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Why is it important to develop an organisational culture? October 19, 2023

Why is it important to develop an organisational culture?

Organisational culture is the shared beliefs, values, norms, artefacts, symbols, actions, and language patterns that shape the work environment and influence employee behaviour. It is a set of intangible psychological assets that would influence organisational development, productivity and employees. Each company should have a unique culture reflecting its values, beliefs and practices.


Developing a robust organisational culture is essential to achieve long-term success. Here are the reasons:


  • Attracting and retaining top talents. Employees are increasingly seeking jobs with a positive work environment and a culture that aligns with their values. A well-communicated organisational culture can help companies to create a sense of community and shared values among employees.
  • Improving employee engagement and productivity. Organisational culture can affect productivity. Employees who feel valued and respected and feel like they are part of a team are more likely to be engaged and efficient. From a business point of view, this helps to increase profitability and positive business growth.
  • Boosting morale and innovation. A strong organisational culture can boost confidence and innovation among employees. Employees who feel supported and encouraged are more willing to be creative and put more effort into new ideas.
  • Strengthening the brand and reputation of the company. In general, organisational culture helps to enhance customer satisfaction due to the employees' engagement. Customers and business partners are more likely to do business with companies which have a positive reputation.


How to develop an organisational culture? There is no one-size-fits-all answer to this question, as the best way to establish a corporate culture will vary depending on the specific company and its goals. However, some general principles can be followed:


  • Define your core values. What are the most important things to your company? What is the vision and mission of your company? Once the core values have been defined, it is time to communicate them to your employees and ensure they are reflected in all aspects of your company's operations.
  • Create a supportive and inclusive work environment. Employees would feel like they are a part of a team by being valued and respected. This means creating a working environment where everyone feels comfortable sharing their ideas and opinions.
  • Encourage employees to learn and grow. It is essential to provide employees with opportunities to develop their skills and knowledge. This will help the company's talent optimisation and help the company to stay ahead of the competition.
  • Recognise and reward good performance. Employees should be rewarded for their hard work and contributions to boost morale and motivation.
  • Lead by example. Leaders play a key role in shaping the culture of a company. Leaders should model the behaviours that they want to see in their employees.


When the skeleton of organisational culture is finished, it is worth measuring and getting valuable insight from the strengths and weaknesses. London Training for Excellence offers the Leadership and Organisational Culture programme to help the senior management, H.R. staff and business operators understand more.

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Leadership and Organisational Culture

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