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What Makes An Organizational Culture


 

An organizational culture is evidenced in its values, policies, attitudes, structures, and beliefs. It is a tangible asset that impacts morale and company performance, and it can be built, nurtured, and changed.

Organizational Culture is mainly comprised of seven components

1. People : Companies with powerful cultures acknowledge that people are their greatest asset. So they hire the right people and treat them well, which creates a positive and empowering culture.

2. Vision : When vision is authentic, stated clearly, communicated often, and tied back to every objective, that creates a cohesive culture. It's like the glue that holds everyone together and keeps everyone focused on the same goal.

3. Values : These are behaviors and mindsets which sets tone for actions and are needed to reach the vision. When teams share the same values, a common way of thinking and acting, their collaborative efforts are strengthened, productivity increases, and performance improves.

4. Processes : When looking at an organization's policies and procedures, does that infrastructure make it easy for employees to achieve their goals or is it confusing and bureaucratic? The relative ease or difficulty of a company's processes plays a big role in defining the culture.

5. Environment : Work environment is a highly compelling part of culture. Formal versus casual. Closed offices versus open workspaces. Office locations that are in sync what their cultures and people they want to attract. Urban, rural, trendy, prestigious, Companies can reinforce their culture through their choice of workspace architecture.

6. Incentives : If we look at the actions a company rewards, punishes, or ignores, we can tell a lot about its culture. Are incentives tied to behavior or results? Research proves that organizations are more successful when they have recognition-based cultures.

7. Heritage : Some companies have distinct culture with a strong legacy, traditions that have defined the organization over time. Employees take great pride in working for a company with that kind of caring heritage.

Precisely , value of organizational culture can't be overstated. It translates directly into bottom line success. Companies that understand and leverage it reap the benefits on multiple levels.

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