Organizational Culture (With Real World Examples）| Strategic Management | From A Business Professor

Business School 101

17 Dec 202110:30

Summary

TLDRIn this video, we explore the concept of organizational culture, its impact on employee behavior, and how it's shaped by founders and industry norms. We learn that a positive culture can enhance recruitment, loyalty, job satisfaction, collaboration, performance, and reduce stress. The video offers six tips for building a high-performing culture, emphasizing employee wellness, hiring practices, and fostering positivity and workplace relationships.

Takeaways

🐵 Organizational culture can be influenced by peer behavior, as demonstrated by the 1966 University of Wisconsin-Madison experiment with monkeys.
🌟 A positive organizational culture can significantly impact a company's operations, including punctuality, tone, contract terms, and employee benefits.
📈 Organizational culture is defined by the shared values and norms of an organization's members, which are learned through socialization.
🏆 Twitter is highlighted as an example of a company with a strong positive culture, fostering excitement and team-oriented environments among its employees.
💼 The benefits of a positive organizational culture include improved recruitment, employee loyalty, job satisfaction, collaboration, work performance, and reduced stress.
🤝 Organizational culture often stems from two main sources: the company's founders and the industry in which it operates.
💡 To build a high-performing culture, emphasize employee wellness, which is foundational for a positive corporate culture.
🔍 When growing a positive culture, consider the current culture and employee feedback to build upon strengths and address weaknesses.
👥 Hire individuals who align with the company's culture to ensure they contribute positively to the overall work environment.
🌞 Encourage positivity in the workplace by promoting gratitude, optimism, and a positive attitude among employees and leaders.
👂 Foster workplace relationships and listen to employees to create an environment where their voices are heard and valued.

Q & A

What is the significance of the monkey experiment mentioned in the script?
-The monkey experiment illustrates the concept of peer influence and how behaviors can be learned and passed on within a group, even without direct experience. It is used as an analogy to explain how organizational culture can influence and change an individual's beliefs and behaviors within a company.
What is organizational culture according to the script?
-Organizational culture is defined as the shared values and norms of an organization's members, which include what is considered important (values) and appropriate employee attitudes and behaviors (norms).
How do employees typically learn about an organization's culture?
-Employees learn about an organization's culture through a process called socialization, where they internalize the organization's values and norms by being immersed in its day-to-day operations.
What are the six major benefits of a positive company culture mentioned in the script?
-The six major benefits of a positive company culture are: 1) Recruitment, 2) Employee loyalty, 3) Job satisfaction, 4) Collaboration, 5) Work performance, and 6) Less stress.
How does organizational culture affect a firm's operations?
-Organizational culture can affect almost all aspects of a firm's operations, including punctuality, tone, contract terms, and employee benefits.
What are the two major sources of culture in an organization as discussed in the script?
-The two major sources of culture in an organization are the founders and the industry in which the organization operates.
Why is it important to hire the right people when building a positive corporate culture?
-Hiring the right people is crucial because they directly impact the business and company culture. It's important to consider not only skills and needs but also how an individual will fit into the overall company culture.
What does the script suggest as a tip for encouraging positivity in the workplace?
-The script suggests that employers should lead by example by expressing gratitude, smiling often, and remaining optimistic during difficult situations to encourage positivity in the workplace.
How can workplace relationships contribute to a positive company culture?
-Workplace relationships are essential for a positive company culture as they facilitate social interaction, teamwork, and open communication, which can lead to better collaboration and results.
What role does listening play in building a strong organizational culture according to the script?
-Listening is crucial in building a strong organizational culture because it makes employees feel heard and valued. Senior management should listen to their employees to foster a positive culture environment.
What is the script's main takeaway regarding building a high-performing organizational culture?
-The main takeaway is that to build a high-performing organizational culture, managers should emphasize employee wellness, grow from the current culture, hire the right people, encourage positivity, foster workplace relationships, and listen to their employees.

Outlines

00:00

🐵 Organizational Culture and Peer Influence

This paragraph introduces the concept of organizational culture through an analogy of a 1966 experiment at the University of Wisconsin-Madison involving monkeys and bananas. The experiment demonstrates how peer influence can change behavior, which is reflective of how organizational culture impacts employees. The paragraph explains that organizational culture encompasses shared values and norms, and it can affect various aspects of a company's operations. It also outlines the benefits of a positive organizational culture, including improved recruitment, employee loyalty, job satisfaction, collaboration, work performance, and reduced stress. The video promises to explore the origins of organizational cultures and strategies for building a high-performing culture.

05:00

🌱 Origins of Organizational Culture

Paragraph 2 delves into the origins of organizational culture, attributing it primarily to the vision of the company's founders and the industry in which the company operates. Founders' values and personalities can significantly shape the corporate culture, as exemplified by Walt Disney and Ben & Jerry's. The industry's nature also dictates the type of organizational culture that can thrive, with creative industries like technology and entertainment differing from more regulated sectors like pharmaceuticals and nuclear power. The paragraph then offers six tips for building a high-performing organizational culture: emphasizing employee wellness, growing from the current culture, hiring the right people, encouraging positivity, fostering workplace relationships, and listening to employees.

10:01

🔧 Building a High-Performing Organizational Culture

The final paragraph summarizes the key points of the video, focusing on the importance of organizational culture and the strategies to cultivate a positive one. It reiterates the significance of employee wellness, building upon the existing culture, making thoughtful hiring decisions, promoting positivity, nurturing workplace relationships, and actively listening to employees. The paragraph concludes by inviting viewers to share their thoughts on organizational culture and encouraging them to like and subscribe for more content.

Mindmap

Keywords

💡Organizational Culture

Organizational culture refers to the shared values, beliefs, and norms that guide the behaviors and attitudes of employees within an organization. In the video, it is discussed as a key factor that influences various aspects of a firm's operations, from employee punctuality to contract terms and benefits. The video uses the example of Twitter's company culture, which includes rooftop meetings, yoga classes, and free meals, to illustrate how a positive organizational culture can enhance employee satisfaction and productivity.

💡Peer Influence Training

Peer influence training is a method where behaviors are modified through the influence of peers rather than direct instruction or authority. The video script describes an experiment where monkeys learned to avoid a certain behavior due to the reactions of their peers, illustrating how peer influence can be a powerful tool in shaping behavior. This concept is later paralleled to how organizational culture can influence employees' behaviors and attitudes.

💡Socialization

Socialization in the context of the video refers to the process by which employees learn and internalize an organization's culture through their immersion in its day-to-day operations. It is a critical aspect of how organizational culture is transmitted and maintained. The video emphasizes that employees absorb the values and norms of a company through their experiences and interactions within the organization.

💡Employee Wellness

Employee wellness is highlighted in the video as a foundational aspect of a positive organizational culture. It encompasses the physical, mental, and emotional health of employees. The video suggests that organizations should provide resources and opportunities that support employee wellness, as healthy employees are more likely to contribute positively to the corporate culture.

💡Job Satisfaction

Job satisfaction is defined as the contentment and fulfillment employees derive from their work. The video connects a positive organizational culture with higher job satisfaction, indicating that when employees are happy with their work environment and feel valued, they are more likely to be satisfied with their jobs. This satisfaction can lead to increased productivity and a more positive work atmosphere.

💡Collaboration

Collaboration is the act of working together to achieve a common goal. In the video, it is mentioned as one of the benefits of a strong organizational culture. When employees feel part of a team and are encouraged to work together, it can lead to improved problem-solving, innovation, and overall performance. The video suggests that a positive culture facilitates social interaction, teamwork, and open communication.

💡Work Performance

Work performance refers to the efficiency, quality, and effectiveness of an employee's work. The video posits that a strong company culture is linked to higher rates of productivity because it motivates and dedicates employees. When employees are invested in the company's success and feel supported, they are more likely to perform at their best.

💡Founder's Vision

Founder's vision is the guiding principles and goals set by the individuals who establish a company. The video explains that the founder or founders' values and beliefs significantly shape the organizational culture. For instance, Walt Disney's emphasis on leadership, teamwork, and innovation continues to influence the Disney Corporation's culture, even after his passing.

💡Industry Standards

Industry standards are the norms, regulations, and practices common within a particular field or sector. The video discusses how different industries have different organizational cultures that are suited to their specific needs. For example, the technology industry may foster a culture of creativity and innovation, while the pharmaceutical industry may prioritize adherence to strict regulations and policies.

💡Employee Loyalty

Employee loyalty is the allegiance and commitment of employees to their organization. The video suggests that a positive organizational culture fosters loyalty by creating an environment where employees feel valued and satisfied. Loyal employees are more likely to stay with the company long-term, contributing to stability and continuity within the organization.

💡Recruitment

Recruitment in the context of the video refers to the process of attracting and hiring new employees. A strong company culture is portrayed as a competitive advantage in recruitment, as it can attract potential employees who are seeking a positive work environment. The video implies that a good reputation, as shaped by the company's culture, can draw in talent that is more likely to see the company as a long-term career choice.

Highlights

Monkeys can be trained to give up bananas through peer influence.

The 1966 University of Wisconsin-Madison experiment demonstrated the power of peer influence on behavior.

Organizational culture can affect all aspects of a firm's operations, including punctuality, tone, and contract terms.

Organizational culture is defined as the shared values and norms of an organization's members.

Twitter's company culture includes rooftop meetings, yoga classes, and free meals, contributing to employee satisfaction.

A positive company culture has six major benefits: recruitment, employee loyalty, job satisfaction, collaboration, work performance, and less stress.

Organizational culture can be a competitive advantage in attracting potential employees.

A positive culture fosters employee loyalty and reduces turnover.

Happy employees are more likely in companies with a positive corporate culture.

Collaboration is more likely in companies with a strong culture, leading to better teamwork and communication.

Strong company cultures are linked to higher rates of productivity.

A positive company culture can help reduce workplace stress and improve employee health.

Organizational culture often stems from the founder's vision or the industry's norms.

Founders can intentionally or unintentionally shape the corporate culture.

Different industries have different organizational cultures, influenced by their respective needs and regulations.

To build a high-performing organizational culture, emphasize employee wellness.

Grow from your current culture by involving employees in the improvement process.

Hiring the right people is crucial for maintaining and enhancing company culture.

Encourage positivity in the workplace to build a positive culture.

Foster workplace relationships to strengthen the organizational culture.

Listening to employees is key to building a great company culture.