Impacts of Organisation Culture

Organisational culture is shaped by the people who work within the organisation. Individuals’ practices, behaviours and beliefs can significantly impact the organisation’s culture (ICS Learn, 2021). For example, if the practices and behaviours of an organisation’s leadership team are focused on collaboration and cooperation, this will create an atmosphere of inclusiveness where everyone’s voice is heard and respected. This can help foster a culture of support and trust, leading to improved performance and greater productivity. On the other hand, if an organisation’s leadership team practices and behaviours are focused on competition and individual achievement, this can create an atmosphere of competition and mistrust.

Another example is how people communicate within an organisation (ICS Learn, 2021). If employees communicate openly and respectfully with each other, this can help to create a culture of mutual respect and trust. This can lead to improved collaboration and decision-making, improving performance and productivity. On the other hand, if employees communicate in a hostile and disrespectful manner, this can create an atmosphere of mistrust and conflict, leading to decreased performance and productivity. Finally, the way that people treat each other within an organisation can also have a significant impact on the culture. If people treat each other respectfully, this can foster a culture of trust and collaboration. For example, if people are treated with disrespect or even hostility, then this can lead to a culture of fear and mistrust, which can have a detrimental effect on performance and productivity.

Impacts on Organisation Behaviour

People practices are organisations’ strategies and techniques to attract, develop, motivate, and retain employees. Such practices are important to organisational behaviour, as they can significantly impact employees’ attitudes, motivation, and performance (Satyendra, 2020). Examples of people practices include recruitment and selection procedures, performance management systems, compensation and benefits plans, and training and development programs. For example, recruitment and selection procedures used by an organisation determine the type of employees that will be hired. If a company uses a selection process that emphasises certain skills and attributes, it will attract and hire employees with those skills and attributes. This can have a direct effect on the work culture of the organisation, as well as the overall performance of the organisation.

Compensation and benefits plans also affect organisational behaviour (Satyendra, 2020). Compensation and benefits plans incentivise employees to remain with the organisation and perform well. For example, a company offering a competitive salary and benefits package will attract and retain more talented and motivated employees. On the other hand, if a company does not offer competitive compensation and benefits plans, it may struggle to attract and retain the best employees. Finally, training and development programs can also impact organisational behaviour. Training and development programs help to ensure that employees have the skills and knowledge required to perform their job effectively. Such programs can be used to develop new skills or refresh existing skills, which can help increase employee performance and engagement.


ICS Learn (2021) 6 ways HR can influence Organisational Culture News: CIPD, CIPD Asia. Available at:  

Satyendra (2020) News, IspatGuru. Available at:  

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