Organizational culture is the foundation on which every company operates. It is not just a set of written values or slogans, but a deeply rooted system of beliefs, rules, and norms that determine daily actions and interactions within the organization. Numerous scientific studies confirm that there is a strong correlation between organizational culture and employee engagement, which directly translates into business effectiveness and competitiveness. This article presents the latest findings from research on this relationship and provides practical examples illustrating how consciously shaping organizational culture can increase team engagement.
The Importance of Organizational Culture in the Modern Workplace
Organizational culture is defined as a set of shared values, internal practices, and norms that leaders and employees follow in their daily work. It is the company’s personality that influences every aspect of its functioning—from decision-making and communication to interpersonal relationships. In the rapidly changing business environment, where technology is continuously transforming the way work is done and the talent market becomes increasingly competitive, organizational culture gains importance as a strategic factor for success.
Research by Harvard Business Review shows that teams with a strong sense of shared purpose and values achieve up to a 17% increase in productivity compared to teams that lack this sense. Moreover, 75% of employees declare a desire to achieve business success if they rate the organizational culture as “good.” Additionally, organizations with a strong organizational culture report results that are 20-30% better than their competitors.
Practical example: Orbis began managing its organizational culture in 2016. After diagnosing the existing culture and defining priorities, a series of changes were implemented with a particular focus on the individual influence of leaders. The results were impressive—the employee engagement rate increased from 57% in 2015 to 72% in 2018.
How Organizational Culture Shapes Employee Engagement
Employee engagement is defined as a positive attitude, giving more than what the employer requires, utilizing one’s potential and energy, persistence, and consistency in striving for achievements for the organization. It is a state where employees feel an emotional connection to the company, identify with its goals and values, and are willing to put in extra effort beyond their basic duties.
Long-term research by organizational development experts R. Cooke and C. Lafferty indicates a strong relationship between the company’s culture profile and indicators such as motivation levels, satisfaction, willingness to stay with the company, sense of “fit” within the organization, and belief in its success. All these elements make up the complex concept of employee engagement.
Research conducted by the International Journal of Research Publication and Reviews showed that organizations with a unified and adaptive culture are better prepared to build team engagement. A work environment that promotes innovation, collaboration, and continuous development motivates employees to give their best.
Practical example: Bank Gospodarstwa Krajowego in Poland also experienced positive effects from transforming its organizational culture. In 2017, the employee engagement rate was 60% (below the national average), but after implementing cultural changes, it rose to 74% in 2019, significantly exceeding the Polish norm.
Key Elements of Organizational Culture Supporting Engagement
Values and Mission of the Organization
Modern employees expect their work to have deeper meaning and significance. A clearly defined mission and strong organizational values serve as powerful motivational tools, provided they are reflected in the company’s daily operations. Organizations that can effectively communicate their values and weave them into every aspect of functioning create an environment where employees feel part of something bigger and valuable.
The Role of Leadership
Leaders play a key role in shaping organizational culture by modeling desired behaviors and supporting employee development. Research shows that leadership directly affects culture, which in turn impacts financial results, although this is not a direct relationship. Rather, it is the result of a proper culture and the associated employees, their energy, satisfaction, and motivation.
Transparent Communication
The International Journal of Research Publication and Reviews identifies transparent leadership and effective communication as key factors supporting engagement and productivity. Organizations with openness and trust create an environment where employees feel safe expressing their ideas and know they will be heard and appreciated.
Practical example: One of Mastercard’s branches worldwide underwent a successful transformation of organizational culture in the early 2000s. According to the leader at that time, the cultural change reversed the organization’s negative market situation and brought financial success. Annual employee engagement surveys showed a significant increase after cultural changes. Particularly notable was the increase in the willingness to exert extra effort, which was declared by one-third more employees than before the change.
Practical Strategies for Building Organizational Culture that Increases Engagement
1. Creating a Friendly Work Atmosphere
The atmosphere in the company plays a crucial role in shaping organizational culture. It is important to maintain a good atmosphere in various contexts—during recruitment, onboarding, and daily work. A good atmosphere positively affects employees, encourages them to engage in creating a friendly work environment, and improves well-being.
2. Adapting Systems and Processes
Motivational systems, recruitment, promotion, and employee evaluation processes should be adapted to support and promote cultural values. Research shows that consistency between declared values and actual organizational practices is critical for building trust and engagement.
3. Promoting Equality and Diversity
Respecting and appreciating each employee, regardless of demographic data, gender, position, or seniority in the company, contributes to increased loyalty and engagement. An inclusive and diverse culture creates an environment where everyone can fully utilize their potential.
4. Encouraging Innovation and Collaboration
A culture that supports innovation and collaboration encourages employees to share knowledge and ideas. Realizing joint projects, participating in team workshops, and social initiatives strengthens partnership relations and trust.
Practical example: ProOptima, as part of building its organizational culture, created the so-called Internal Implementation Team (WZW), consisting of employees representing the management. This team focuses on creating the company’s information policy regarding organizational culture research, providing qualitative data describing elements of culture, and launching internal company resources by involving employees in building internal systems. This approach significantly increased employee engagement in shaping the organizational culture.
The Impact of Organizational Culture on Flexibility and Innovation
In the rapidly changing business environment, the ability to adapt and innovate becomes a key factor for success. Organizational culture directly influences these aspects of a company’s functioning. Organizations with a strong culture based on trust and openness create space for experimentation, learning from mistakes, and taking risks, which is necessary for innovation.
A study published in the “Przegląd Organizacji” (2023) shows that organizational culture has a significant impact on engaging employees in the company’s digital transformation process. Faced with the unprecedented pace of development of digital techniques, formal planning procedures often prove insufficient. Employee engagement in observing new solutions and assessing their adaptation opportunities within the organization becomes a valuable complement to traditional approaches.
Practical example: The Talent Trends 2024 study shows that one in four HR leaders plans to increase investment in communicating company values, which directly affects employee retention and the attraction of new talent. Companies that adapt their organizational culture to market changes, including generational shifts, remote work, and the need for work-life balance, gain a competitive advantage.
Measuring the Impact of Organizational Culture on Engagement
To effectively manage organizational culture and its impact on employee engagement, it is necessary to regularly measure the results of actions taken. Indicators that can help assess the effectiveness of organizational culture include:
- Employee satisfaction levels
- Retention and turnover rates
- Engagement survey results
- Team effectiveness and productivity
- Employee innovation and creativity
Organizations that consciously invest in the development of their culture often observe tangible benefits in terms of increased efficiency, innovation, and competitiveness.
Practical example: According to research conducted by Denison and Mishra, organizations with a strong, positive culture experience higher levels of engagement and employee satisfaction, which translates into increased productivity. Cameron and Quinn examined the relationship between organizational culture and performance, highlighting that a positive culture can improve productivity, support innovation, and contribute to the overall success of the organization.
Summary
Organizational culture is a powerful tool that affects employee engagement, which in turn translates into business results. Scientific studies clearly confirm that organizations with a strong, positive culture achieve better results, exhibit higher levels of innovation, and are more competitive in the market.
Building an organizational culture that promotes engagement requires a strategic approach and consistency in action. Key elements of this process include clearly defining values and mission, effective leadership, transparent communication, adapting systems and processes, and promoting equality, diversity, and collaboration.
Investing in the development of organizational culture is not a one-time project but an ongoing process requiring involvement at all levels of the organization. Organizations that understand the importance of culture and actively shape it create a work environment where employees can fully realize their potential, leading to mutual benefits for both employees and the organization.
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