Importance of Creating a Healthy Organizational Culture

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Personal welfare and wellbeing, engagement and commitment to work, and the culture within the workplace all affect the productivity of the employees in the organization as a whole. Top-level management, such as executives, are the ones tasked to make sure that the organizational culture, as a whole, is healthy in a way that it promotes productivity and that it empowers all the employees to do their jobs in a way that it makes the company better.

Unfortunately, top-level management does not always have the right answer when it comes to promoting or creating a healthy organizational culture. This is the reason why some companies have lower retention rates as compared to others. With the turnover rates as high as it has ever been, organizations can ill-afford to lose employees, regardless of their rank within the organization.

The Culture of Your Organization

Culture is a very persistent aspect of human behaviour. It affects how people behave and think within a society. In an organization, the culture affects productivity, motivation and satisfaction, all of which lead to retention. The higher those three are, the higher retention rate is, putting much importance to the health to the culture of the organization.

These signs below will help you know if your organization has a healthy culture or not.

  • Employees know what they are accountable for and know what their responsibilities are. They know when they have made mistakes, and they know how to accept that they have made them.


  • The organization works as a whole, from top-to-bottom, with top-level executives serving as model employees and at times, even working hand-in-hand with bottom-level employees.
  • Healthy organizations make sure that the thought and decision process comes all levels of management, from top to bottom, such as top management asking employees what type of compensation packages they need, as well as what the best health and wellness programs are for them in their opinion.
  • Organizations that have a well-placed and healthy culture will remain consistent at all times, never doing anything questionable, promoting honesty, transparency and clarity throughout the whole organization.


  • Organizations that have unhealthy cultures will most likely have employees that will not produce well doing times of adversity, simply because they believe that the company is failing and that what they do will not affect the organization as a whole. On the contrary, a healthy organizational culture will stand strong against adversity and all employees will remain productive all throughout, while remaining realistic about problems and challenges.


An organization will only succeed from the inside out and not from the outside-in. Customers, though important, have less significance if the organization cannot maintain a healthy organizational culture. Thus, emphasis on maintaining and creating a healthy organizational culture is a definite must if a company wants to remain relevant and be successful in its industry.

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