September 2024

Organisational Culture from Yesterday to Today

The first introduction of corporate culture dates back to the 1940s. In contrast to rational and control-based management, a relational and cultural dimension that encouraged cooperation and commitment to work developed. However, in the 1960s and 1970s, in the face of the difficulty of measuring these dimensions, measurable organizational elements came to the fore, with emphasis on employee attitudes, empowerment, status differences, interdepartmental coordination, and employee inclusion, which were characterized as corporate climate. Towards the end of the 1970s, more in-depth analyses of the invisible features of corporate life began to gain importance. The role, importance and characteristics of corporate culture were once again at the top of the agenda. Most importantly, attention turned to the effects of corporate culture on performance, its stages of development and its changeability. In recent years, it is now accepted that corporate culture is not a spontaneous phenomenon, but a manageable element that provides competitive advantage.

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From National Culture to Organisational Culture

A nation’s history, social structure and culture are reflected in every aspect of its life. The values, norms and management styles of companies operating in that country are also affected by this influence. Ideas and behaviors influenced by national culture permeate corporate cultures, and even when a company expands internationally, organizational structures and processes embedded in national culture are carried overseas. Barlett and Ghoshal conducted a study on three nations and their companies that are the global leaders in business life. According to them, British companies developed under family management that emphasized personal relationships over institutional structures, and favored loose financial controls over technical and operational control systems. Until the Second World War, most British companies were examples of “family capitalism”. When they expanded overseas, either a family member or a loyal “servant” of the family was put in charge.

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Psychological Safety in Organizational Culture

How did the “silent” protests that make a big noise in business life begin? Are we able to build safe cultures where employees can express themselves? In this content, where we discuss the silence of employees and the expression fatigue they experience; we touched upon the importance of the concept of “psychological safety” in corporate culture and its effects on employees. I first heard the concept of psychological safety 5 years ago from a foreign senior executive at an international meeting I was involved in. This executive emphasized that one of the main factors of employee loyalty and well-being was the concept of “Psychological Safety” and that it played a major role in the development of corporate culture. I thought that these two words, which I heard side by side for the first time in business life, had an important place in industrial psychology and I started to read about them.

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Fearless Organizations and Agile Work Culture

Fearless organizations and agile work cultures are two important constructs that define the rapidly evolving business world. With psychological safety, open communication and continuous learning, organizations push the boundaries of innovation while building the capacity to adapt quickly to the competition. In this article, we take a comparative look at how to create fearless organizations and agile business cultures. In today’s competitive business environment, it is crucial for organizational success that employees can express their suggestions, ideas and requests, give and receive feedback about their work, and that these behaviors are accepted by others in the organization. This situation, called psychological security, shapes the behavior of employees. At this point, employees who feel safe are expected to avoid exhibiting negative attitudes and behaviors that will cause productivity losses in the organization.

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A Whole Person, Not an Employee

The impact of a lack of employee engagement on the global economy is $8.1 trillion. For this reason, creating an inspiring workplace culture, maximizing the potential and vitality, well-being and prosperity of every employee, adapting the hybrid model that blends remote and in-office working, supporting the global work experience, and creating flexible, innovative solutions suitable for ever-changing dynamics is now a responsibility beyond the need for organizations and leaders. According to the 2020 Gallup research report, employee engagement has dropped to 20 percent worldwide. This means that 80 percent of the workforce is disengaged or, in other words, actively disengaged. Today, the impact of lack of employee engagement on the global economy is 8.1 trillion dollars. We are talking about 10 percent of the gross product lost to inefficiency.

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