Employees as Creators of Organizational Culture

Organizational culture forms the foundation of every company, determining how work is performed, decisions are made, and relationships are built within the organization. While it is often seen as something shaped from the top by management, recent studies clearly indicate that it is employees – particularly middle managers – who are the key architects and carriers of organizational culture. True organizational culture is not what is written in company documents, but what employees actually experience and practice every day. In this article, we will analyze how employees shape organizational culture, present the latest research in this area, and provide practical examples illustrating this dynamic relationship.

Employees as Real Creators of Culture – A Research Perspective

When we ask leaders from around the world a simple question: “Who is responsible for culture in your organization?”, they almost unanimously reply: “Everyone.” However, when we ask further about specific actions taken to manage this culture, the responses become much less precise and inspiring. Research clearly shows that it is not declarations, but the daily practices and behaviors of employees that shape the actual organizational culture.

Organizational culture is defined as a set of shared values that guide the way work is performed. In the past, there was a debate about whether culture predicts high performance, or whether high performance allows leaders to create a strong and cohesive culture. Today, scientific evidence strongly supports the first theory – it is a strong and cohesive culture that leads to better business results.

Importantly, research shows that internal integration between organizational culture and management systems (e.g., employee reward systems) is crucial for reinforcing desired behavioral patterns and retaining employees in the long term. Organizational culture and management systems complement each other – culture determines not only the management style and procedures but also the processes used, while management systems indicate to employees what their employer expects from them and what behaviors are preferred.

The Role of Middle Managers in Shaping Organizational Culture

Research clearly indicates that middle managers have a key influence on shaping a healthy and dynamic organizational culture. For a company to leverage the power of culture, it needs middle managers distributed throughout the organization – managers and team leaders.

However, it is not enough for managers to be aware of their influence on shaping culture. They must also take responsibility for it by initiating and implementing actions that allow them to develop it. Studies have shown that middle managers often feel obligated to support existing cultural norms, rather than enrich or transform them. This means that they focus on cultivating already established norms and values when they appear in smaller team actions, rather than actively shaping new values that respond to future challenges.

Practical Examples of Companies with Outstanding Organizational Culture

Isolution – Technology in the Service of Culture

The Polish software house Isolution is an excellent example of a company that consciously builds organizational culture supported by proprietary technologies. Facing typical IT industry challenges (high turnover, lack of loyalty, low motivation among developers), the company decided to adopt a radical approach to shaping its organizational culture.

The leadership of Isolution started with the fundamental question “why” (inspired by Simon Sinek’s Golden Circle concept) and implemented a series of tools supporting a culture of appreciation and feedback, such as a kudos system (mutual appreciation), happiness index, and an initiative marketplace. Thanks to these actions, the company achieved spectacular results: it reduced turnover in the development department to just 2% and increased the number of employee referrals to 40%.

Zappos – Culture as a Business Priority

Zappos, the e-commerce giant in the footwear industry, stands out for its unwavering commitment to organizational culture. Their unique approach includes a cultural fit interview, which significantly influences their hiring process. Zappos aims to hire people who naturally align with their culture, even offering $2000 to new employees who decide to leave after the first week if they feel the job is not right for them.

Netflix – A Culture of Freedom and Responsibility

Netflix, the global entertainment giant, sets a benchmark for organizational culture through its emphasis on freedom and responsibility. Promoting trust and honesty, Netflix offers its employees unlimited vacation days, embodying belief in individual responsibility. The company’s cultural memo emphasizes the importance of employee decision-making, transparency, open communication, and efficiency. Avoiding rigid rules, Netflix fosters a culture that enables employees to grow in a demanding but rewarding environment.

How to Measure and Shape Organizational Culture?

Measuring organizational culture can take various forms, but typically involves:

1. Surveys: Anonymous online or paper surveys that allow for data collection from a large number of employees.
2. Interviews: One-on-one or group conversations with employees to gain a deeper understanding of their perspective.
3. Observations: Observing employee behavior in the workplace to gather information about actual practices and interactions.
4. Document Analysis: Analyzing internal documents such as regulations, procedures, or communications to understand the formal aspects of organizational culture.

Organizational culture research is conducted to:

• Understand the prevailing values, norms, and beliefs of members within the organization
• Identify strengths and weaknesses of the culture
• Assess employee engagement levels
• Increase organizational effectiveness
• Attract and retain talent

Employees as Ambassadors of Values – How to Leverage Their Potential?

To effectively leverage employees as creators of organizational culture, companies should:

1. Engage employees in defining values: Instead of imposing values from the top, it is important to involve employees in the process of defining them. This increases their sense of ownership and identification with these values.
2. Create a consistent reward system: The reward system should support desired behaviors and values. For example, if the company values collaboration, it should reward not only individual achievements but also team successes.
3. Invest in the development of middle managers: Since middle managers have a key influence on culture, companies should invest in their development and provide them with the tools needed to consciously shape culture.
4. Create space for dialogue: Open communication is the foundation of a healthy organizational culture. Companies should create spaces where employees can openly express their opinions and suggestions regarding organizational culture.
5. Implement tools that support the desired culture: Similar to Isolution, companies can implement technological tools that support the desired culture, such as mutual appreciation systems or idea-sharing platforms.

Practical Examples from Organizational Life

In one Polish manufacturing company, management faced the issue of low innovation and employee engagement. Instead of implementing more top-down initiatives, they decided to conduct a series of workshops with employees from various departments and organizational levels. During these meetings, employees themselves identified barriers to innovation in the company and proposed solutions.

One of the ideas was to create an “Idea Incubator” – a platform where any employee could submit their idea for improving processes or developing new products. Every month, a vote was held for the best ideas, and their authors were given time and resources to implement them. Over the course of a year, the company implemented more than 30 innovative solutions directly from employees, which not only improved financial results but also significantly strengthened the culture of innovation and engagement.

Another example is a retail chain, which instead of a traditional employee evaluation system, introduced a culture of continuous feedback. Managers were trained in providing constructive feedback, and employees were encouraged to regularly share their observations. In each store, an “Acknowledgment Wall” was created where employees could publicly appreciate colleagues for specific actions aligned with the company’s values. This simple solution significantly improved the work atmosphere, strengthened the sense of community, and contributed to a 25% reduction in turnover over two years.

Challenges in Building Culture Through Employees

Although engaging employees in creating organizational culture brings many benefits, it is not a process without challenges.

One of the biggest challenges is resistance to change from some employees, especially those with long tenures. Research shows that balancing a culture of collaboration and team integration while still caring about individual performance is no easy task.

It is crucial to implement tools that strengthen desired values: from joint training, workshops, recreation, and relaxation spaces that support integration, to performance bonus cards that allow employees to monitor their work outcomes.

Effective communication with employees is an important aspect in implementing change. It is a factor without which many actions would not have been successful. Successful organizations implement transparent communication systems and additional applications that support organizational culture.

Conclusions for Business Practice

Research and business practice clearly show that employees are the key creators of organizational culture. To leverage this potential, organizations should:

1. Treat organizational culture as a strategic priority, not just a “soft” aspect of management.
2. Invest in the development of middle managers as the main architects of culture.
3. Engage employees in defining and shaping organizational values.
4. Create consistent management systems (including rewards) that support the desired culture.
5. Regularly assess and monitor organizational culture to identify areas for improvement.
6. Appreciate and reward employees who actively contribute to shaping a positive culture.

Organizational culture is not something that can be designed on paper and implemented top-down. It is a living organism, shaped by daily interactions, decisions, and behaviors of all members of the organization. By recognizing and appreciating the role of employees as creators of culture, organizations can unlock tremendous potential that translates into better business results, higher engagement, and job satisfaction.

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