The Effects Of Negative Corporate Culture

The Effects Of Negative Corporate Culture

Corporate culture is about shared values and visions that a business and its employees value and share. Sharing beliefs and behaviours help to determine how employees will interact within and outside any business. Negative corporate culture has a multitude of negative side effects on both the business and the individuals within the organisation.

Placing the light on negative corporate culture highlights the negative effects that it has on the business and the individuals. There are multiple factors that affect a negative corporate culture the main factor is the environment, if the workplace has poor communication, especially from leaders to teams it creates a negative environment. Lack of communication is when work requests are not given, proper feedback is not given or when briefs change without knowledge then it creates a negative environment for workforces. Poor communication is also brought on when not the whole team is informed, or when a leader does not feel like giving information or forgets to give the information. This creates a feeling of mistrust and negativity in a team, and it impacts the overall corporate culture.

Negative corporate culture has a big effect on workforces, especially on their mental wellness. The mental health and wellbeing of workforces gets negatively impacted when the culture within an organisation is negative. Conflict, harassment and consistent negative criticism from managers or higher ups affect the self-esteem and mental health of workforces that causes stress and depression which truly affects the physical and emotional wellbeing of individuals. Negative mental health impacts the business in terms of productivity levels as well as the overall product that is delivered. Employees asking for help or assistance and not receiving it as the situation is seen as normal in the organisation, truly impacts the wellbeing of the individuals in the organisation negatively.

The absences of core personal and company values is a big effect that a negative corporate culture has on an organisation. Values need to be the driving force of any business, and without strong and positive values in a business it has a negative impact on the productivity as well as the ethical behaviour of individuals within the organisation. No values in an organisation could make workforces feel that they have no sense of direction.

Core values are a key aspect in giving team members are direction, yet if managers do not follow the core values then teams often experience a divide. Teams look to their managers for direction, but if the manager follows their own rules and spend time on personal work instead of focussing on demanding tasks, it could filter down to the rest of the team. Authority will be discredited is managers do not follow core values, even distrust in the leadership will start to filter into the team.

A key effect of a negative corporate culture is the yearly turnover rate. A clear sign of a toxic corporate culture is a high turnover rate. Individuals turn down job opportunities if they feel the culture is not a good fit, as well as individuals leave organisations if the culture is toxic and does not value them as individuals. Individuals wish to take care of their mental health and toxic cultures affects it negatively, therefore they leave the organisation for their own healthy.

Awarding only one or certain people in a team creates a negative environment and culture within any organisation. Undervalued members feel that their work is not recognised, and it develops a divide in any team. If members steal the recognition of other members, it develops a distrust within any team and teamwork does not occur. The effect of a negative corporate culture is the dissatisfaction of team members that never receive recognition. Animosity and negative competition is created within a negative corporate culture.

Overtime is a natural occurrence in any business as deadlines have to be met, yet it becomes a problem when team members have to work overtime on a daily basis. Negative corporate cultures create unrealistic expectations for individuals that force them to continuously work overtime to meet crazy deadlines and handle massive workloads. Impractical objectives and deadlines cause teams to work overtime on weekday, weekends as well as public holidays. The negative effects lead to mental health issues as well as workforces becoming detached to their work as well as burnout. Negative corporate culture affects the personal lives of workforces, as they feel they have to keep working in order to meet impractical objectives. 

Another effect of a negative corporate culture is the lack of morality in leadership. Unethical or bad behaviours filters down from managers to individual team members. When managers condone the stealing of recognition, or the use of work resources for personal use, the individuals in the team will also start to do it. Individuals will start to hide their work and problems from managers if they see that the manager takes the credit and ignores the real problems. When managers have a lack in morality, the probability of a team losing their culture is big as they have to pick up the slack of the manager. Which in turn creates an even bigger and negative concern within the business.

The negative effects of a negative corporate culture are visible for any individual as well as potential candidates. It is important to notice the effects and implement changes. The use of digital HR software, such as HR Artis, can help any business in minimising the effects of a negative corporate culture and implement a more positive culture that enhances all levels within the business. Have the ability to changes your corporate culture and the way your workforces view their daily work lives with digital HR.

Empower your workforces with digital HR that allows them to take control of their HR needs and help to prevent a negative corporate culture and the effects that it creates in the business and their personal lives. Protect and enhance the capabilities and your workforces with an all-in-one mobile HR solution.