Organizational culture affects every aspect of business, from strategy, management, human resources, customers, partners to efficiency and profits. Therefore, building and maintaining a positive culture, consistent with the vision and mission of the organization is essential. Let’s read the following article to see more clearly the importance of organizational culture in business.

What is organizational culture?

Organizational culture is a set of common values, beliefs, attitudes, behaviors and codes of conduct that members of an organization share and adhere to. Organizational culture affects every aspect of business operations, from communication, decision making, conflict resolution, to how to build reputation and differentiate in the market.

Organizational culture plays a very important role in building and developing a sustainable organization. Organizational culture is not a fixed and immutable thing but can change over time, according to the development of the organization and according to market requirements. However, a good organizational culture must always be based on sustainable values, bringing benefits to both the organization and its stakeholders.

Why is organizational culture important?

Organizational culture affects every aspect of business operations, from how we communicate with customers, partners and suppliers, to how we manage people, product development and innovation. Therefore, organizational culture is a key factor to build and maintain the success and sustainability of an organization. The role of organizational culture is expressed in many aspects such as:

• Create a difference and uniqueness for your business brand. A strong organizational culture will help businesses build recognition and reputation in the market, attract and retain potential and loyal customers.
• Enhance employee engagement and commitment. Employees are the most valuable asset of a business. When employees feel part of the organizational culture, they will be more motivated, work more effectively and contribute to the growth of the business.
• Promote creativity and innovation. A company culture that encourages challenge, learning, change and innovation will help businesses stay at the forefront of their field, creating products and services that bring value to customers and society.
• Improve working efficiency and performance. A clear and unified organizational culture will help businesses establish professional, transparent and effective goals, strategies, processes and working standards. This will minimize conflicts, errors and waste during business operations.

Elements that create organizational culture

The factors that create organizational culture can be divided into two main groups: internal factors and external factors.

Internal factors

• Vision, mission, core values: These are the factors that guide the business’s operations and are shared by all members.
• Strategy, policies, processes: These factors regulate how the business operates and influence the behavior of its members.
• Organization and personnel: Organizational structure, management style and relationships between members of the business also contribute to creating organizational culture.

External factors

• Business environment: Factors such as legal regulations, social culture, competitive markets, etc. can also impact organizational culture.
• History and traditions: An organization’s organizational culture is often formed and developed over time, based on the values and traditions of the business.

See more: 8 organizational culture models you should know

Step-by-step build your organizational culture

Building organizational culture is not an easy task. It requires unity between leaders and employees, commitment and continuous implementation of activities to maintain and develop culture. Below are some basic steps to building an effective company culture.

Step 1: Determine the vision, mission and core values of the business

Vision, mission and core values are the deciding factors for the direction and goals of a business. They are also the foundation for building organizational culture. You need to clearly define these and communicate them to all employees in the organization. You also need to make sure that these values align with your market, customers, and industry.

Step 2: Create symbols, stories and illustrations of organizational culture

Symbols, stories and illustrations are effective tools to express and spread organizational culture. You can use symbols such as logos, slogans, slogans, t-shirts, flags, etc. to create recognition and engagement for employees.

You can also tell stories of success, failure, hardship or joy of your business to inspire and educate employees. You can also illustrate organizational culture through specific examples of how to behave or solve problems in real situations.

Step 3: Organize activities to maintain and develop organizational culture

Organizational culture is not a fixed thing but something that fluctuates with time and environment. You need to organize activities to maintain and develop organizational culture continuously and periodically.

You can organize training sessions, seminars, meetings, exchanges, visits, tours, etc. to enhance understanding, communication and cooperation among employees. You also need to encourage and enjoy employee contributions, opinions and initiatives to improve organizational culture.

Step 4: Evaluate and adjust organizational culture

To know the effectiveness of building organizational culture, you need to evaluate and adjust organizational culture regularly. You can use methods such as surveys, interviews, observations, feedback, etc. to collect information about employees’ feelings, attitudes and behaviors towards organizational culture.

You also need to compare with the standards, goals and business results of the business to evaluate the suitability and effectiveness of the organizational culture. If there are any deviations or problems, you need to adjust your organizational culture promptly and appropriately.

See more: 5 principles of corporate governance

Some examples of organizational culture of companies

Here are some examples of organizational culture of famous companies in the world:

• Facebook: Facebook is also a company with an open, friendly organizational culture that promotes creativity. The company often organizes open meetings and discussions so employees can freely share their opinions.
• Microsoft: Microsoft is known for its professional and organized organizational culture. The company promotes discipline, responsibility and efficiency at work.
• Apple: Apple is known for its organizational culture that focuses on product quality. The company always sets high standards for products and constantly improves to bring the best products to users.

In Vietnam, there are also many companies with unique and successful organizational cultures. Some typical examples include:

• FPT: FPT is one of the leading technology companies in Vietnam with an organizational culture that emphasizes creativity, innovation and responsibility.
• Vingroup: Vingroup is a multi-industry corporation with an organizational culture focused on sustainable development and social responsibility.
• VNPT: VNPT is a leading telecommunications corporation in Vietnam with an organizational culture that emphasizes professionalism and customer service spirit.
• Tiki: Tiki is a leading e-commerce platform in Vietnam with an organizational culture that emphasizes creativity, enthusiasm and innovation spirit.

Organizational culture is an important factor contributing to the success of a business. Businesses need investment and effort to build and develop an organizational culture consistent with their business goals and strategies. Building and maintaining a positive and flexible organizational culture will play a decisive role in a business’s career and reputation in the market