Organisational culture: The unseen force

By Adelaide Topodzi-chimbarara | Oct. 25, 2024

ORGANISATIONAL culture is the invisible framework shaping an organisation's operations, influencing interactions and decision-making. While a positive culture can drive success, a negative one can hinder progress and create a toxic environment.

Some manifestations of bad culture are seen in:

Leadership behaviour: Unethical conduct, favouritism, or lack of transparency from leaders can filter down through the organisation, stifling innovation and demotivating employees. For example, a chief executive officer (CEO), who micromanages may suppress creativity and autonomy.

Lack of clear values and vision: Without clear values and a unified vision, employees may feel disconnected and unsure of their purpose, leading to inconsistent decision-making and lack of direction.

Poor hiring practices: Hiring individuals who do not align with the organisation's values can lead to a lack of cohesion, high turnover, and a team that struggles to work effectively together.

Ineffective communication: Inadequate communication creates confusion and mistrust, leaving employees feeling isolated and uninformed about important decisions and changes.

Inadequate training and development: A culture that neglects employee growth can lead to stagnation, low motivation, and a workforce ill-equipped for new challenges.

Absence of employee feedback mechanisms: Without avenues for feedback, issues go unaddressed, leading to dissatisfaction and disengagement among employees.

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Rewarding negative behaviour: Encouraging unethical behaviour, such as cutting corners or bullying, fosters a toxic environment where trust and collaboration are compromised.

Resistance to change: A culture resistant to change hinders adaptation to new market trends and technologies, resulting in missed opportunities and stifled innovation.

Lack of inclusivity and diversity: A homogeneous workforce limits diverse perspectives, leading to groupthink and a stifled environment. Employees from underrepresented groups may feel marginalised.

Poor conflict resolution: Mishandled conflict leads to a hostile work environment, negatively impacting team dynamics and morale.

Micromanagement: Excessive control reduces employee autonomy, leading to burnout, reduced creativity, and lack of ownership.

Lack of accountability: Without accountability, a culture of blame-shifting and mistrust can develop, making it difficult to address issues and drive improvement.

Culture and audit

Auditors often overlook the significant influence of organisational culture because their focus tends to be on quantifiable data, formal processes, and compliance with established controls.

The emphasis on measurable elements like financial records, procedures, and regulations means that the softer, more qualitative aspects — such as the attitudes, behaviours, and underlying values of employees — are often neglected.

Limited interaction with staff can further distance auditors from understanding how day-to-day operations are truly carried out, as formal policies may not always align with the informal practices influenced by organisational culture.

As a result, crucial insights into workplace dynamics, employee morale, and communication patterns may go unnoticed.

When auditors miss these cultural issues, they risk overlooking hidden vulnerabilities, such as ethical breaches, resistance to change, or leadership deficiencies.

These factors can have a significant impact on the organisation’s overall risk profile, leading to inaccurate financial reporting, compliance failures, and unresolved internal challenges.

By not factoring in culture, auditors may fail to identify key risks or provide recommendations that fully address the root causes of organisational problems.

Actions for negative culture

If you find yourself in an organisation with a poor culture, the ideal steps probably look like this:

Assess the situation: Understand the cultural issues and their impact on you.

Seek support and allies: Connect with like-minded colleagues and mentors.

Communicate concerns: Document and discuss your observations constructively.

Lead by example: Model positive behaviour and promote inclusivity.

Participate in change initiatives: Engage in committees and suggest improvements.

Focus on personal development: Invest in your skills and set boundaries.

Consider your options: Evaluate your long-term fit with the organisation.

Report unethical behaviour: Use appropriate channels to report issues.

Stay resilient: Maintain a positive mind-set and seek external support if needed.

I will need to emphasise the need to use wisdom as a crucial guiding principle in navigating any of these steps. Make informed decisions, consider the potential consequences of any of the actions, and choose the most effective strategies for improving your situation.

Grass is always greener . . .

Always remember, as an employee that the grass always looks greener on the other side. Every organisation has its own politics and workplace dynamics, regardless of how professional it may seem from the outside.

In essence, every organisation has a unique culture. With that in mind:

The person, who speaks well often, gets ahead of the person that works well. Strong communicators are better positioned to showcase their contributions, advocate for themselves, and inspire confidence in their leadership. As a result, their visibility and perceived value can outshine those whose talents may go unnoticed due to a lack of effective communication.

Believing your job is secure just because you work hard can be a costly mistake. Always keep your skills sharp and your network active.

Office politics exists everywhere. Ignoring workplace dynamics can hold you back, even if you are good at your job. Learn to navigate relationships tactfully. Build allies but stay professional and ethical.

Work-life balance is something you create, not something you are given. In a toxic corporate culture where long hours and constant pressure are the norm, work-life balance is not something you are given. To maintain balance, you must take control by managing your time, saying “no” when necessary, and prioritising personal commitments, even if the culture does not support it. Ultimately, your well-being depends on your ability to carve out the balance you need.

In many professional environments, being likeable can be just as important as being competent. While skills and expertise are crucial, the ability to connect with others, build positive relationships, and work well within a team can significantly impact career progression. Likeable individuals are often seen as easier to collaborate with, which can lead to more opportunities, trust, and influence in the workplace. A balance of both competence and likeability creates a more well-rounded professional profile, increasing your chances of success and leadership opportunities.

Conclusion

Organisational culture is a powerful yet often overlooked force that shapes the success or failure of a company.

While formal policies and processes are essential, the invisible cultural elements — values, leadership behaviours, communication, and inclusivity — play a critical role in influencing employee engagement, decision- making, and overall performance.

A negative culture can breed dysfunction, demotivate employees, and lead to missed opportunities or even ethical failures.

Both auditors and individuals within the organisation must recognise the impact of culture, address its challenges, and promote positive change.

For employees navigating a poor culture, taking proactive steps like setting boundaries, building alliances, and focusing on personal development can help create a healthier work-life balance and ensure long-term career success.

Ultimately, balancing communication skills, competence, and resilience are key to thriving in any organisational environment.

Topodzi-Chimbarara is a member of the Institute of Chartered Accountants of Zimbabwe (Icaz). She is also the internal auditor at Family Aids Caring Trust (FACT). These weekly New Horizon articles, published in the Zimbabwe Independent, are coordinated by Lovemore Kadenge, an independent consultant, managing consultant of Zawale Consultants (Pvt) Ltd, past president of the Zimbabwe Economics Society and past president of the Chartered Governance & Accountancy Institute in Zimbabwe. — kadenge.zes@gmail.com or +263 772 382 852.