COMPANIES with strong shared cultures tend to perform better and strong shared cultures come about when identifiable values exist which are reflected in everyday activity at all levels, a recent research from the UK has found
COMPANIES with strong shared cultures tend to perform better and strong shared cultures come about when identifiable values exist which are reflected in everyday activity at all levels, a recent research from the UK has found.
Conducted by The Chartered Institute of Personnel and Development (CIPD), the report found that many of the companies studied focussed on a ‘big idea’ or a few key words, which simply expressed the purpose of the organisation, how it works and what it is like to work there.
However, a big idea on its own is not enough, the report found. To be effective and drive improved performance it needs to be: embedded; integrated; enduring; habitual, collective and routine, and measured and managed.
In other words it must drive behaviour which is repeated, collective, routine and therefore habitual.
The report also found a clear link between strong shared values and high commitment. Where strongly shared values can be demonstrated, people are more likely to be satisfied, displaying higher levels of organisational commitment, lower resignation rates, greater customer satisfaction and lower levels of dissent or dissatisfaction over levels of pay.
“To deliver effective performance, organisations need to work hard to create and maintain a shared vision and values amongst the people who work for them,” said Angela Baron, CIPD organisation and resourcing adviser.
“Mission statements and strategic decrees from on high are not enough. People need to feel a sense of purpose which is reflected in a positive environment.”
She said that if organisations must work to create supportive cultures, which encourage innovation and performance if they’re going to get the discretionary behaviours from individuals which are so important to business performance.
“New employees will adopt the culture and behaviours of the existing team –and these cultures and behaviours become self-perpetuating. A change at the top of a team cannot, in itself, change the values of the team,” she said.
The report is the latest into the link between people and performance, which has demonstrated that factors such as employee attitudes, organisational culture and HR practices are more important as predictors of business performance than more traditional predictors such as research and development, technology and quality.
