly impacts the customer experience. As
such, maintaining a high and positive level of employee engagement is not only a matter of internal
employee satisfaction but a key factor in sustaining competitive advantage and organizational
resilience.
The recent shift to remote and hybrid work arrangements has made fostering employee engagement
even more critical. Remote workers, in particular, face challenges such as social isolation, blurred
boundaries between personal and professional life, and reduced access to informal support systems.
According to the United States Census Bureau, the number of remote workers tripled between 2019
and 2021, drastically changing the traditional work environment. This transformation has forced
organizations to rethink their engagement strategies, leveraging digital tools, enhancing
communication practices, and emphasizing employee well-being in virtual settings. Successful
organizations have responded by fostering a strong virtual culture that promotes inclusivity,
transparency, collaboration, and continuous recognition, ensuring that remote employees remain
connected to the organizational mission and to one another.
In light of these evolving workplace dynamics, the importance of employee engagement has never
been more pronounced. It is no longer a supplementary HR initiative but a vital organizational
priority that influences everything from talent retention and innovation to customer loyalty and longterm profitability. Organizations that proactively invest in cultivating a culture of engagement—
regardless of where or how work takes place—are better positioned to thrive in an increasingly
complex and competitive business landscape.
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3. Benefits of employee engagement
Employee engagement programs provide a range of benefits:
Better business outcomes.
Organizations with highly engaged workforces are more profitable, resulting in
higher stock prices, shareholder returns and customer satisfaction ratings than
organizations with low levels.
• Less turnover.
High employee engagement results in less absenteeism, burnout and turnover. In a
competitive hiring market, engaged staff members who feel they have good worklife balance and high levels of employee satisfaction are less likely to leave.
• Increased productivity.
Engaged employees are more motivated and invested in their work, leading to
better performance and increased day-to-day discretionary effort at work.
• Good for employee health.
Highly engaged employees often have healthier levels of work- life balance, wellbeing and physical health.
• Better work culture.
Engaged employees often have a positive effect on other co-workers, leading to
strong, positive work environments.
• Attractive to top talent.
Demonstrable high employee engagement and positive company cultures are
attractive to top talent.
• Faster onboarding.
An engaging organizational culture facilitates smoother integration for new hires
by providing clear communication, supportive peer networks, and early access to
resources, ultimately enabling them to become confident and productive in their
roles more quickly.
•
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3.1
Challenges of Employee Engagement Experience
1. Lack of Communication:
Poor communication can lead to misunderstandings and a lack of clarity, which can
disengage employees.
2. Inadequate Leadership:
Leaders who fail to inspire and support their teams can negatively impact engagement levels.
3. Recognition and Rewards:
Inconsistent or inadequate recognition and rewards can demotivate employees and reduce
their engagement.
4. Work-Life Balance:
Employees struggling to balance work and personal life may become disengaged due
to burnout and stress.
5. Job Design:
Jobs that are monotonous or lack challenge can lead to low engagement levels.
6. Organizational Culture:
A negative or toxic organizational culture can significantly hinder employee
engagement.
7. Career Development:
Limited opportunities for growth and development can leave employees feeling stagnant
and unengaged.
8. Employee Well-being:
Neglecting employee well-being can lead to physical and mental health issues, reducing
engagement.
9. Remote Work Challenges:
Remote work can create feelings of isolation and disconnect, impacting engagement.
10. Change Management:
Poorly managed organizational changes can create uncertainty and resistance, affecting
engagement levels.
Addressing these challenges requires a proactive approach, including improving
communication, providing strong leadership, offering meaningful recognition,
promoting work-life balance, designing engaging jobs, fostering a positive culture,
supporting career development, prioritizing well-being, managing remote work
effectively, and handling change with care.
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4. Types of employee engagement
Many activities and initiatives foster employee engagement, such as the following:
• Onboarding: Interactive and well-structured and engaging onboarding programs led
by human resources explain a company's culture and encourage early camaraderie
among new hires.
• Goal setting and rewards: Goal setting offers weekly, monthly or annual goals to
boost employee enthusiasm. These programs include employee recognition and
rewards for hard work.
• Teamwork: According to experts, having friends at work makes for more engaged
employees. Some organizations focus on team-building activities to cultivate a
workplace conducive to friendships. Teams encourage individuals to take an active,
collaborative participation in decision-making processes, which helps them feel valued
and heard.
• Career development initiatives: Professional development opportunities, companypaid education options, and ongoing learning opportunities are strategic investments
that show a company is concerned with employees' development and professional
growth.
• Life-work balance: Flexible hours, on-site childcare and other work-life benefits
show employees their company understands the life stresses and wants to help.
• Clear communication: Regular and clear communications is an important part of
engagement. This involves regular one-on-one check-ins that facilitate employee
feedback, transparency and active listening. Short and regular employee surveys
known as pulse surveys are also useful communication tools.
• Purpose-driven work.: Employees doing work that feels important and purposeful
are often more engaged. Not every job serves an overwhelmingly meaningful purpose,
but when a company clearly articulates its mission and recognizes hard work,
employees feel more appreciated and important.
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4.1 Technology for engagement
Technology is vital for both fostering and measuring employee engagement.
There are several employee engagement tools:
•
Employee engagement software solicits employee feedback, sets goals, rewards
good performance and collects engagement analytics. Employee engagement
software includes survey tools, recognition features, feedback, talent reviews and
goals.
• Performance management software aligns work with organizational goals to
increase employee productivity. Organizations leverage performance management
software in combination with workforce analytics to pinpoint teams or departments
requiring enhanced engagement strategies. These tools help tailor individual
performance goals and monitor progress effectively. Additionally, employee
engagement levels can be assessed using social media analytics and sentiment
analysis tools, providing real-time insights into employee morale and workplace
climate.
•
Communication and collaboration platforms such as Asana, Microsoft
Teams and Zoom, help employees connect with their teams and managers.
They provide video conferencing, instant messaging and collaboration
capabilities.
•
Wellness software provides resources and interactive programs that help
employees with stress management and their overall physical and mental health.
4.2 How to measure employee engagement
Measuring employee engagement is crucial to maintaining and improving it, especially with
large numbers of remote workers. There are several ways to measure employee engagement,
including the following:
4.3 Employee engagement surveys are a quick way to gather information about what
employees are thinking. Different surveys are used to collect different kinds of information. Longform comprehensive employee surveys are used to get data on a range of topics or take an indepth look at one topic. Pulse surveys are shorter polls, often related to topical workplace
concerns such as transitions. Employee lifecycle surveys are ones done during onboarding and
then periodically after and finally when an employee leaves the company. Surveys should be
conducted across entire organizations, as well as across groups, teams and individuals.
Organizations work with organizational psychologists and data scientists to craft the right
questions.
4.4 Measurement strategies should identify who is responsible for deciding what
areas surveys will target, as well as who takes the lead analyzing the survey results, developing
action plans and acting upon these results.
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5. Key performance indicators, or KPIs, are a key part of measuring employee
engagement and identifying what needs to be addressed. KPIs include the following
metrics:
Turnover.
• Employee satisfaction index.
• Likelihood to recommend their organization.
• Willingness to perform discretionary efforts at work.
• Absenteeism.
• Intent to stay.
• Sense of accomplishment.
• Internal promotion rate.
• Inclusion.
• Retention.
• Well-being.
•
5.1 The following questions can be helpful in assessing employee
engagement:
Do employees arrive early?
• Do clusters of people eat lunch together?
• Are there group outings?
• Can employees come together for community service projects and charity events?
• Is employee turnover rates going down?
• Do employees recommend the company to friends?
•
5.2 How to improve employee engagement
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The best way to improve employee engagement is to act upon employee feedback and make
changes that address sources of discontent and stress. One way to do this is to identify key drivers
of employee engagement and solicit employee feedback on them. Once specific issues are
identified, companies should address them. Following up with employees and including them in
decision-making is important.
Another approach is fostering an inclusive company culture with good communication. This
includes developing and training managers to inspire and engage their employees, and to be
emotionally intelligent. Managers should provide meaningful work, recognize employees for hard
work and show how that work contributes to the organization's larger goals. Organizations should
also offer incentives and programs that show employees the company cares about them, their
work-life balance and their health.
If you’re in HR, you must create an environment that encourages employees to naturally want to
be involved in and care deeply about their work. If you want high levels of involvement,
motivation, trust, commitment, and empowerment, invest your efforts in improving employee
communication.
For large companies, ensuring employees are aligned with the changing priorities of the business
is also vital. This is where platforms like First up come into play. By automating and
personalizing communications, platforms like First up ensure that messages reach the right
employee at the right time, delivering hyper-relevant content that resonates with their specific
needs. This not only enhances engagement but also streamlines communication processes across
the organization. By integrating communication tools that tailor content to the right employees,
organizations can enhance both efficiency and engagement, creating a more connected,
motivated workforce.
“Don’t lose sight of the value of communication. It’s not a “nice to have,” it’s a “need to have.” It’s in the
bloodstream of every business objective, every element of a mission statement or core value. Be thoughtful
and thorough about how you approach it, both editorially and technically and your organization will
benefit.”
— Paul Baltes, Director of Communications at Nebraska Medicine
5.3 How to maintain employee engagement
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employee engagement strategies change over time as the nature of work and workplaces evolve, and
as new generations of employees enter the workforce with distinct values, expectations, and
motivations. For instance, diversity, equity, and inclusion (DEI) concerns are increasingly important
to Millennials and Gen-Z employees, who are not only more socially conscious but also expect their
organizations to reflect ethical practices, inclusive leadership, and equitable opportunities for
advancement. To maintain engagement across a multigenerational workforce, companies must foster
an environment that celebrates differences, supports belonging, and ensures that every voice is heard
and valued.
In addition to promoting inclusivity, organizations must continuously adapt their engagement
strategies to align with technological advancements, changing work models, and employee wellbeing needs. Flexible work arrangements, such as remote and hybrid options, are no longer just perks
but key drivers of satisfaction and engagement. Providing employees with autonomy over their
schedules and work locations supports work-life balance and shows trust, which in turn strengthens
their commitment. Moreover, access to continuous learning opportunities, career development
programs, and clear pathways for growth are essential to keeping employees engaged, especially as
the pace of skill obsolescence accelerates in many industries.
Transparent communication and authentic leadership are also central to sustaining engagement.
Leaders who demonstrate empathy, actively seek feedback, and communicate the organization’s
vision and values clearly are more likely to inspire trust and foster a sense of purpose among
employees. Regular recognition of employee contributions—whether through formal reward systems
or simple acts of appreciation—further reinforces motivation and satisfaction.
Finally, organizations must embrace data-driven engagement strategies. Utilizing employee surveys,
pulse checks, and feedback tools helps leaders identify areas of disengagement and respond with
targeted, evidence-based interventions. Engagement should not be viewed as a one-time initiative but
as an ongoing process of listening, evolving, and acting with intention. By embedding engagement
into the organizational culture and aligning it with strategic goals, companies can cultivate a resilient,
motivated, and high-performing workforce that is equipped to navigate the challenges of the modern
workplace.
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5.4 Good strategies for implementing and maintaining employment
engagement include the following:
Use employee engagement software to keep an eye on KPIs.
• Encourage open communication among employees, managers and leaders.
• Regularly review and update survey questions to adjust to changing concerns.
• Use feedback and performance metrics to make improvements.
• Offer incentives, such as flexible work arrangements, to promote work-life balance.
• Invest in wellness initiatives such as fitness programs, mental health support,
healthy food options in the office and employee assistance programs.
• Use engagement initiatives to create a positive environment that makes employees
want to stay with the organization.
•
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6. How do you overcome employee engagement challenges?
➢ Armed with a comprehensive toolkit of strategies tailored to each distinct challenge,
overcoming hurdles in employee engagement becomes an art of holistic orchestration.
➢ This section explores the core principles that unify these strategies, aiming to establish a
comprehensive and sustainable framework that enhances employee engagement and
fosters long-term workforce stability.
•
Cultivate a culture of openness
Emphasize the importance of transparent communication, creating an environment where
employees feel comfortable expressing concerns and ideas. Fostering open dialogue builds trust
between management and team members and strengthens the foundation of engagement
initiatives.
•
Prioritize continuous feedback
Implement feedback loops that extend beyond annual reviews. Regular check-ins, performance
assessments, and pulse surveys provide ongoing insights, enabling swift adjustments to
engagement strategies and positive business outcomes.
•
Champion inclusivity at every level
From leadership practices to team dynamics, champion inclusivity. Ensure that diversity is
not just acknowledged but actively embraced, weaving a rich tapestry that reflects varied
perspectives and experiences.
•
Nurture a growth mindset
Foster a culture where learning is not a checkbox but a continuous journey. Encourage a growth
mindset, where challenges are viewed as opportunities, and employees are empowered to evolve
both personally and professionally.
•
Promote well-being as a priority
Integrate well-being into the organizational DNA. Well-being programs, mental health support,
and initiatives promoting work-life integration should not be viewed as add-ons but as integral
components of a thriving workplace.
•
Sustain recognition momentum
Recognition is not a one-time effort. Continuously evaluate and enhance your recognition
programs, ensuring they evolve with the changing dynamics of your workforce. Regularly assess
the impact and effectiveness of acknowledgment initiatives.
•
Foster agile leadership
Leadership adaptability isn't a one-and-done endeavor. Prioritize ongoing leadership development
that nurtures agility, resilience, and emotional intelligence. Leaders should actively seek feedback
and model the adaptability expected of the workforce.
•
Uphold consistent flexibility
Flexibility shouldn't be a temporary perk but a consistent element of the organizational fabric.
Uphold clear and fair flexible work policies, adapting them as needed to meet the evolving needs
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and expectations of employees.
•
Engage in continuous innovation
Engagement strategies should evolve in tandem with the dynamic nature of work. Embrace
innovation in engagement initiatives, experimenting with new ideas, technologies, and
approaches to keep the workforce engaged and motivated.
As we navigate this holistic approach to mastering employee engagement challenges, it's not
merely about solving problems; it's about cultivating an environment where challenges become
opportunities for growth, collaboration, and sustained success.
6.1 Employee engagement challenges that can make or break your business
A study shows that a highly engaged workforce can reduce a company’s turnover rate
by 25 to 59%. And it all starts with identifying the barriers to high employee
engagement.
These are:
6.2 Excessive red tape
How many procedures and rules should an employee follow to get basic tasks done in
your workplace? If there are too many, it will negatively impact employee engagement.
According to the Employee Outlook Survey from the CIPD, unnecessary rules and
procedures are the biggest hurdles to employee productivity.
Your work environment is supposed to provide a smooth work experience where
employees can get things done easily with minimum stress. This will require simplifying
your work processes wherever possible.
How to overcome this employee engagement barrier?
• See which admin tasks are taking the most time for both the admins and
workers. Then reduce the number of sign-offs required to approve these tasks.
• Implement a tool that can automate common workflows. With Blink’s micro
apps, for instance, admins can create and share digital forms, collect data, and
automate key workflows.
6.3 Line managers and supervisors with poor communication skills
If there’s anyone in the position to bring the skills and focus of team members into
alignment with the goals of the organization, it’s the middle manager.
In factories and other similar establishments, for example, line managers form a pivotal
link between frontline staff and senior leaders. Yet they are often ill-equipped to
engage their teams.
The Management Empowerment Report reveals that just one-third of front-line
managers received specific training to support employees. Most have been chosen for
the role because they were good workers, not because they were good managers.
Inspiration and transparency in communication are critical improvements a leader can
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make towards solving employee engagement challenges.
How to overcome this employee engagement barrier?
Open channels of two-way communication among the line managers and their
teams.
• Provide managers with resources and tools to collect staff input with methods
such as internal surveys and quizzes.
• Support with adequate employee engagement training for managers on how to
engage and communicate with their teams.
•
6.4 Lack of one-on-one time
Only 21% of millennials and 18% of non-millennials meet with managers on a weekly
basis. Most say they meet less than once a month.
One-on-ones are essential for managers to get to know employees on a personal level
and discuss their needs, concerns, and growth opportunities. They could be considered a
key driver of employee engagement.
Not just that. Without frequent one-on-one meetings, a manager’s ability to
communicate effectively with employees about projects and performance is limited. And
what suffers as a result? Employee engagement.
So, to avoid barriers to good employee relations, you must make sure that the managers
in your company meet regularly with the staff.
How to overcome this employee engagement barrier?
• Direct managers to schedule regular one-to-one meetings with their team
members. And make it a key performance indicator that determines their progress
in the managerial role.
• Train managers to create an agenda in advance and approach these meetings
as a consultant, not an authoritarian. Instead of just discussing technical
details of the job, managers should help workers prioritize tasks and
understand the big picture.
Shortage of growth opportunities
A study by Blessing White found a lack of growth opportunities to be the most common
reason employees leave their jobs. If you’re serious about removing employee
engagement barriers, increasing development opportunities is a must.
Failing to consider workers’ career progression will trigger the feeling that they are
stuck in a dead-end job. And sooner or later, they’ll jump ship to discover better
opportunities.
In contrast, employers that encourage workers to learn new skills don’t just retain them
longer, but also stand to gain from the new insights employees bring to the table.
6.5
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6.6 How to overcome this employee engagement barrier?
• Have a professional reinvestment budget. Allocate sufficient resources to invest in
each employee’s professional growth plan.
“We provide a dedicated budget accrued at $3,000 per worker per year. And we give
managers and employees several ways to use these resources, from self-coaching and
online classes to attending and speaking at professional events worldwide.”
•
Start by outlining a path for growth that will keep employees engaged and help
you retain top talent. Plus, offer support and training in the form of stipends or
bursaries to help employees get there.
6.7 Not enough transparency
According to recent research, while approximately 75% of employees care deeply about
their organization's performance, only 23% feel they have adequate visibility into how
the business is actually doing. In the context of this study, which explores the impact of
organizational culture on employee engagement, transparency emerges as a key cultural
factor. A lack of open, two-way communication between leadership and employees
weakens trust, creates uncertainty, and limits employees' sense of inclusion and purpose.
This barrier can significantly diminish engagement levels, as employees are more likely
to feel disconnected when they are not informed about strategic goals, performance
metrics, or organizational decisions. Cultivating a culture of transparency, therefore, is
essential for building trust and sustaining high engagement across all levels of the
workforce.
6.8 How to overcome this employee engagement barrier?
Make sure workers are being kept in the loop about small or large matters concerning
the organization.
Regarding the decision for which the stakes are high, make it a point to explain the
“why” behind them. This is a better approach than just laying down the new rules.
Regularly share business performance reports with the employees, regardless of
whether it’s struggling or doing great.
6.9 Lack of reward and recognition
Workplace transparency refers to authentic, two-way communication between employees
and management, where information is shared openly, and feedback is encouraged. In
relation to organizational culture, transparency reflects values such as openness,
accountability, and trust. When these values are absent, a culture of secrecy and
disconnection can develop—ultimately acting as a major barrier to employee
engagement. Employees who feel excluded from key information or organizational
developments are less likely to feel empowered or aligned with company goals..
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6.10 How to overcome this employee engagement barrier?
Recognizing your employees doesn’t have to cost the world. Often a simple (and
free) thank you can have a massive impact on engagement. Other ways to recognize
your employees without breaking the bank can include a free celebration lunch or a
monetary bonus for the employee of the month.
Make sure you celebrate big and small wins with your team, especially when they
exceed expectations. Get creative and make the culture of encouragement and
appreciation a central part of your organization.
Transparent, one-to-one meetings can help workers feel heard, along with
anonymous question and answer sessions and employee feedback forms.
Adopt a communication or employee engagement tool that creates multiple
channels between managers and workers. Blink, for instance, also lets managers
create polls and surveys that can be used to find out what workers really think.
These findings align with this study’s survey results, where employees reported
lower engagement levels in environments lacking active feedback mechanisms and
cultural openness.
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7. The World of Education before Employees
7.1 Engagement History of Employee Engagement in Education:
Employee engagement in education has evolved significantly over time. Early forms of
engagement can be traced back to apprenticeships, which began in the late 15th century.
These apprenticeships were the first structured programs where employers engaged with
educational institutions to provide hands-on learning experiences for students2.
In the 20th century, the focus shifted towards technical and vocational education,
with initiatives like the Technical and Vocational Education Initiative (TVEI) in the
1980s. This period saw a growing recognition of the importance of aligning education
with industry needs to better prepare students for the workforce.
The late 20th and early 21st centuries marked a significant shift towards a more holistic
approach to employee engagement in education3. This included efforts to improve
communication, leadership, and recognition within educational institutions. The
Education and Employers Charity, established in 2009, has been instrumental in
promoting employer engagement in education, aiming to bridge the gap between
education and employment.
The history of education is a fascinating journey that spans thousands of years and
encompasses various cultures and civilizations. Early forms of education can be traced
back to ancient civilizations such as Egypt, India, and China, where education was
primarily imparted through religious and philosophical teachings. In ancient Greece,
education was largely private, except in Sparta, where it was state-controlled. The
Middle Ages saw the rise of monastic schools in Europe, which were the centers of
education and literacy. The Renaissance period marked a significant shift towards
humanism and the development of universities. The 19th century brought about
compulsory education systems in many countries, aiming to provide universal access to
education. The 20th century saw the expansion of education to include technical and
vocational training, as well as the introduction of progressive education theories. In
recent times, education has become more inclusive and diverse, with a focus on lifelong
learning and the integration of technology in the classroom. The history of education
reflects the changing needs and values of society, and continues to evolve to meet the
demands of the modern world.
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1. Commitment
The data from this research shows that employee commitment is strongly linked to engagement
and retention. Participants who felt supported and emotionally acknowledged by their
organization were more engaged and more likely to stay. However, many respondents noted a
lack of empathy from leadership, which reduced their motivation and sense of connection. These
findings highlight that a culture of empathy and support is key to improving engagement and
overall organizational performance.
2. Productivity
The study found that employees who felt engaged and supported by leadership
reported higher job satisfaction and better productivity. A positive organizational
culture that promotes communication and a sense of belonging was directly linked to
improved individual and team performance.
3. Person factors and individual differences
Frequently overlooked are employees' unique personalities, needs, motives, interests and
goals, which interact with organizational factors and interventions to influence
engagement levels.
On the other hand, some employees will always be more (or less) engaged and
motivated than others, as the recently operationalized construct of drive implies.
7.2 Elements of Engagement
According to Stein, there are four elements that determine employee engagement, and
they include the following:
1. Commitment to the organization- Are the employees "bought in" to the
organization's mission and do they see a future at the company
2. Identifies with the organization- Does the employee's beliefs, values, and goals
align with their role and where they want to go in the future.
3. Feels satisfied with their job- Is the employee feeling accomplished at the end
of the day and are proud of what they do.
4. Feels energized at work- They want to show up to the job and they are
motivated to work all day and not counting down the hours until the end of the
day.
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7.3 Generating engagement
Increasing engagement is a primary objective of organizations seeking to understand
and measure engagement. Gallup defines employee engagement as being highly
involved in and enthusiastic about one's work and workplace; engaged workers are
psychological owners, drive high performance and innovation, and move the
organization forward. Gallup's global measure of employee engagement finds that just
21% of workers are engaged.
7.4 Drivers of engagement
Some additional points from research into drivers of engagement are presented below:
•
Employee's personal resources -"...it is found that the positive perceptions that
individuals hold of their own personal strength and ability allow them to be
engaged with the organization.
•
Employee perceptions of job importance – "an employee's attitude toward the job's
importance and the company had the greatest impact on loyalty and customer
service than all other employee factors combined."
•
Employee clarity of job expectations – "If expectations are not clear and basic
materials and equipment are not provided, negative emotions such as boredom or
resentment may result, and the employee may then become focused on surviving
more than thinking about how he can help the organization succeed."
•
Career advancement / improvement opportunities – "Plant supervisors and
managers indicated that many plant improvements were being made outside the
suggestion system, where employees-initiated changes in order to reap the
bonuses generated by the subsequent cost savings."
•
Regular feedback and dialogue with superiors – "Feedback is the key to giving
employees a sense of where they’re going, but many organizations are
remarkably bad at giving it."
•
Quality of working relationships with peers, superiors, and subordinates – "...if
employees' relationship with their managers is fractured, then no number of
perks will
persuade the employees to perform at top levels. Employee engagement is a direct
reflection of how employees feel about their relationship with the boss."
•
Perceptions of the ethos and values of the organization – "'Inspiration and values' is
the most important of the six drivers in our Engaged Performance model.
Inspirational leadership is the ultimate perk. In its absence, [it] is unlikely to
engage employees."
•
Effective internal employee communications – which convey a clear description
of "what's going on". "'
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7.5 Commitment theories are rather based on creating conditions, under which the
employee will feel compelled to work for an organization, whereas engagement
theories aim to bring about a situation in which the employee by free choice has an
intrinsic desire to work in the best interests of the organization.
Recent research has focused on developing a better understanding of how variables such
as quality of work relationships and values of the organization interact, and their link to
important work outcomes. From the perspective of the employee, "outcomes" range
from strong commitment to the isolation of oneself from the organization.
Employee engagement can be measured through employee pulse surveys, detailed
employee satisfaction surveys, direct feedback, group discussions and even exit
interviews of employees leaving the organization.
Employee engagement mediates the relationship between the perceived learning climate
and these extra-role behavior
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8. Employee Engagement Impact on Education
Employee engagement has a profound impact on the education sector, influencing various
aspects of organizational performance and student outcomes. Engaged employees, including
teachers and administrative staff, are more likely to stay with the institution, perform better, and
contribute positively to the overall educational environment2.
1. Teacher Work Engagement: Engaged teachers are more effective in the classroom,
leading to better student learning outcomes. Studies have shown that teacher engagement
is linked to higher student achievement and satisfaction1.
2. Organizational Performance: Institutions with high levels of employee engagement tend
to have better overall performance. This includes higher productivity, improved
efficiency, and better financial outcomes2.
3. Student Achievement: Engaged educators are more committed to their students'
success, which translates into higher academic performance and better educational
outcomes for students4.
4. Retention Rates: Engaged employees are less likely to leave the institution, reducing
turnover rates and maintaining a stable and experienced workforce.
8.1 The Importance of Employee Engagement in Education
Employee engagement is critical in educational institutions for several compelling reasons.
Educators, administrators, and support staff all play essential roles in shaping the learning
experiences and outcomes of students. When these employees are engaged, they are more likely to
be passionate about their work, innovative in their teaching methods, and dedicated to fostering a
positive learning environment.
8.2 Benefits of High Employee Engagement in Education
• Improved Student Outcomes: Engaged educators are more effective in their roles, leading
to better student performance. They are more likely to employ innovative teaching
strategies, provide personalized attention, and create an engaging classroom environment.
This, in turn, boosts student learning, achievement, and overall school performance.
• Higher Job Satisfaction: Employees who feel valued and connected to their work
experience higher job satisfaction. Engaged educators are more likely to enjoy their work,
feel a sense of accomplishment, and maintain a positive attitude. This satisfaction translates
into a more harmonious and productive school environment, benefiting both staff and
students.
• Reduced Turnover Rates: According to Gallup, teams with low engagement have
turnover rates that are 18–43% higher than highly engaged teams. When educators and staff
feel appreciated and part of a supportive community, they are less likely to leave their
positions. This stability is crucial for maintaining continuity in teaching and administrative
processes, which can significantly impact student success and institutional performance.
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In summary, employee engagement in educational institutions is vital for creating a dynamic
and effective learning environment. It leads to improved student outcomes, higher job
satisfaction among staff, and reduced turnover rates, all of which contribute to the overall
success and reputation of the institution. By prioritizing engagement, educational leaders can
ensure that their schools or universities remain vibrant, supportive, and successful places for
both learning and teaching.
8.3 Key Challenges to Employee Engagement in Education
Employee engagement in education faces several unique challenges that can hinder motivation
and commitment. Understanding these challenges is crucial for developing effective strategies to
enhance engagement.
• Resource Constraints
Limited resources are a common issue in many educational institutions, affecting everything from
classroom supplies to technology. When educators lack the necessary tools and materials to
perform their jobs effectively, it can lead to frustration and decreased morale. Resource constraints
can also limit opportunities for professional development and growth, further diminishing
engagement. Ensuring that educators have adequate resources is essential for maintaining their
enthusiasm and commitment to their work.
• Changing Educational Policies
Frequent changes in educational policies and standards can create uncertainty and stress among
educators. The need to constantly adapt to new curricula, assessment methods, and regulatory
requirements can be overwhelming. These changes can disrupt established routines and practices,
requiring significant adjustments from educators. Such instability can erode confidence and lead
to disengagement, as educators may feel unsupported and undervalued in their efforts to comply
with ever-evolving expectations.
• Communication Barriers
Effective communication within educational institutions is vital for fostering a cohesive and
collaborative work environment. However, communication barriers often arise due to hierarchical
structures, large staff numbers, or insufficient communication channels. Miscommunication or
lack of clear information can lead to misunderstandings, frustration, and a sense of isolation
among staff. Ensuring open, transparent, and consistent communication is crucial for building
trust and keeping employees engaged.
Addressing these key challenges requires a concerted effort from educational leaders to create
supportive work environments, provide necessary resources, and maintain clear and consistent
communication. By understanding and mitigating these issues, educational institutions can foster
higher levels of engagement and create a more positive and effective educational experience for
both staff and students.
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9. Ten Effective Strategies for Enhancing Employee Engagement in
Education
Enhancing employee engagement in education requires a multifaceted approach that addresses the
unique challenges faced by educators and staff. Here are some effective strategies that focus on
supportive leadership, professional development, recognition and rewards, and creating a positive
work environment.
9.1 Supportive Leadership
• Importance of Supportive and Transparent Leadership:
Leaders play a crucial role in fostering employee engagement. Supportive and transparent
leadership builds trust and creates a sense of
security among employees. Leaders should openly communicate the institution’s goals,
challenges, and successes to keep staff informed and involved.
•
Training Leaders to be Empathetic and Communicative:
Empathetic leaders who actively listen to their staff and understand their concerns can
significantly enhance engagement. Training programs that focus on developing empathy and
communication skills among leaders can help create a more supportive and inclusive work
environment.
9.2 Professional Development
•
Offering Continuous Learning and Career Advancement Opportunities:
Providing opportunities for continuous learning and career advancement is vital for keeping
employees engaged. When educators see a clear path for growth within the institution, they
are more likely to remain motivated and committed.
• Tailoring Development Programs to Individual Needs and Aspirations:
Development programs should be personalized to meet the individual needs and aspirations
of employees. By aligning professional development opportunities with personal career
goals, institutions can demonstrate their investment in their staff’s growth and development.
9.3 Recognition and Rewards
• Implementing Recognition Programs that Celebrate Achievements:
Regularly acknowledging and celebrating achievements can boost morale and engagement.
Recognition programs that highlight the contributions of educators and staff make them feel
valued and appreciated.
• Offering Incentives that Align with Employee Values and Preferences:
Providing incentives that resonate with employees’ personal and professional values can further
enhance engagement. Incentives could include bonuses, additional time off, professional
development opportunities, or other benefits that align with employee preferences.
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9.4 Creating a Positive Work Environment
• Fostering a Collaborative and Inclusive Workplace Culture:
A positive and inclusive workplace culture is essential for employee engagement. Promoting
diversity, encouraging collaboration, and creating an environment where all employees feel
respected and valued can significantly boost morale and commitment.
• Ensuring Employees Have the Tools and Resources They Need to Succeed:
Providing adequate tools and resources is crucial for enabling employees to perform their tasks
effectively. Access to up- to-date technology, sufficient classroom supplies, and a supportive
infrastructure ensures that educators can focus on their primary responsibilities without
unnecessary frustration.
By implementing these strategies, educational institutions can create an engaging work
environment that motivates and retains top talent. Supportive leadership, opportunities for
professional development, recognition of achievements, and a positive work environment are
key factors in fostering a committed and productive workforce.
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10. Ten Leveraging Technology to Boost Employee Engagement in Education
Technology plays a significant role in enhancing employee engagement in the education sector. By utilizing
various tech tools, educational institutions can monitor engagement levels, support remote educators, and
gather valuable feedback to improve the overall work environment.
10.1 Engagement Platforms
• Monitoring and Improvement:
Engagement platforms allow institutions to monitor employee engagement in real-time. These
platforms provide insights into how staff are feeling, their levels of satisfaction, and areas that
need improvement. Features such as pulse surveys, feedback tools, and
engagement dashboards help administrators stay informed about their team’s engagement levels.
• Interactive Features:
Many engagement platforms offer interactive features like recognition modules, where employees
can acknowledge their peers’ contributions, and wellness programs that promote a healthy worklife balance. These features can boost morale and create a more engaging work environment.
10.2 Remote Learning Tools
• Effective Communication:
Tools like video conferencing software, instant messaging apps, and collaborative platforms
ensure that remote educators stay connected with their teams and the institution. Regular
virtual meetings and check-ins help maintain a sense of community and teamwork.
• Interactive Learning Tools:
Platforms that offer interactive features such as virtual whiteboards, breakout rooms, and
multimedia integration can keep remote educators engaged. These tools enable teachers to create
dynamic and engaging online learning experiences for their students, which can enhance their
own sense of accomplishment and satisfaction.
• Professional Development:
Online training modules and webinars provide remote educators with opportunities for
continuous learning and professional development. These tools can help educators stay current
with new teaching methods and technologies, fostering a sense of growth and engagement.
10.3 Feedback and Analytics
• Data-Driven Insights:
Leveraging data analytics to understand employee feedback is a powerful way to enhance
engagement. Advanced analytics tools can process feedback from various sources, such as
surveys, performance reviews, and social media, to identify trends and patterns in employee
sentiment.
• Actionable Feedback:
Analyzing this data provides actionable insights that can inform engagement strategies. For
example, if feedback indicates that educators feel overwhelmed by workload, management can
take steps to redistribute tasks or provide additional support. Regularly acting on feedback
demonstrates to employees that their voices are heard and valued.
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• Continuous Improvement:
By continuously collecting and analyzing feedback, institutions can create a cycle of ongoing
improvement. Engagement platforms that integrate with analytics tools can automate this process,
providing real-time data and facilitating quicker responses to employee needs.
By leveraging technology, educational institutions can create a more engaging work environment.
Engagement platforms, remote learning tools, and data analytics are essential for monitoring and
• enhancing employee engagement:
These technological advancements help institutions stay connected with their employees,
understand their needs, and implement effective strategies to boost morale and productivity.
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11. Ten Building a Culture of Employee Engagement in Education
Creating a culture of employee engagement in education is essential for fostering a motivated
and committed workforce. A strong culture that emphasizes inclusivity, transparency, and social
interaction can significantly enhance employee engagement.
11.1 Inclusivity and Diversity
• Driving Engagement through Diversity:
A diverse and inclusive workplace brings together a variety of perspectives and experiences,
which can drive innovation and creativity. When employees feel respected and valued for their
unique contributions, they are more likely to be engaged and motivated. Diversity also promotes
a sense of belonging, which is crucial for maintaining high morale and commitment.
• Implementing Inclusive Practices:
To build a diverse and inclusive culture, institutions should implement practices such as bias
training, diverse hiring practices, and creating employee resource groups (ERGs). Encouraging
open dialogue about diversity and inclusivity helps create an environment where all employees
feel heard and valued.
11.2 Transparency and Communication
• Building Trust through Transparency:
Open communication and transparency are essential for building trust and engagement. When
employees are informed about the institution’s goals, challenges, and successes, they are more
likely to feel involved and committed. Transparency fosters a sense of ownership and
accountability among employees.
• Effective Communication Channels:
Establishing clear and consistent communication channels is vital. Regular updates from
leadership, team meetings, and accessible communication tools help ensure that employees are
always in the loop. Encouraging feedback and open dialogue also promotes a culture of trust
and collaboration.
11.3 Team Building and Social Interaction
• Fostering Engagement through Team Building:
Team-building activities and social interactions play a significant role in fostering engagement.
These activities help build strong relationships among team members, enhance collaboration, and
create a sense of community. When employees feel connected to their colleagues, they are more
likely to be engaged and motivated.
• Implementing Team-Building Activities:
Institutions can implement various team-building activities, such as workshops, retreats, and
social events. Virtual team-building activities, such as online games and virtual coffee breaks,
are also effective for remote teams. Encouraging regular social interactions helps maintain a
positive and inclusive workplace culture.
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12. Ten Measuring and Analyzing Employee Engagement in Education
Effectively measuring and analyzing employee engagement is crucial for understanding current
engagement levels and identifying areas for improvement. By leveraging advanced analytics,
implementing robust feedback mechanisms, and tracking key performance indicators (KPIs),
educational institutions can gain valuable insights and take actionable steps to enhance
engagement.
12.1 Advanced Analytics
•
Leveraging Data Analytics:
Data analytics can provide deep insights into employee engagement by processing large amounts
of data from various sources. Tools such as sentiment analysis, predictive analytics, and machine
learning algorithms can help identify trends, patterns, and potential issues in employee
engagement.
• Real-Time Monitoring:
Advanced analytics allow for real-time monitoring of engagement levels, enabling institutions
to respond quickly to emerging issues. By continuously tracking engagement data, organizations
can implement timely interventions to address concerns and maintain high levels of engagement.
12.2 Feedback Mechanisms
• Regular Surveys:
Conducting regular engagement surveys is a fundamental way to gather employee feedback.
Surveys can range from comprehensive annual surveys to shorter, more frequent pulse surveys.
These surveys help capture employees’ feelings about their work environment, management, and
overall job satisfaction.
• Focus Groups and Interviews:
Organizing focus groups and one-on-one interviews provides an opportunity for more indepth feedback. These sessions can uncover specific issues and gather qualitative insights that
surveys might miss. Encouraging open and honest discussions helps build trust and
demonstrates that the institution values employee input.
• Anonymous Feedback Channels:
Providing anonymous feedback channels, such as suggestion boxes or online platforms,
ensures that employees feel safe sharing their thoughts and concerns. Anonymity can lead to
more honest feedback, particularly on sensitive topics.
12.3 KPIs and Metrics
• Key Performance Indicators:
Tracking specific KPIs related to employee engagement helps organizations measure progress and
identify areas for improvement. Common KPIs include employee satisfaction scores, turnover
rates, absenteeism rates, and productivity levels.
• Engagement Metrics:
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Additional metrics, such as participation rates in engagement activities, response rates to
surveys, and the number of recognition awards given, can provide further insights into
engagement levels. These metrics help organizations understand how engaged employees
are with various initiatives and programs.
• Benchmarking:
Comparing engagement metrics against industry benchmarks or historical data can help
organizations gauge their performance relative to peers and track progress over time.
Benchmarking provides context and helps set realistic targets for improvement.
By utilizing advanced analytics, implementing effective feedback mechanisms, and tracking key
performance indicators, educational institutions can gain a comprehensive understanding of
employee engagement. These insights enable organizations to develop targeted strategies, make
data-driven decisions, and continuously improve the work environment to foster higher levels of
engagement and productivity.
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13. The Relationship Between Employee Engagement and
Performance
There’s no shortage of research available about employee engagement. It’s a top initiative at
Gallup, an analytics and advisory firm that measures engagement worldwide, studying its impact
and how to improve it. Gallup research has found that there are significant measurable differences
in performance at companies with highly engaged employees versus those without.
These findings from Gallup demonstrate some of the most significant ways engagement impacts
employee performance and how that reflects in business results. Compared to those with lower
engagement, companies with high employee engagement levels see results like:
•
18% higher sales productivity
•
Up to 43% higher employee retention
•
41% fewer product defects
•
64% fewer safety incidents and 58% fewer patient safety incidents
•
28% less shrinkage
•
10% higher customer loyalty
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14. Engagement’s Impact on Productivity
14.1 Those highly engaged, high-performing companies we discussed are crushing their goals thanks to
increased productivity. But how does engagement enable productivity?
Think about the last time you were facing a productivity roadblock. Was it a mundane manual task that you
could complete faster if you had the right equipment? Maybe a big project that’s stalled because your team
needs feedback from an unresponsive stakeholder? In any case, not having that equipment or the lack of
communication hinders your productivity —and if it’s a common occurrence, it can gravely impact your
feelings of engagement.
14.2 Now imagine that those roadblocks vanished. You check in with your manager at least once a
week during your regular one-on-one, so there’s ample opportunity to ask for help —and when you do, you get
it. Your supervisor gets you a new tool so you can complete that mundane task faster. You let them know why
the big project is stalled, and after thanking you for your hard work so far, your manager quickly gathers the
feedback you need.
14.3 You can imagine how the second scenario leads to much higher engagement —and this is just
one example of how productivity is affected by a few of the key factors in engagement. Having the materials
you need, along with reliable support and recognition, are huge productivity boosters.
Let’s take a look at what Gallup has identified as the most important contributors to engagement and how
they impact productivity:
1. Knowing What’s Expected: Clear expectations and goal-setting can make employees
up to 22% more productive.
2. Materials and Equipment: If this need isn’t met, it’s the biggest cause of stress for
employees.
3. Doing What You Do Best: One of the top reasons employees look for a new job —and
why they
stay — is the chance to use their natural talents.
4. Receiving Recognition: If employees don’t feel valued, especially top performers, they’re
twice as likely to say they plan to quit their jobs in the next year.
5. Someone Caring at Work: Employees are more engaged when they feel seen as people first.
6. Someone Encouraging Development: This is the #1 reason employees look for a new
job — and the number one way to retain them longer.
7. Opinions Counting at Work: When employees feel their voices are heard, they’re more
invested in their work and inclined to look for creative solutions.
8. Mission/Purpose: Helping employees find meaning in their work is a top driver of retention.
9. Commitment to Quality Work: Employees are more engaged when they trust that their
coworkers are just as committed to delivering good work as they are.
10.
Best Friend at Work: Having deeper work relationships means employees are more
likely to take positive action in ways that benefit their teams.
11.
Talking About Progress: People are more productive when they know how they’re
doing and have a line of sight into their future.
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12.
Learning and Growing: This one is simple —when employees grow,
companies grow. Now that you have a better understanding of its impact, let’s look at
some ways you can improve employee engagement rates at your organization.
15. Strategies for Fostering Engagement
The most effective engagement strategies depend on factors like the industry you’re in and the
types of jobs your people have. Fortunately, we know there are many proven ways. that
performance management can drive engagement You can adapt these strategies to fit your
workforce.
15.1 Employee Recognition Programs
Train your managers to say thank you to employees as often as possible.
You can also look for software solutions equipped with tools to support employee recognition
programs. Look for software with recognition features, including:
• Automated announcements to celebrate employee milestones, like birthdays and work
anniversaries
• Peer recognition tools that encourage colleagues to give public kudos —which can
be tied to employee performance reviews for easy reference
• Integration with Slack so praise and celebrations can be shared company-wide
15.2 Professional Development Opportunities
Employee development and growth opportunities are one of the five main drivers of engagement.
They’re an excellent way to motivate and retain your most curious, driven talent. 94% of people
would stay at their jobs longer if they had more opportunities to grow. It’s especially important to
the youngest generation of workers, in addition to clear paths for advancement.
15.3 Open Communication Channels
When we talk about engagement, we inevitably talk about communication. That’s because you
need good communication to create that sense of belonging and connection that is required for
engagement. It won’t work if your people don’t know what’s going on and don’t feel comfortable
talking to their managers and colleagues.
15..4 There are many ways you can foster open communication and encourage engagement:
• Implement weekly one-on-ones with managers and their direct reports
• Give employees opportunities to connect with their peers, whether through internal clubs,
mentorship programs, or cross-departmental collaboration
• Send employee surveys to get actionable feedback on a variety of topics, including company
policies There’s no question that engaged employees produce better outcomes for businesses.
When employees are excited about their work and empowered to do their best, that means
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the organization is doing its part to meet their needs. You can expect to see that effort
reflected in the company’s bottom line.
• Your HR team is key in driving engagement initiatives. HR helps shape company culture,
which includes creating a work environment that fosters employee engagement. With the
right employee engagement software, you’ll have a robust toolkit with everything you need
to bake engagement into the employee experience.
• Looking for an engagement software solution backed by more than two decades of client
success? Sign up for your free personalized demo of Clear Company Employee
Engagement.
15.5 Organizational Outcomes of Employee Engagement:
Engaged employees lead to high profits and productivity, and companies with increased growth
and revenue tend to have a highly engaged workplace. Engagement is also linked to employee
commitment and motivation, which can be measured through surveys. Incentive plans from the
company can further motivate employees and increase productivity (Patro, 2013). Employee
engagement is crucial for a successful company as it influences productivity, organizational
performance, customer satisfaction, retention rates, and corporate culture (Patro, 2013). Figure 3
shows the factors and outcomes of employee engagement according to Patro (2013).
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16. What Are the Advantages of Employee Engagement?
Employee engagement is the key to building a successful business these days. In today’s fastchanging business environment, its importance has increased manifold.
Below are some compelling benefits of employee engagement that may help your organization:
16.1 Increased Productivity:
One of the most important advantages of employee engagement is increased productivity.
Employee productivity is crucial for any business. The more productive your employees are, the
more likely your business will succeed. Employers try different strategies to increase employee
productivity — from
offering learning opportunities to rewarding employees based on their performance. But they’re
missing the most critical solution: employee engagement.
Engaged employees have a positive attitude towards their organization as they strongly believe in
the
company’s mission and vision. This makes them like what they do and find their work meaningful.
Plus, such employees work harder and with more enthusiasm to proactively reach their goals.
16.2 Higher retention and lower turnover rates:
One of the biggest advantages of employee engagement is a sense of belonging and commitment
to the organization. As a chain reaction, engaged employees are less absent, more productive,
motivated, and generally more invested in their work. They are less likely to wander off and look
for new opportunities as they are happy and engaged in their current role.
Engaged employees look for growth opportunities within the organization, actively contribute to
the organization, and are committed to it for the long-run. Employee engagement ensures that
employees feel fulfilled in their work and look forward to a long-term association, bringing down
turnover rates. As long as an organization keeps their employees engaged, retention rate is likely
to increase as they are less likely to find any reason to search for opportunities elsewhere.
High turnover rates due to disengagement at work have significant cost implications for
organizations and have a direct bearing on organizational productivity and performance. Hiring is
an expensive affair, add to that the time and resources spent to screen, interview, onboard, and
train a new employee to their full potential.
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16.3 Lower absenteeism:
Engaged employees enjoy their work, peers, and workplace and thus don’t take frequent leaves,
lowering absenteeism. Higher absenteeism can put undue pressure on an employee’s peers and
managers, in order to streamline work, straining their relationship. One of the major importance
of employee engagement in the workplace is its impact on lowering absenteeism and creating a
better work culture.
One of the benefits of employee engagement is that engaged employees are invested in their work,
care about the company’s success, and hence happily show up to work.
16.4 Better employee safety:
Engaged employees are more connected to their organizations and have a greater commitment to
quality and safety at work. Engaged employees tend to focus their attention on following the best
practices and guidelines to be more effective in their work, making lesser mistakes, and ultimately
making the organization a safer place. Incidents of mental or verbal abuse or physical accidents or
mishaps are less likely to happen when an organization has high employee engagement levels.
16.5 Healthier employees:
Many organizations believe that operating in a high-stress environment is the most effective way
to motivate employees to perform their best. The idea that co-workers are the competitors and not
colleagues are expected to keep them engaged and productive. However, this type of system in the
workplace can reduce their productivity over time and, most importantly, increase mental healthrelated issues among workers.
Engaged workplaces respect the employee’s goals and needs, encouraging them to take care of
their health and well-being. They offer numerous benefits like flexible schedules, mental health
workshops, healthy snacks, and paid time off (PTOs) to not only address stress-induced issues but
also to make them feel appreciated, valued, and ultimately healthy. Healthy employees mean a
healthy organization.
16.6 Better customer satisfaction:
No matter how modern or tech-enabled an organization is, providing top-notch customer service
should always be one of the top priorities. It makes the customers feel valued, which can go a
long way in building strong customer relationships.
Engaged employees are happy and deeply care about their jobs. Their engagement reflects in their
attitude and how they strive hard to create a positive customer experience. The joy they derive
from their work reflects in their dealings with customers.
Such employees are likely to make more sales and revenue, drive higher returns on customer
success management, and always put the company’s best face forward.
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16.7 Better quality of work:
When employees are engaged, they perform their best in every task. They are much more
motivated than others and work with full dedication and precision. Plus, they are less likely to
make mistakes and achieve higher excellence.
Engaged employees also enjoy their work and are more efficient as compared to disengaged
workers. They constantly come up with innovative employee engagement ideas, learn from
managers and leaders, participate in group discussions, and work in teams. Further, they work to
upskill themselves by taking courses, attending seminars, and more.
16.8 Stimulates innovation:
Encouraging employees to be innovative, creative, and share their ideas is another fantastic way
to build an engaged workforce.
Zealous employees perform their best when they are fully engaged in their work. They
continuously
develop new, innovative ideas which can help boost the company’s reputation. Further, when they
get the opportunity to invest time in innovation, it makes them feel accomplished and valued,
which, in turn, provides higher value for the business. This can also save tons of time and
resources as employees might come up with dynamic ideas without resorting to external sources.
Even employers implement various employee engagement strategies that stimulate innovation
within their employees.
In short, companies that encourage employees to be innovative have a stronger and more loyal
workforce. And it also provides employees the autonomy to make decisions and produce creative
work.
16.9 Lower risk of burnout:
One of the significant causes of burnout can be the lack of employee engagement practices.
Disengaged employees aren’t happy to go to work and feel less excited about their job. On the
other hand, employees who are happy, engaged, and motivated at the workplace understand that
their skills and talents are required by the organization, which helps them keep their emotional and
physical energies up while performing tasks.
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16.10 Bottom Line – Should You Focus on It or Not?
Employee engagement is all about how you make your employees feel in your company. And
only HR professionals can bridge the gap between employee engagement and disengagement.
However, there’s no doubt that it’s a tough job and requires serious commitment from the
organization. But, with the right HR tools, companies can eliminate its adverse effects effectively.
For example, artificial intelligence-based HR tools can streamline employee data, simplify
workflows, and keep you and your employees up-to-date with the latest tools and technologies.
Moreover, it ensures that the data remains secure and in control of the organization.
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17. What Are the Disadvantages of Employee Engagement?
Employee engagement requires earnest efforts from the organization. Some disadvantages of
employee engagement are as follows:
17.1 Cost: Training procedures and the purchase of new platform/software can be an added
expense if your organization is just starting.
17.2 Burnout: Survey burnout is possible and thus enough thought needs to go into the goal,
definition, drivers, frequency, and number of questions to make an employee engagement plan
count. Employee engagement activities and strategies need to be paced out to avoid burnout and to
gauge its outcome.
17.3 Goal-setting: Employee engagement strategies implemented only to follow the status quo
and without a purpose can led to increased expense and zero impact. Therefore, a strategically
designed and data-backed approach is a must for employee engagement to exhibit positive
results. With the future of work becoming a reality, the purpose of employee engagement is
getting redefined. It is important for organizations to define where they fit in the future of work
and approach employee engagement accordingly.
17.4 Time-consuming: One employee engagement initiative cannot increase productivity
overnight. It needs time, data analysis, regular supervision, and repetition of efforts.
17.5 Subjectivity: From generational research, it has been found that attitudes and expectations
about the role of work and company loyalty differ dramatically between generations.
Organizations need to know what segment of their workplace are their employee engagement
initiatives targeted towards or design them in a way that caters to everyone.
17.6 Unreliable responses: Employees might share responses that are aimed only to
please their managers. In the case of anonymous surveys, they might take out personal
grudges against a co- worker and can damage their performance report. It is important for
organizations to create a conducive environment for employees to be able to actually
contribute to the process. When employees see positive changes in the workplace, they are
more likely to trust the process and provide and support it with insightful feedback.
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18. Employee engagement tips
18.1 Encourage Communication & Conversation.
One of the critical factors in fostering a workplace with high levels of employee engagement is
communication, both formal and informal. The important thing is that you have the tools and
services in place that allow people to connect with each other with as little friction as possible.
Yet, this also means getting valuable and honest feedback, so your company can make
improvements. Communicate how important this is and provide ways for employees to be open
and honest.
18.2 Make Sure They’re Informed.
If you have more than 50 people in your company, chances are that someone is almost always out
of the loop on important news and events. Did you see the CEO’s TV interview? How about that
new product that just launched? Are you aware of the new competitor that just popped up? How
about that new account you just landed? Invest in keeping your people informed and they’ll feel
more invested in your company.
18.3 Let Them Share Their Enthusiasm.
People trust the recommendations of their friends and family more than any other type of
marketing. Your employees have relationships with a tremendous number of people outside the
walls of your company, including customers, prospects, partners, and future hires. Let them shout
their enthusiasm for your company from the (social media) rooftops.
Related: Interested in getting employees engaged and involved with social media?
Here Are 6 Ways to Get All Employees Active in Social Media Marketing.
18.4 Reward the Actions You Want.
We’re talking about ye olde carrot and stick here. You probably have an idea of the kind of
engagement you want to see from your people. Put some gamification and light rewards behind
them. Even something as simple as a shout-out from an executive can be more than enough.
Encourage this behavior by tapping into the power of gamification and incentivizing employees.
18.5 Measure Engagement Frequently.
It’s common for companies to send employees an annual anonymous engagement survey, but this
isn’t very effective because it doesn’t provide an accurate picture of employee engagement
throughout the year.
18.6 Here are some excellent ways to measure employee engagement:
•
•
•
•
•
•
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Short frequent surveys
Meetings with individual employees
Exit interviews when employees leave
Employee Net Promoter Score
Analyzing data in tools you use (adoption)
Employee turnover rates/absence rates
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19. Employee engagement statistics:
• We’ve pulled out some of the interesting stats we think you’ll benefit from knowing.
39%
39% of workers would work harder if they were happy in their current role or place of work
12%
12% of businesses are happy with current levels of employee engagement
51%
51% of employees would quit their job if training was not offered
60%
60% of Americans would take a job they love over a job they hate, even if the preferred position paid half the amount of
salary they would earn at the job they dislike
21.5%
21.5% of workers who don’t feel recognized for doing great work have interviewed for a job in the past three months vs.
12.4% who do feel recognized
12%
12% of employees admitted they were disloyal to their employer and 21% considered themselves dissatisfied
13.5%
13.5% of workers admit that company culture will push them to accept another job offer
73%
73% of employees who work in a fully enabled digital workplace reported a positive impact on their productivity and 70%
cited improved collaboration thanks to digital technologies vs. 55% those who don’t work in a fully enabled digital
workplace
41%
Highly engaged workplaces saw
40%
Highly engaged organizations saw
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20. Levels of employee engagement
Employee engagement measures how employee feel about their entire organization. Based on
their perceptions of their workplace, employee engagement profiles are categorized into four main
groups.
20.1 Highly engaged employees
Highly engaged employees hold very favorable opinions of their place of work. When employees
feel
connected to their teams, love their jobs, and have positive feelings about your organization,
they’re going to want to stay and put in extra effort to help the organization succeed. These “brand
advocates” speak
highly of their company to family and friends. They encourage other employees around them to do
their best, leading to higher employee engagement amongst the entire team.
20.2 Moderately engaged employees
Moderately engaged employees see their organization in a moderately favorable light. They like
their company but see opportunities for improvement. These employees are less likely to ask for
more responsibilities and may underperform. There is something about the organization or their
job that holds them back from full engagement.
20.3 Barely engaged employees
Barely engaged employees feel indifferent toward their place of employment. They usually lack
motivation for their position and will only do as much as they can to get by—sometimes less.
Companies that don’t work at maintaining employee engagement may see employees researching
other jobs and are a high turnover risk.
20.4 Disengaged employees
Disengaged employees have a negative opinion of their place of work. They are disconnected from
the mission, goals, and future of the organization. They lack commitment to their position and
responsibilities. It’s important to understand how to handle disengaged employees so that their
negative perceptions don’t impact the productivity of employees around them.
This variation of the hierarchy reflects employee engagement level as determined by how well
their needs are being met.
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21. Importance of effective communication in the workplace
Encouraging proper employee communication is key to connecting employees with your
company.
Intelligent content recommendations and multi-channel communication strategies are now
critical for delivering the right message to the right employees. By ensuring that content is not
only personalized but also shared through various channels, such as email, mobile apps, chat
applications, or intranets, you can create a more connected and informed workforce.
With effective communication, employees start to identify with the company’s vision, values, and
goals. They become enthusiastic about their roles and more engaged in every aspect of their work.
This strategy should extend to your employees in the field, as they are the most vulnerable to
feeling disconnected from the company.
If a large part of your workforce does not come into a central office every day and instead
1) works remotely from home, or
2) spends lots of time in the field, multi-channel communication and intelligent content delivery
become crucial. These tools ensure that your communication and employee engagement strategy
reach all groups, no matter where they are.
21.1 Using communication to improve employee engagement
When you improve employee engagement, you improve business outcomes and therefore increase
your value as a human resource professional. Here are some key steps teams can take to drive
employee engagement strategies:
•
Develop clear internal lines of communication and execute the strategy effectively
within the company.
•
Enable and promote better organization transparency through communication.
•
Effectively communicate business plans and strategies for every member of the team.
•
Encourage open lines of communication within the company between employees.
•
Use an engagement survey to get the inside scoop on how employees are feeling.
•
Recognize the efforts made by employees on various grounds and make employees feel
valued.
21.2 To truly elevate employee engagement, consider using a workforce communication
platform like First up to integrate communication channels. These platforms can target,
personalize, and measure engagement efforts, ensuring that the right message reaches the
right employees at the right time. Automated, personalized communication can help
employees stay informed, engaged, and
aligned with the company’s vision and goals.
If employees don’t have access to relevant, accurate, and engaging information, it’s difficult for
them to perform at their best—let alone feel excited about their work. Clear, timely
communication empowers employees to stay focused and productive.
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21.3 Communication is also key to setting clear expectations. When employees lack guidelines
about what’s expected of them, they won’t know precisely what they need to do, or by when.
Personalized communication tools ensure that expectations are clear, fostering mutual respect,
prioritizing tasks, and helping employees plan their workdays efficiently.
21.4 Encouraging proper employee communication can build a strong bond between your
company and your employees and drive employee engagement. With proper communication,
employees start to identify themselves with the company’s vision, values, and goals. They are
then enthusiastic about doing better and becoming more engaged in every aspect of their jobs.
21.5 Lastly, start truly listening to feedback from your workforce. Use tools like real-time
analytics and feedback platforms to gather essential conversations about employee engagement
and company culture. Through employee listening, HR professionals to respond proactively and
keep employees engaged and aligned with organizational goals.
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22. Employee engagement at leading companies
As companies strive to create more engaging workplaces, innovative solutions are reshaping how
they connect with their employees. Nebraska Medicine, Phillips 66, and Grainger are leading the
charge by adopting modern communication platforms that cater to the unique needs of their
diverse workforces. By focusing on timely, relevant, and multi-channel messaging, these
organizations have not only enhanced employee engagement but also strengthened their
operational performance and overall employee experience.
22.1 The value of the digital employee experience
Finally, if you want to create effective employee engagement and communication as HR leaders,
you need to show the value of the employee experience.
Fristrup’s platform enhances the employee experience by seamlessly integrating communication
channels, ensuring that employees receive relevant information across email, mobile apps,
intranets, and more. By leveraging data analytics, first up continuously optimizes engagement
strategies, allowing organizations to deliver hyper-personalized content at the right time to keep
employees connected and informed.
The employee experience affects everything from employee engagement and productivity to the
customer experience.
How can you prove to the c-suite that the financial performance results will be worth the
investment in increasing employee engagement?
22.2 Employee engagement effect on environment
Employee engagement can have a significant positive impact on the environment. Engaged
employees are more likely to participate in and support environmental initiatives within their
organizations, leading to better sustainability practices and outcomes2. Here are some ways
employee engagement affects the environment:
1. Increased Participation in Environmental Initiatives: Engaged employees are more
likely to actively participate in environmental programs and initiatives, such as
recycling, energy conservation, and sustainability projects.
2. Enhanced Environmental Performance: Organizations with high levels of employee
engagement tend to have better environmental performance, as employees are more
committed to following and promoting eco-friendly practices.
3. Reduced Carbon Footprint: Engaged employees contribute to reducing the organization's
carbon footprint by adopting sustainable practices and promoting energy-efficient
behaviors.
4. Promotion of Sustainable Practices: Engaged employees help spread awareness and
knowledge about sustainability, encouraging their colleagues to adopt environmentally
friendly habits.
5. Positive Organizational Culture: A culture of engagement fosters a sense of responsibility
towards the environment, leading to more proactive and collective efforts to address
environmental challenges.
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23. Additional employee engagement resources:
If you’re interested in boosting employee engagement, keeping employees informed, and
improving feedback and knowledge sharing, employee advocacy might be right for you.
•
Lastly, before we finish, we thought it was worth sharing some additional resources that’ll be useful
in expanding your employee engagement knowledge.
Employee Engagement Action Plan for the Modern Workplace
•
Unexpected Ways to Boost Employee Engagement at Your Company
•
4 Ways to Build a Team of Engaged Employees
Employee Engagement Ideas From 21 Industry Leader
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Conclusion
Employee engagement is far more than a corporate buzzword—it is a dynamic, strategic necessity
that directly impacts organizational culture, performance, and long-term success. This chapter
highlighted that engaged employees are not only more productive, but also more innovative,
healthier, and committed to their workplace. They contribute positively to team morale, customer
satisfaction, and overall business outcomes.
Through a comprehensive exploration of definitions, benefits, challenges, and types of engagement,
the chapter illustrated that employee engagement is multifaceted. It requires aligning employee
values with organizational goals, offering meaningful recognition, supporting professional
development, and ensuring clear and empathetic communication. Key performance indicators (KPIs)
such as turnover rates, satisfaction indexes, and intent to stay provide measurable insights that
organizations can use to assess and enhance engagement strategies.
Technology plays an increasingly vital role—tools such as engagement platforms, wellness software,
and feedback analytics enable leaders to monitor, understand, and respond to employee needs in realtime. Moreover, the shift to remote and hybrid work has underscored the importance of maintaining
strong virtual cultures that emphasize trust, inclusivity, and purpose.
In the educational context, employee engagement is directly linked to improved student outcomes,
teacher satisfaction, and institutional stability. The challenges faced in this sector—resource
limitations, policy changes, communication barriers—highlight the importance of cultivating
supportive leadership, continuous professional development, and a culture of recognition.
Ultimately, the document emphasizes that building a culture of engagement is not a one-size-fits-all
task, but rather a tailored, ongoing process that evolves with the workforce. Organizations that
successfully foster engagement create environments where employees feel valued, heard, and
inspired to contribute meaningfully—laying the foundation for sustainable growth and success.
Employee engagement stands out as a critical factor in driving organizational success, productivity,
and innovation. As explored throughout this chapter, engagement encompasses emotional, cognitive,
and physical connections employees have with their work, and is shaped significantly by
organizational culture, leadership, communication, recognition, and opportunities for growth. A
highly engaged workforce leads to improved job satisfaction, reduced turnover, better health, and
stronger performance across all levels of the organization.
The challenges that hinder engagement—ranging from poor communication and inadequate
recognition to remote work barriers and lack of transparency—require strategic, data-driven, and
empathetic approaches. Leveraging technology, fostering inclusive leadership, encouraging open
dialogue, and prioritizing employee well-being are key strategies for overcoming these barriers.
In educational settings, employee engagement has a profound impact on student outcomes, staff
retention, and institutional performance. Engagement here is not just about motivation—it’s about
creating a culture where educators and staff feel heard, valued, and equipped to succeed.
Ultimately, successful employee engagement is not a one-time initiative but an ongoing journey that
demands commitment, adaptability, and continuous improvement. Organizations that prioritize and
invest in engagement strategies are better positioned to cultivate a resilient, innovative, and highperforming workforce.
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Chapter 3
Organizational Cultural
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Introduction
What is culture? What are the things that reflect the culture of an entity? we can see that
arts, music, and pictures can give an idea about how people think in a certain country or territory or
even a region. not only how people think but also what they believe in, how they dress can also be an
indicator of people’s beliefs. on a micro scale by just walking through the streets and observing
surroundings you can see the things that people believe in or the values they adopt and appreciate. For
instance, if you sit on the street to observe a group of people passing by a person who is throwing litter
in the streets. you will find different reactions from them. some people will not care about this man’s
actions, others will pass, but will say in their minds what a filthy behavior, another kind of people
won’t resist their values and will scream at him:” why you are doing such a horrible action”. others
may not even notice that he throws something as they are used to this kind of behavior. so, what is the
difference between all these people? What is the driver that made one of them shout at the man because
of his actions while others passed him and didn’t even notice he did something wrong. The answer is
beliefs and values. Each person passing by the man throwing the garbage had a certain belief about this
man’s actions. and according to this belief he/she acted. The person that shouted believed that this act
is violating something and harmed a value –that is not even tangible, while others who passed by and
didn’t even notice because they are used to this kind of behavior weren't surprised. “BECAUSE THEY
WERE USED TO THIS KIND OF BEHAVIOR”. The people that passed by and didn’t shout at him
are not dirty nor do they accept this kind of behavior. Sometimes people just get used to something and
that is the influence of culture. Maybe the person that shouted, after several times shouting at people
doing the same behavior, he/she will also get used to this action and stop shouting at people. because
it’s not only one person you are trying to change here, the enemy that drove this action is not the person
who throwed, it is the culture. The culture or values or norms are the forces that dictated this man that
what he is doing is something acceptable. Culture is something adopted by a group of people or entities,
for instance, a country can have a culture, a city, a territory, a tribe and organizations can have their
own cultures. any organization can have a number of values, beliefs and norms that dictate, reinforce
or suppress actions of its members. Edgar Schein has classified cultures into categories before diving
deep into organizational culture to give a broader conceptual view on how culture has an influence on
the members of a certain entity.
As seen in the figure above Schein classified categories of cultures by size of territory-to make things
simple. Nations and religious groups were in the microculture category due to the huge size of the
entity and how it influences a huge number of people. let’s say Muslims who do not eat pork meat, this
is a value adopted by a religious group- religion adopted by nearly 2 billion people. This huge number
of believers represent Islam in their actions and norms. On a smaller scale, the government or
parliament is an entity that contains certain values. If corruption is prevailing throughout the
government, you will see signs of corruption everywhere in the form of bribery and nepotism. “Culture
can be thought of as the foundation of the social order that we live in and of the rules we abide by.”
(Edgar H.Schein, 1985). Organization’s culture plays a vital role in influencing employees’ attitude
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and behavior. The employees’ attitude and behavior are determined by the degree in which
organizational culture is executed and implemented by the management or employer. Organizational
culture as one of the key aspects of change sets new strategic planning in an organization which then
creates new goals, objectives and strategy for the organization (Bushardt, Glascoff and Doty, 2011).
Organizational culture is all about values. Cultural values can change and be expressed in the
organization's mission and vision and through rigorous training conferences or meetings. This will help
to monitor and guide behavior and change attitude toward the intended changes by organization. In an
organization, the pertinent role of culture (values) is to breed commitment and enthusiasm among the
employees within the organization and outside the organization as a result, it makes employees feel as
part of the organization. During the training meetings, the employees should be trained by using the
cultural language (jargon) used in the firm. For example, every firm or organization has their own
language of communication that is understood by them. Workers create terms to describe offices,
equipment, suppliers, customers or even products which are related to their business. The language
makes them feel emotionally attached to each other and the organization. This is the language which
is used to identify them in an organization.
Organization culture helps workers in an organization to be recognized and appreciated by their
employer by working and performing exceptionally well. At the same time, they get motivated and
become loyal to their employer and embrace change within the organization. Recognition and
appreciation help them to contribute positively towards the organization’s success. For example, an
employee who gets recognized and appreciated by awarding him/her for the good work/performance
in the organization, feels motivated and he/she always tends to contribute positively toward the success
of the organization. Employees’ attitudes determine the coming achievement of the organization.
Attitude plays a critical role in motivating behavior and influencing the information dispensation (Alas
and Vadi, 2004). Alas and Vadi (2004) states that in order for change to occur, learning of innovative
skills, behavior and attitude by employees is required. They further argued that all employees should
be motivated so that they can remain in the organization for long. For example, if the banking industry
wants to introduce new financial technology software, they should first involve all the employees by
training and motivating them so that they are aware and ready for it. This will change their attitude and
behavior towards the new financial technology software hence acceptance of that new fintech software
by all. Organizational culture system and values controls behavior which will maintain organizational
systems (Nwugwo, 2001). Nwugwo, (2001) further argues that each organization has values or culture
that sets employee behavior.
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1. What is Organizational Culture?
Organizational culture is the set of values, beliefs, attitudes, systems, and rules that outline and
influence employee behavior within an organization. The culture reflects how employees, customers,
vendors, and stakeholders experience the organization and its brand.
Don’t confuse culture with organizational goals or a mission statement, although both can help define
it. Culture is created through consistent and authentic behaviors, not press releases or policy documents.
You can watch company culture in action when you see how a CEO responds to a crisis, how a team
adapts to new customer demands, or how a manager corrects an employee who makes a mistake.
In academic terms, Edgar Schein (1992), a leading scholar in the field, defines organizational culture
as “a pattern of shared basic assumptions learned by a group as it solved its problems of external
adaptation and internal integration, which has worked well enough to be considered valid and,
therefore, to be taught to new members as the correct way to perceive, think, and feel.” This
emphasizes culture as both learned and evolving, rooted in real experiences and collective
understanding.
Similarly, Hofstede et al. (1990) describe organizational culture as “the collective programming of the
mind that distinguishes the members of one organization from another.” This view highlights how
deeply embedded values and practices shape the uniqueness of each organization and influence
behavior at all levels.
From a practical business standpoint, organizational culture is also viewed as the “personality of the
organization”—the tone, energy, and behavioral expectations that influence how people interact,
make decisions, and approach their work. It determines whether employees feel safe to speak up,
innovate, or collaborate, and whether they align with the organization's values.
Ultimately, organizational culture is not static. It evolves over time through leadership styles, historical
successes or failures, industry norms, and the people within it. A strong, positive culture acts as an
enabler of engagement, performance, and retention, while a weak or misaligned culture can lead to
confusion, low morale, and high turnover.
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2. The concept of organizational culture
was introduced to the field of management and organization studies in the late 1970s, and it began
to attract significant scholarly attention in the early to mid-1980s. Building on insights from
sociologyand anthropology, organizational scholars argued that organizations could possess
distinct cultures, or sets of shared values, beliefs, and norms that guide the attitudes and actions of
organizational members. Researchers suggested that organizational culture could significantly
affect organizational outcomes, reasoning that culture could be used as a resource to affect
employee actions, distinguish firms from one another, and create competitive advantage for those
with superior cultures. As such, understanding organizational culture has traditionally been seen
as an avenue for equipping business leaders with the tools needed to enable effective performance
through the creation and management of an appropriate culture. Although early studies of
organizational culture generally portrayed it as consistent among employees, across levels and
between departments, subsequent work spoke to the possibility of heterogeneous manifestations
of culture within a single organization, suggesting that the creationand maintenance of a desired
organizational culture may be more complex and nuanced than initially understood. As such,
theoretical paradigms and research methods used for inquiry in this area have been diverse. For
example, while somescholars have studied culture from a functionalist standpoint, focusing on
normative forces promoting homogeneity and uniformity, others have approached it from an
interpretive paradigm, emphasizing the meanings that social actions have for individuals in
organizations. Methodologically, studies have employed both qualitative and quantitative
methods, each of which has yielded unique insights on some aspects of culture. As a result,
researchers in management and organization have taken a range of approaches to understanding
organizational culture, from exploring the forces that may create and change culture, to studyingit
as a driver of performance and effectiveness, to linking it with identity and employee personality.
The readings here reflect this diversity in theoretical and methodological approaches and are
organized as follows. The first sections provide an introduction to organizational culture,
including introductory works, early contributions, overviews, and textbooks. Next, major
paradigmatic approaches are reviewed, and the roles of culture in organizational life, as
independent variable, dependent variable, and moderator, are discussed. Then, methodological
approaches are reviewed, investigating culture and related concepts. Finally, disciplinary
influences and emerging approaches are discussed.
In simple terms, the organizational culture refers to the set of values, beliefs,customs, and
behaviors specific to the people working in an organization.
Organizational or corporate culture represents an important area of management because of the
role played in the organization’s performance. Understanding the organizational culture helps
someone from outside a company to understand the reasons behind some behaviors or decisions.
Cameron and Quinn (2011) consider that people are not always aware of their culture, at least
not until they are somehow challenged. The authors appreciate that there are observable
(explicit behaviors, norms) and unobservable elements (assumptions). Keyton (2005, p. 53)
defines organizational culture as the “congruence of artifacts, values and assumptions jointly
held or shared” by the company’s employees andmanagers. This unity is the essence of an
organizational culture; it is what makesthe people in an organization stick together
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3. Theoretical Background
The historical study of organizational culture is derived from several fields and has generated
significant debate with regard to definition, conceptualization, and measurement (e.g. Jung et al.,
2009; Schein, 2004). Initial research on this construct began in the field of cultural anthropology
(e.g., Chapple, 1943; Dalton, 1959; Kroeber & Kluckholn, 1952), using ethnographic field studies
that were qualitative in nature and aimed at gaining a deep understanding through the insiders’ (or
emic) perspective. As business leaders began to understand the potential value of organizational
culture in the context of business performance, a second stream of research developed (e.g. Denison,
1990; Deshpande, Farley, & Webster, 1993; Gillet & Stenfert-Kroese, 2003).
Research streams and theoretical debates on organizational culture have spanned a wide variety of
fields, industries, and sectors over the years, as researchers and business leaders attempted to
understand the way it relates to performance (e.g. Burrell, 2008; Casida & Pinto-Zipp, 2008).
Research on organizational culture in the business setting has taken several methodological
approaches, including qualitative (e.g. Shera, 2008), quantitative (e.g. Seren & Baykal, 2007), and
mixed-methods (e.g. Denison, 1990), to understand culture from a variety of perspectives. Much
research has involved attempts to understand the role of culture as it relates to other business
processes, such as innovation (e.g. Poskiene, 2006), sales growth (e.g. Denison, 2006), knowledge
management (e.g. Zheng, Yang, & McLean, 2010), and employee commitment (e.g. Singh, 2007).
The diverse nature of the history of culture research has led to debate and a lack of consensus on a
single, universally agreed upon definition (Jung et al., 2009; Schein, 2004). Definitions in
psychology and marketing literature focus on the idea that culture is a combination of conscious and
unconscious values and beliefs shared among members of a group (e.g. Schein, 2004). These values
and beliefs manifest themselves in the behavior of group members and in the artifacts of the
organization, and are reinforced and embedded in the organization over time (Schein, 2004).
In the past 30 years, a wealth of research on organizational culture has been conducted, and a variety
of definitions have been suggested (Martin, 2002). Schein (2004) defined organizational culture as
symbols, rites, ceremonies and other associated artifacts of the underlying values and beliefs that are
shared by group members. Schein’s (2004) definition of the construct takes a theory building
approach to culture, suggesting that the study of organizational culture be conducted using a mixedmethods approach in order to fully understand the depth of the underlying beliefs and assumptions
that are held to be true by members of an organization. Unfortunately, this type of research is rare
due to the demanding requirements of executing such studies in organizations.
Denison (1990) proposed a definition that stresses the role of culture in shaping the perceptions and
behaviors of individuals in the group by suggesting that culture “may be seen as a code, a logic, and a
system of structured behaviors and meaning that have stood the test of time and serve as a collective
guide to future adaptation and survival” (p. 175). Others considered culture as simply “The way we
do things around here” (Deal & Kennedy, 2000, p. 60). While deal and Kennedy’s (2000) definition
may be partially true, other definitions of culture make explicit the notion that many of the cultural
influences that play a role in shaping people’s thoughts and behavior often go unstated and people
may not even be aware of them (e.g. Schein, 2004).
Still, other researchers, attempting to study organizational culture in the context of building
relationships with customers, define it differently. When viewed in the context of marketing and
brand management in relation to customers, organizational culture has been identified as influencing
the perceptions and behaviors of employees who create the experience that lives up to customer
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expectations (e.g. Alloza, Conley, Prado, Farfan, & Espantaleon, 2004).
Organizational culture may be seen as a series of values, norms, and beliefs about how business
should be done in a particular organization, which acts as a filter for employee behavior (Boan, 2006;
Deshpande et al., 1993; Schein, 2004). It may serve as a source of cues from which members of a
group engage in sensemaking, a process that in turn guides their actions (Schultz & Hatch, 2006).
This cultural filter may then help or hinder employees’ ability to develop relationships with their
customers and create and maintain loyalty among them (Kwon, Beatty, & Lueg, 2000).
Deshpande and Webster (1989) derived the following definition of culture based on their analysis of
more than 100 studies from a variety of fields: “the pattern of shared values and beliefs that help
individuals understand organizational functioning and thus provide them with the norms for
behavior” (p. 4). This definition presented culture as a force that guides individuals’ thinking about
acceptable perceptions and behaviors.
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4. The definition of organizational culture
might be the same when discussed between scholars. their classifications may vary in terminology and
presentation. However, nearly all of them have the same conceptualization about culture. Deal and
Kennedy (1982) defined organizational culture as "the way we do things around here." They emphasize
that a strong organizational culture is characterized by shared values, beliefs, and practices that shape
the behavior of employees and the overall identity of the organization. while Edgar Schein for instance
defined it as a set of beliefs, values, and assumptions that are shared by members of an organization.”
These underlying values have an influence on the behavior of organizational members, as people rely
on these values to guide their decisions and behaviors” (Schein, 1985). Deal and Kennedy’s model
identifies six key elements that define organizational culture:
1. History: Shared past experiences that shape current beliefs and values.
2. Values and Beliefs: The core principles and standards that guide behavior within the
organization.
3. Rituals and Ceremonies: Regular activities and events that reinforce the culture.
4. Storytelling: Narratives that help employees understand their role and the organization's values.
5. Heroic Figures: Individuals who embody the organization's values and serve as role models.
6. Cultural Network: The informal social network within the organization where important
information is shared
4.1 On the other hand, Schein’s model was a levels model as follows:
1. Artifacts: Visible and feelable structures and processes, Observed behavior – Difficult to
decipher
2. Espoused Beliefs and Values: Ideals, goals, values, aspirations, Ideologies, Rationalizations –
May or may not be congruent with behavior and other artifacts
3. Basic Underlying Assumptions: Unconscious, taken for granted beliefs and values –
Determine behavior, perception, thought, and feeling
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•
Viewing from these definitions, following common characteristics oforganizational culture can be
given:
4.2 Here are ten common characteristics of organizational culture:
1. Innovation and Risk-Taking: Encourages employees to be creative andtake risks.
Organizations with this culture often have a dynamic, entrepreneurial spirit.
2. Attention to Detail: Emphasizes precision, analysis, and attention to detail.Employees are
expected to be meticulous in their work.
3. Outcome Orientation: Focuses on results and achievement of goals.Success is
measured by outcomes and performance metrics.
4. People Orientation: Values and respects individuals. This culture focuseson fairness,
support, and a good work-life balance for employees.
5. Team Orientation: Promotes collaboration and teamwork. Employees worktogether
towards common goals and support each other.
6. Aggressiveness: A competitive and assertive approach to achieving goals. This
characteristic is often found in high-energy, high-stakes environments.
7. Stability: Prioritizes consistency and predictability. Organizations with thisculture have
structured processes and procedures.
8. Customer Orientation: Focuses on meeting customer needs and providingexcellent
service. Customer satisfaction is a top priority.
9. Integrity and Ethics: Upholds strong ethical standards and integrity.
Trustworthiness and honesty are core values.
10.
Adaptability: Embraces change and is flexible in responding to newchallenges and
opportunities. Organizations with this culture are open to innovation and continuous
improvement.
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5. Different Types of Organizational Culture
There are hundreds of different types of organizational cultures, but a few categories tend to
dominate most industries. Clan culture tends to focus on interpersonal connections, mentoring
programs and aims to create a feeling of family. Market culture focuses on promoting
competition and rewarding winners. Adhocracy culture is geared toward innovation and tends
to eliminate traditional structures of an organization. Finally, hierarchical culture focuses on
top-down business decisions. This has been fairly efficient in the past and is common in
businesses today, but many people no longer value working in this type of culture. Any
company can be a mixture of cultures and should adapt a unique approach that aligns with
their strategy. For example, the cultural values
and environment of a daycare center will be different than a surgical center were
precision and standard practices are vital to business success.
The Relationship Between Organizational Culture and Leadership.
5.1 It’s been found that company culture is one of the most influential factors indetermining
whether a business is successful or not. To ensure that you are targeted towards success, your
organizational culture should align with your strategy. This should be communicated and
fostered through leadership. Leadership teams have the opportunity to make or break company
culture andthey are essential to how it’s perceived by employees. Both employee and
leadership behaviors need to be aligned and communication should remain open for
employees. This will help create a stronger culture where employees are heardand valued.
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6. Seven Reasons Why Organizational Culture is Important:
Organizational culture is one way that people determine whether or not they’ll dobusiness with a
company. The overall branding image, values and mission statement needs to align with both a
candidate’s and potential client’s needs. Thisongoing alignment is important to any profitable
business, but culture offers far more than just that. Here are seven reasons why organizational
culture is
important in today’s society.
Improved Recruitment Efforts
Finding qualified talent can be an uphill battle, especially with so many up-and- coming
businesses. This has caused many individuals to refine their job search and hiring criteria. Over a
third of employees claim that they would pass on their dream job opportunity if the corporate
culture wasn’t a fit. By fostering a strong organizational culture, you’ll improve recruitment
efforts and gain the interest of top candidates. However, what one person sees as ideal company
culture, another may view as a culture they don’t fit in with—everyone is different.
6.1
Create a strong company culture that aims to attract the type of individuals that you want
working at your business and over time, the right talent will follow. Forexample, some people
prefer the fast pace of an entrepreneurial culture, where others might prefer the steady pace of a
more established, traditional business andculture. It’s important to note, one size does not fit all.
Smoother Onboarding
Companies with strong organizational cultures tend to have smoother onboarding experiences.
This is because there are repeatable systems in place to ensure new employees have access to
the resources they need to adapt and integrate with the culture of your office the transition
period. Better onboarding procedures often translate to increased employee loyalty and overall
longevity. During this process, communicating culture will help new employees understandcore
values and day-to-day operations.
6.2
Decreased Turnover
Organizational retention can be difficult for many businesses in today’s competitive
environment. A strong organizational culture can help decreaseturnover by creating a sense
of inclusivity and community while honoring diversity within your industry. Roughly 38%
of employees report wanting
to leave their jobs due to negative company culture and 60% of employees have left or would
leave a job because of poor leadership, so taking the time to create positive cultural values that
coincide with your business’ objectives is essential.
In the U.S., 74% of respondents in a Glassdoor multi-country survey said they would look
elsewhere for work if their company culture were to deteriorate. To continue benefiting from
strong employee retention, organizational culture needsto be a dynamic process that is nurtured
over time.
6.3
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6.4 Enhanced Employee Engagement
Employee engagement refers to how committed, connected and passionate anindividual is about
their work at a specific organization. It’s how individuals build a meaningful connection with a
business and has long-lasting positive effects.
By creating an immersive organizational culture, employee engagement increases exponentially.
Obviously, this engagement will depend on the type of culture
that’s fostered and promoted, but there is a huge potential for positive engagement with a
strong organizational culture. For example, companies whohave a strong culture have up to
72% higher employee engagement rate than those with weak cultures.
6.5 Increased Productivity
When employees are happy and satisfied with their job, they work harder.
Even though organizational culture can slowly become less obvious toemployees, it’s still
ingrained in their daily work efforts. By creating a
strong company culture aligned with your organizational objectives, you canincrease employee
productivity and therefore, increase overall work output. The majority of workers in the U.S. believe
that organizational culture is oneof the biggest influencers of their job performance. In fact, a 2019
survey found that 76% of employees believe culture helps positively influence theirculture and
efficiency, motivating them to do their best work.
6.6
Stronger Brand Identity
How you communicate your brand is important for both marketing efforts and organizational
culture. Your brand represents how the public sees you—it’s yourbusiness’ reputation. While
some aspects of your brand image can be controlled by external factors, most of it will come
from your company culture and any interactions that individuals have with employees and
leaders. The stronger yourcompany culture, the more powerful your brand identity becomes.
Your employees may even become individual brand advocates without any additional
persuasion.
6.7
Stimulated Performance
When your organizational culture is one that fosters individual development, community and
inclusivity, you’ll help stimulate employee performance and achieve more goals. Employee
satisfaction combined with higher performancecreates a strong talent pool of dedicated
employees who will continue to valuebeing a part of your company. Over time, this creates a
positive cycle that can exponentially increase the success of your organization.
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7. Fostering a Healthy Organizational Culture
To foster a healthy organizational culture, make sure that you’re communicating with your
employees throughout the year and actively listening to their concerns or ideas. According to a
new study from the Institute for Corporate Productivity (i4cp), Culture Renovation: A
Blueprint for Action, only 15% of global survey respondents reported that their organizations
have achieved highly successful culture transformations. While it takes work, company culture
can be strengthened with time and small changes in how you interact with your team can create a
ripple-effect throughout your office. When necessary, provide constructive employee feedback
and try to be consistent with how you handle varying situations. It can be difficult to completely
transform your organizationalculture, but it is possible.
While company culture may shift over time, it can be guided in the right direction with a little
effort from management. Strong organizational culture is not created overnight. It requires work
from leadership from day one and needs to be at the forefront of important decisions. However,
dedicating the time and effort to create a strong organizational culture will allow you to reap the
benefits and pointyour business growth in the right direction. To support your efforts in creating
theright culture that focuses on employee growth and management, TriNet
offers full-service HR solutions for small to medium sized businesses
across several industries. Our HR expertise offers compensation guidance, talent
management, employee support, leadership training and even expertise on sensitive issues, so
you can create a comprehensive culture that resonates with your employees. Learn how TriNet’s
full-service HR solutions can help your business today.
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8. Debates About Culture Research
Many theoretical definitions of culture assert that every organization is unique and that this view
must be accepted in order to truly and fully understand the complex nature of the construct. Martin
and Powers (1983), however, found that the unique aspects in some organizations are often found in
other organizations. Existing research on organizational culture is comprised of a variety of
theoretical perspectives that drastically affect the way in which culture is operationalized and studied
(Martin, 2002). Common terms and frameworks have been developed, over the years, to help
describe the complexities of organizational culture (Martin, 2002; Martin & Powers, 1983).
These disagreements related to the very nature of organizational culture, as well as the proper ways to
define, operationalize, and study the concept, only add complexity to the construct and make it more
difficult to gain agreement (Martin, 2002).
This divergence in perspectives has led to a range of paradigms within organizational culture
research. For instance, Smircich (1983) identified two major approaches: one treats culture as
something an organization has—a variable that can be measured and manipulated—while the other
treats culture as something an organization is—a root metaphor that reflects shared meanings and
symbolic interactions. These fundamentally different views lead to contrasting research methods:
quantitative vs. interpretive, positivist vs. constructivist.
Additionally, Hatch (1993) proposed integrating multiple paradigms to address the limitations of
single-theory approaches. She emphasized that no one framework can fully explain the
multidimensional nature of organizational culture, which includes visible artifacts, spoken values,
and deeply embedded assumptions. Schein’s model is one such integrative approach that attempts to
bridge theory with practice, though it too has been critiqued for being overly hierarchical and
difficult to apply uniformly.
Researchers also debate the degree to which organizational culture can be managed or intentionally
shaped. While many practitioners believe that leaders can engineer culture through policies, training,
and reward systems, scholars such as Alvesson (2002) argue that culture is deeply embedded in
social practices and cannot be easily controlled or transformed. This tension between managerialist
and critical perspectives further complicates the discourse.
In summary, the study of organizational culture is marked by ongoing debates around its definition,
measurement, and application. These discussions highlight the richness of the construct, but they also
underscore the importance of contextual sensitivity and theoretical pluralism when studying and
interpreting culture in practice. As organizations evolve and diversify, so too must our understanding
of what culture mean—and how it shapes, and is shaped by, human behavior.
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9. Levels of Analysis
Adding to the complex nature of culture research is the fact that the concept can be operationalized at
several levels, including the individual, dyad, group, or collective level (Hertzog, Wright, & Beat,
2008; Jung et al., 2009; Schein, 2004). The importance of selecting the proper level of analysis is
stressed by Hofstede, Bond, and Luk (1993). The following is an overview of the benefits and risks
associated with each level of culture research.
Some researchers operationalize culture at the individual level, often focusing on the impact of a
single key leader on an organization or on the interaction among dyads (e.g. Conrad et al., 1997;
Singh, 2007). These researchers either considered one person to be capable of creating cultural
change in the larger system or believed that interactions of dyads occurred independently of each
other in the system (Katz & Miller, 1996). Conversely, organizational culture research at the group
level has been based on the assumption that culture is a complex construct that is composed of the
myriads of interactions that occur within the group (e.g. Bartley, Gomibuchi, & Mann, 2007).
Conducting research at this level of analysis allows the researcher to compare groups to understand
how culture develops and guides the perceptions and behavior of all members of the group.
Others have studied culture from the collective perspective (e.g. Calori & Sarnin, 1991; Gordon &
DiTomaso, 1992; Jermier, Slocum, Fry, & Gaines, 1991). Wilkins and Ouchi (1983) argued in
support of the existence of distinct organizational cultures of organizational subgroups and asserted
that the study of organizational culture at the local level, rather than the overall organization level,
will illuminate how these differences impact performance (e.g. Jermier et al., 1991).
In very large organizations, functional or professional groups and individual business units may have
their own unique cultures; this view supported the notion that the study of business units (or groups)
may be a more accurate method for studying large organizations (Jermier et al., 1991; Sayles &
Wright, 1985; Wilkins & Ouchi, 1983). Hofstede’s (1998) research findings also suggested
significant differences in organizational culture across subsidiaries of large organizations, lending
support to this concept of studying culture at the group level. In their study of 258 nurses, Lok,
Westwood, and Crawford (2005) found that the cultures of subgroups impacted group member
commitment more than the culture of the overall organization did, lending support to the notion that
culture research may best be conducted at the group or departmental level. Although these subgroups
of large organizations may, in fact, exhibit differences in culture, it may be difficult to make the
assumption that they are truly unique but, rather, they are a subset of the organizational culture in
which they reside. These subsets of an organizational culture may, in fact, display differing
manifestations of culture in their day-to-day behavior.
Dansereau and Alutto (1990) discussed the benefits and limitations of each of these levels of
analysis, as well as the study of single levels of analysis versus multiple levels of analysis. The
authors suggested that each level of analysis can be studied in two units of analysis: the whole and
the parts (Dansereau & Alutto, 1990). Studying the whole makes the assumption that a group is a
homogeneous unit with shared perceptions (Falcione, Sussman, & Herden, 1987; Schein, 2004),
while studying the parts makes the assumption that a group is comprised of heterogeneous units that
are differentiated (Smircich, 1983).
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10. The Impact of Organizational Culture on Employee Behavior
Organizational culture is a system of shared assumptions, values, beliefs, and behaviors that shape
the ways employees in an organization think, feel, and act. It influences how individuals interact with
one another, how decisions are made, and how goals are achieved. The organizational culture is a
powerful determinant of employee behavior because it dictates the environment in which employees
perform their tasks. This impact can be positive, leading to increased motivation and productivity, or
negative, causing resistance and disengagement.
10.1 Influence on Work Ethic and Motivation: A positive organizational culture enhances
employee engagement and motivation. When an organization’s culture promotes collaboration, trust,
and recognition, employees are more likely to feel valued and motivated to perform well. For
instance, a culture that emphasizes teamwork and open communication fosters an environment where
employees are more likely to work cooperatively, share knowledge, and innovate (Schein, 2010). In
contrast, a toxic culture characterized by micromanagement or lack of transparency may lead to
reduced motivation and higher turnover.
10.2 Influence on Decision Making and Problem Solving: Organizational culture also shapes how
employees approach decision-making and problem-solving. In a hierarchical culture, employees are
likely to rely on authority figures to make decisions, whereas in a decentralized or egalitarian culture,
employees may be encouraged to take initiative and engage in collective decision-making (Hofstede,
2001). A culture that encourages risk-taking and experimentation can lead to more innovative
solutions, while one that prioritizes stability may result in more cautious or conservative approaches.
10.3 Influence on Job Satisfaction and Commitment: Employee satisfaction and organizational
commitment are often reflections of organizational culture. A culture that aligns with employees'
personal values can foster a sense of belonging and loyalty. On the other hand, a misalignment
between individual and organizational values can lead to dissatisfaction, burnout, and high turnover
rates. For instance, organizations that prioritize work-life balance tend to have higher employee
satisfaction and lower turnover rates (Deal & Kennedy, 1982).
10.4 Organizational culture: has a profound influence on employee behavior. A culture that
promotes trust, collaboration, and empowerment is likely to result in higher employee motivation,
satisfaction, and performance. Conversely, a toxic or misaligned culture can diminish these
outcomes, leading to disengagement and reduced productivity.
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11. The Role of Leadership in Shaping Organizational Culture
Leadership is one of the most critical elements in shaping and maintaining organizational culture.
Leaders set the tone for the behaviors, values, and norms within an organization. They influence the
culture through both their actions and decisions, as well as through the organizational structures they
create. The leadership style and approach to managing change and communication can directly affect
the development and evolution of an organization’s culture.
11.1 Establishing and Communicating Values: Leaders play an essential role in establishing the
core values of an organization. Through their decisions, speeches, and actions, leaders signal to
employees what is considered important. Leaders who model behavior aligned with the
organization’s values inspire employees to mirror those behaviors. For instance, if leaders emphasize
ethical conduct and integrity, employees are more likely to embrace these values in their daily tasks
(Brown & Treviño, 2006). In contrast, leaders who ignore ethical concerns or fail to model desirable
behaviors may inadvertently encourage negative practices within the culture.
11.2 Leadership Style and Cultural Impact: Different leadership styles can cultivate distinct
organizational cultures. Transformational leaders, who motivate and inspire their followers by
providing a compelling vision and fostering personal development, tend to create cultures that are
innovative, open to change, and adaptable (Bass, 1985). Transactional leaders, who focus on
maintaining order, rewarding performance, and ensuring compliance, tend to create cultures that are
more structured, stable, and focused on efficiency.
Leaders also shape culture by defining organizational priorities. Leaders who prioritize innovation,
for example, are likely to create a culture that encourages experimentation and risk-taking. On the
other hand, leaders focused on cost reduction and efficiency may develop a more conservative, riskaverse culture.
11.3 Leadership in Organizational Change: Leaders are often responsible for guiding organizations
through change. Effective leaders can help navigate resistance to change by communicating clearly
and involving employees in the change process. The manner in which a leader handles change—
through transparency, empathy, and clear communication—can either strengthen or weaken the
organization's culture. Leaders who demonstrate resilience and provide support during transitions are
likely to maintain or even enhance the organizational culture, while leaders who fail to address
concerns may create a climate of uncertainty and distrust.
Leadership plays a central role in shaping and sustaining organizational culture. Leaders are
responsible for setting the cultural tone, communicating values, and modeling desired behaviors. By
adopting appropriate leadership styles and managing change effectively, leaders can foster a culture
that aligns with organizational goals and enhances performance.
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12. Organizational Change and Resistance to Change
Organizational change refers to the process by which organizations alter their strategies, structures, or
processes to adapt to new conditions or improve performance. However, this process is often met
with resistance from employees who are comfortable with the status quo. Resistance to change is a
natural human response, driven by fear of the unknown, perceived loss of control, or discomfort with
new routines. Understanding the causes of resistance and implementing strategies to manage it is
essential for successful organizational transformation.
12.1 Causes of Resistance to Change: Resistance to change can stem from both individual and
organizational factors. On an individual level, employees may resist change because they fear job
insecurity, loss of power, or the need to acquire new skills (Kotter & Schlesinger, 2008). Employees
may also resist change because they believe the changes are unnecessary or poorly conceived. From
an organizational perspective, resistance can occur when there is insufficient communication about
the change, a lack of involvement in the change process, or unclear expectations.
12.2 Overcoming Resistance to Change: To overcome resistance, it is essential for leadership to
understand the sources of resistance and address them proactively. Communication is critical in this
process. Leaders must clearly explain the reasons for the change, its benefits, and its impact on the
organization and its employees (Armenakis & Bedeian, 1999). Involving employees in the change
process, through participation or feedback, can help reduce feelings of alienation and increase their
commitment to the change. Additionally, offering support and training can ease employees’ concerns
about new skills or responsibilities.
12.3 Strategies for Managing Change: Successful change management strategies include creating a
shared vision, aligning the change with organizational goals, and addressing both the emotional and
rational aspects of change. Leaders should also be prepared to monitor the change process, providing
feedback and adjustments as necessary. Furthermore, it is important to recognize and reward those
who embrace the change, as this can create positive reinforcement and encourage others to follow
suit.
Organizational change is often accompanied by resistance, but with effective communication,
involvement, and support, organizations can manage and minimize this resistance. Leaders who
understand the sources of resistance and implement thoughtful strategies are more likely to achieve
successful change outcomes.
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13. Organizational Culture and Innovation
Innovation is a critical driver of organizational success in today’s rapidly changing business
environment. Organizational culture plays a significant role in fostering or hindering innovation. A
culture that encourages risk-taking, collaboration, and creative thinking can inspire employees to
generate innovative ideas and solutions. Conversely, a culture that emphasizes hierarchy, rigid
structures, and control may stifle creativity and limit the potential for innovation.
13.1 The Relationship Between Culture and Innovation
A culture that values innovation creates an environment in which employees feel safe to experiment,
take risks, and share new ideas (Schein, 2010). For example, organizations like Google and 3M have
established cultures that promote open communication, autonomy, and failure as a learning
experience, which are essential ingredients for innovation. These cultures encourage employees to
step outside their comfort zones, resulting in breakthrough ideas and products.
In contrast, organizations with a conservative or hierarchical culture may discourage employees from
proposing new ideas, fearing that failure will lead to negative consequences. Research has shown that
a culture of trust, autonomy, and openness to change is positively correlated with an organization's
ability to innovate (Tushman & O'Reilly, 1996).
13.2 Structural and Cultural Factors Affecting Innovation
While culture is crucial, structural elements such as organizational hierarchy, resource allocation, and
processes for idea generation also influence innovation. A decentralized structure, which empowers
employees at all levels to make decisions, often fosters more innovation compared to a highly
centralized structure. Additionally, organizations that allocate time and resources to research and
development (R&D) tend to be more successful in generating new products and services.
Organizational culture is a fundamental factor in shaping innovation. A culture that encourages
creativity, risk-taking, and collaboration supports innovation, while a rigid, control-oriented culture
may hinder it. Leaders must cultivate an environment that nurtures innovation and provides
employees with the freedom to explore new ideas.
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14. Ethical Climates in Organizations
Ethical climate refers to the shared perceptions of what is ethically correct behavior and how ethical
issues should be handled within an organization. It encompasses the ethical values, principles, and
standards that guide employee behavior. An organization’s ethical climate significantly influences
employees' decisions, ethical conduct, and the overall organizational reputation. Ethical climates can
vary based on leadership, policies, and the nature of the work environment.
14.1 Types of Ethical Climates
Victor and Cullen (1988) identified five types of ethical climates that vary based on the focus of
ethical decision-making. These include:
1. Caring climate: Prioritizes the well-being of individuals and the organization.
2. Law and code climate: Focuses on legal compliance and adherence to external regulations.
3. Rules climate: Emphasizes adherence to organizational rules and procedures.
4. Instrumental climate: Focuses on self-interest and personal gain.
5. Independence climate: Encourages personal moral judgment and ethical reasoning.
These climates influence how employees perceive ethical behavior and how they make ethical
decisions within the workplace.
14.2 Influences on Ethical Behavior: A strong ethical climate promotes ethical behavior by setting
clear standards for acceptable conduct. It is influenced by leadership, organizational policies, and the
overall culture. Ethical leadership, characterized by transparency, fairness, and integrity, fosters an
ethical climate by modeling ethical behavior and encouraging employees to act ethically (Brown &
Treviño, 2006). Additionally, organizations that provide ethics training, enforce ethical codes of
conduct, and create channels for reporting unethical behavior tend to have stronger ethical climates.
Ethical climates are integral to fostering ethical behavior in organizations. Leaders play a crucial
role in shaping and maintaining an ethical climate through their actions, policies, and
communication. Organizations that prioritize ethical conduct are more likely to avoid scandals,
reduce legal risks, and maintain a positive reputation.
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15. Managing Cultural Diversity in Organizations
Cultural diversity in organizations refers to the presence of employees from various cultural
backgrounds, including differences in race, ethnicity, gender, religion, and other demographic
factors. Managing cultural diversity effectively can enhance creativity, improve problem-solving, and
contribute to a more inclusive work environment. However, it also presents challenges in
communication, conflict resolution, and integration of diverse perspectives.
15.1 The Benefits of Cultural Diversity: Organizations that embrace cultural diversity benefit from
a wider range of ideas and perspectives. Diverse teams are often better equipped to solve complex
problems, as they bring unique insights and approaches to the table (Cox & Blake, 1991).
Additionally, culturally diverse organizations are more likely to attract global talent and appeal to
diverse markets. A diverse workforce also enhances the organization’s reputation as an inclusive
employer.
15.2 Challenges in Managing Diversity: While diversity offers many benefits, it can also present
challenges, particularly in communication, collaboration, and conflict management. Differences in
cultural norms, communication styles, and values can lead to misunderstandings or conflict.
Furthermore, without proper training or leadership, diverse teams may struggle to integrate, leading
to fragmentation or disengagement.
15.3 Strategies for Managing Diversity: Successful management of cultural diversity requires
leaders to promote inclusivity, respect, and equity. This can be achieved through diversity training,
inclusive policies, and fostering an environment where all employees feel valued and heard.
Additionally, organizations should provide support structures, such as mentorship programs or
employee resource groups, to help individuals navigate and embrace cultural differences.
Managing cultural diversity is essential for organizations aiming to succeed in a globalized world.
By implementing inclusive policies and fostering an environment of respect and collaboration,
organizations can harness the full potential of their diverse workforce.
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16. Types of Organizational Culture
16.1 Four types of organizational culture:
One of the best-known tools for leaders to classify and transform their workplace culture is the
Competing Values Framework (CVF), created by Kim Cameron and Robert Quinn in 1983.
The CVF model identifies two dimensions of competing values:
• Flexibility vs. stability
• Internal focus vs. external focus.
Based on these dimensions, the framework distinguishes four types of organizational culture:
• Adhocracy culture: The dynamic, entrepreneurial Create Culture.
• Clan culture: The people-oriented, friendly Collaborate Culture.
• Hierarchy culture: The process-oriented, structured Control Culture.
• Market culture: The results-oriented, competitive Compete Culture.
Every organization has its own particular blend of these four organizational culture types, with one
culture typically dominating.
The larger the organization, the greater the likelihood it has (elements of) more than one culture. This
can be beneficial to the organization, but it can also be disadvantageous or challenging, for example,
when trying to create a cohesive culture in a regionally and globally dispersed organization.
Let’s look at each type of organizational culture and how to develop it in more detail.
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1. Adhocracy culture
Adhocracy is a combination of the words ‘Ad hoc’ and bureaucracy. Organizations with
an adhocracy culture typically are flexible and not inhibited by bureaucratic procedures and
policies. Other characteristics include:
• There is an emphasis on constant innovation and improvements
• The pace tends to be extremely fast
• The status quo, even if it is working, will be challenged.
Advantages and drawbacks
• An adhocratic culture works well in start-up environments because it provides them the latitude
to be innovative.
• As the company grows, however, some functions or business units will need more structure, and
an adhocracy culture will become less feasible.
Developing an adhocracy culture: Depending on the industry and (size of) your company,
developing an authentic adhocracy culture might not be easy. As companies grow, they will have
some functions or business units that need more structure, and moving slower may actually be better
for the organization, for example, in the areas of ethics and compliance. Therefore, the adhocracy
culture may be relegated to specific units to ensure the organization remains innovative and
competitive.
Some ways to develop and maintain aspects of the adhocracy culture include implementing strategy
and brainstorming sessions, allowing employees to share ideas that can help drive performance, and
rewarding successful ideas that can encourage teams to think outside the box.
Adhocracy in real life: There are many examples of well-known companies that have (or used to
have when they started) an adhocracy culture: Apple, Google, Tesla, Spotify, and Netflix, among
others.
Netflix gives employees a lot of autonomy, and the company is known to prioritize the responsibility
and freedom of its people. Its massive success is often attributed to the company’s willingness to
experiment with new ideas and take (big) risks.
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2. Clan culture
The term ‘clan’ refers to a group of close-knit and interrelated families or people with a strong
common interest. Clan cultures are common in small or family-owned businesses that are not
hierarchical. Characteristics include:
• The culture aims to work collaboratively by ensuring all employees feel like equals
• There typically is a strong emphasis on mentorship and apprenticeship as competencies and
values pass from one generation to the next
• There is usually high employee engagement in this culture.
Advantages and drawbacks
• The typically high employee engagement in a clan culture leads to excellent customer service
(among other things).
• The downside to this type of culture is that it is difficult to maintain as the organization grows.
Operations may lack fluidity and focus as the company becomes bigger.
Developing a clan culture: Turning to your employees is the first step towards cultivating a clan
culture within your organization. Let people know that you’re open to feedback and find out what
they value and what they’d like to see differently. Step two is to consider their thoughts and take
action where possible.
Clan culture in real life: Well-known clan culture examples include the online retailer Zappos and
the food company Chobani. Both of these organizations emphasize collaboration, long-term
relationships, and employee well-being.
At Zappos, the entire organization was involved in creating the company’s core values. Employees
of all levels sent their suggestions for and reactions to the potential core values to the organization’s
CEO. Today, the company’s clan culture is still reflected in its core values; core value number seven
states, ‘Build a Positive Team and Family Spirit.’
HR tip
“Organizations need two things to get from mission and vision to impact: one is a strategy to drive employees
on what to focus on, and the other is an intentionally-designed culture, to guide employees on how to work as
individuals and as teams,” says consultant, coach, and culture change facilitator Lisa Schmidt.
“Many organizations are overly focused on the what (results) and pay little attention to the how
(values+behaviours).
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3. Hierarchy culture
The hierarchy culture is still a prevalent corporate culture in many countries, including the U.S. It is
defined by:
• Structure, established procedures, and levels of authority
• Employees who know where they fit in the chain of command, who’s accountable to them, and
who they report to
• Clearly defined duties and streamlined operations.
Advantages and drawbacks
• A hierarchy culture enables companies to manage risk better, be stable, and be operationally
efficient.
• The other side is that this culture may hinder organizations from being innovative, agile, and
responsive to sudden market and industry changes.
Developing a hierarchy culture: The first step to establishing a hierarchy culture is to button up
your processes. If the chain of command has gaps, fill them. Consider every team and department to
ensure they have clear long- and short-term goals.
Hierarchy culture in real life: IBM, McDonald’s, and HSBC are often cited as examples of realworld companies with hierarchical cultures.
McDonald’s, for example, has a divisional, top-down hierarchy culture, and rigid roles are
implemented throughout the entire organization. Every division has clearly assigned operational
responsibilities and strategic objectives, depending on its location.
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4. Market culture
Market culture is all about profit margins and staying ahead of the competition. Other
characteristics include:
• It is results-oriented with a strong external focus to ensure customers are satisfied
• There is a constant demand to be more creative and get new or improved products to the market
before the competition
• Typically, there is less emphasis on employee experience and satisfaction.
Advantages and drawbacks
• A market culture can secure the longevity of the business.
• On the downside, this type of culture is prone to burning out employees due to the high
expectations and constant demand to produce and perform.
Developing a market culture: A market culture is tied to the company’s bottom line. Therefore,
start by evaluating every position within your organization. Calculate the ROI of each role and
attribute reasonable production benchmarks. Consider (additional) ways to reward top performers to
encourage similar performance.
Market culture in real life: Famous market culture examples include companies like Amazon,
Tesla, and General Electric (GE).
At GE, three pillars led to the successful adoption of a market culture:
1) fostering a results-driven mindset,
2) prioritizing customer needs, and
3) embracing innovation.
The company also decentralized decision-making, enabling its employees to act quickly and
responsibly when needed.
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17. Other types of organizational culture
Every organization is uniquely shaped by its vision, mission, and leadership. Therefore, cultures can
be dissected and described more granularly than the four primary types we discussed.
In their research published in Harvard Business Review, Groysberg, Lee, Price, and Cheng
identified the
17.1 following additional organizational culture examples:
•
Purpose culture: In companies with a purpose-driven culture, employees share the
organization’s (often altruistic) values of improving the world and ensuring global resources are
more equally distributed with those who live in the margins. Employees of purpose-driven
organizations typically care as much (or more) about the larger mission, shared values,
purpose, and impact of their work as they do about their paycheck.
•
Learning organizational culture: In organizations with a learning culture, learning (and
development) is at the forefront of the company’s values and strategy. It is an environment
where leaders encourage people to grow and where employees who spend time on their
development are valued and seen as role models.
•
Enjoyment organizational culture: In companies with an organizational culture of enjoyment,
there is, as the term suggests, a focus on having fun at work. In an enjoyment culture, there is a
sense of playfulness and creativity often combined with an emphasize on teamwork and
collaboration.
•
Results organizational culture: In a results culture, there is a strong emphasis on meeting
targets, achieving goals, and high performance overall. In this kind of organizational
environment, the focus tends to lie more on the desired outcomes and goals than on how to
achieve those.
•
Authority organizational culture: Companies with an authority culture typically boast a
competitive working environment with strong leaders, a top-down management style, clear
objectives and expectations, and employees who strive to be the best in their field.
•
Safety organizational culture: A safety culture fosters a work environment focusing on
thorough strategic planning and carefully calculated, low-risk decisions. Organizations with a
safety culture try to be prepared for the unexpected as much as possible, creating contingency
plans for multiple scenarios. As a result, employees typically feel confident and safe.
•
Order organizational culture: In organizations with an order culture, everything is in order
(pun intended); processes, policies, rules, and even people’s roles are clearly defined. Everyone
in the organization knows exactly what their role is in achieving the larger business objectives
and supports the company structure.
•
Caring organizational culture: In a caring organizational culture, the company prioritizes
the total wellbeing of its people. It is an environment characterized by trust, mutual respect, and
collaboration that often leads to strong engagement and loyalty among the organization’s
employees.
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17.2 Transform your organization’s culture for success
Understanding different types of organizational culture is key to shaping a thriving workplace. But
this knowledge is just the first step—how do you drive meaningful change?
With AIHR’s Organizational Development Certificate Program, you’ll gain the skills to assess,
influence, and evolve company culture to support business goals and employee engagement. Learn
how to foster a culture that drives performance, innovation, and collaboration!
GET STARTED
17.3 How to choose the right organizational culture for your business
If you want to choose and build the right organizational culture for your business, follow these three
steps:
1. Consider organizational goals and direction: To determine the most appropriate culture (or mix
of cultures) for your organization, it’s important to consider the organizational goals, the various
working styles of the teams in the company, and the changes the business is going through.
Two critical factors for organizations to succeed in today’s labor market, regardless of their culture,
are providing a positive employee experience and being agile.
2. Understand your team’s working styles: As we’ve seen in the previous section, people’s way of
working differs depending on the organization’s culture and the subsequent environment they are in.
But even within the organization itself, the working styles of teams may (will) vary.
Gathering information about how people and teams work and collaborate first is key to identifying
the common denominator.
3. Use OCAI: The Organizational Culture Assessment Instrument (OCAI) is a handy tool for
assessing organizational culture. It was developed by Robert Quin and Kim Cameron based on their
Competing Values Framework.
You can use the OCAI to help you understand your organization’s current and preferred workplace
cultures. Then, you can start forging a path toward your desired workplace culture.
Here’s what the results of your culture assessment could look like:
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Other culture frameworks you can look into include The McKinsey 7S Framework, The cultural
iceberg model, and Hofstede’s model.
The process of changing your organizational culture to realign the culture to the organization’s
vision, mission, and core values to achieve its strategic objectives is called cultural transformation.
17.4 The negative impact of culture-strategy misalignment
Just like an excellent alignment of culture and strategy helps an organization reach its objectives,
attract great candidates, and retain its current employees, a misalignment creates issues.
Potentially undesired consequences may include:
•
•
•
Low engagement: A misalignment between what kind of behavior leaders say the company
values and rewards and what type of behavior it actually rewards can lead to confusion,
frustration, and, eventually, a drop in employee engagement.
Underperformance: In line with the previous point, when people aren’t clear on the
organization’s objectives and how they should contribute, their performance is likely to drop.
High turnover: As a result of the above, employees will become more inclined to look for
opportunities in organizations that strongly align their strategy and culture.
17.5 HR’s role in shaping organizational culture
HR teams are well-placed to align managers and employees with the organization’s (aspired) culture.
As key influencers, they can help shape organizational culture by:
17.6 Ensuring the culture is reflected in the employee life cycle
HR is responsible for ensuring that its organization’s culture manifests itself through every aspect of
the employee life cycle, from recruitment and onboarding to performance management and
even offboarding. For example, if collaboration is a core value, HR can prioritize team-based
interview panels, incorporate cross-functional projects into onboarding, and use peer feedback in
performance reviews.
Jennifer Patterson, a Strategic HR Consultant at Patterson Consulting Group, notes the importance
of managing the full employee life cycle to organizational culture.
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17.7 Collecting and providing feedback
It’s important that HR actively listens to the company’s employees and provides feedback to the
organization’s leadership about how employees perceive organizational culture. That way, the
company can maintain a culture conducive to productivity, engagement, and performance. Employee
pulse and engagement surveys, focus groups, and one-on-one interviews are all valuable ways HR
can stay in touch with employee sentiments.
According to the culture change facilitator Lisa Schmidt, it’s vital that HR acts on the feedback.
“Too often, feedback is requested from employees, and instead of seeing this as a clear path to
improvement, leaders parse the data trying to figure out which employee said what in the verbatim
comments, and the feedback results in nominal — if any — responsive actions to address identified
gaps,” Schmidt notes.
“In my view, direct and clear feedback from employees to management is a gift as it points at what
should be looked at and acted on.”
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18. The Role of Leadership in Shaping Culture
Leadership within an organization is not just a position; it's a profound influence that extends far
beyond the boundaries of a job title. Leaders, whether they are executives, managers, or team leaders,
wield an exceptional level of influence over the organizational culture. They are the architects and
custodians of the intangible essence that shapes the workplace environment and guides the behavior
of every member of the workforce.
18.1 Leadership Impact
In this exploration of the role of leaders in shaping organizational culture, we will delve into five
fundamental facets that elucidate the far-reaching impact of leadership on an organization’s culture.
1. Setting the Tone: Leaders are often the most visible representatives of an organization’s culture.
Their behavior and communication style become a model for employees to follow. If leaders
prioritize values like transparency, accountability, and respect, employees are more likely to adopt
these behaviors in their interactions. Conversely, if leaders exhibit behaviors contrary to the desired
culture, it can undermine trust and create dissonance within the organization.
A study by Sosik and Jung published in the "Journal of Leadership & Organizational Studies" (2002)
titled "Workplace Leadership and Group-Performance: The Mediating Effects of Transformational
Leadership, Interactions, and Subgroup Dynamics" explores how leadership behavior, especially
transformational leadership, sets the tone for the organizational culture by influencing employee
attitudes and behavior.
Leaders set the tone of the organizational culture through their behavior and communication. Their
actions and words serve as a guiding beacon for employees to understand what is expected, accepted,
and valued in the workplace.
2. Vision and Values: Leaders act as the living embodiment of the organization’s vision and values.
When leaders authentically adopt and exemplify these principles, they send a powerful message
throughout the organization. Employees look up to their leaders as role models, and the alignment
between leaders' actions and stated values reinforces the culture's credibility. If leaders deviate from
these principles, it can create confusion and cynicism among employees.
In the book "Built to Last: Successful Habits of Visionary Companies" by James C. Collins and Jerry
I. Porras (1994), the authors discuss how enduring companies are led by leaders who not only
articulate a clear vision but also embody the company's core values. The book draws from a
comprehensive research study on visionary companies.
Leaders articulate and embody the organization’s vision and values. They are the living embodiment
of the aspirations and principles that define the organization’s purpose and mission. Through their
actions, they breathe life into these guiding ideals.
3. Decision Making: Leaders make decisions that have far-reaching implications, not only in terms
of strategy and operations but also for culture. Decisions that priorities ethics, inclusion, and
employee well-being reinforce a culture of integrity and care. Conversely, decisions that disregard
these principles can undermine trust and cultural cohesion. Leaders must be aware that every decision
carries cultural significance.
The article "How Leaders Impact Organizational Performance" by D. Scott DeRue and Christopher
G. Myers in "The Academy of Management Executive" (2014) discusses the significant influence
leaders have on organizational culture through their decision-making processes and the consequences
of these decisions on culture.
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4. Change Agents: Leaders play a crucial role in guiding an organization during periods of change,
be it a merger, a restructuring, or a shift in strategic direction. Their approach to change can either
inspire or demoralize employees. Effective leaders communicate the need for change, involve
employees in the process, and offer support during transitions. Their leadership during these times
can shape the resilience and adaptability of the culture.
The Harvard Business Review article "Leading Change: Why Transformation Efforts Fail" by John
P. Kotter (1995) highlights the critical role of leadership in managing change within organization’s
and how leaders' actions and communication during change processes can shape the culture's
response to change.
Leaders play a critical role in driving change and cultural adaptation. Their approaches to change
profoundly affect how the organization navigates cultural transitions.
5. Employee Engagement: Effective leaders engage with employees on a personal and professional
level. They promote a culture of inclusion and respect, valuing diverse perspectives and creating an
environment where each individual feels heard, valued, and empowered.
The research paper "Transformational Leadership, Transactional Leadership, Locus of Control, and
Support for Innovation: Key Predictors of Consolidation of Organizational Change" by LlorensMontes et al. in the "Journal of Leadership & Organizational Studies" (2006) examines how
leadership behaviors, especially transformational leadership, impact employee engagement and
support for innovation, which are key aspects of organizational culture.
Leaders are at the forefront of daily engagement with employees. How they interact, listen, and
respond to their teams profoundly affects morale and employee commitment. When leaders promote
an inclusive environment where diverse perspectives are valued, it contributes to a culture of
innovation and collaboration. Conversely, leaders who are distant or dismissive can hinder employee
engagement and weaken the cultural fabric.
In essence, leaders are cultural stewards, and their actions, decisions, and interactions set the cultural
compass for the entire organization. Their role goes beyond merely managing tasks and people; they
are custodians of the organization’s soul. By understanding the influence, they wield and aligning
their leadership with the desired culture, they can help shape an organization that thrives, adapts, and
inspires its workforce.
18.2 Creating an effective workplace culture starts from the top; however, it cannot be done
alone. Leaders should lay out the foundation that they want employees to embody, but the team
must come together to live and share the culture. Leaders must make culture a top priority to
effectively create the workplace they envision.
18.3 Leadership plays an integral role in creating and maintaining an organizational culture.
Leaders can foster a culture of collaboration by setting examples of trust and respect, encouraging
dialogue and team decision-making. They can create an environment of innovation and growth by
promoting risk-taking and fostering a learning environment. Additionally, leaders can facilitate
employees’ career development opportunities and reward them for their accomplishments, creating
motivation and engagement. By creating an environment of trust and understanding, leadership can
have a strong positive impact on organizational culture.
The importance of the interaction between culture and leadership cannot be overstated. Leaders need
to take the time to get to know a company’s culture, values, and goals to ensure their leadership style
is a match. Misalignment can lead to disastrous results, as we often see in the business world.
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18.4 Organizational Values: Organizational values are essential to creating a long-lasting corporate
culture. When defined, communicated and put into action, they become an invaluable tool for
recruitment, employee experience and workplace culture development. Companies that take the time
to establish valued-based practices and beliefs will have advantages over those who do not. A welldefined set of values is necessary for a successful organizational culture.
18.5 Leadership Style: Transactional and transformational leaders both play important roles in
motivating employees. Transactional leaders focus on reward and consequence, while
transformational leaders foster growth and take a hands-on approach. Research shows that a
combination of both styles can be beneficial, helping to provide structure and incentive while also
inspiring employees to perform.
18.6 Building Trust: Trust is essential for creating a positive company culture and employee
experience. Leaders can foster trust by creating an atmosphere of openness and accountability.
Employees should feel free to express themselves without fear of blame or judgement. This can lead
to more engaged and productive employees and a stronger culture of mutual respect.
18.7 Providing feedback: Leaders should provide guidance to team members in developing
actionable goals and create a plan detailing how to pursue these goals. They should also regularly
check-in with team members to provide support and monitor progress, ensuring team members stay
responsible for their development. Ultimately, leaders should seek to empower their teams through
developing their capabilities and skills.
18.8 Acknowledging Accomplishments: Leaders should give credit where it’s due, and publicly
recognize the efforts and successes of their entire team. Acknowledging and praising the
accomplishments of team members can help foster a sense of trust, pride, motivation, and team spirit.
This, in turn, can lead to increased performance, productivity and overall job satisfaction.
18.9 Interacting with Employees: By prioritizing interactions with team members, leaders create an
environment of trust, appreciation and collaboration—strengthening team culture. They have more
opportunities to support development, celebrate success, and effectively delegate. All this supports
individual, team, and organizational growth.
18.10 In conclusion, effective leadership is crucial in shaping and maintaining a strong
organizational culture. Leaders have the power to set the tone, values, and expectations within a
company, but they must also empower their team members to actively participate and embrace the
culture. By leading by example, fostering collaboration, promoting innovation, and providing career
development opportunities, leaders can create an environment where trust, respect, and motivation
thrive. Understanding and aligning with the company’s culture, values, and goals is essential for
leaders to make a positive impact and avoid potential misalignment. Ultimately, leadership’s
commitment to cultivating a healthy culture and valuing their employees’ contributions is key to
creating a vibrant and successful organization.
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19. Organizational Culture and Employee Behavior
19.1 What is the relationship between organizational culture and employee
behavior?
Sometimes, you come across people that bring out the best in you. The same goes for
organizations. Some organizations make you feel motivated to the point where you want to
contribute to different projects outside the scope of your job, while others make you want to
minimize your efforts. That is how organizational culture influences employee behavior.
A positive culture makes you feel included and heard. Employees in positive work cultures want to
be productive and stay with the organization in the long run. Employees in negative work cultures
feel invisible, burned out, and are therefore less engaged and productive. In fact, as McKinsey
reports, more than 60% of negative workplace outcomes are due to toxic workplace behavior,
underscoring the impact of negative work cultures on employee engagement and productivity.
When developed the right way, organizational culture is more powerful than organizational rules
and regulations.
19.2 Five Ways in which organizational culture influences employee behavior
Leaders who understand culture, and its effects on employees, can build a positive, inclusive, and
innovative work environment, aligning employee actions with organizational goals. If you want to
see how your culture is impacting your employees, keep an eye on the following factors:
1. Engagement and productivity: A positive and empowering culture creates a sense of
belonging and motivation among employees, leading to higher productivity. If you see that
motivation is down across teams in your organization, and your employees are not as engaged as
you want them to be, take a closer look at your company culture.
In 2022, only 32% of US employees were engaged at work and 18% were actively disengaged.
Meanwhile, some organizations achieved up to 70% engagement by using their culture and values
to guide their business decisions. The lesson – live your values and you will see higher
engagement and productivity. Besides living your values, you can improve engagement in the
following ways:
• Identify areas that negatively impact engagement and productivity with the help of employee
feedback. This way, you can act on the feedback and address the issues affecting your
employees’ morale.
• Invest in training programs for leaders and managers that emphasize emotional intelligence,
effective communication, and employee motivation techniques. Equip them with the skills to
create a more engaging and productive work environment.
• Organize team-building activities, cross-departmental projects, and inclusive decision-making
processes to enhance teamwork and collective ownership of company goals.
2. Job satisfaction and retention: A supportive and appreciative culture helps in retaining top
talent by making employees feel valued and satisfied with their roles. 54% of people quit because
they don’t feel valued by their employers.
If your retention is low and most of your employees are not satisfied with their roles, you may
have a culture where employee contributions and well-being are often overlooked or undervalued.
To change that, take the following steps:
• Implement regular recognition programs or platforms where employees can be acknowledged
for their contributions.
• Encourage feedback from employees on their experiences and suggestions for improvement.
Act on this feedback to show that their voices are heard and valued.
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•
Offer training, wellness, and mentorship programs to demonstrate a commitment to the overall
development and health of your employees.
3. Innovation and creativity: If your employees have stopped coming up with new ideas and do
not offer suggestions to improve current processes, systems, and products, your culture may be
suppressing their creativity.
A culture that encourages risk-taking and values new ideas promotes innovation and creativity.
Such an environment allows employees to think outside the box and contribute unique solutions,
driving the organization forward.
To create a culture that cultivates creativity, take the following measures:
• Create spaces and opportunities for brainstorming and experimentation, and openly celebrate
creative efforts and innovative thinking.
• Set aside time for creative projects and give your employees the resources to take new
initiatives. Atlassian does this by giving their employees 24 hours each quarter to work on
anything they want.
• Implement rewards or recognition programs to acknowledge and incentivize creative
contributions and breakthroughs.
4. Communication and teamwork: Do you think your employees communicate openly? Are they
hesitant to share feedback or relay how they’re feeling? If not, your culture may be part of the
problem.
A culture of open communication is marked by clear, honest, and free sharing of ideas and
information. In this environment, everyone feels safe to speak their mind, give and get feedback,
and talk about issues without fear. It builds trust, improves teamwork, and helps in solving
problems and making decisions effectively.
To create a culture of open communication:
• Practice open and transparent communication yourself. Share information freely, be
approachable, and encourage questions and discussions.
• Establish regular meetings, town halls, or discussion forums where employees can voice their
opinions, share ideas, and raise concerns.
• Introduce anonymous feedback tools or regular surveys to allow employees to express their
thoughts and feelings candidly. Act on this feedback to demonstrate its value and importance.
Organizations that listen to their employees are 12 times more likely to retain them.
5. Collaboration and knowledge sharing: A positive work culture encourages employees to
share their expertise with others. In such a culture, information flows freely across different
departments, and people feel motivated to expand their own skills and share what they learn with
their colleagues.
Does that sound like your organization? If not, here’s what you should do:
• Plan regular team-building exercises and cross-functional projects that require collaboration and
knowledge exchange.
• Introduce collaborative tools and platforms that facilitate easy sharing of information and ideas.
• Acknowledge and celebrate teams and individuals who exemplify collaborative behavior.
But how do you actually implement this advice? A mentoring program can help!
A structured mentorship program, powered by Together’s software, helps you match mentors and
mentees to create a culture of collaboration and continuous learning. And, to make mentorship a
part of the workflow, there’s Together for Teams. With the mentoring platform embedded inside
Microsoft Teams, employees don’t need to switch between apps and feel like they are getting
distracted by leaving the Teams environment. Mentors and mentees can find and approve matches
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right in Teams, while also getting notified about upcoming sessions through Teams DMs or
emails, whichever they choose.
19.3 The role of mentoring in building a positive work culture
Mentoring plays a critical role in building a positive work culture. It facilitates knowledge
sharing, enhances skill development, and strengthens relationships within the organization.
Through mentoring, experienced employees guide and support newer team members, promoting a
culture of learning and growth. This process accelerates professional development and creates a
sense of belonging and purpose among employees.
Mentors act as role models, embodying the organization’s values and reinforcing its cultural
norms. Their insights and feedback help mentees navigate workplace challenges and integrate
more effectively into the company culture. Additionally, mentoring encourages open
communication, builds trust, and enhances collaboration, further reinforcing the work
environment.
For organizations looking to implement or improve their mentoring programs, Together offers a
comprehensive solution. It facilitates seamless mentor-mentee matching, ensuring alignment with
organizational goals and cultural values.
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19.4 National Culture vs. Organizational Culture
ISSUE: Does national culture predict consumer behavior and organizational culture?
Culture provides a guide or the directions for how we think and behave. Cateora et. al. defines the
five elements of culture as values, rituals, symbols, beliefs, and thought processes. Cultural values
that can influence business have been found in the work of Geert Hofstede. Hofstede identified four
cultural dimensions that can have a profound impact on the business environment:
individualism/collectivism, power distance, uncertainty avoidance, and masculinity/femininity. The
individualism/collectivism dimension of culture refers to how self-oriented members of a culture are
in their behavior. Individualist cultures place a high value on individual achievement and selfinterest. The United States is an example of an individualistic culture. Collectivist cultures value
working toward collective goals and group harmony. Mexico and several countries in Asia adhere to
more collectivistic principles. The power distance dimension refers to the “power inequality”
between superiors and subordinates. The United States has some elements of both a higher and a
lower power distance culture. Over the years, the U.S. business environment has adopted forms of
management, such as participative management, that place supervisors and subordinates on more
equal terms. Arab countries score higher on the power distance dimension. Cultures with high power
distance tend to be more hierarchal. Uncertainty avoidance refers to how members of a society
respond to uncertainty or ambiguity. Cultures that score high on the uncertainty avoidance
dimension, such as Great Britain, tend to avoid risk-taking. Organizations within these cultures may
have more rules in place to ensure that employees do not deviate from accepted standards. Cultures
with less uncertainty avoidance, such as Canada, believe that risk-taking and innovation are
important in achieving successful outcomes. A key question involves how culture affects consumer
behavior around the world. For instance, how would the individualism versus collectivism index in
Hofstede’s framework influence the purchase of clothing, a smartphone, or an iPad in the different
countries of Japan, the United States, and France? Why are KFC, Subway, and McDonald’s
successful in most countries, even when they have significantly different cultures? Are there other
reasons for these companies’ success? Another area of interest is how the culture of a country
influences the culture of a business. Organizations that become global have to adjust to many
different environments. Many of these companies focus on the diversity of employees in dealing with
customers in different countries. While Hofstede describes the cultural values of people in different
countries, organizational cultures are different. The culture of employees working in global
businesses may be different from the national culture of one country. This is because businesses
develop their own values and culture. However, do these values always reflect the national culture?
Organizational values are specific to a mission statement that guides conduct and relationships with
stakeholders. Organizational values may not be the same as individual values in that they are
identified and supported by top management to develop a shared understanding for expected
behavior. Values are selected by leadership to make sure everyone understands what the organization
stands for, including ethical behavior and social responsibility. Organizational values should be
highly visible and demonstrated effectively by managers. An organization’s culture is based on
values, norms, and behavior. Unlike values, norms are behavioral expectations and have a high
degree of specificity and clarity and require desirable behaviors in the form of policies and
procedures. Accelerating change in communication, especially social media and social sharing, could
be changing the nature of culture and its impact on both individuals and organizations. On the other
hand, national culture may be important in marketing for organizations and understanding consumer
behavior. There are two sides to every issue:
1. The individual values of a country (as defined by Hofstede) predict organizational culture and
consumer behavior.
2. National culture cannot necessarily be used to predict organizational culture & consumer behavior.
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19.5 A question many people have asked how national and organizational
cultures relate and which of them is stronger.
19.6 The answer? “It depends”.
There is no doubt that the two kinds of culture both exert powerful influences on people. It is
anything but rare for employees, especially those of foreign companies, to be facing conflicts
between them. A company’s culture may be informal while a country’s culture could be rather
formal. A company may be encouraging and rewarding risk-taking in a country where people are
generally risk-averse. Or, vice versa. All of these call for some kind of resolution to realign the
company’s and its individual employees’ beliefs and behaviors.
1) National Cultures: As researchers have found over and over, the influences of national cultures
shape strong value systems among their members. The resulting shared values, preferences, and
behaviors of population groups differ widely between countries. That is frequently also the case
between different subgroups within a country, so keep in mind that the term “national culture” can
be misleading. It may only be referring to part of the people in a given country.
2) Organizational Cultures: The benefit of cultivating a pronounced organizational culture is that it
helps establish common values and align behaviors among employees. Many multinational
companies use employee hand-books, corporate ethics guidelines, written value definitions, and
other tools for their employees world-wide in order to drive this kind of alignment.
One may ask to what extent organizational cultures are based on national cultures. Available
research results in this field are insufficient for a conclusive answer. However, a few published
results, combined with anecdotal evidence, suggest that while there is a strong correlation,
organizational cultures are also shaped by many other influences.
Especially in the United States with its strong preference for individualism, a wide and diverse range
of company cultures exists. An organization’s culture may reflect the personality and preferences of
its founder or founding team, as with Hewlett-Packard and Apple. In other instances, charismatic
leaders molded or amplified their enterprise’s culture, such as Jack Welsh at GE or Lee Iacocca at
Chrysler. Sometimes, organizational cultures have been nurtured over such a long time that they
seem to have acquired a life of their own, regardless of the person at the top; IBM comes to mind in
this category.
19.7 Which is Stronger? In her book International Dimensions of Organizational Behavior,
McGill professor Nancy Adler asks whether organizational culture does “erase or at least diminish
national culture”. Her surprising conclusion is that there actually is more evidence to the
contrary. Adler cites researcher André Laurent’s finding that cultural differences were “significantly
greater among managers working within the same multinational corporation than they were among
managers working for companies in their own native country. When working for multinational
companies, Germans seemingly became more German, Americans more American, Swedes more
Swedish, and so on.” The reasons are not well-understood, but it appears that employees may be
resisting a company’s corporate culture if it is counter to the beliefs of their own national one.
Adler’s observations support the conclusion that national culture outweighs organizational
culture. However, one factor may offset this: at some multinationals, a combination of targeted
hiring processes and employee self-selection increasingly establishes foreign workforces that are
more in harmony with the respective corporate culture. Those who fit well stay with the company,
those who do not either do not get hired in the first place or leave within a few years. This appears to
have intensified over the last decade. Companies strongly nurturing the trend may be able to
maintain a fairly homogenous culture across their foreign locations. However, from my experience
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such companies are giving up several of the benefits of cross-cultural diversity. On top of that, they
risk becoming estranged from national cultures with possible consequences to local relationships.
19.8 All of this drive’s important conclusions for multinational companies:
•
•
•
•
One cannot safely assume that even a very powerful corporate culture will render national
influences insignificant. Employees facing actual conflicts between the two are likely to
respond in ways typical of their national culture, not their organizational one. Seeking to
employ only those in a country who are “sufficiently compatible” comes with its own set of
drawbacks.
It is in a company’s best interest to carefully assess its organizational culture against the local
cultures in all countries and regions it is engaged in.
When recognizing potential conflicts between organizational and foreign national cultures, a
company should strive to take preventative action in order to keep local employees motivated
and committed. This may require changing or toning down aspects of the organization’s
culture, even if they work well elsewhere.
Similarly, the company must develop ways to resolve actual conflicts in ways that keep its
foreign employees at ease. Again, this may require some compromising between the cultures.
Every once in a while, someone argues that “culture” is not something specific to a country, but
rather something specific to an organization. The truth is that it is both. Only the first one is
referred to as the National Culture that takes into account the Values that people hold and act
upon (aware or most of the times unaware of) and the second one is referred to as
the Organizational Culture that deals with the practices that are promoted and reinforced in the
organization.
19.9 Are these two concepts:
- The National Culture and the Organizational Culture
- competing with each other? Or are they rather complementing each other? Well, it depends.
It depends on the wisdom of the people that lead the organization.
As a good rule, the Organizational Culture of a successful company in its home country is
complementing the National Culture. This Organizational Culture was developed in decades most
of the time and it adjusted its practices in such a way so that it gets the best response from their
people in terms of motivation, retention, enthusiasm, level of energy, etc.
The biggest mistake that these companies make is when they try to export this particular
Organizational Culture in countries where it is unnatural for people to follow its practices. This is
the case in which the Organizational Culture competes against the National Culture. The Values
educated in people (that constitute the core of the National Culture) cannot be changed, so if you
don’t adjust the Organizational Culture to use the National (unseen) Values to energize the
people, to get their engagement and to let them excel for your organization in their socio-politicoeconomic environment of their own country, you lose. You lose either because you waste energy
and time in trying to change the unchangeable or waste the energy of your people, by not
capitalizing on their strengths and their natural tendencies of behaving.
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19.10 Practically, how can a top executive use the combination of National Culture
with Organizational Culture for their advantage?
✓ For start you need to have a Goal and ideally a Strategy for your organization. If you start
fresh in a new country, then it is advisable to start by training your implementers and your
Strategy drivers, on the National Culture of the new country so that they can understand how
to adjust the different processes to match the new culture: how to do recruitment and
recognize what is a good candidate in that culture, what motivates people so that you can
create a good retention policy. Will you design the targets so that people compete with each
other or help each other? Will you focus on the individual or on the team? Will you focus on
the tasks or on the environment? All these helps you start strong, and if you got it right, you
will collect all the talents from the market, mostly from the companies that didn’t take
National Culture into account, and are constantly psychologically abusing their people.
✓ If you are already established and you are running your organization for some time in that
new culture, it is recommended to run an Organizational Culture Scan and get the current
state of the global Organizational Culture and of its subcultures. The difference between this
Organizational Culture Scan and the Employee satisfaction survey is that this Scan will give
feedbacks to the leaders on how to adjust their processes to get their people more motivated,
to enable them to be more creative, to make the organization more open or more customer
focused.
✓ Knowing your Strategy and the results of the Organizational Culture Scan you’ll be able to
understand where you need to focus to align your practices to deliver the Strategy.
Sometimes you’ll need to use the National Culture’s insights to completely redesign the
recruitment process, the engagement process, or the way you hold meetings, how you solve
problems, how you delegate, etc.
✓ The Education and training part is most of the time one of the underrated components of
delivering the Strategy, as companies chose to deploy trainings on delegation or leadership that
are copied from other cultures, thinking that “just” a training on Leadership ticks the box and
solves the problem. Thinking that some trainings will transform the people from one culture to
another one is wishful thinking, inefficient and wasteful.
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20. Let’s go even more practical.
20.1 How to use Hofstede’s 6D model for Cultural differences together with
Hofstede’s Multi-Focus Model on Organizational culture?
There are two options depending on the criticality of the current state of your particular business.
If the situation is critical, you start by understanding the National Culture. With all the insights
received from Hofstede’s 6D model, you’ll understand what processes you need to adjust
drastically in order to get to a surviving plateau. If the situation is stable but you still think that
you’re not capitalizing on all your human potential, you do an Organizational Culture Scan. This
will tell you on which processes you need to focus in order to adjust the practices to the Strategy.
If you don’t know what to adjust on that particular process, you use Hofstede’s 6D model for
Cultural Differences. When dealing with National Culture, it is very unnatural to understand that
sometimes people will value things that are opposite from your own preferences.
Looking at Hofstede’s Multi-Focus model on Organizational Culture and taking D7 for example,
which is the Degree of Acceptance of the Leadership Style, one can easily connect it with the first
Cultural Dimension of the National Culture, which is the Power Distance and understand
according to the culture in which you operate how to adjust the Leadership style in order to
minimize the gap in the acceptance of the leadership style.
The clearer the leadership understands the two models and uses them combined, the faster they
will drive the Change in a way that it makes the organization both long term stable and in the
same time flexible to react to the market’s changes.
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20.2 The Impact of Organizational Culture on Innovation
1. What Is Innovation Culture?
An innovation culture within an organization refers to an environment where creativity, novel
ideas, and the drive for change are encouraged and nurtured. It is a culture that values and
promotes innovation as a core component of the company's identity. Such a culture fosters an
atmosphere where employees feel empowered to take risks, explore new approaches, and generate
inventive solutions to problems.
Culture influences the behavior of individuals within an organization. In a culture of innovation,
employees are more likely to challenge the status quo, propose new ideas, and collaborate on
projects that drive the company forward. This is in stark contrast to cultures where conformity and
risk aversion are the norm.
2. The Impact of Organizational Culture on Innovation
Organizational culture has a profound impact on innovation within a company. A culture that
values innovation provides the necessary support, resources, and freedom for employees to think
creatively and develop groundbreaking ideas.
In such an environment, employees are more likely to:
• Collaborate across departments and disciplines.
• Experiment with new approaches and technologies.
• Accept change and adapt to evolving market conditions.
Conversely, in organizations with a culture that is resistant to change and innovation, employees
may feel inhibited from taking risks and proposing new ideas. This can stifle creativity and limit
the organization's ability to adapt to a rapidly changing business landscape.
3. Organizational Culture and Product Innovation
Product innovation is a central aspect of a company's growth and competitiveness. In an
organization where innovation culture thrives, product development is a dynamic and iterative
process. Employees are encouraged to explore new ideas and approaches, which can lead to
groundbreaking products that meet the changing needs of the market.
Furthermore, creativity and innovation are closely linked within an organization's culture. An
innovative culture nurtures creativity, as employees are inspired to think outside the box, challenge
conventions, and create unique solutions. This creativity is harnessed to drive product innovation,
delivering real value to the company and its customers.
4. The Relationship Between Organizational Culture and Performance
The relationship between organizational culture and performance is multifaceted. A culture that
promotes innovation tends to positively influence the firm's performance. This stems from the
organization's capacity to adapt to changing market conditions, create competitive advantages, and
deliver innovative solutions to its customers.
Organizational culture has a direct impact on the competitive advantage a company can maintain.
A culture that encourages innovation fosters a competitive edge as it adapts and evolves with the
market. Such adaptability allows a company to stay ahead of the competition and deliver superior
products and services.
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5. The Future of Research in Organizational Culture and Innovation
While there is a substantial body of research on the relationship between organizational culture
and innovation, this field continues to evolve. Future research in this domain can explore emerging
trends and dynamics, such as the influence of technological innovation, the role of different types
of organizational culture, and the impact of culture on performance through innovation.
Understanding the culture of innovation and how it mediates the relationship between
organizational culture and firm performance is essential for businesses seeking to maximize their
innovation potential. This paper calls for further exploration into these areas to gain deeper insights
into the intricate relationship between culture and innovation.
20.3 Key Takeaways
To summarize the key points of this article, it's crucial to remember the following:
• Organizational culture has a profound impact on an organization's capacity for innovation.
• An innovation culture fosters creativity, empowers employees, and drives product innovation.
• The relationship between organizational culture and performance is dynamic and influential.
• Future research in this field will continue to uncover new insights into the link between culture
and innovation.
In a world where innovation is the lifeblood of business, understanding the power of organizational
culture is essential for companies striving to remain at the forefront of their industries. Foster an
innovative culture, and your organization will be well-positioned to thrive in an ever-changing
world.
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20.4 Cultural Change and Transformation
What is a Culture Transformation, exactly?
Whether an organization’s employees and leadership realize it or not, every organization has a
culture. It’s defined by what the people of the organization do—culture is the sum of all behaviors.
Do employees go out of the way to help each other? Is there a unified approach to the way employees
treat customers?
It’s different for every company, but the behaviors that define a culture are always there. The
question is: Is it the culture you want? If it’s not, it’s possible to transform the existing culture into
one that supports the short- and long-term success of the organization.
What is Culture Transformation?
Culture transformation is a shift that can take place throughout an entire organization or in
individual departments and teams. It requires changing the hearts, minds, and skills of the workforce
to support the desired culture. Individuals must first have the conviction (heart) to change their
behavior. Then, they must understand what behavior change looks like (mind) and have the
necessary tools (skills) to change.
As Eagle’s Flight founder Phil Geldart so aptly put it in his book, Purpose, Passion, Path: “The
exact nature of a culture transformation is simply that the people within the organization are behaving
differently in some fashion, on a consistent basis, and that different behavior is being supported by
each manager. The results of adopting those new behaviors will result in improved metrics, or
outcomes consistent with what has been determined as essential for the long-term success, and maybe
even survival, of the organization. The transformation will be achieved when the desired results, or
metrics have been achieved. A transformation is therefore a process whereby, over time, people
behave differently and the organization benefits in some fashion as a result. If these benefits are
required, then a transformation is necessary.”
This is a lot to digest, but when you break it down, it is an achievable goal. The first step is to
determine why a transformation of culture is needed. The second is to learn how to do it most
effectively.
Why Undergo a Culture Transformation?
The underlying reason behind a culture transformation must be to achieve corporate objectives.
Without this impetus, there will not be sufficient motivation to maintain the necessary momentum to
create lasting behavior change. The specific objectives will depend on where your organization
currently is and where you want to be.
They might include goals such as:
• Improving safety
• Delivering excellent customer service
• Engaging employees
• Fostering leadership excellence
Regardless of what your corporate objectives are, they must be clear from the beginning so you can
use them as touchstones throughout the process.
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20.5 How to Achieve a Culture Transformation
A successful transformation requires full engagement and buy-in from all levels of leadership
throughout the organization. Leaders play a vital role in modeling and coaching the desired
behaviors that will permeate the company. Without a commitment from leaders to transform the
culture, employees are not likely to make lasting behavior changes on their own.
After getting all the key players on board, create a roadmap that addresses the following questions:
20.6 Where are we now?
Perform assessments to diagnose where the organization actually is versus where you think it is.
Leadership sometimes has a different perception of the culture, so it is important to collect accurate
data and input from the organization as a whole.
In order to determine how the majority of the organization perceives the company culture, use the
following cultural transformation tools to get started:
• Surveys
• Focus groups
• Interviews with high-potential employees
• One-on-one interviews with executives
• Digital voting platforms
Gathering this information will help you successfully take on the next step of the culture
transformation journey.
20.7 Where do we want to be?
Set organizational goals and objectives so you know when you have succeeded. This might be a
market expansion, becoming innovative leaders in your industry, or standing out as a company that
provides extraordinary customer service. Or it might be higher employee engagement and lower
staff turnover. Whatever your specific objectives are, they must be clearly defined so that you know
what success looks like.
20.8 Why do we want to change?
Clearly articulate the reason for the change. This includes communicating with both leaders who will
support the transformation and employees who will have a hand in making the transformation
actually happen.
Examples of reasons include:
• Fixing a problem or filling a gap
• Capitalizing on an opportunity
• Entering new markets
• Attracting and retaining top talent
As Phil Geldart writes, “When people understand the benefits that will occur as a result of a successful
transformation, or even during the journey, then they are much more willing and able to support all the efforts that
are required to achieve it” (Purpose, Passion, Path).
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20.9 What is our line of sight?
After determining where the organization currently is, where you want to be, and why you want to
get there, the next step is to create a line of sight from the beginning to the end of the transformation
process. After defining the path, this line of sight must be continuously highlighted so it stays top-ofmind throughout the transformation. This can be achieved through periodic check-ins, milestone
celebrations, and measuring success along the way.
20.10 Conclusion: Corporate Culture Is a Demanding but Worthwhile Investment
Simply stated, culture transformation is the collective shifting of individual behaviors to support a
shared goal. It’s a demanding process, but can be achieved and is highly rewarding when done
properly. Therefore, start by knowing exactly why a culture transformation is necessary and then
answer the listed questions. Once you do, you will have taken an important step in the process of
shifting your corporate culture.
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21. Take these steps towards culture transformation
Organizational culture is the outcome of a collective set of behaviors. The key to changing a
culture is to understand that it begins with individual behavior change. Culturally adept leaders
know how to influence those behaviors by leveraging four elements that work together to influence
how people act.
21.1 Ensure individuals have the mindset to drive the right behavior
The words that leaders use is critically important to express an intention. But words are not enough
(neither are plaques, posters and printed mousepads). Shifting mindsets requires a combination of
articulating an aspiration, reinforcing it through business decisions, enabling it through processes
and systems and making the new mindsets widely known through influential leaders, new
incoming talent and plenty of internal dialogue.
Take Amazon Business, Amazon’s online B2B wholesale market, which saw its seller base grow
by 4,543% since it launched in 2017. What are the cultural forces that drive the company’s
extraordinary success? According to a leader at Amazon Business, it boils down to the company’s
attention to creating a mindset of “perpetual customer dissatisfaction, where we have to assume
that customers are not going to be satisfied tomorrow by what we have today”.
This “perpetual customer dissatisfaction” mindset, championed by Jeff Bezos, has proven to be an
effective behavior driver and has also become a key mechanism to screen incoming talent.
21.2 Ensure your people have the right ability to behave in the desired way
Consider Apple, which went from $5 per share in 2005 (and with its future uncertain) to becoming
one of the most valuable publicly traded companies in the world with a $1.84 trillion market
valuation in 2020. In addition to expanding its capabilities through small, highly strategic
acquisitions, Apple’s massive turnaround would not be possible without the work it did to scale its
culture of innovation and design thinking. Steve Jobs’ words set the intention, when he would
speak about his burning desire for “insanely great products”.
Beyond those words, was the work that took place across teams. It started with product design
teams, focused on iterative and immersive product design practices. The approach quickly
extended to marketing, sales, stores and supply chain management. Today, almost every core
discipline at Apple has deeply embedded capabilities in design thinking, innovation and the desire
to produce products and experiences that are “insanely great”.
How can you bring your culture transformation to life by strengthening your
peoples’ abilities?
At first, it takes focus and discipline to identify the few truly distinct abilities that need to become
core practices for each group. Once these have been identified with a great deal of specificity, then
bringing these to life becomes much easier through immersive, experiential learning, role play,
forging deep feedback and collaboration loops, rotating talent across different situations and
conducting ongoing pulse checks.
Is your culture an asset or a liability?
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21.3 Ensure your core work processes and systems support and enable employees to
work in new (desired) ways
Peter Drucker once said “you are what you measure” and one of the best ways to ensure your
cultural aspirations are embedded in your organization is to align your performance management
to your cultural vision. Evaluations that assess the “how” and incentives that motivate desired
behaviors can create the behavioral ecosystem you need to start transforming your workplace
culture.
As an example, leaders at TechCo, a marketing analytics software company, recently faced a
challenge - while sales teams were meeting targets, customer satisfaction was suffering.
Executives discovered that while each department was measuring its teams’ performance based on
their respective tasks, the firm didn’t have appropriate incentives to ensure that different teams
were collaborating to meet customers’ needs holistically, so there was no mechanism to recognize
how well the customer was being served.
To enhance customer satisfaction, TechCo decided they needed to increase focus on collaboration.
They established ambitious cross-functional goals and tied 40% of employee bonuses to overall
customer satisfaction, regardless of which part of the company customers were interacting with.
Further, the company established KPIs to
(a) track formal sign-off processes between sales and implementation teams,
(b) measure sales and service targets by team instead of by individual, and
(c) train managers to discuss how high performance was delivered, not just what targets
were met.
These systemic changes contributed to increasing revenue by 30% while also seeing significant
improvements in customer satisfaction.
Ensure you have the structure and workplace design that support the beliefs and behaviors you
want
In powerful and often subtle ways, effective organizational and team structures make new
behaviors possible. They help enable the type of decision-making, communication, knowledge
transfer and other critical elements that hardwire the behaviors, habits and mindsets needed for a
culture transformation.
After struggling to boost production of its Model 3 sedan in 2018, Tesla CEO Elon Musk angrily
stated that the organization had become “inefficient and bureaucratic”. In very short order, Tesla
announced that it would flatten its organizational structure to improve communication and
flexibility in order to build a culture of innovation. Elon Musk then declared that “Communication
should travel via the shortest path necessary to get the job done, not through the ‘chain of
command’. Any manager who attempts to enforce chain of command communication will soon
find themselves working elsewhere.”
This new way of working – communications through the shortest path possible, meant that from
now on, any obstacle to meeting production goals could reach Musk himself rapidly. As a result,
Musk was often found on the factory floor, directing manufacturing operations hands-on, claiming
to have spent nights sleeping on the factory floor since there was no time for him to go home.
The story of how Tesla overcame its production woes is a long and complicated one. What is clear
though, is that the flow of information to Musk and top Tesla leaders became instant and created a
sense of urgency that all critical-path problems needed urgent resolution. This structure-driven
cultural shift resulted in faster leader involvement and much faster decision-making – whether it
was the decision to open more assembly lines, hire more contractors, negotiate more favorable
payment terms with suppliers or even the decision that Musk made to ask existing Tesla customers
over Twitter to help make deliveries to new customers (which many did).
Through a tumultuous and difficult year of hard work, Tesla’s efforts paid off as Model 3 sedan
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production levels experienced an 82.5% increase soon after Musk’s restructuring initiative. And
much bigger success was still to follow, as Tesla’s Model 3 became one of the top 3 most
purchased cars globally of all automobile types (not just electric) in spite of a global
recession.
Take the next steps towards your culture transformation journey today
As these stories and examples show, culture transformation has a clear role in driving business
performance. And though it may feel intangible, organizational culture is shaped automatically
every day by many factors, including: the words and actions of leaders, key strategic business
decisions, the talent that is hired, systems and structures that are built, incentives and KPIs that an
organization uses and a host of smaller factors that help shape the way people believe and act in an
organization.
The good news is that workplace culture can be actively shaped, and it should be shaped to align
with your organization’s deepest aspirations and priorities. Focusing on the four elements we have
described above – mindsets, abilities, systems and structures (MASS), organizations can establish
a clear, actionable path forward to plan for and move toward a culture that fuels your
organization’s success.
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22. Organizational culture models
22.1 Hofstede’s model
• Hofstede (Citation2011) identified six attributes of organizational cultures, namely: process-vs.results-oriented, employee-vs.-job-oriented, professional-vs.-parochial, open-vs.-closed systems,
tight-vs.-lose-control, and pragmatic-vs.-normative.
• Process-oriented vs. results-oriented
Hofstede (Citation2011) argued that process-oriented organizations strongly emphasize technical
expertise and established procedures, while results-oriented organizations emphasize outcomes.
22.2 Job-oriented vs. employee-oriented
Without employees, a business would struggle to accomplish its objectives. Employees are an
organization’s most valuable asset. Hofstede (Citation2011) explained that job-oriented
organizations are more concerned with an employee’s performance than their overall well-being,
and vice versa refers to employee-oriented organizations.
• Professional and parochial: This dimension can be used to categorize an organization’s
members. The parochial perspective contends that members are identified with their work,
whereas the professional perspective is linked to members who prefer to be associated with a
recognized professional body. Hofstede (Citation2011) argued that, since most educated
people identify with their profession, education level breeds the professional dimension and
vice versa.
22.3 Open systems vs. closed systems
Organizational survival depends strongly on communication (Olum, Citation2011). An open
system allows for the unrestricted flow of information throughout the organization, in contrast to a
closed system where information is kept strictly confidential.
22.4 Tight vs. lose control
Some organizations have strong regulations with harsh consequences for members who violate
them. In contrast, Others are more lenient and have fewer standards to follow; they are looser.
Organizational tightness and looseness frequently change for legitimate reasons
(Olum, Citation2011).
22.5 Pragmatic vs. normative
Hofstede (Citation2011) specified that Market-driven characteristics are the main feature of
pragmatic cultures, while normative cultures view their role in the world as enforcing certain
sacred laws. Individuals from normative cultures place more value on the organizational protocol.
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23. Organizational culture profile (OCP) model
O’Reilly et al. (Citation1991) identified seven profiles, such as innovation, stability, respect for
people, outcome orientation, attention, team, and aggression.
23.1 Innovation
The innovation profile focuses on an organization’s capacity to investigate new trends in its area of
expertise. Such profile is supported by risks taking, taking advantage of opportunities as they
present themselves, and being creative (O’Reilly et al., Citation1991).
23.2 Stability
According to O’Reilly et al. (Citation1991), stable businesses give their employees job security,
are known for their predictability, and do not follow emphatic rules. In their updated OCP, Sarros
et al. (Citation2005) replaced ‘predictability’ and ‘no emphatic rules’ with ‘calm’ and ‘low
disagreement’.
23.3 Respect for people
The contributions of the organization’s employees are the only thing that keeps the organization
running. When individuals in positions of leadership show respect for their subordinates, it inspires
them to contribute their efforts to transforming organizations. This profile reveals a lot about an
organization’s capacity for respecting, treating fairly, and tolerating its employees regardless of
their behaviors (O’Reilly et al., Citation1991).
23.4 Outcome orientation
emphasis on the organization’s desire to accomplish its objectives and its high expectations for
results (O’Reilly et al., Citation1991).
23.5 Attention
In this orientation, organization members value analytical awareness and place a strong emphasis
on the necessity of precision and correctness of results, and they pay close attention to details
(O’Reilly et al., Citation1991). The Hofstede (Citation2011) process orientation is associated with
this profile.
23.6 Team
Collaboration and people-oriented behavior are part of team orientation (O’Reilly
et al., Citation1991). This profile aims to develop an organization’s internal structures and create a
stronger link among its members.
23.7 Aggressive
Through employment and other societal responsibilities, organizations position themselves to
assist and address the demands of society (Mcauley et al., Citation2007). The outside environment
where the organization is situated has an aggressive profile. The distinctive features of this profile
are aggression, competitiveness, and social responsibility.
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24. Organizational culture assessment instrument (OCAI)
The organizational Culture Assessment Instrument (OCAI) framework specified four main types
of culture, such as clan, market, adhocracy, and hierarchy typologies. The fundamentals of the
OCAI were derived from the ‘Competing Values Framework’ which was created by Cameron and
Quinn (Citation2006). The framework evaluates culture based on external-internal dimensions and
a focus on greater or lesser flexibility. The external-internal dimension categorizes an
organization’s culture based on how it reacts to its external business or professional environment
and how it addresses its internal organizational structure, respectively. More-or-less flexibility
refers to a measurement of an organization’s capacity to respond to changes in its environment
(Cameron & Quinn, Citation2006).
24.1 Clan
As stated by Cameron and Quinn (Citation2006), Organizational environments that foster
cooperation and friendliness provide the position for clan cultures which elaborate, every
organization has structures that enforce the unity of its workforce, management, employees, and,
ultimately, its clients. The competing value framework’s internal and integration paradigms serve
as the foundation for clan culture. The expressions of clan culture also include teamwork, full
employee involvement in the business, and employee capability development.
Cameron and Quinn (Citation2006) argued that the clan culture is a method for gaining the loyalty,
interest, and trust of staff members, which has a positive impact on an organization’s ability to
perform activities. The clan culture adheres to the philosophy of Elton Mayo and is based on
management theories. The study by Olum (Citation2011) revealed that the encouragement of
informal groups, a positive work environment, employee engagement, and teamwork all contribute
to higher productivity. According to Albayrak and Albayrak (Citation2014), communication is
crucial in Clan culture. In the clan culture, employers are viewed as the parents and employees as
the children. Ineffective clan communication fosters a chaotic environment. Effective
communication benefits both employers and employees because it enables employers to
communicate their vision to employees, resolve internal conflicts, and address various challenges.
The concepts of clan and market cultures are essentially the same, but the audience is different
because the market culture is geared toward customers, while the clan relationship is oriented
toward employees.
24.2 Hierarchy
When an organization is thought of as having a hierarchy, the notion of rigid structures is brought
to the forefront. Owners, top management, middle management, and mere workers are different
categories of employees in an organization. This classification establishes the line of authority
within an organization to ensure what, when, and how actions are taken to aid the objective’s
achievement. Cameron and Quinn (Citation2006) argued that structures improve stability,
accuracy, reliability, and consistency. This improves the organization’s internal standardization
and the quality of its goods and services.
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24.3 Adhocracy
Cameron and Quinn (Citation2006) stated that the keyword in this culture is ‘ad hoc’, which can
be understood to mean a temporary way of running an organization. The impact of the business
environment necessitates flexibility and informality within organizations. According to Worrall
(Citation2012), adhocracy serves as the foundation for cultural change in organizations because of
its capacity for environmental adaptation. This is not intended to imply that an organization will
compromise on anything besides those issues that will give it a competitive edge or advantage over
rivals.
24.4 Market
The term ‘market’ in the context of OC is highly figurative and does not necessarily refer to a
physical market were buying and selling take place. Optimizing production costs and maximizing
profit is a fundamental tenet of organizational management. The cutting edge of organizations in
today’s competitive business environment is their capacity to compete in the market. According to
Albayrak and Albayrak (Citation2014), if an organization is focused on its competitive bid,
customers should be the central focus. Without customers, organizations cannot succeed and will
lose their competitiveness.
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25. Revised organizational culture profile (ROCP) model
O’Reilly et al. (Citation1991) OCP was revised by Sarros et al. (Citation2005) under the following
different thematic areas:
25.1 People culture
Even if an organization is established to make a profit, understanding the employees’ behavioral
patterns is also crucial to adapt employees centered strategy. People-oriented organizations
strengthen their internal structures by offering necessary training and development to workers, by
implementing reward programs to acknowledge workers’ contributions, and by maintaining a
friendly working environment between management and employees (O’Reilly
et al., Citation1991).
25.2 Business culture
The key feature of a business-oriented organization has become competition. Being out of
competition would be strange for an organization because competition motivates the organization
to define its qualities. Effective organizations always set themselves as a benchmark for others to
follow. Organizations with the aforementioned characteristics are referred to as having a business
culture (Sarros et al., Citation2005).
25.3 Environment culture
According to Mcauley et al. (Citation2007), Organizations are introduced to fulfill society’s
mission. Some organizations prioritize social responsibility to fulfill their fair share of social
obligations. Organizations are also governed by environmental forces like legal, political, and
regulatory pressures. Thus, an organization can be classified as environmentally oriented because
of its willingness to address these pressures.
25.4 Adaptation
The ability of the organization to respond to new developments or innovations in the industry is
the main focus of the adaptation dimension (Mobley et al., Citation2005). This dimension reveals
the organization’s openness to altering its practices or behaviors, its focus on the customer, and its
culture of learning. As Cameron and Quinn (Citation2006) stated, this dimension can be referred to
as the organization’s willingness to take a risk based on its competing value.
25.5 Consistency
Organizations are well-shaped as a result of the difficulties they face in carrying out their mission.
However, a successful approach to problem-solving can become a benefit that the organization and
its members share. In this dimension, internal structures are stressed, which consider reaching a
consensus and making sure that all departmental goals line up with the overall objective of the
organization (Denison & Mishra, Citation1995).
25.6 Mission
The organizational goals, visions, and strategic plans direct the organization’s path (Denison &
Mishra, Citation1995). This dimension contends that organizations can be categorized according to
how strongly they place a focus on achieving their objectives. The mission dimension strengthens
the stability of organizations and directly affects them because it determines how, when, and in
what activities they can engage.
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25.7 Involvement
This dimension is characterized by developing, equipping, and maintaining the workforce of the
organization through participation, collaboration, and capacity building (Denison &
Mishra, Citation1995; Mobley et al., Citation2005).
26. Behavioral Norms Model
The Behavioral Norms Model is a widely recognized framework for understanding organizational
culture. According to this model, organizational culture is shaped by behavioral norms that guide
employee actions and interactions within the organization. These behavioral norms are the shared
expectations and values that define how individuals should behave in the workplace (Cooke &
Rousseau, Citation1988).
Research has shown that the Behavioral Norms Model can have a significant impact on
organizational outcomes. For example, a study by Cameron and Quinn (Citation2006) found that
organizations with a strong culture characterized by clear behavioral norms had higher levels of
employee satisfaction and commitment. This suggests that when employees understand and
internalize the behavioral norms of an organization, they are more likely to engage in behaviors
that contribute to organizational effectiveness.
The Behavioral Norms Model also highlights the role of leadership in shaping organizational
culture. Schein (Citation1992) argues that leaders play a critical role in establishing and
reinforcing behavioral norms within an organization. Through their actions and communication,
leaders can influence the values and expectations that guide employee behavior.
In summary, the Behavioral Norms Model emphasizes the importance of shared behavioral norms
in shaping organizational culture. Understanding and aligning with these norms can lead to
positive outcomes, such as increased employee satisfaction and commitment.
26.1 Model of Organizational Culture and Effectiveness
The Model of Organizational Culture and Effectiveness provides a comprehensive framework for
examining the relationship between organizational culture and organizational effectiveness
(Denison, Citation1990). This model suggests that certain cultural characteristics can enhance or
hinder an organization’s ability to achieve its goals.
The model identifies four key dimensions of organizational culture: involvement, consistency,
adaptability, and mission. Involvement refers to the extent to which employees are engaged and
participate in decision-making processes. Consistency refers to the degree of alignment and
coordination among different parts of the organization. Adaptability refers to the organization’s
ability to respond and adapt to changes in the external environment. Mission refers to the clarity
and alignment of organizational goals and values.
The Model of Organizational Culture and Effectiveness also highlights the importance of fit
between organizational culture and the external environment. Organizations that are able to align
their culture with the demands of the external environment are more likely to achieve high levels
of effectiveness (Denison, Citation1990).
Our study aims to comprehensively examine the landscape of organizational culture and to
effectively accomplish this task, it is essential to integrate and explore various organizational
culture models. The link between these models lies in their complementary perspectives, each
providing unique insights into different facets of organizational culture. Firstly, Hofstede’s model
delineates key dimensions of organizational culture, such as process vs. results orientation,
job vs. employee orientation, professional vs. parochial perspective, open vs. closed systems,
tight vs. loose control, and pragmatic vs. normative approaches. These dimensions offer a
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foundational understanding of cultural variations within organizations. Secondly, the OCP model,
alongside its revision, the ROCP model, delineates organizational cultures based on profiles, such
as innovation, stability, respect for people, outcome orientation, attention, team, and aggression, as
well as thematic areas like people culture, business culture, environment culture, adaptation,
consistency, mission, and involvement. These profiles and dimensions provide a nuanced view of
organizational cultures, focusing on aspects, such as adaptability, employee relations, and
alignment with external demands. Thirdly, the OCAI offers a framework categorizing cultures into
clan, market, adhocracy, and hierarchy typologies, assessing their external-internal dimensions and
flexibility levels. This framework provides a structured approach to evaluating cultural dynamics
within organizations, emphasizing flexibility and responsiveness to environmental changes.
Fourthly, the Behavioral Norms Model elucidates the role of shared behavioral norms in shaping
organizational culture, underscoring their impact on employee behavior and organizational
outcomes.
26.2 Lastly, the Model of Organizational Culture and Effectiveness offers a comprehensive
framework linking cultural dimensions, such as involvement, consistency, adaptability, and
mission to organizational effectiveness, highlighting the importance of alignment between culture
and external demands. By integrating these diverse models, the systematic literature review can
provide a holistic understanding of organizational culture, enriching scholarly discourse and
informing practical interventions in organizational settings.
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Conclusion
Organizational culture represents the foundation upon which organizational behavior,
strategy, leadership, innovation, and performance are built. As highlighted throughout the
chapter, culture is not simply a backdrop to organizational activities but an active,
dynamic force that shapes every aspect of organizational life. Rooted in shared values,
beliefs, norms, and behaviors, organizational culture defines how employees perceive
their roles, interact with each other, solve problems, and respond to challenges and
changes.
The chapter extensively discussed how culture is not a static entity; it evolves through
time as organizations face internal and external pressures. Drawing from theories by
Edgar Schein, Hofstede, Deal and Kennedy, and many other scholars, the document
emphasized that culture operates at multiple levels, from observable artifacts and rituals
to deeper underlying assumptions that guide behavior unconsciously. Whether viewed
from a functionalist perspective, which sees culture as a tool to achieve alignment and
control, or from an interpretive lens, which sees culture as a web of shared meanings, it is
clear that organizational culture profoundly impacts both employee satisfaction and
organizational success.
Leadership was identified as a key driver in shaping and maintaining culture. Leaders,
through their behaviors, decision-making styles, and communication, set the tone for
acceptable behaviors and values within the organization. Transformational leadership
fosters innovation, adaptability, and employee engagement, while transactional
leadership strengthens structure, predictability, and performance. In times of change,
effective leaders must manage resistance by building trust, communicating transparently,
and reinforcing cultural values that support adaptation. Without strong cultural
stewardship from leadership, organizational transformation efforts often fail.
The document also explored the categorization of different types of organizational
cultures — including clan, adhocracy, market, and hierarchy cultures — each offering
unique strengths and challenges depending on the organizational goals and external
environment. It was made clear that no single culture type guarantees success; rather,
alignment between culture, strategy, and operational needs is crucial. Furthermore,
managing subcultures within large organizations remains a significant task, requiring
leaders to balance coherence and flexibility.
Moreover, the chapter highlighted the importance of fostering a positive ethical climate,
noting that organizations with strong ethical cultures are better able to retain talent,
reduce legal risks, and maintain their reputations. Ethical leadership, training programs,
and clear ethical policies contribute to cultivating an environment where employees make
responsible decisions aligned with organizational values.
In addition to ethics, managing cultural diversity emerged as another critical theme. A
diverse workforce, when properly managed, can significantly enhance creativity,
decision-making, and market competitiveness. However, without intentional strategies to
promote inclusivity and address communication barriers, diversity can also create
misunderstandings and conflict.
Innovation was identified as another outcome strongly influenced by organizational
culture. Cultures that embrace risk-taking, autonomy, open communication, and failure as
a learning process tend to be more innovative and adaptable. Organizations such as
Google, Netflix, and Tesla were cited as examples where strong innovative cultures led to
sustained success.
Lastly, the document acknowledged ongoing academic debates about the nature, study,
and manipulation of organizational culture. Whether culture is seen as something an
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organization "has" (measurable and controllable) or something it "is" (complex and
emergent), there is a consensus that culture significantly impacts behavior, engagement,
and performance outcomes.
In sum, organizational culture is a multi-dimensional and powerful force that, when
aligned with strategic goals, nurtured by effective leadership, and reinforced through
ethical practices and inclusivity, can drive organizations toward innovation, employee
satisfaction, and long-term competitive advantage. Managing, evolving, and
strengthening organizational culture must be an ongoing strategic priority, not a
secondary concern, for organizations that seek to thrive in today’s complex and dynamic
business environment.
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Chapter 4
Practical Study & Data Analysis
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Introduction
The researchers have created a questionnaire by taking a sample of 30 employees from KPMG Egypt
to understand how organizational culture influences employee engagement. The aim was to explore
how KPMG’s internal values, behaviors, and cultural practices affect employee satisfaction,
motivation, and overall workplace commitment.
The researchers have collected the results of the statements to know how many of them strongly
agree, agree, are neutral, disagree, and strongly disagree with the survey questions.
About the Company
KPMG Hazem Hassan is one of Egypt’s leading firms for audit, tax, and advisory services, and a
member of the global KPMG network. Established in 1942, KPMG Egypt combines local
knowledge with international expertise to serve a wide range of industries. With a team of over 1,000
professionals, KPMG Egypt is dedicated to upholding the highest standards of integrity, innovation,
and client service. The organization fosters a strong culture that promotes diversity, collaboration,
and continuous professional development, helping employees thrive in a dynamic business
environment.
Their Vision
KPMG’s vision is to build trust and deliver sustainable value in everything they do. They aim to be
the clear choice for their people, clients, and society by driving excellence, embracing innovation,
and empowering their professionals. Through a strong commitment to ethical leadership, continuous
learning, and inclusive growth, KPMG strives to create a positive impact, helping clients and
employees achieve success in an ever-changing world.
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1. Employee Engagement Analysis:
1.1 Introduction: Employee engagement is a critical factor that influences organizational success.
Engaged employees tend to be more productive, committed, and satisfied with their work environment.
This chapter presents the results of the Employee Engagement Questionnaire, analyzing key aspects
that contribute to employee motivation and job satisfaction.
1.2 Data Collection: The data was collected using a structured questionnaire that aimed to measure
various dimensions of employee engagement. The questionnaire consisted of 15 questions, each rated on a
Likert scale ranging from "Strongly Agree" to "Strongly Disagree."
1.3 Questionnaire
1. I feel that my work is meaningful and important:
Employees who find their work meaningful are more engaged and motivated. A high agreement rate indicates strong
job satisfaction and a sense of purpose.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
2. I feel that my organization is transparent and communicates well:
Transparency and effective communication foster trust among employees. Positive responses suggest that the
organization maintains open communication channels.
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
o Disagree
3. I feel supported by my direct supervisor:
Supervisor support is crucial for employee well-being and job performance. A high level of agreement indicates strong
managerial support.
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
o Disagree
4. My supervisor provides me with regular feedback and coaching:
Continuous feedback helps employees grow and improve. High positive responses indicate an organization that values
employee development.
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
o Disagree
5. I feel comfortable speaking up and sharing my opinions:
A work environment that encourages open communication allows employees to express their ideas and concerns freely.
High agreement levels suggest a culture of trust, while lower responses may indicate a need for more inclusive discussions.
o Strongly Agree
o Agree
o Neutral
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o Strongly Disagree
o Disagree
6. I have the resources and tools necessary to do my job:
Access to the right tools and resources is essential for productivity. A lack of resources may hinder efficiency and job
satisfaction.
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
o Disagree
7. I feel valued and appreciated by my organization:
Recognition and appreciation boost morale and engagement. Low agreement levels may signal the need for better
recognition programs.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
8. I feel like I’m making a difference in the organization:
Employees who see their impact on the organization tend to be more motivated. Strong responses reflect a culture that
values individual contributions.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
9. I have a good work life balance:
Maintaining a healthy work-life balance is crucial for long-term engagement and employee retention. Poor ratings may
indicate high stress or workload issues.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
10. I feel that my contributions are recognized and appreciated:
Employees who feel their efforts are acknowledged are more likely to remain engaged. Low scores suggest the need for
better reward systems.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
11. I have the opportunity to work on challenging and interesting projects:
Opportunities for growth and challenging work keep employees motivated. Negative responses may indicate stagnation in
job roles.
o
o
o
o
o
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Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
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12. My organization provides me with the necessary resources to succeed:
Employees perform best when they have adequate support. Low agreement may highlight gaps in infrastructure or
managerial support.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
13. I have opportunities for professional development and growth:
Career growth is a significant factor in employee engagement. A lack of development opportunities can lead to
dissatisfaction and high turnover rates.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
14. I have a good working relationship with my colleagues:
Strong teamwork and collaboration contribute to a positive work environment. Poor ratings could indicate conflicts or a
lack of teamwork
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
15. I have access to the benefits and perks that I need:
Employee benefits play a key role in job satisfaction. Negative responses may indicate that current benefits do not meet
employee needs.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
1.4 Data Analysis: The responses from the questionnaire were analyzed to identify trends and
patterns in employee engagement. The results provide insights into areas where the
organization excels and areas that may require improvement.
1.5 Conclusion: Employee engagement is a multifaceted concept influenced by various factors
such as leadership support, organizational transparency, and work-life balance. The findings
from this questionnaire highlight key areas for improvement and strategies to enhance overall
employee satisfaction and productivity.
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2. Organizational cultural Analysis:
2.1 Introduction Organizational culture plays a significant role in shaping employee behavior,
motivation, and overall workplace dynamics. A strong culture promotes efficiency, teamwork,
and a sense of belonging, while a weak culture can lead to disengagement and inefficiency. This
chapter presents the results of the Organizational Culture Questionnaire and provides an
analysis of each key aspect.
2.2 Data Collection The data was collected using a structured questionnaire designed to assess
various dimensions of organizational culture. The questionnaire consisted of 15 questions rated
on a Likert scale from "Strongly Agree" to "Strongly Disagree."
2.3 Questionnaire
1. Our organization has a hierarchical structure.
A hierarchical structure ensures clear authority and decision-making processes. High agreement levels indicate a welldefined leadership structure, while disagreement may reflect a more decentralized approach.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
2. Our institutions have policies, ways, and methods:
Policies and procedures provide consistency in operations. High agreement suggests a well-structured organization,
whereas lower scores may indicate ambiguity in rules.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
3. In our institution, the order-command chain must be treated in a proper manner:
A well-maintained chain of command ensures smooth communication and operations. Strong agreement suggests respect
for authority and organizational discipline.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
4. There are strict rules to be observed in our organization:
Rules help maintain order and efficiency. High agreement may indicate a highly regulated workplace, while lower scores
could reflect flexibility in policies.
o
o
o
o
o
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Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
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5. It’s important to have position and status in our organization:
Employees who value hierarchy and status may feel more motivated by promotions and recognition. High agreement could
indicate a competitive culture, while disagreement may suggest a more collaborative environment.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
6. Our organization supports all kinds of cooperation:
Cooperation fosters teamwork and collaboration. Positive responses indicate a culture that values collective efforts over
individual competition.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
7. Our organization creates the necessary environment for the formation of good relations among
employees:
A healthy work environment enhances productivity and job satisfaction. Strong agreement suggests an organization that
prioritizes interpersonal relationships.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
8. Our organization supports and encourages our employees:
Organizational support increases employee engagement and retention. High agreement suggests strong managerial and
institutional backing for employees.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
9. Employees in our organization can act freely in all matters:
Freedom in decision-making fosters innovation and ownership. High scores indicate a culture that values autonomy, while
lower scores may suggest a more controlled environment.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
10. Our employees are treated equally:
Fair treatment is essential for employee satisfaction. Strong agreement suggests a workplace free from bias and favoritism.
o
o
o
o
o
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Agree
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Strongly Disagree
Disagree
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11. Our organization inspects the risks in each issue:
Risk assessment ensures sustainable decision-making. High agreement levels suggest an organization that prioritizes
cautious and strategic planning.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
12. Our organization forces it’s employees to do better :
Pressure can sometimes drive performance, but excessive force may lead to stress. High scores may indicate a resultsdriven culture, while lower scores suggest a more relaxed approach.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
13. Our organization is encouraging us to do better in our work:
Encouragement fosters motivation and innovation. Positive responses indicate a workplace that values employee growth
and success.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
14. Our organization encourages us to work by arousing curiosity:
A culture that stimulates curiosity promotes learning and development. High agreement suggests a focus on continuous
improvement and intellectual engagement.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
15. Our organization is focused on results:
A results-oriented organization emphasizes performance and productivity. High agreement suggests a performance-driven
culture, while lower scores may indicate a focus on other factors like employee well-being.
o
o
o
o
o
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
2.4 Data Analysis: The responses were analyzed to identify patterns and insights into the
organizational culture. The results highlight strengths and areas for potential improvement to
enhance employee engagement and workplace effectiveness.
2.5 Conclusion: Organizational culture is a key determinant of overall business success. The
findings from this questionnaire provide valuable insights into how the company operates and
how employees perceive their work environment. By addressing any weaknesses and
reinforcing strengths, the organization can create a more positive and productive workplace.
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Survey Analysis
• The respondents of the survey were KPMG company employees in Egypt.
• The total respondents were 30
• The following tables and charts show the study sample from all dimensions of study.
Demographic characteristics for study samples:
Table 1: Gender
Gender
Frequency
Percentage
Male
Female
14
16
46.7%
53.3%
Figure 1: Gender
• The sample was normally distributed with males constituting 46.7% of the sample and
women distributing 53.3%
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Table 2: Age
Age
20-25
25-35
35-50
Frequency
14
15
1
Percentage
46.6%
50%
3.3%
Figure 2: Age
The sample was normally distributed above employees with ages from 20-25 with 46.6%, ages from
25-36 with 50% and from 35-50 with 3.3%.
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Table 3: Salary is fair & competitive.
Salary perception
Strongly Agree
Agree
Neutral
Strongly Disagree
Disagree
Frequency
3
13
10
1
3
Percentage
10%
43.3%
33.3%
3.3%
10%
Figure 3: Salary perception
The sample was distributed among employees based on their perception of salary fairness: 10%
strongly agree, 43.3% agree, 33.3% are neutral, 10% disagree, and 3.3% strongly disagree.
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Variables of the study
1. Employee Engagement:
Employee Engagement Questionnaire
Strongly
Agree
Fr.
%
1- I feel that my work is meaningful and important.
Agree
Neutral
10
Fr
%
Fr.
.
33.3% 14 46.7% 4
13.3%
Strongly
Disagree
Fr
%
.
-
2- I feel that my organization is transparent and communicates
well.
3
10%
12
40%
7
23.3%
1
3.3%
7
23.3%
3- I feel supported by my direct supervisor.
9
31%
12 41.4%
5
17.2%
2
6.9%
1
3.4%
4- My supervisor provides me with regular feedback and
coaching.
5- I feel comfortable speaking up and sharing my opinions.
9
31%
10 34.5%
9
31%
-
-
1
3.4%
10
35.7%
9
32.1%
7
25%
1
3.6%
1
3.6%
6- I have the resources and tools necessary to do my job.
7
24.1%
15 51.7%
6
20.7%
-
-
-
-
7- I feel valued and appreciated by my organization.
6
20.7%
11 37.9%
8
27.6%
3
10.3%
1
3.4%
8- I feel like I am making a difference in the organization.
5
17.2%
13 44.8%
8
27.6%
1
3.4%
2
6.9%
9- I have a good work-life balance.
5
17.9%
7
25%
9
32.1%
4
14.3%
3
10.7%
10- I feel that my contributions are recognized and appreciated.
3
10.3%
19 65.5%
6
20.7%
-
-
1
3.4%
11- I have the opportunity to work on challenging and
interesting projects.
12- My organization provides me with the necessary resources
to succeed.
13- I have opportunities for professional development and
growth.
14- I have a good working relationship with my colleagues.
6
20.7%
14 48.3%
6
20.7%
-
-
3
10.3%
4
13.8%
18 62.1%
5
17.2%
-
-
2
6.9%
5
17.2%
15 51.7%
7
24.1%
2
6.9%
-
-
12
41.4%
13 44.8%
2
6.9%
1
3.4%
1
3.4%
15- I have access to the benefits and perks that I need.
4
6.7%
14 48.3%
8
27.6%
-
-
3
10.3%
%
Disagree
Fr
.
2
%
6.7%
From the previous table we see that:
1. Meaningful Work
• 33.3% strongly agree, 46.7% agree, 13.3% neutral, and 6.7% disagree.
• Analysis: The majority of employees find their work meaningful, but a small percentage remain
indifferent or dissatisfied.
2. Organizational Transparency & Communication
• 10% strongly agree, 40% agree, 23.3% neutral, 3.3% disagree.
• Analysis: While most employees see transparency, a significant portion remains neutral, suggesting
room for better communication.
3. Support from Direct Supervisor
• 31% strongly agree, 41.4% agree, 17.2% neutral, 6.9% disagree, 3.4% strongly disagree.
• Analysis: The majority feel supported, but 10.3% express dissatisfaction with their supervisor’s support.
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4. Supervisor Feedback & Coaching
• 31% strongly agree, 34.5% agree, 25% neutral, 3.6% strongly disagree, 3.4% disagree.
• Analysis: Regular feedback is present, though 25% of employees remain neutral, indicating inconsistent
coaching experiences.
5. Comfort in Speaking Up & Sharing Opinions
• 24.1% strongly agree, 41.3% agree, 27.6% neutral, 6.9% disagree.
• Analysis: Most employees feel comfortable expressing their opinions, but a notable percentage remain
hesitant.
6. Access to Necessary Resources & Tools
• 20.7% strongly agree, 37.9% agree, 27.6% neutral, 10.3% disagree, 3.4% strongly disagree.
• Analysis: While the majority feel equipped, 13.7% disagree, pointing to potential gaps in resource
availability.
7. Feeling Valued & Appreciated by Organization
• 20.7% strongly agree, 31.9% agree, 27.6% neutral, 10.3% disagree, 6.9% strongly disagree.
• Analysis: A notable percentage (17.2%) do not feel valued, indicating a need for better recognition
strategies.
8. Making a Difference in Organization
• 17.9% strongly agree, 25% agree, 32.1% neutral, 14.3% strongly disagree, 10.7% disagree.
• Analysis: While some employees feel impactful, nearly 25% do not, showing a need for clearer role
significance.
9. Work-Life Balance
• 10.3% strongly agree, 65.5% agree, 20.7% neutral, 3.4% disagree.
• Analysis: Most employees feel they maintain a good balance, though some remain neutral or
dissatisfied.
10. Contributions Recognized & Appreciated
• 13.8% strongly agree, 62.1% agree, 17.2% neutral, 6.9% disagree.
• Analysis: While most feel appreciated, a small group does not, indicating gaps in recognition efforts.
11. Opportunities for Challenging Work
• 20.7% strongly agree, 48.3% agree, 20.7% neutral, 10.3% disagree.
• Analysis: Opportunities exist for challenging work, but 10.3% feel they lack such opportunities.
12. Access to Resources for Success
• 13.8% strongly agree, 62.1% agree, 17.2% neutral, 6.9% disagree.
• Analysis: Most employees believe they have the resources they need, though some see gaps.
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13. Opportunities for Professional Growth
• 17.2% strongly agree, 51.7% agree, 24.1% neutral, 6.9% disagree.
• Analysis: While most feel they have growth opportunities, nearly a quarter remain neutral, indicating
uncertainty.
14. Good Working Relationship with Colleagues
• 41.4% strongly agree, 44.8% agree, 6.9% neutral, 3.4% disagree, 3.4% strongly disagree.
• Analysis: A positive indicator of teamwork, with minimal dissatisfaction.
15. Access to Benefits & Perks
• 6.7% strongly agree, 48.3% agree, 27.6% neutral, 10.3% disagree.
• Analysis: While most feel they receive benefits, some are dissatisfied, indicating room for enhancement.
Conclusion:
The results highlight a generally positive work environment with strong supervisor support, meaningful
work, and good colleague relationships. However, areas such as communication, recognition, and access to
resources could be improved to enhance overall job satisfaction.
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2. Organizational Culture:
Organizational Culture Questionnaire
Strongly
Agree
Agree
Neutral
Strongly
Disagree
Disagree
Fr.
%
Fr.
%
Fr.
%
Fr.
%
Fr.
%
1- Our organization has a hierarchical structure.
3
10.7%
15
53.6%
9
32.1%
-
-
1
3.6%
2- Our institutions have policies, ways, and methods.
8
27.6%
15
51.7%
5
17.2%
-
-
1
3.4%
3- In our institution, the order-command chain must be
treated in a proper manner.
4- There are strict rules to be observed in our organization.
7
24.1%
13
44.8%
9
31%
-
-
-
-
9
31%
9
31%
10
34.5%
-
-
1
3.4%
5- It is important to have position and status in our
organization.
6- Our organization supports all kinds of cooperation.
7
24.1%
14
48.3%
8
27.6%
-
-
-
-
5
17.2%
18
62.1%
5
17.2%
-
-
1
3.4%
7- Our organization creates the necessary environment for the
formation of good relations among employees.
5
17.2%
18
62.1%
5
17.2
1
3.4%
-
-
8- Our organization supports and encourages our employees.
5
17.2%
12
41.4%
9
31%
-
-
3
10.3%
9- Employees in our organization can act freely in all matters.
2
10.3%
10
34.5%
10
34.5%
2
6.9%
4
13.8%
10- Our employees are treated equally.
2
6.9%
10
34.5%
10
34.5%
3
10.3%
4
13.8%
11- Our organization inspects the risks in each issue.
4
13.8
18
62.1%
5
17.2%
-
-
2
6.9%
12- Our organization forces its employees to do better.
2
6.9%
15
51.7%
9
31%
-
-
3
10.3%
13- Our organization is encouraging us to do better in our
work.
14- Our organization encourages us to work by arousing
curiosity.
15- Our organization is focused on results.
4
13.8
16
55.2%
6
20.7%
-
-
3
10.3%
2
6.9%
13
44.8%
9
31%
-
-
5
17.2%
10
34.5%
12
41.4%
5
17.2%
-
-
2
6.9%
From the previous table we see that:
1. Organizational Hierarchy
• 24.1% strongly agree, 53.6% agree, 17.9% neutral, 3.6% disagree.
• Analysis: The majority of employees recognize a hierarchical structure in the organization, though a small
percentage remain indifferent or disagree.
2. Institutional Policies, Ways, and Methods
• 27.6% strongly agree, 51.7% agree, 17.2% neutral, 3.4% disagree.
• Analysis: Most employees acknowledge the presence of institutional policies, but some uncertainty exists
regarding their implementation.
3.Order-Command Chain
• 24.1% strongly agree, 44.8% agree, 31% neutral.
• Analysis: The majority agree that the order-command chain is followed properly, though a notable portion
remains neutral, suggesting possible inconsistencies.
4. Strict Rules in the Organization
• 31% strongly agree, 31% agree, 34.5% neutral.
• Analysis: A significant portion of employees recognize strict rules, but a high percentage remains neutral,
indicating varying perceptions of rule enforcement.
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5. Position and Status in the Organization
• 24.1% strongly agree, 48.3% agree, 27.6% neutral.
• Analysis: Most employees believe that position and status are important within the organization, but a
considerable portion remains neutral, possibly indicating differing views on hierarchy.
6. Support for Cooperation
• 17.2% strongly agree, 62.1% agree, 17.2% neutral, 3.4% disagree.
• Analysis: Cooperation is widely encouraged, with most employees agreeing, though a few remain uncertain
or disagree.
7. Creating a Good Work Environment
• 17.2% strongly agree, 41.4% agree, 34.5% neutral, 6.9% strongly disagree.
• Analysis: While many employees believe their organization fosters good relationships, some neutrality and
disagreement indicate room for improvement.
8. Employee Support and Encouragement
• 10.3% strongly agree, 34.5% agree, 34.5% neutral, 6.9% disagree, 13.8% strongly disagree.
• Analysis: While some employees feel encouraged, a notable percentage remain neutral or disagree,
highlighting the need for stronger support mechanisms.
9. Employee Freedom in Decision-Making
• 6.9% strongly agree, 34.5% agree, 34.5% neutral, 10.3% disagree, 13.8% strongly disagree.
• Analysis: Employees have mixed perceptions regarding their ability to act freely in all matters, with a
significant number expressing neutrality or disagreement.
10. Equal Treatment of Employees
• 13.8% strongly agree, 62.1% agree, 17.2% neutral, 6.9% disagree.
Analysis: The majority believe in equal treatment, but some remain neutral or disagree, suggesting the need
for fairness reinforcement.
11. Risk Inspection in the Organization
• 6.9% strongly agree, 51.7% agree, 31% neutral, 10.3% disagree.
• Analysis: While most employees acknowledge risk inspection, a significant portion remains neutral,
indicating possible gaps in risk management awareness.
12. Encouragement to Improve Performance
• 13.8% strongly agree, 55.2% agree, 20.7% neutral, 10.3% disagree.
• Analysis: Most employees feel encouraged to improve, though some remain neutral or disagree, indicating
the need for enhanced motivation strategies.
13. Encouragement to Work Better
• 6.9% strongly agree, 44.8% agree, 31% neutral, 17.2% disagree.
• Analysis: While many employees feel encouraged to improve their work, a notable percentage remain
neutral or disagree, suggesting room for improvement in motivational initiatives.
14. Encouragement to Work Through Curiosity
• 6.9% strongly agree, 44.8% agree, 31% neutral, 17.2% disagree.
• Analysis: Curiosity as a driving factor for work performance receives mixed responses, indicating the
potential to enhance innovation and learning initiatives.
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15. Focus on Results
• 34.5% strongly agree, 41.4% agree, 17.2% neutral, 6.9% disagree.
• Analysis: The organization is largely results-driven, with most employees agreeing, though some neutrality
and disagreement suggest that not all teams share the same focus.
Conclusion
The survey results indicate that employees generally recognize the hierarchical structure, organizational
policies, and encouragement to improve. However, there are areas that require attention, such as
enhancing employee support, improving communication regarding risk management, and ensuring fairness
in treatment. Addressing these aspects could contribute to a more positive and productive work
environment.
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Table of score:
Score
Item
1- I feel that my work is meaningful and important.
2- I feel that my organization is transparent and communicates well.
3- I feel supported by my direct supervisor.
4- My supervisor provides me with regular feedback and coaching.
5- I feel comfortable speaking up and sharing my opinions.
6- I have the resources and tools necessary to do my job.
7- I feel valued and appreciated by my organization.
8- I feel like I am making a difference in the organization.
9- I have a good work-life balance.
10- I feel that my contributions are recognized and appreciated.
11- I have the opportunity to work on challenging and interesting projects.
12- My organization provides me with the necessary resources to succeed.
13- I have opportunities for professional development and growth.
14- I have a good working relationship with my colleagues.
15- I have access to the benefits and perks that I need.
Average
3.9
3.6
3.9
3.8
3.8
3.6
3.3
3.2
4.0
3.9
3.7
3.9
3.7
4.1
3.5
3.79
1- Our organization has a hierarchical structure.
2- Our institutions have policies, ways, and methods.
3- In our institution, the order-command chain must be treated in a proper manner.
4- There are strict rules to be observed in our organization.
5- It is important to have position and status in our organization.
6- Our organization supports all kinds of cooperation.
7- Our organization creates the necessary environment for the formation of good relations
among employees.
8- Our organization supports and encourages our employees.
9- Employees in our organization can act freely in all matters.
10- Our employees are treated equally.
11- Our organization inspects the risks in each issue.
12- Our organization forces its employees to do better.
13- Our organization is encouraging us to do better in our work.
14- Our organization encourages us to work by arousing curiosity.
15- Our organization is focused on results.
3.6
3.4
3.0
3.6
3.7
3.9
3.5
3.2
3.4
3.8
3.5
3.7
3.4
3.4
4.0
3.58
Average Employee Engagement Score: 3.79
This indicates a generally positive engagement level, with room for improvement in areas like
recognition and appreciation.
Average Organizational Culture Score: 3.58
This indicates a moderately strong organizational culture, but there may be areas that need
reinforcement, such as flexibility, support, and employee empowerment.
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Chapter 5
Results & Recommendations
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Results:
The analysis of survey responses from 30 employees at KPMG Egypt reveals a multifaceted picture
of organizational health and employee engagement. A significant portion of employees report feeling
that their work is meaningful and that they receive adequate support from supervisors, contributing to
an average engagement score of 3.79. This suggests that the company's investment in leadership and
team dynamics is paying off. Employees also indicated strong interpersonal relationships,
professional development opportunities, and satisfaction with their work-life balance.
However, several critical insights emerged that warrant executive attention. Organizational
transparency and communication showed only moderate satisfaction, highlighting a potential
disconnect between leadership messaging and employee perception. Moreover, while many
employees feel recognized, a meaningful percentage expressed neutrality or disagreement—a red flag
for long-term retention and morale.
On the cultural side, the average score of 3.58 points to a moderately effective organizational culture.
KPMG is perceived as structured and policy-driven, which provides clarity and stability. Yet, this
structure might be limiting employee autonomy and innovation, as shown by the mixed responses
regarding empowerment and freedom in decision-making. Furthermore, gaps in equality, risk
management awareness, and encouragement strategies suggest the need for systemic improvements
across departments.
Overall, while KPMG Egypt enjoys several strengths—particularly in leadership support and
strategic clarity—this chapter underlines the importance of evolving its culture toward greater
transparency, inclusiveness, and employee-centricity to drive higher performance and engagement.
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Recommendations:
Recommendations
Enhance transparency and communication to reduce
employee uncertainty.
Implement formal recognition programs to improve
employee appreciation.
Ensure resource availability to support employee
productivity.
Foster a culture of feedback and coaching from
supervisors.
Support professional development through regular
training.
Encourage employee involvement in decision-making.
Promote fairness and equal treatment in policies and
practices.
Create flexibility in structure to empower employee
autonomy.
Build strong team collaboration through social and
team-building events.
Improve risk communication and management
awareness across departments.
Who should apply it
HR Department
HR Department
HR Department
Line Managers
HR & Training Department
Top Management
HR Department
Executive Management
HR & Department Heads
Risk Management Team
Conclusion:
The survey findings demonstrate that KPMG Egypt maintains a generally positive work environment,
with strengths in teamwork, supervisor support, and meaningful roles. Nevertheless, challenges
remain in communication, employee recognition, and empowerment. Organizational culture is
structured and policy-driven, but could benefit from greater flexibility and employee support
mechanisms. To achieve higher engagement and improved culture, management should implement
strategic changes focused on transparency, inclusion, and personal growth. These actions will
enhance organizational performance and employee satisfaction in the long term.
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Gallup. (2020). Employee Engagement Drives Growth.
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Harter, J. K., Schmidt, F. L., Agrawal, S., & Plowman, S. K. (2013). The relationship between engagement at work and organizational outcomes: 2012 Q12® metaanalysis. Gallup, Inc.
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Towers Watson. (2014). Global Workforce Study: Driving Engagement Through a Consumer-Like Experience.
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Sorenson, S. (2013). How Employee Engagement Drives Growth. Gallup Business Journal.
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Gallup. (2017). State of the Global Workplace: Employee Engagement Insights for Business Leaders Worldwide. Gallup Press.
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Gallup. (2020). Employee Engagement Drives Growth.
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Harter, J. K., Schmidt, F. L., Agrawal, S., & Plowman, S. K. (2013). The relationship between engagement at work and organizational outcomes: 2012 Q12® metaanalysis. Gallup, Inc.
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Towers Watson. (2014). Global Workforce Study: Driving Engagement Through a Consumer-Like Experience.
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Sorenson, S. (2013). How Employee Engagement Drives Growth. Gallup Business Journal.
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Gallup. (2020). Employee Engagement and Performance: A Review of Research and Business Case.
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Forbes Coaches Council. (2020). 14 Reasons Why Employee Engagement Is Important.
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Harvard Business Review. (2017). The Impact of Employee Engagement on Performance.
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Zippia. (2023). 25 Employee Engagement Statistics [2023]: Trends, Data & Analysis.
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Quantum Workplace. (2022). The Benefits of Employee Engagement.
Retrieved from https://www.quantumworkplace.com
Officevibe. (2021). 10 Benefits of Employee Engagement You Can't Ignore.
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Indeed Editorial Team. (2021). Pros and Cons of Employee Engagement.
Retrieved from https://www.indeed.com/career-advice/career-development/employee-engagement-pros-and-cons
References:
Forbes. (2020). How AI Tools Can Improve Employee Engagement.
Retrieved from https://www.forbes.com
LinkedIn Talent Blog. (2021). Why Employee Engagement Matters More Than Ever.
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Hootsuite. (2023). Employee Advocacy 101: How to Turn Employees Into Brand Advocates.
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Smarp. (2021). Employee Engagement Action Plan for the Modern Workplace.
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Culture Amp. (2022). 4 Unexpected Ways to Boost Employee Engagement.
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Officevibe. (2021). Employee Engagement Ideas From 21 Industry Leaders.
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Hootsuite. (2022). 6 Ways to Get All Employees Active in Social Media Marketing.
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One4all Rewards. (2020). The Magic Word for Employee Motivation.
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Appendix
Questionnaire Form
Kindly put a tick in front of the suitable answer for you
Statements
1- I feel that my work is meaningful and important.
2- I feel that my organization is transparent and communicates
well.
3- I feel supported by my direct supervisor.
4- My supervisor provides me with regular feedback and
coaching.
5- I feel comfortable speaking up and sharing my opinions.
6- I have the resources and tools necessary to do my job.
7- I feel valued and appreciated by my organization.
8- I feel like I am making a difference in the organization.
9- I have a good work-life balance.
10- I feel that my contributions are recognized and appreciated.
11- I have the opportunity to work on challenging and
interesting projects.
12- My organization provides me with the necessary resources
to succeed.
13- I have opportunities for professional development and
growth.
14- I have a good working relationship with my colleagues.
15- I have access to the benefits and perks that I need.
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Strongly
Agree
Agree
Neutral
Strongly
Disagree
Disagree
The Sadat Academy for Management Sciences Faculty
Of Management Science
Strongly
Agree
Statements
Agree
Neutral
1- Our organization has a hierarchical structure.
2- Our institutions have policies, ways, and methods.
3- In our institution, the order-command chain must be
treated in a proper manner.
4- There are strict rules to be observed in our organization.
5- It is important to have position and status in our
organization.
6- Our organization supports all kinds of cooperation.
7- Our organization creates the necessary environment for the
formation of good relations among employees.
8- Our organization supports and encourages our employees.
9- Employees in our organization can act freely in all matters.
10- Our employees are treated equally.
11- Our organization inspects the risks in each issue.
12- Our organization forces its employees to do better.
13- Our organization is encouraging us to do better in our
work.
14- Our organization encourages us to work by arousing
curiosity.
15- Our organization is focused on results.
Thank you for taking the time to respond to this Questionnaire
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Strongly
Disagree
Disagree
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Of Management Science
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