When Corporate Culture Is Neither Corporate Nor Culture.

If we went to our doctor and they solved our health problem, or at least gave us hope that it would be solved, we were satisfied. We had trust and no feeling of uncertainty. If the health problem wasn't solved at the first encounter and still persists, and trust is lost and uncertainty has appeared, our first thought will be that the doctor is only looking at our "problem" (kidney, heart, blood pressure...), but not at us holistically. As time passes, the problem will escalate, both psychologically and physically and physiologically. We will be overcome by a feeling of powerlessness. After powerlessness, emotions and reactions will simply alternate, but it's unlikely they will be positive.

If we frame things this way, the question arises why we don't view an organization holistically, that is, comprehensively and interdisciplinarily, if we can truly understand it as a living organism. A kind of ecosystem.

The sequence of feelings can vary depending on the situation and the individual, but uncertainty and powerlessness will often be related and interdependent.

For example, if we feel insecure or uncertain about a problem we can't solve or control, it can lead to a feeling of powerlessness. On the other hand, a feeling of powerlessness can appear before uncertainty, such as when we feel powerless to solve a recurring problem, no matter how hard we try. After some time, depending on our personality profile and…, we will give up.

In any case, the feelings of uncertainty and powerlessness will often be related and interdependent, which can lead to negative emotions such as frustration, sadness, anger, and ultimately anxiety.

If, to all this, we add a lack of transparency and open communication, which will consequently generate insecurity or fear, along with powerlessness and overload, rumors will also appear. Rumors can further amplify the mistrust that is already born as a result of non-transparency and a lack of open communication.

And finally, the "queen" of emotions arrives: jealousy.

Jealousy is an emotion that can appear in various situations, such as romantic relationships, friendships, business situations... Jealousy will appear when we feel a threat of losing something important to us, such as love, attention, possessions, or status.

Jealousy can also be caused by insecurity, fear of failure, lack of trust, and a feeling of powerlessness.

All of this is a worst-case scenario of a lack of a holistic approach to an organization and its corporate culture. Depending on how early or late we reacted, good or bad feelings will develop to that extent.

Interdisciplinarity

The question is, why interdisciplinarity?

The other day, in an interview, we asked a sociologist how he sees the psycho-social changes that have occurred, related to both COVID-19 and digitalization... He said he hadn't thought about whether any changes existed, but it seemed to him that everyone had adapted. Why do people not think about what is happening around them? Why don't they see it?

There are several reasons why people don't think about or see the changes happening around them.

• Normalization. When changes happen gradually, it's (very) easy to get used to new conditions and adapt without even being aware of it. In this way, new situations become normal and stop attracting attention.
• Overload. In the environment we live in, we are very often overloaded with work, family obligations, other activities... and we very likely won't have enough time or energy to think about the changes happening around us.
• Selective attention. We are often prone to pay attention to what is important or interesting to us. When it comes to societal changes, individuals may consider them irrelevant to themselves or their lives, so they don't pay attention to them.
• Lack of information. Although we live in a highly informatized society, the opposite often happens, which is that we often lack information, including about the changes happening around us, and therefore we are unable to understand their importance or, ultimately, their consequences.

It's not for nothing that they say it's easy to be a general after the battle.

Also, in answer to the question of interdisciplinarity, we can include human cognition in the equation.

Human cognition refers to the processes involved in receiving, processing, and interpreting information from the environment. This includes perception, attention, memory, thinking, understanding, and decision-making. These processes are precisely crucial for noticing changes in the environment.

For example, perception plays an important role in noticing environmental changes. When something changes, we can notice that change through differences in our visual field or other sensory information. On the other hand, it will be difficult to notice every change in the environment because we are, mostly, selective in what we pay attention to and what and how we perceive. Also, how much we perceive something depends on our goals, expectations, experiences...

Memory also plays an important role in noticing changes, as new events are compared to existing knowledge and memories stored in memory. If new events do not match existing knowledge or memories, they can be easily noticed as changes.

In addition to the fact that it is difficult for us to see the whole situation we are involved in, in most cases, another problem can arise.

Why is it harder for us to see the "bigger picture"?

Firstly, our personal attitudes and beliefs can lead us to see only one side of a situation, ignoring other facts and perspectives. Next, a very common reason is our emotional involvement. For example, if corporate culture is "our baby," we will find it difficult to understand every detail when we are overwhelmed with emotions. Also, one of the problems is a lack of information. Various cognitive biases can further complicate things, and finally, a lack of context can lead us to misjudge the situation and its consequences.

And finally, a different, i.e., interdisciplinary approach, arises due to "hopeless" and "outgoing people." In our work, we made, at first glance, perhaps a very harsh division: between people who can find a job at any given moment and those who find it somewhat harder to find a new job. The polarization of the labor market into highly sought-after professions (ICT, healthcare, hospitality and tourism) and less desired ones has prompted us to make a new division. Mainly because, from the perspective of additional care for these people within the company, management often unintentionally forgets about them. In that sense, any hint of a lack of communication or transparency will cause unrest among them. In companies, these are usually various so-called service departments, i.e., departments that support the money-makers within the company.

HR Generalists

We will summarize the role of the human resources department through the role of an HR generalist, probably the most common position in all companies.

The job description of an HR generalist, in short, would look something like this (?):

• Recruiting and selecting new employees. In principle, this role includes creating job advertisements, conducting interviews, assessing candidates, etc.
• Employee learning and development. HR generalists are responsible for ensuring that employees are trained for their jobs and have access to various opportunities for career development. This may include organizing training, seminars, mentoring programs, and other forms of employee development.
• Performance management. HR generalists monitor and evaluate employee performance and provide feedback to help them achieve their goals. They may also participate in evaluating employee performance and provide recommendations for promotions, bonuses, and other forms of reward.
• Compensation and benefits management. Issues of salaries, benefits, and other employee perks are another role within the HR generalist's job description.
• Labor law relations.

Through these 5-6 roles, general employee care is summarized, but also through these 5-6 roles, all processes within the company, from onboarding to offboarding, take place. Depending on the size of the company, these roles will often be distributed among several HR department employees. In this distribution of work, it is difficult to "connect" the employee into an uninterrupted, personal, and solely employee-oriented process.

The common link should be corporate culture, which can be a challenge if we don't ultimately know people well.

Additional problems for a holistic approach will arise from various consequences of good or bad human resource management, such as high turnover, overstaffing, recruiting and selection of new employees based solely on professional competencies, training not tailored to the specific needs of employees or focused only on professional development, inadequate performance management, etc.

All shortcomings, perhaps in less human resource management, will be proportionally smaller the shorter the company has been on the market. With the company's tenure, and thus that of its employees, problems will accumulate.

Why is it easier for startups?

Employees in startups are generally younger people, and for most, it's their first job. Although a lack of experience can bring problems on one hand, from a human resource management perspective, the situation is immeasurably easier. Why? Firstly, these employees carry neither good nor bad experiences of good or bad corporate culture, good or bad relationships, transparent or non-transparent communication within the company. They enter the labor market innocent, free from any (cognitive) prejudices – except those that youth brings. Also, as these people develop, so does the company and vice versa. Because they all start from scratch together, these employees find it much easier to see the broader picture of the company's growth and development; they have much more room for creativity and the feeling of creating new values. They are part of the company's success; with every departure from work, they leave behind some newly created value. If we look at what happens to them in a startup in this sequence, we will realize that they are satisfying Maslow's last step, which is self-actualization. Long-established companies will find this difficult to provide.

In the early 1940s, psychologist Abraham Maslow first proposed his theory of the “hierarchy of work needs.” Maslow's hierarchy is often depicted as a pyramid, with the most basic physiological needs at the bottom and the need for self-actualization at the top. In between are the needs for safety, belonging and love, esteem, and self-actualization.

It's no secret that employee turnover can be costly for companies. It can also disrupt teams and morale. The key to reducing turnover is understanding what motivates employees. According to Maslow's hierarchy of work needs, there are five key motivators: physiological, security, social, esteem, and self-actualization. By understanding these motivators, companies can create an environment that meets employee needs and reduces the desire to leave.

Maslow's hierarchy of work needs is a popular framework for understanding human motivation for work. The theory states that there are five levels of needs that motivate people at work: physiological, safety, social, esteem, and self-actualization. Higher needs in the hierarchy become important only when lower needs are met. This framework can help us explain why turnover is such a common phenomenon in organizations and why corporate culture in startups is much better without major interventions.

Namely, it has been proven that needs can be skipped and that an employee can move to a "higher level" without fully satisfying the needs at a lower level. And therein lies the answer to everything. Startups have self-actualized employees. Self-actualized people are better people, less competitive or at least not negatively competitive, and most importantly, they don't have the need to "look at someone else's plate."

If you've had the opportunity to work in or with a startup and given them a psychometric assessment that includes Maslow, you will confirm the above theses.

Employee Branding

Employee branding refers to how a company develops and promotes its image as an attractive place to work, creating a positive perception among potential and existing employees. The goal of employee branding is to attract and retain quality employees and improve the company's overall reputation.

Successful employee branding programs involve various strategies, such as creating a positive work atmosphere, rewarding and recognizing employees, career development, supporting work-life balance, and establishing clear company values.

Additionally, companies can also use social media and other marketing tools to promote their culture and values, and create a positive image among potential employees. This approach can be particularly effective when companies want to attract young talent looking for employers who engage in socially responsible issues.

Ultimately, a successful employee branding program can have many benefits for a company, including better employees, increased productivity, lower employee turnover, and an improved company reputation in the labor market.

Today, there is a tremendous amount of talk about employee branding and its importance, but most companies have realized that employee branding, although we can say it is how a company develops and promotes its image as an attractive place to work and creates a positive perception among potential and existing employees, stems primarily from corporate culture.

In other words, there is no positive employee branding without a positive corporate culture.

Culture Before Corporate Culture

Before we tackle corporate culture, it is necessary to ensure that some of the basic conditions important to employees are met.

Further to Maslow mentioned above, it is important to mention Herzberg in connection with him. Herzberg developed his two-factor theory in 1959, studying about two hundred office employees, and his research aimed to obtain information about which business factors contribute to extreme job satisfaction. He was also interested in which business factors lead to an extreme lack of job satisfaction, i.e., dissatisfaction. The conclusion of the research was that there must be factors that contribute to a certain satisfaction, or gratification, and he called them hygiene factors. So, they will not contribute to high levels of satisfaction, however, if they are not present, they can affect the development of a high level of dissatisfaction.

In addition to hygiene factors, he concluded that there must also be so-called motivating factors which, if present, can cause a great deal of satisfaction. He called them motivational factors. Because of these two factors, the theory was called the two-factor theory. In essence, it is an adaptation of Maslow's hierarchy of needs. It is named after the American psychologist Maslow who says that "self-actualized people accept themselves and are able to deal with their concerns, but also recognize the needs and desires of other people."

The overlap of Maslow's hierarchy of needs and Herzberg's two-factor theory is shown in the figure below, and Herzberg's two-factor hierarchy of needs supports why it is easier for startups to attract and retain people and have a more pleasant corporate culture.

In other words, "show me the money," but don't stop there.

Communication

The foundation of every corporate culture is transparency, which is considered one of the most important (hygiene) elements because it promotes openness, fairness, and trust among employees and management. The moment a company establishes a culture that values transparency, it will be reflected in all aspects of its operations, including hiring practices, decision-making, and management.

Transparency is linked to open and clear communication because it is based on sharing information in a way that is understandable and accessible to all employees in the company. When a company establishes a culture of transparency, open and clear communication becomes standard practice in all aspects of operations, including hiring practices, decision-making, and management.

Open and clear communication is crucial for building trust between management and employees because it allows employees to feel informed about company decisions and processes. When employees are informed and involved in decision-making processes, they feel valued and important within the company, which motivates them to be more productive and loyal to the company. And most importantly, employees will be able to make informed, not emotionally-based, decisions.

Also, open and clear communication reduces the possibility of misunderstandings, disagreements, and conflicts, as all employees understand the company's goals and strategies. This helps create a more pleasant work atmosphere and more effective teamwork.

Ultimately, open and clear communication helps build a positive corporate culture that values transparency and fairness. This not only improves the work environment but also contributes to better business results, as employees feel included and motivated to achieve the company's common goals.

Corporate Culture

Furthermore, when discussing corporate culture, it's important to know that there are employees who prefer corporations and corporate environments. This doesn't even necessarily relate to a feeling of security, whatever security might mean to someone, but rather to the fact that some people might enjoy bigger challenges and large projects, much more clearly defined career paths, and greater opportunities for advancement. They don't necessarily need excessive attention, overt recognition, or emotional involvement.

On the other hand, we have people inclined to a non-corporate environment where the work culture offers a more relaxed work setting, which will be more attractive to people who don't prioritize strict hierarchy and dislike excessive formality at work. Also, non-corporate environments will give a greater sense of freedom and autonomy. Such people often need more emotional connection, more recognition, and ultimately, for their leader to know them better, ask them how they are (and genuinely mean it), and have a closer, less formal relationship with them. In non-corporate environments, a leader who provides a meritocratic, mentoring, and more emotionally intelligent relationship is important.

We also have a third category that will have characteristics of one or both groups.

Somehow, by definition, corporate culture refers to a set of shared values, norms, customs, beliefs, and behaviors that define how a company functions, how it treats its employees, and, ultimately, how it interacts with its operating environment. It will often include various business aspects such as communication style, decision-making process, relationships between employees and management, employee reward and recognition methods, ethical standards, social responsibility, and other factors.

A good HR department will typically form corporate culture based on the company's history and values, and then develop and change it over time in accordance with changes in the industry, society, and the global environment. Because, after all, corporate culture is also a living organism that changes, grows, and matures.

Corporate culture is one of the key factors contributing to a company's success as an organization, as it will affect employee engagement, productivity, customer satisfaction, reputation, and many other aspects of business. It will also reflect on the hottest thing today, which is employee branding. It is very important for companies to be aware of their corporate culture and actively cultivate it to create a positive work environment that, first and foremost, supports employees and encourages innovation and success.

Before we start changing or building corporate culture from scratch, it would be good to consider the proportions of what it will contain. Whose values, what are those values at all, and in what proportion will the values be contained. A good corporate culture should have a mix of employee and corporate values. Of course, due to different perspectives and perceptions, they will differ.

Examples of personal values can be: responsibility, achievement, adaptability, ambition, being loved, mentoring, compassion, competence, courage, creativity, ethics, enthusiasm, initiative, fun...

Examples of corporate values can be: conflict resolution, curiosity, efficiency, recognition, equality, ethics, excellence, forgiveness, information sharing, professionalism, profit, teamwork...

Some values will be found in both personal and corporate values, but it is important to find a quality mix that will yield the corporate culture needed by our employees and, of course, the management of that same company.

The moment we embark on changing corporate culture, we must understand that it is a change for our company like any other, and the most important thing when introducing changes is that we should push/allow/introduce them only to the extent that the organization can tolerate, understand, and "swallow" them.

Certain changes in our companies have occurred recently, whether we wanted them to or not. The question is how we controlled or managed them. They definitely left an equally significant mark on our people, and consequently, on corporate culture.

Furthermore, what is important to state is the fact that the recent period has, in one way or another, pulled the rug out from under most people, and we have all, at least in some micro segment, lost some control.

The desire for control is a fundamental aspect of human nature and is closely linked to various cognitive processes and brain functions. It is driven by numerous factors, including the need for security, the desire for predictability and stability, and the need to regulate emotions and manage stress. From a cognitive perspective, the desire for control is associated with the brain's "executive function," which is responsible for decision-making, planning, and goal-directed behavior.

When we look at corporate culture from the perspective of employees and the desire for control, it becomes clearer why its stability, consistency, and transparency are crucial. Namely, if corporate culture does not fulfill the need for security, stability, and predictability... employees lose security, predictability... and then emotions get involved, and we can go back to the beginning of the text.

How can HR contribute to corporate culture?

All of us tend to gravitate towards enjoyable and pleasant activities much more easily than confronting uncomfortable tasks that we know are important, but sometimes not important enough to tackle. Often, a lack of priority, and especially motivation, plays a role in procrastination. In HR, it can often happen that the very "engagement" with corporate culture triggers all the reasons not to deal with it. Ultimately, we all, at least sometimes, have problems with delayed gratification and are not always ready for long-term investments. In such situations, we are often inclined to solve things from the bottom to the top instead of vice versa. Unfortunately, corporate culture demands precisely that holistic approach mentioned.

The time spent in a healthcare institution probably embedded some systematic errors in me, but I am sure it wasn't in such a way that I look at corporate culture as something sick, but rather as something that requires attention.

And therefore, a holistic approach is considered the correct perspective in providing healthcare and managing organizations. In healthcare, this approach recognizes the importance of viewing the patient as a whole, including not only physical health but also emotional, mental, and social health. In this way, patients are viewed in the context of their living environment and personal circumstances, which allows for a better understanding of their needs and the provision of adequate care.

And that is why there is no reason to behave the same way with employees, except that the word 'care' should be replaced with 'concern,' and 'patient' with 'employee.'

In the context of organizational management, a holistic approach recognizes that different parts of an organization are connected and interdependent. This means that management should not focus solely on one aspect of the organization, but should consider broader contextual and interdisciplinary factors that influence organizational functioning. A holistic approach also implies involving different experts from various fields who should work together to achieve common goals.

Long story short, a holistic approach recognizes the importance of viewing problems and situations as wholes, not just individual parts, and takes into account the bigger picture and contextual factors that affect an individual or an organization.

And therefore, the holistic approach can be considered the correct view in both providing healthcare and managing organizations.

For inadequate corporate culture, we can no longer blame management today, because I am convinced that there is no management (ok, with exceptions that are not worth considering at all) that does not want a healthy corporate culture, but we can probably all agree that they may not know how to implement it.

Organizational culture is a living organism. Facing uncomfortable tasks and investing for the long term can be challenging, but a holistic approach is crucial for successfully managing an organization and its culture. By taking into account the bigger picture and contextual factors, it is possible to provide adequate care to employees and create a healthy corporate culture that promotes cooperation, teamwork, and commitment to common goals. Organizational culture is not a static entity but a living organism that requires constant attention and care. Implementing a holistic approach to organizational management can be challenging, but in the long run, it will bring numerous benefits to employees and the organization as a whole.

HR Generalists and Corporate Culture

Since we have linked a part of the work related to corporate culture to the HR generalist, as probably the most common HR position in our country, and the fact that most HR managers (where they are alone) perform these roles, it is important to emphasize that the HR generalist is responsible for various aspects of human resource management in an organization, including employee development. Proper employee learning and development are crucial for developing a quality corporate culture, because employees who feel supported in their development and advancement will be more motivated and productive. The quality of corporate culture depends on many factors, including the attention the organization pays to selecting and hiring new employees. The HR generalist should ensure that when selecting new employees, their affinity for the organization's values and culture is also taken into account, as this will make them more likely to join and contribute to a positive corporate culture. A quality corporate culture creates a stimulating environment for employee learning and development, which is also important for HR generalists. They need to ensure that the organization has a support system for employee development, including various forms of education and training, as well as mentoring or coaching. In this sense, the HR generalist plays a key role in promoting a culture of continuous learning and development in the organization, which will contribute to the development and maintenance of a quality corporate culture.

Of course, they must never forget those hygiene factors.

Jealousy

What we must not forget:

• Professional jealousy is a natural emotion and part of being human.
• In the workplace, the consequences can be devastating.
• Our constant connection to social media (which at its core drives comparison and external validation) increases the level of jealousy.
• Economic uncertainty only increases the prevalence of envy in the workplace.
• Cheryl Carr: "With jealousy, people aren't against you, they're just for themselves. Envy and jealousy make you feel weak, ashamed, and inadequate. This causes a breakdown in connection."

When jealousy or envy exists in organizations, leaders witness triangulation in communication, reduced trust in relationships, and changes in self-efficacy. Our ego overcompensates for a lack of self-confidence, and we might exhibit more narcissistic behaviors, leading to significant problems in the ability to work together as a team. This will call into question the fairness and integrity of the organization, and emotionally intelligent people, good HR, and a deep understanding of human emotions will be a good corrective factor. For everything. Including jealousy.