A Thriving Organizational Culture Drives Employee Engagement

There is no substitute for high-quality connections

If organizations want to transform their business operations to be in line with the above-mentioned business ethos, they need to start by changing their leadership and organizational culture. According to a recent Harvard Business Review, the failure rate for mergers and acquisitions is between 70 per cent and 90 per cent. One of the most common reasons for these failures is the inability to transform and merge organizational cultures. Mergers and acquisitions frequently result in high levels of uncertainty and stress amongst employees, which in turn germinate a resistance to change and a decrease in productivity.

This negative behavior is unintentionally reinforced by leaders wanting to ‘take charge’ and control and manage the organizational culture. Whilst the introduction of rules, policies, and processes may be effective in communicating boundaries and providing guidelines on acceptable behavior, they often inadvertently restrict employee engagement. Such a rules-based approach to organizational culture assumes that successful change management can only be achieved by anticipating and resolving problems and criticisms. There is often little to no involvement of the employees in establishing the desired organizational culture and instead, a strong emphasis is placed on analyzing, designing and controlling employee behavior with varying degrees of success.

In these circumstances, it makes more sense for leaders to let go of the illusion of control, and rather focus on the positive aspects of organizational change, which promote enhancement and growth by developing a shared set of beliefs, values, norms and strengths.
 
A values-based approach to organizational change, encourages employees to align their personal values with those of the organization. Indeed, a values-based approach, addresses and challenges the belief systems within the organization and at same time recognizes that employees need to be equipped with positive coping skills to be able to adapt to changing circumstances. Whilst a unified message sent from the “top” and a transparent project plan gives direction to employees, it is capacity development and change enablement that must take center stage during the merger or change process. Positive transformational leaders develop purpose and meaning, translate strategic objectives into daily operations and develop interpersonal relationships that add value to the human and social capital of the organization. They understand that there is no substitute for high-quality connections.
 
Through supportive collaboration and alliance building, positive leaders work directly with employees to develop new belief systems, behavioral norms and the desired organizational culture. They enable change through conversations, dialogue, and coaching interactions that inspire employees. As more employees engage in the process, so the impetus towards positive change becomes stronger.

High-performing organizations invest considerable resources in fostering their core organizational values, purpose and desired culture. In fact, high-performing organizations consider a thriving organizational culture as a strong competitive advantage. These organizations intentionally develop individual and group strengths through collaboration, collective efforts, effective communication and cohesive interpersonal relationships at multiple levels, and in different contexts.
 
A thriving organizational culture manifests in the individual expressions, language, teamwork, relationships and positive experiences of employees which in turn translates into improved innovation and productivity. In addition, thriving organizational cultures are characterized by predictable behavior requirements, the ability to develop and respond to change effectively as well as an environment where employees can meaningfully engage on an individual and a collective level. In these environments, relationships are built on trust and positive feedback is provided in the spirit of personal and professional growth and development. Essentially, employees in these positive circumstances generally tend to value their quality of life, and contribute positively to those around them.
 
Similarly, high performing organizations with thriving organizational cultures are further distinguished by the existence of truly cohesive executive leadership teams. The vision and mission of the organization is clearly articulated and the organizational values are translated into practical behavioral norms (personal conduct). High organizational commitment and job satisfaction, low incidence of sickness and employee absenteeism, positive industrial relations and fewer strikes, are the main attributes of thriving organizations. These organizations adopt a strength-based approach, and assign tangible value to high quality relationships and a collective identity that engages employees and develops its human and social capital.
 
Employees working in a thriving organizational culture are generally less insular, and they are more able to give and receive support from others. These employees tend to work in ways that excite, absorb, and engage them. Generally, they tend to be more self-directed and autonomous, while at the same time they also feel more committed to the organization. These employees spontaneously create social networks and form positive interpersonal relationships that enable the collective organization to set goals, work with vigor, and solve problems with resilience. Not surprisingly, these interconnected employees enjoy authentic relationships and communicate openly and across multiple reporting structures. On a daily basis, employees experience personal autonomy, self-efficacy, meaningful work, self-actualization and social acceptance that entices them to contribute with excellence.
 
Considering the racial strife and political undertones many South Africans are experiencing at this point in time -- particularly in the workplace -- more organizations and their leadership should pay greater attention to nurturing their organizational culture. In doing so, the organization may become an important catalyst for a far greater change that is not limited to the workplace itself; the positive effects may well also affect the organization’s social responsibility, extended supply chains and South Africa as a whole. This being said, the ripple effect of embracing culture and its diversity requires ethical and authentic leaders to drive this change, and this is possibly one of South Africa’s greatest challenges in present times.
 
* King IV™ Report on Corporate Governance for South Africa 2016 (The Institute of Directors in Southern Africa - http://www.iodsa.co.za/?page=AboutKingIV) (King IV™).