How to measure Organizational Culture to improve Productivity?

Optimizing productivity and nurturing a robust organizational culture are pivotal for enhancing corporate performance and longevity. That’s why accurately assessing organizational culture is critical.

For an organization to be successful, its culture must be based on strong and healthy values, which ensure not only economic growth but also the well-being of its workers.

Also, we must not forget that the human capital of companies is made up of a network of people with biopsychosocial needs. This means that, beyond the external motivation of a good salary, people need other types of emotional and social components that help them boost job satisfaction and commitment. 

If you want to learn how organizational culture relates to productivity, keep reading!

In addition, at the end you will find a methodology to take the pulse of your organization’s culture that is very easy to implement so you can guarantee a positive work environment for your team members and their best performance.

What is the organizational culture?

Organizational culture is the set of values, beliefs, and shared norms that characterize an organization: it’s the DNA of the company that shapes the attitudes and behaviors of employees.

In this way, culture influences how workers interact, make decisions, and perceive their work environment.

The 6 key elements of organizational culture

The culture of an organization is a complex network, maintained by several fundamental threads that define and shape how a company feels and lives on a day-to-day basis.

From the way employees interact with each other to how they navigate challenges and celebrate successes, each element plays a crucial role in shaping an organization’s unique atmosphere. What do we have to focus on when measuring work culture?

Next, we will explore these six elements to understand and improve this aspect:

1. Shared values and beliefs

Core values and beliefs act as a common frame of reference for decision making and interactions. In order to avoid an individualistic culture, they must be shared by all team members.

2. Risk tolerance

It refers to the way an organization addresses failure and change. Is it a culture that encourages innovation and constructive error? Or is it more cautious and conservative?

3. Integration

This aspect defines how collaboration is promoted and managed across departments and teams, which is essential for fostering a sense of unity and common purpose. Additionally, it also plays an important role in Employer Branding, in terms of how the organization maintains its identity throughout its journey, allowing employees to identify with it.

4. Focus

Here, culture can choose two different approaches. An internal focus relates to clarity of objectives and direction of the organization; focuses on improving processes, internal communication and talent development within the company.

On the other hand, an external focus is customer-oriented, prioritizing customer satisfaction, the market and innovation to meet the changing needs of the environment.

It should be noted that both approaches are not mutually exclusive, but complementary. An effective organizational culture strikes a balance between maintaining solid internal alignment with the company’s objectives and values, while remaining agile and receptive to the demands and opportunities of the external market.

5. Reward criterion

Defines how and why employees are rewarded. It varies significantly from one organization to another given the variability of factors such as innovation, where creativity and the generation of new ideas are rewarded; individual performance, which focuses on personal goals and achievements; or seniority, where loyalty and length of service in the company are highly valued.

6. Individual Initiative

Finally, this dimension assesses the extent to which autonomy and proactivity are encouraged and celebrated within the organization.

Culture and productivity: An inseparable relationship

Studies show that a positive, well-founded organizational culture significantly increases productivity.

When employees feel part of the team and notice that the organization looks after their well-being so that they are motivated and satisfied, they tend to be more committed in the long term, and they are also more creative and efficient.

On the contrary, a dysfunctional culture in which team members feel invisible and exhausted leads to demotivation and poor performance. In fact, according to a McKinsey report, more than 60% of negative outcomes in organizations are due to toxic behaviors.

So, a healthy and well-developed organizational culture is a great driver for productivity, even being more powerful than other more explicit elements such as salary.

How to measure the culture of your organization?

Now that you have seen how the work environment is essential to understanding and improving productivity, the big question comes: “How can I know if my organization’s culture is the best?”

There are many tools that will make it easier for you to measure your company culture. One of the fastest, easiest, most powerful and most economical in terms of time and resources are employee surveys like this one: Guide to creating work environment surveys + Free Model.

Surveys allow you to gain direct insight into your employees’ perceptions and opinions of the work environment, and can cover topics such as job satisfaction, engagement, internal communication, and perceptions of management to identify areas of concern and improve and develop strategies that strengthen the culture of your organization.

Of course, once the information is collected and analyzed, the important thing is act on it by creating solutions to improve what takes us away from our goal.

And one last note: culture is not static. That is, it requires continuous attention and adjustments.

Designed by HR People for HR People and team leaders, Team Insights is the most flexible and adaptable employee survey platform on the market.

Try it for free , and create a survey from scratch or use a customizable template. Improve the work environment and boost the productivity of your business today!

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