The Role of Culture and Diversity in Organisational Behaviour - Outsourced Finance

Organisational behaviour is the broad term that encompasses the human behaviour in an organisation and the impact it has on employees, organisational structure, and management style. Thus, the type of organisation culture a firm has encourages the behaviours of those working towards the goals, vision, and mission – which could make or break a company. Company corporate culture is a result of the culmination of different beliefs, ideologies, principles, and values of different individuals in an organisation. The corporate culture of a company is a determining factor in the way employees behave amongst themselves as well as to others outside the company.

 

Organisational Culture  

Organisational culture encompasses the underlying beliefs, assumptions, and values of a company that contributes to the unique social and psychological environment of an organisation. One can argue that organisational culture is the underlying personification of the company’s values and morals. This culture is created by a predefined set of policies that guide employees and give them a sense of direction of how they are expected to behave in the workplace. Long term employees are the best representation of the organisational culture as they will set the tone for new employees, giving the social cues on how to behave. The work culture should unite employees and promote healthy relationships amongst employees who are from different backgrounds, families, and have varied attitudes. The organisational culture goes a long way in creating the brand image – creating a reputation for your brand for future clients and employees.

To foster growth and strength through diversity, organisational culture cannot be left to the vices of individuals to carve out. Management needs to actively work at creating and fostering a positive organisational culture that is inclusive and progressive.

 

The impact of employee diversity

As we live in a multi-cultural, multi-ethnic society, it only makes sense that companies need to embrace these differences to get the best out of all their employees.

Diversity can be classified into two dimensions, the primary dimension includes factors such as age, gender, race, and sexual orientation – exhibiting the main differences between individuals. The second dimension would include factors such as religion, education, geographical location, and income – qualities that are not noticeable at first glance and can even change throughout different encounters in an individual’s lifetime. Embracing this diversity is good for the organisational culture of a company, bringing perspective, humanity, and meaning to the day-to-day employee experience. Diversity encourages a work environment that allows people to be themselves and thus have more filling work experience. Employees’ diversity can generate a larger pool of opinions and ideas, for employees to bounce off and expand their way of thinking to unleash creative genius. Organisations that encourage diversity and employee involvement tend to take more risks, generate more ideas, and question the status quo – which is the most important requirement for ground-breaking innovation.

 

Organisational behaviour influences

There are many factors that influence the organisational behaviour shown by employees including the company’s structure, policies and procedures, management effectiveness, and interactions between colleagues. Employees are the backbone of every company, to motivate them to go above and beyond for the company a firm must find the correct incentive. Although paying salaries ensures people show up for work, positive organisational behaviour is created through more than just a salary but other motivational elements to perform to the best of their abilities. Employees feel motivated when they see a clear link between their hard work and rewards, encouraging them to repeat their behaviour. Clear and open communication can also go a long way to influencing organisational behaviour, empowering managers and employees to make informed decisions to benefit the company. People strive to fit in the environment around them, thus by ensuring the company’s vision is upheld through each interaction new employees will adopt the new culture quickly.

There are numerous reasons why diversity and culture are important for your organisation. However, the bottom line is the interactions and environment your employees are surrounded by defining what quality of output is generated. By creating a productive, healthy, and fun culture that is filled with different people and ideas, your organisation is far more likely to succeed long term. An organisational culture that embraces and celebrates diversity, both within the company and externally, will set your company on the path of attracting and retaining talent and clients from all works of life. Multiculturalism provides businesses with a limitless pool of talent, ideas, viewpoints, and opinions.

 

Xavier Olivier


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