Organizational Culture and Its Importance Part I

Team KritikalHire

June 5th, 2022   
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Lack of effective organizational culture and cultural integration affect organizational performance. The Federal Reserve bank barred Wells Fargo from growing as a penalty for opening two million accounts fraudulently, and investigation revealed the root cause is a culture of the division whose employees open the accounts. 

No two organizational cultures will be the same because every organization has unique goals and diverse individuals. The organizational culture is meant to unify your employees and propel them towards a shared goal. 

Healthy organizational culture has a substantial positive impact on your organization, establishing a brand identity to uniting coworkers and increasing employee engagement. The scenario amongst Indian companies is fast-changing as they are becoming less hierarchical and realizing the growing need for having better corporate culture. When choosing an employer, the younger workforce seeks out good corporate culture and enjoyable working conditions. 

The COVID-19 crisis has highlighted the interconnectedness of business and society. “It will be a true inflection point,” says Rajnish Kumar, chairman of the State Bank of India. “And whatever we learn through this process-it must not go to waste.”

"Organizations with a view of culture as a distinction and source of competitive advantage maintain a sense of community better, respond to customer needs better, innovate with a higher degree of success and deliver better business results," says Bhushan Sethi, Joint Global Leader for People and Organization at PwC.

PWC 2021 Global Culture Survey of 3,200 leaders and employees worldwide states that 72% of the participant find culture helps successful change initiatives happen, and 69% of organizations that adapted amid the pandemic say culture offers a competitive advantage. 

66% of C-suite executives and board members believe culture is more crucial to performance than the organization's strategy or operating model. 

72% of senior managers report that their culture helps successful change initiatives happen. 

According to the report, nine key culture enablers are: 

Tone at the top 

Technology and tools 

Incentives, compensation, and benefits 

Development and training 

Formal communications 

Employee networks 

Engagement networks 

Feedback gathered and acted upon 

Visible signals from leaders 


The survey data shows even with more than four enablers activated during the pandemic; there was a significant lift on culture being a source of competitive advantage and an organization’s ability to adapt.

 “CHROs play a vital role in making sure the organization is living its purpose and values,” according to a McKinsey Global Survey, “The new possible: How HR can help build the organization of the future” March 12, 2021. “HR can articulate, and role-model desired individual mindsets and behaviors linked to purpose by identifying “moments that matter” in the company’s culture and translating purpose into a set of leadership and employee norms and behaviors.”  

Tesla's effort to create a culture of fast-moving innovation, or Apple's obsessive focus on user experience, and these cultural priorities are at the core of these companies' value agendas. Culture change should be business-led, with evident leadership from the top and rigorous and consistent execution. 



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