The Power of Organizational Culture

 


What is organizational Culture 

Organizational culture refers to the shared values, beliefs, and norms that shape the behavior and practices of employees within an organization (Schein E, H, 2010). It influences how employees work together with others, make decisions and contribute to achieving organizational common goals. A strong organizational culture boosts commitment, motivation, and performance, and also a weak culture can cause inefficiency, low morale, and high turnover.

Research shows that organizations with a strong, clear culture perform better than those with weak or unclear cultures. A strong culture helps employees connect with the company's goals and creates a high-performance environment. Also, being adaptable is key to long-term success, especially in changing business conditions.


How Organizational Culture Impacts Performance

1. Employee Motivation and Productivity

A positive culture makes employees feel valued and appreciated, increasing job satisfaction and motivation. When employees feel supported, they are more likely to work harder, this helps to improve overall productivity and business results.

2. Attraction and Retention of Talent

Companies with a strong culture attract top talent because people want to work in a place where they feel respected and part of a team. A good culture also helps keep employees around longer, reducing turnover and its costs.

3. Alignment with Organizational Goals

A clear culture helps everyone to understand the company's mission and their role. When everyone is on the same page, it helps to make decisions, low confusion, and also improves performance.

4. Adaptability and Resilience

A culture that encourages flexibility and learning helps companies adapt to change. Employees in these environments are more likely to find creative solutions, helping the company stay competitive.


The Cost of a Weak or Misaligned Culture

A weak or misaligned culture can harm performance. Because employees don’t share the same values or understand the company’s mission, it can lead to confusion, low morale, and poor teamwork.

In a fragmented culture, employees may have different priorities, making it hard to work together. Due to this issue, poor communication, missed deadlines, and lower productivity will result. A negative culture can also lead to high turnover, as employees may leave for better work environments.


Sri Lankan organisational practices 

MAS Holdings, a top apparel manufacturer, shows a "Bias for Action" by using agile teams and quick prototyping to respond fast to fashion trends. With tools like Browzwear, Clo3D, and Optitex, MAS replaces traditional physical samples with faster, more sustainable digital ones. This approach cuts down lead times, helping brands quickly adjust to changing consumer demands and trends. (MAS Holdings Impact Report, 2023)


Dialog Axiata, a top telecom provider in Sri Lanka, shows a "Close to the Customer" approach by using customer feedback to improve its services. The company has several channels for customers to share concerns and suggestions, including an online platform where users can report issues. This helps Dialog respond quickly and make customer-focused improvements. (Dialog Axiata, 2021)

Conclusion

In "The Power of Organizational Culture," it's clear that culture is a driving force behind a company’s performance. A strong, positive culture motivates employees, aligns teams with goals, and fosters adaptability, while a weak culture can reduce the productivity and growth of the company. Companies like MAS Holdings and Dialog Axiata exemplify how a customer-focused culture leads to success. MAS’s agility in fashion trends and Dialog’s commitment to listening to customer feedback demonstrate the importance of flexibility and connection. By prioritizing these values, companies can enhance performance, attract top talent, and build lasting loyalty.

 

Reference

·        Schein E, H (2010) Organizational Culture and Leadership, John Wiley & Sons, Inc [online] available at https://ia800805.us.archive.org/9/items/EdgarHScheinOrganizationalCultureAndLeadership/Edgar_H_Schein_Organizational_culture_and_leadership.pdf [accessed on 1st of April 2025 ]

·        Denison, D R, and Mishra A, K  (1995) Toward a Theory of Organizational Culture and Effectiveness,Organization Science[online] available at https://www.jstor.org/stable/2635122 [accessed on 1st of April 2025 ]

·        MAS Holdings. (2023). MAS Holdings Impact Report, 2023. Retrieved from https://masholdings.com/impact_report/2023/services/pdf/masir23.pdf

·        Dialog Axiata. (2021). TM Forum Excellence Awards Case Study: CX - Dialog Axiata. Retrieved from https://www.tmforum.org/wp-content/uploads/2021/02/TM-Forum-Excellence-Awards-Case-Study-CX_Dialog-Axiata-Case-Study.pdf



Comments

  1. Chathuri SamarawickramaApril 1, 2025 at 7:57 PM

    Organizational culture is the backbone of a thriving workplace.it shapes values, drives engagement, and fuels long-term success.

    ReplyDelete
  2. Prasanna KumaraApril 2, 2025 at 4:54 AM

    Individuals who hold diverse attitudes that align with specific principles can be seen as representing an organization's culture. Some cultures are unique to particular organizations and serve as a core aspect of their identity. This culture inspires the organization's vision and mission, enhances organizational behavior, and ultimately boosts productivity.

    ReplyDelete
  3. Jasmine JayakodyApril 3, 2025 at 11:01 PM

    ​A strong organizational culture drives employee motivation, aligns teams with company goals, and fosters adaptability. Companies like MAS Holdings and Dialog Axiata exemplify how a customer-focused culture leads to success. Prioritizing these values can enhance performance, attract top talent, and build lasting loyalty.​

    ReplyDelete
  4. Poornima Abeykoon April 4, 2025 at 7:24 AM

    Great post! Organizational culture really shapes how people feel and perform at work.
    A positive culture helps build teamwork, trust, and long-term success.
    It’s something every company should pay attention to.

    ReplyDelete
  5. chinthanashilpikaApril 4, 2025 at 7:01 PM

    Culture isn't just about fun activities, it's the foundation for hiring the right people, solving conflicts, and helping employees grow. When Sri Lankan companies get their culture right, they see less staff turnover and better customer service, which is crucial in our competitive market.

    ReplyDelete
  6. Manori KolonnageApril 4, 2025 at 9:39 PM

    Organizational culture is indeed a transformative force -it can energize employees, drive collaboration, and provide a solid foundation for growth and adaptability.

    ReplyDelete
  7. Kasun MaddumahewaApril 5, 2025 at 7:10 AM

    You've done a great job explaining the power of organizational culture in your blog post. I believe it's a key factor that drives a company's success. Paying attention to customer feedback shows how important it is to stay flexible and connected. I really liked the detailed points you shared. Looking forward to reading more posts like this!

    ReplyDelete
  8. Charitha BoraluwaApril 6, 2025 at 2:04 AM

    Effective article on how positive culture enhances employee engagement and performance for ensures long term sustainability of an organization. The examples from MAS Holdings and Dialog Axiata clearly demonstrate how aligning culture with strategy creates value and competitive advantage.

    ReplyDelete

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