In our education, we were taught that there are two conditions for the development of countries: First, rich underground and surface resources, and second, capital accumulation. When we look at the most developed countries today, we see that most of them do not have any significant underground or surface resources. On the other hand, since capital moves globally, it is no longer a condition for it to be within a country. Today, the advanced technology required for development is based on qualified human resources. In the words of futurist Naisbitt, the determinant of development is not advanced technology (hi-tech), but high human quality (hi-touch).
What is valid for countries is also valid for companies and institutions. The condition for superiority in competition is not technology that can be easily purchased by competitors, but qualified human resources. A qualified, knowledgeable and wholeheartedly dedicated human resource can only exist in a constructive organisational culture. Just as qualified seeds are fertile in suitable soil, a constructive organisational culture enables individuals who will be superior in competition to join the institution and use their potential for the institution at the highest level.
Culture is the way of life of a community in the most general sense. Every institution, whether written or not, has a culture. Organisational culture is the determinant of the principles on which decisions are made and the framework in which relationships are conducted in that business. These are values, behavioral norms, and ways and methods related to doing business. Awareness of organisational culture is the building block of employee productivity and job satisfaction.
Business Leader is Determinant
A meta-analysis recently completed by Harter and colleagues covering 198,514 employees in 7,939 business units revealed that employee satisfaction is very closely related to “satisfaction with a superior manager.” In addition, this research found that the correlation between employee satisfaction and commitment and productivity was 0.64.
The responsibility of the business leader in the formation of organisational culture was also revealed in a study conducted by Hay Group. Accordingly, leadership style affects corporate climate by 70%; corporate climate affects business results by 30%. The same research results are also supported by the findings of a study conducted by Gallup on 80,000 employees in 2,500 businesses. This research reveals the effect of “leadership style” and “institutional climate” on employees’ attitudes and evaluations about the company.
The characteristics of the companies that people would most like to work for, as revealed by the research, are shown in the table. In our opinion, employees who say “yes” to 9-12 of these items are satisfied with their jobs. Those who say “yes” to 5-8 items complain about not being able to fully reflect their potential at work and may be looking for a “suitable job”. A “yes” answer between 0-4 is a sign that the employee is working for the clock and is looking to get out of the job at the first opportunity.
The characteristics of a business dominated by a positive organisational culture that increases productivity are as follows:
- Talented and suitable employees
- Competent management team
- Highly motivated employees who focus their energy and creativity on work
- Effective strategy based on data
- Measurement, evaluation and monitoring systems
The implementation of all these features listed above is the responsibility of the top management. In organizations where there is no positive and constructive organisational culture, employees spend most of their energy on gossip and conspiracy scenarios, criticize upper management and cause negative emotions to spread contagiously to the environment.
According to Schein, known for his studies on organisational culture, the most basic role of a leader today is to create, manage and, if necessary, destroy and rebuild the culture. Managing cultural diversity within the organization and creating synergy between them is a critical leadership skill. This feature is also extremely necessary to realize basic strategic and managerial changes. Leaders should be able to evaluate the effectiveness of the organisational culture, when and how it should be changed. In short, managing organisational culture is a basic leadership and management competency.
The Responsibility of the Business Leader
Managers should take care to relate the current organisational culture in a way that connects the past and the future. According to Collins, who is known for his work on companies that have achieved continued success, companies that have maintained their success in the long term have a small number of core values that do not restrict change and are resistant to time. These companies have managed to protect their core values while triggering development. Here is what leaders need to do for effective cultural management:
- Determine strategic planning and the cultural infrastructure it requires
- Make the culture compatible and consistent with the mission, goals, strategies, structure and processes
- Transform the philosophy and values of the organization into a written document
- Establish consistent incentives, appreciation systems and performance management
- Create error detection systems and sanctions
- Manage coaching, mentoring and training practices
- Keep rituals, symbols and company legends alive
- Benefit from the characteristics of subcultures
- Support and manage successful practices.
In today’s institutions, whose strongest asset is human resources, leaders will take an active role in the structuring and transformation of a constructive organisational culture that supports business goals and carry their institutions into the future.
12 questions that determine the employee’s attitude towards their company
- Have I had the opportunity to learn and develop at work in the last year?
- Do I know exactly what is expected of me?
- Do I have the necessary equipment to do my job right?
- Do I have the opportunity to do what I do best every day?
- Have I been recognized for something good I have done in the last month?
- Does anyone show interest in me as a person?
- Does anyone encourage me to develop?
- Are my opinions taken into account?
- Does the purpose of my company’s existence make me feel that my work is important?
- Do employees care about the quality of their work?
- Is there someone at work whom I can call a “very good friend”?
- Have I talked to anyone about my personal development in the last six months?
Prof. Dr. Acar Baltaş
https://www.acarbaltas.com/is-lideri-kuruma-damgasini-vurur/