Company culture is the company’s personality. It should be the vision and mission you have for your organisation. Few employees believe their company is successful at leading their desired culture. Rest of them feel the need to change the culture of their company.Company culture is a foundation of a company’s existence that directly affects business results. Getting it right is one of the most fundamental things you can do. These are few elements which can be the barrier for organizational development.
1. Lack of Communication
Lack of communication is a serious problem in the workplace and can be costly for a company. The impact of this poor communication can be destructive too. There are chances of high risk in terms of: Loss of productivity, clients, products, goods, services, employee turnover, loss of business, absenteeism and so on. Companies must ensure leaders at all levels communicate values, vision, norms, goals and major changes effectively and regularly so that employees fully understand the processes taking place.
2. Toxic Workers
Toxic environment and unhealthy competition lead to an increase in politics, decrease in knowledge sharing and a move of negative value and norms in your company. While ”bad hires” fail to get the work done right, toxic employees can often survive in an organization while deliberately harming its property and people.Toxic employees exist because leadership allows and encourages them to. But it’s extremely expensive.
3. Profit Oriented
There’s nothing wrong with being money minded as long you don’t forget your morals and ethics.There are two kinds of companies.One, which have a good sense of value creation, and the other which have a great obsession with money! The chance of a company’s success depends on their motives. The companies which are value focused or employee oriented have the ability to explore business opportunities with people and culture. On the other side, the money oriented companies have no clue that their own obsession is a barrier to their success. The obsession they think is the key to grow the business, restricts their own growth ironically.
4. Resistance to Change (Threat)
Resistance to change is a natural reaction when employees are asked, well, to change. Change is uncomfortable and requires new ways of thinking and doing. People have trouble developing a vision of what life will look like on the other side of a change. So, they tend to cling to the known rather than embrace the unknown. Employees don’t fear change, though, they fear the unknown. They fear being changed. Phrases such as “We always do things this way”, “That won’t work here” and “It’s not my problem” hinder progress. Number of employees believe that their company can be more successful if they were encouraged to work in flexible and collaborative ways. Yet the biggest barriers to creating a culture of collaboration were: changing working styles and habits, a lack of incentives to work collaboratively and a lack of leadership.
5. Performance Management System
Performance management systems have become a new method to attain organizational success by some. A company’s performance management system can also have a negative influence on its culture. As a system, its advantages have been broadly advertised, but the system has to be carefully monitored for smooth functioning. By ranking employees against each other, the system generates a fear of failure. This leads to low risk-taking and innovation. Favouritism, risk of internal competition, manager’s dilemma are disadvantages of this system which can adversely affect the company culture too.