The Importance of Organisational Culture in Business Success

If it is the people that make a business, then organisational culture is so much more than just a big-picture concept. The tone set within the company sends signals to employees and potential partners on your priorities, mission, and values. Besides gaining credibility, establishing this through organisational structures sharpens the resolve and motivation necessary to push businesses in New Zealand and worldwide to greater heights.

What is organisational culture?

The meaning of organisational culture refers to the collection of actions, attitudes, and behaviours within a company. While every company has its own unique environment, there are four main types of organisational cultures:

Adhocracy culture

A combination of “ad-hoc” and “bureaucracy”, companies are not restricted by procedures and are fast-paced. Changes are welcome, giving rise to an entrepreneurial, creative culture.

Clan culture

Emulating the closeness of a clan, companies champion strong common interests and are not hierarchical. The environment is supportive, people-oriented, and collaborative.

Hierarchy culture

Companies make it clear where each employee sits in the chain of command and who they are accountable to. In this process-oriented environment, following the rules is important to maintain control.

Market culture

Recognising that profits are the lifeblood of the organisation, companies place emphasis on results. Their drive to achieve targets and perform better than before fosters a culture of competitiveness.

How is organisational culture formed?

Culture is formed through a set of norms informed by the company’s values. External factors such as industry expectations and social norms can also influence it, but the extent depends on the organisation’s leadership and management. The organisational structure and culture set by decision-makers indicate how each company will respond to various needs.

Benefits of a strong organisational culture

1.  Improve employee satisfaction

A strong company culture makes organisational values clear to employees. As a result, it is easier for employees to understand what they’re working towards, leading to higher levels of satisfaction and hence, engagement.

2.  Talent attraction & retention

Birds of the same feather flock together – through upholding a strong company culture, you can attract workers who align with it. Great company culture refers to when employees feel like they are part of a much bigger vision and mission – one where their personal values align with those of the company. When both the company’s and individual’s goals are clear, employee retention tends to increase.

Take DHL Express New Zealand as an example — as a company that puts people first, creating a conducive working environment while still providing seamless delivery services to customers is one of the company's top priorities. The positive organisational culture championed by DHL Express allowed it to retain its #1 Great Place To Work® title in 2022 for the fourth consecutive year.

3.  Boost productivity

While different types of organisational cultures will perceive productivity uniquely, this can be established through team structures and culture. With these norms in place, employees can focus on the larger goals of the organisation and hence, the milestones they can aim for. A recent article by Slack has also shown that understanding organisational culture drives employee engagement as well, which has been found to improve productivity by 21%. 

4.  Enhance company reputation

Leading tech companies like Salesforce, Microsoft, and Google are always popular companies to work for due to their positive company culture.

These companies are great examples of how organisational culture enhances company reputation. Reimaging and changing organisational behaviour and culture has enabled them to scale their capabilities and improve their marketability. 

If these corporations can pivot through establishing a robust company culture, so can you. It all starts with a leader who is bold enough to introduce change.

Working with a trusted international shipping provider like DHL Express can make logistics issues a thing of the past — allowing you to focus more time and resources on building a strong organisational culture. Open a DHL Express account today and let our team support you on your journey to business success.