How to protect organizational culture in the economic crisis

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How to protect organizational culture in the economic crisis

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In a scenario of economic and political crisis, full of uncertainties about the future, as well as what we are experiencing today in Brazil and in the world, companies are expected to adopt emergency measures to protect their sustainability. One of the most important actions in this process is to manage your culture.

Organizational culture is the set of practices, standards and values ​​established in a company's work processes. It can be seen in the way the organization conducts its business, relates to employees, in how it treats its customers, in the degree of existing hierarchy, in the conduct adopted in crisis situations, and so on.

If you want to assess the quality of your company's organizational culture, we recommend reading this material here.

The disappointing post-Covid-19 financial forecasts pose significant challenges for business leaders. Follow the post and understand the legacy of this economic crisis and the role of organizational culture in the process. Good reading!

What is organizational culture?

Organizational culture is, roughly speaking, daily behavior and the way of doing things within a company. Therefore, it involves a set of values, standards and practices that guide the work processes.

Much more than the intentions described on paper, culture is everyday practice, it is experience, it is sharing. The way activities are managed, processes are executed, people relate, collective beliefs are presented, priorities are defined, among others, explain an organizational culture.

Therefore, any situation must consider the corporate culture. Even crisis situations.

Driven by external situations such as corona virus pandemic or generated by internal problems, such as corruption scandals or accidents at work, the economic crisis influences the reality of organizations, and it is through their culture that it will be conducted.

How to work culture in times of economic instability?

In situations of economic crisis, companies need to adapt, even if unwillingly, to ensure their sustainability.

This way, should seek solutions with fewer resources to optimize their profitability, to conquer results under constant pressure, wipe your workforce, defer or cut investments, reduce benefits, and so on.

As the economic and political consequences are to be felt for a significant period, it is essential that the organization has crisis planning and a culture that supports these strategies.

In other words, it will be up to the organization's own managers to decide whether the crisis will leave a legacy or a curse. THE human capital management style=”font-weight: 400;”> will be a differential measure.

Investing in the promotion of an innovative organizational culture is a strategic advantage, as it allows leaders to develop measures that:

  • improve the organizational climate;
  • encourage employees' sense of responsibility;
  • control the rates of turnover;
  • motivate your workforce;
  • control the feeling of insecurity and fear;
  • strengthen the sense of belonging;
  • clarify the real situation of the company with transparency;
  • reinforce shared values;
  • clarify the measures to be taken.

A solid organizational culture will make it possible to reduce the negative impacts of the crisis and prepare employees for the next institutional steps.

What measures to take to create an innovative organizational culture?

Organizational culture can be understood as the company's identity, that is, a set of characteristics that define it and directly influence its actions. These factors are translated into the mission, vision, values, rules and beliefs shared by its employees.

To structure an innovative culture, leaders can adopt some special measures. Check out the most interesting ones below.

Define the place of growth

Leaders and managers are always looking for growth, which is why they create strategic investment points. In times of economic crisis, these measures will be limited. Therefore, it is essential to find the places where customers are recovering and maximize growth in these environments.

Reinforce recognition

Economic crises influence the mood and self-esteem of employees, so a measure to be reinforced in the company's organizational culture is the recognition of victories and good performances, even if they are not very expressive.

Leaders need to show what is working and encourage a sense of gain and development. And so, create valuation and reward policies, strengthening the spirit and commitment of employees.

Its positioning is indispensable to motivate the workforce.

To offer feedbacks constants

Another practice of a solid organizational culture is feedback. If in conventional times feedback is already important, imagine in situations of economic crisis.

Leaders must adopt this habit so as not to allow organizational directions to emerge and compromise the motivation, profitability, trust and belief of employees, and consequently the company's results.

Create a healthy organizational climate

As we said, the economic crisis affects mood and mood employee well-being style=”font-weight: 400;”>, so it is up to the leadership to create a organizational climate healthy. And for that, it is essential to listen to your workforce.

In view of the few resources available, managers must structure the environments and offer healthy and favorable conditions so that employees can better conduct their activities.

This dynamism to the work environment is also a powerful resource in times of economic crisis, as it ensures that the workforce is well able to raise rates of organizational growth.

The economic crisis is a time when opportunities are redistributed in the market, so having an intelligent organizational culture that stimulates the workforce is essential to ensure the company's sustainability.

The leaders must invest seriously in the management of human capital, since it is the people of the company that will lead the journey back to development.

It is worth remembering: even if the diagnosis of your company is not the most favorable and can be frightening, every economic crisis is fleeting. This will be no different. Until then, only emergency measures for crisis management remain to ensure the least political and financial damage.

Whenever possible, seek to adopt positive attitudes to face and overcome this situation, counting on the support and the hard work of the instrument of greatest institutional value, the collaborators.

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