Organizational Culture (With Real World Examples)| Strategic Management | From A Business Professor
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
🐵 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.
🌱 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.
🔧 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
💡Peer Influence Training
💡Socialization
💡Employee Wellness
💡Job Satisfaction
💡Collaboration
💡Work Performance
💡Founder's Vision
💡Industry Standards
💡Employee Loyalty
💡Recruitment
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.
Transcripts
hello everyone welcome to business
school 101
as you might know monkeys love bananas
but did you know that we can make
monkeys voluntarily give up eating
bananas with peer influence training
in 1966 the university of
wisconsin-madison hatched an experiment
involving five monkeys in one large cage
in the middle of the cage was a ladder
leading up to some hanging bananas
as the experiment began one monkey
spotted the fruit and began to climb the
ladder the researcher then sprayed that
monkey and all the other monkeys with a
stream of cold water as they climbed
the monkey on the ladder scrambled away
without a banana and the other monkeys
were cold and wet
nevertheless the temptation of the
banana soon took over and another monkey
attempted to climb the ladder
once again the researchers sprayed the
adventurous monkey on the ladder as well
as each of its cage mates
afterwards when a third monkey attempted
to ascend the ladder the other monkeys
pulled him off and beat him because they
wanted to avoid the cold spray
then the researcher replaced one monkey
in the cage with the new monkey
as would be expected of the newcomer he
naively began to climb the ladder upon
noticing the bananas
just like last time the other monkeys
pulled him off and beat him
here's where the experiment got
interesting the researcher removed a
second one of the original monkeys from
the cage and replaced him with a new
monkey once again the new monkey went
for the banana and the other monkeys
pulled him off and beat him including
the monkey who had never been sprayed by
the end of the experiment none of the
original monkeys were left and yet
despite none of the new monkeys ever
experiencing the cold wet spray they had
all learned to never go for the bananas
this example shows how peers can
influence and even change an
individual's beliefs and behaviors
indeed the way the experiment worked is
pretty close to how organizational
culture influences employees
numerous studies have shown that
organizational culture can affect almost
all aspects of a firm's operations from
punctuality and tone to contract terms
and employee benefits
so what is organizational culture what
are the benefits of a positive
organizational culture
where do organizational cultures come
from and how does a company build a high
performing organizational culture
in this video i will answer all these
questions for you
by definition organizational culture is
the shared values and norms of an
organization's members
values define what is considered
important and norms define appropriate
employee attitudes and behaviors
employees learn about an organization's
culture through socialization a process
whereby employees internalize an
organization's values and norms through
immersion in its day-to-day operations
for example twitter's employees are
always excited about their great company
culture
from rooftop meetings to yoga classes to
free meals and more the employees just
can't stop raving about it
additionally the employees love working
with smart and friendly co-workers in a
team-oriented environment
these aspects motivate twitter employees
to go above and beyond to meet the
company's goals
generally a positive company culture has
six major benefits
first recruitment many hr professionals
agree that a strong company culture is
one of the best ways to attract a
potential employees
a positive culture gives an organization
a competitive advantage because people
want to work for companies with a good
reputation from both previous and
current employees
a company with a positive culture will
attract the type of talent that is
willing to make their next workplace a
permanent home rather than just a
stepping stone
second employee loyalty
not only will a positive culture help
recruitment efforts but it will also
help retain top talent a positive
culture fosters a sense of employee
loyalty
employees are much more likely to stay
with their current employer when they
feel like they are treated well and
enjoy going to work every day
third job satisfaction
it's no surprise that job satisfaction
is higher at companies with a positive
corporate culture
employers who invest in the well-being
of their employees will be rewarded with
happy dedicated workers
fourth collaboration
employees are much more likely to come
together as a team at companies with a
strong culture
a positive culture facilitates social
interaction teamwork and open
communication this type of collaboration
can lead to some amazing results
fifth work performance many studies show
that strong company cultures have been
linked to higher rates of productivity
this is because employees tend to be
more motivated and dedicated to
employers who invest in their well-being
and happiness
sixth less stress a positive company
culture will help reduce workplace
stress significantly
companies with a strong corporate
culture tend to see less stressed
employees which helps boost both
employee health and work performance
it's clear that organizational culture
can provide a lot of benefits
but where do these cultures come from
normally there are two major sources of
culture in an organization founders and
industries
let's discuss these separately
first founders when a company is founded
there is either a single individual or a
group of individuals involved
the founder or founders have a vision
for their new company and that vision
helps form the corporate culture
in some cases the founder is very
intentional about creating a particular
culture for example they may want to
create a business in which innovation or
teamwork is valued in other cases the
founders personality unintentionally
forms a culture some individual founders
have such strong personalities and
values that the company continues to
reflect their goals as it grows and even
after the founder dies
for example walt disney modeled
leadership teamwork and innovation so
much that the disney corporation is
still built around the values and
beliefs of its founder
another good example of the way that
founders values create corporate culture
is ben and jerry's ice cream
founders ben cohen and jerry greenfield
started out to create a company with
strong social values and they succeeded
the company was established in 1978 and
it continues to focus on sustainability
environmental activism social activism
and charity even today
second industries
different industries tend to have
different organizational cultures
it's one thing to be creative innovative
and fun in the technology and
entertainment industries but that type
of culture won't work well in an
industry that's built around regulations
and policies that cannot be altered for
example industries such as
pharmaceuticals and nuclear power
require attention to detail and
therefore cannot tolerate a creative
approach to following rules
while it's true that a pharmaceutical
company can be people-oriented to a
degree its willingness to support the
individual needs of employees must be
secondary to its absolute compliance
with regulations and the law
now that we understand where
organizational cultures come from let's
discuss how to build a high-performing
organizational culture here are six tips
for business practitioners
number one emphasize employee wellness
no organization can expect to foster a
positive culture without healthy
employees
in many ways employee wellness is a
foundation for a positive corporate
culture
leaders should ensure that employees
have the resources tools and on-site
health care opportunities they need to
live their healthiest life both inside
and outside of the office
number two
grow from your current culture building
a positive corporate culture doesn't
mean that employers should completely
scrap everything their company currently
stands for
instead employers should ask employees
what they like and don't like about
their current culture and work
environment
leaders should use these suggestions to
help create a positive corporate culture
that is appropriate for their workforce
number three hire the right people
the people you hire directly impact your
business and company culture
so make sure that you aren't just hiring
based on skill or need
you must also consider how an individual
will fit into the overall picture
for example if your company culture
focuses on teamwork but your new hire
hates working with others then they can
seriously interrupt or even damage the
flow that you've established number four
encourage positivity in order to build a
positive culture employers need to start
by encouraging positivity in the
workplace
it's essential to promote positivity on
a daily basis
employers should lead by example by
expressing gratitude smiling often and
remaining optimistic during difficult
situations
many business researchers suggests that
employees are much more likely to engage
in positive behavior when they see their
employers doing so
number five foster workplace
relationships
workplace relationships are an essential
element to a positive company culture
when employees barely know their
colleagues and rarely interact it is
almost impossible to build a strong
organizational culture leaders need to
provide employees with opportunities for
social interactions in the workplace
consider weekly team meals happy hour
excursions or even a book club to get
things started
number six
listen more
for managers an easy way to build a
great company culture is to be a good
listener
according to a recent business study 86
percent of employees in a strong culture
environment felt that senior management
listened to them while 70 of employees
without a positive company culture
reported the opposite
therefore listen to your employees and
ensure that their voices are heard
now let's do a quick review of today's
topic
organizational culture is the shared
values and norms of an organization's
members
a positive company culture can help
firms attract qualified candidates
encourage internal collaborations
improve employees job satisfaction
loyalty and work performance
usually founders and the industry are
the two major sources of culture in an
organization
to build a positive organizational
culture managers should put emphasis on
employee wellness growing from their
current culture hiring the right people
encouraging positivity fostering
workplace relationships and listening to
their employees more to ensure that
their voices are heard
so what do you think about
organizational culture
please leave your thoughts in a comment
below if you enjoyed this video then
please be sure to give it a thumbs up
and to subscribe to the channel
thanks for watching and i will see you
next time
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