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Factors That Affect
ORGANIZATIONAL
CULTURE
CULTURE IS A GROUP
OF PEOPLE’S WAY OF LIFE.
“We are what we repeatedly do.”
ARISTOTLE
ORGANIZATIONAL
CULTURE IS A GROUP
OF EMPLOYEES’ WAY OF LIFE.
“We are what we repeatedly do atwork.”
(ARISTOTLE)
WHAT
FACTORS
organizational
culture?
affect
TOP MANAGEMENT PRINCIPLES
How the management runs the business affects
the policies, procedures and rules
set for employees.
1
Result:
Starbucksistreasuredforits
exceptionalcustomer
service.
Source: Forbes
Howard Schultz is passionate
about building a company
that treats people with
DIGNITY AND RESPECT
Image courtesy: Joe Pugliese
2
Thepurpose,marketandoperations
ofacompanyhaveanimpacton
employees’behavior.
NATURE OF THE BUSINESS
Source: Quartz
Why do McKinsey
consultants join and
leave the firm
young?
Over 80% of the
staff are under 40
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0%
Thenatureofthebusinessrequiresemployeestoworklonghours
andtravelalot,whichleadtoburnoutandhighstaffturnover.
COMPANY VALUES, POLICIES
AND WORK AMBIENCE
Employeesdevelopthevaluesemphasizedinthe
policies,proceduresandworkenvironment.
3
Source: Disney
HOW DOES
PIXAR
stir the creativity of
their animators?
Toys
4
The clients that
the company
serves
somehow shape
organizational
culture.
CLIENTS AND EXTERNAL PARTIES
Many call center agents in India
have to work on a graveyard shift
due to time zone differences
betweenthe BPO employees and
their western clients.
As a result, agents tend to
experience high levels of stress
and its related disorders.
Source: NCBI
RECRUITMENT
AND SELECTION
hired by an organization
has an effect on its culture
The type of employees
5
RECENTLY THE TREND IS
TO RECRUIT AND KEEP A
DIVERSIFIED WORKFORCE
Inthetechindustry,themostdiverse
companiesintermsofgenderare:
Source: Fortune
51% 55% 58% 60% 61%
49% 45% 42% 40% 39%
PANDORA INDIEGOGO EBAY PINTEREST LINKEDIN
GENDER DIVERSITY (OVERALL) MEN WOMEN
6
COMPENSATION
PRACTICES
Ifemployeesarefairlycompensated,
positive culture can exist in an organization.
A study conducted in 2013 showed that
60% of employees
said compensation was
the biggest contributor to
job satisfaction.
Source: BNA
"It is behavior of your company and its people
that form your reputation,
and your reputation is your brand.“
-Dave Allen-
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