Home Insights The Strategic Imperative of Measuring Organizational Culture Versus Employee Engagement

The Strategic Imperative of Measuring Organizational Culture Versus Employee Engagement

Why employee engagement initiatives should not be considered as a replacement to Organizational Culture measurement and transformation.

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In today's dynamic business environment, the importance of cultivating a robust organizational culture cannot be overstated. While employee engagement surveys have become a staple in many organizations, it's crucial to recognize that they represent only a fragment of the larger cultural puzzle. This article delves into the nuanced differences and the intrinsic relationship between measuring organizational culture and focusing solely on employee engagement, emphasizing the strategic value of the former.

Understanding Organizational Culture: A Strategic Perspective
Organizational culture, as defined by Hofstede Insights, is the collective programming of the mind that distinguishes the members of one organization from another. It is a deeply embedded set of shared beliefs, values, and practices that shapes behavior and drives the organization's strategic direction. Hofstede's Model of Organizational Culture identifies six dimensions that are pivotal to understanding and shaping organizational culture:

  • Means-Oriented vs. Goal-Oriented: The extent to which employees focus on the way work is done versus the outcomes achieved.
  • Internally Driven vs. Externally Driven: Whether employees prioritize internal processes and values or external market demands.
  • Easygoing Work Discipline vs. Strict Work Discipline: The level of formality and control in the workplace.
  • Local vs. Professional: The degree to which employees identify with their immediate workgroup versus the wider profession.
  • Open System vs. Closed System: The organization's openness to newcomers and new ideas.
  • Employee-Oriented vs. Work-Oriented: The emphasis on employee well-being versus task completion.

The Role of Employee Engagement: A Tactical Element
Employee engagement, on the other hand, refers to the emotional commitment an employee has towards their organization and its goals. Engagement is typically measured through surveys that assess factors such as job satisfaction, commitment, and motivation. While high employee engagement is undoubtedly beneficial, it is a narrower metric that focuses primarily on individual employee sentiments rather than the broader organizational dynamics.

The Relationship Between Culture and Engagement
Employee engagement is a component of organizational culture, much like a cog in a larger machine. Engaged employees are more likely to be productive and aligned with organizational goals, but achieving sustainable engagement requires a supportive cultural framework. Thus, while engagement surveys can provide valuable insights, they must be understood within the context of the overarching organizational culture.

Actual Culture, Desired Culture and Optimum Culture
As a matter of fact when we work with Organizations on measuring and transforming Organizational Culture, we help them design Optimum Organizational Culture, which is the Organizational Culture needed for the business to enable its strategic goals. This becomes the organization's journey and goal.

In order to be able to chart the journey of transformation, we need to not just plot the destination, but also to understand where we stand today. So, we start by scientifically measuring Actual Organizational Culture on six independent dimensions of organizational culture to see where we stand today, and what is the magnitude of the change needed to align organizational culture with strategic goals. We also measure Employee Desired Culture (which is the more about understanding employee emotions, desires, and sentiments).

If we were to compare Employee Engagement to any of the above three elements of organizational culture, it is by all means an expression of Desired Organizational Culture. The problem with only measuring employee engagement or Employee Desired Organizational Culture (EDOC), is that in 9 times out of 10, EDOC does not reflect how the organization NEEDS to behave in order for Business Strategic Goals to be delivered. In many cases that we have seen, Desired Culture is usually pulling back on Optimum Culture.

Strategic Versus Tactical: Time, Investment, and Outcomes

Scope and Depth:

Organizational Culture: Involves a comprehensive assessment of the entire organization's values, beliefs, and practices. It requires a deep, strategic understanding of the business and the eventual shaping the collective behaviors and practices.
Employee Engagement: Focuses on individual employee perceptions, desires, sentiments and feelings. It is narrower in scope and often treated as a tactical measure. But it really just measures what employees want, which may be in a completely different direction of what the organization needs.

Time and Financial Investment:

Organizational Culture: Requires substantial time and resources to assess and transform. This includes in-depth surveys, focus groups, and long-term initiatives aimed at cultural change.
Employee Engagement: Typically involves periodic surveys that are less resource-intensive but may require follow-up actions to address identified issues.

Outcome Expectations:

Organizational Culture: A strategic approach to culture can lead to profound and sustained changes in organizational behavior, driving long-term success and alignment with strategic goals.
Employee Engagement: Improvements in engagement can lead to immediate benefits in productivity and morale but may not address deeper systemic issues without a supportive cultural context, and may not necessarily end up delivering on the strategic objectives of the organization.

The Strategic Edge of Organizational Culture
While measuring and improving employee engagement is essential, it should not be the sole focus of organizational development efforts. Actually it should be handled very carefully and only acted upon when it aligns with the Optimum (Needed) Culture of the Organization. Organizational culture, as articulated through The Culture Factor Model, provides a strategic framework that encompasses and enhances employee engagement, as one part of many moving parts of the business. Actually, over 830 moving parts to be exact. By investing in a comprehensive understanding and transformation of organizational culture, leaders can create an environment where engagement naturally flourishes, leading to sustainable success and alignment with strategic objectives.

Organizational culture is not merely a backdrop but a strategic tool that shapes the entire organization's direction and success. Employee engagement, while important, is just one piece of this intricate puzzle. If organizations end up acting on employee engagement recommendations without regard to whether or not they align with the more strategic optimum organizational culture, the business is likely to have many happy employees doing irrelevant things heading in the wrong strategic direction. Leaders who recognize and act on this distinction are better positioned to drive meaningful and lasting organizational transformation that delivers on massive growth and faster success.

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