The individual is always part of something bigger. We cannot ignore that much of our self-concept is shaped by the groups we belong to, influencing us through shared norms, values, symbols, practices, and even the language we use. Even in the workplace, the groups we form give rise to culture. Consequently, this raises the question of whether embracing a shared culture comes at the cost of individual identity.
Organizations often assume that a strong culture is fully unified. But the reality is that within them, smaller groups naturally develop their own ways of working, thinking, and relating, built upon the identities that distinguish them. How these microcultures create harmony or friction and impact how teams succeed is not always straightforward.
Microcultures are the distinct subcultures that emerge within the broader organizational culture. They develop their own norms, practices, symbols, and even artifacts—inside jokes, memes, or something as simple as a shared Excel template can become defining markers of a group’s identity. These microcultures form naturally, aligning with social identity theory: people seek out groups where they find shared meaning, connection, and belonging.
Instead of searching for quick solutions to the challenge of aligning employees with organizational culture, it helps to recognize the many ways microcultures shape the workplace, like how they influence rules, how employees navigate conflicting loyalties, and what happens when their values diverge from those of the broader organization. Some evolve to drive innovation, while others resist change. Even in organizations with strong oversight, certain microcultures persist in unexpected ways, and the shift to virtual work adds another layer of complexity.
Being aware of these dynamics and their underlying elements provides a starting point for viewing workplace culture in a more nuanced way and inspires the ability to recognize, respect, and learn from microcultures.
The Intersection of Personal and Social Identity in the Workplace
Our social groups shape our sense of belonging and add layers to who we are. As we move beyond national or ethnic affiliations, we find our identity in smaller, more intimate circles: the traditions of our families, the bonds with our closest friends, or even the teams we cheer for.
In the workplace, our affiliations provide a sense of purpose, self-worth, and belonging, and as individuals, we, in turn, influence the groups we belong to. This dynamic interaction creates an organic culture—one that naturally arises from our shared experiences, similarities, and commonalities (see Figure 1). However, for organizations to function effectively, some formalization is necessary. We need structure, rules, and guidelines—things like mission, vision, values, governance structures, and processes—to ensure consistency and alignment across the organization.
But here’s where it gets tricky: the moment we formalize this culture, it can become static. It’s no longer the fluid, evolving, ever-changing entity it once was. A formal culture has to be adhered to, enforced, and clarified. This leads to the assumption that people can simply conform to this collective identity when they enter the workplace.
When organizations artificially create culture, they’re essentially trying to force an answer to the question: “Who am I when I am here?” The greater the gap between “Who am I?” and “Who am I at work?” the weaker the alignment between the employee and the company’s culture.
In addition, a high workload, intergroup conflicts, constant change, or rigid procedural structures make it nearly impossible for individuals to embrace the bigger company identity. Instead of feeling connected to the whole, employees retreat into their more familiar microcultures, whether those are teams, departments, or informal social groups.
The Power and Risks of Microcultures
The various subgroups influencing our work identity can range from formal work groups and departments to more informal networks, like lunch buddies or even hobby groups. Imagine a group of employees from different departments who meet for a daily coffee break simply because they all drink decaf. Even this seemingly trivial connection contributes to a unique microculture. A microculture could be a workgroup, a department, or even smaller subgroups, like the group of people who share coffee breaks.
Microcultures allow organizations to maintain a unified culture while fostering diversity and inclusion. They provide employees with a sense of belonging beyond the overarching corporate identity, making workplaces more engaging and dynamic. Strong microcultures can boost morale, enhance collaboration, and even drive innovation as they create spaces where employees feel psychologically safe to express ideas and challenge norms.
However, there is a risk. Given the number of groups we belong to, our social identity becomes a complex and sometimes intricate puzzle. This multiplicity of roles often leads to role conflicts. Imagine an HR professional deeply invested in supporting their employees. They work closely with individuals from various departments, each with different values, priorities, and experiences. Now, suppose this HR professional wants to give raises to all employees based on merit, but the financial department has a strict budget and is hesitant. This creates a potential conflict: the HR professional’s desire to reward the team clashes with the financial constraints imposed by the company. But it goes deeper. The HR professional happens to be close friends with a member of the finance team, and they share a passion for veganism. Outside of work, they bond over their shared values, but within the office, their professional identities create friction between them.
In moments like these, employees are torn between their personal values and professional duties. This is the role conflict that arises from belonging to different groups, each with its own set of values, goals, and identities. The workplace is full of these competing dynamics, and sometimes, navigating them feels like juggling multiple versions of ourselves.
The reason is that microcultures are never neutral. Every microculture, no matter how positive, naturally creates a distinction between insiders and outsiders—an us vs. them dynamic. In the workplace, this often means that the broader organization itself becomes the “them.” Microcultures form around shared values, practices, or grievances, which can sometimes put them at odds with company-wide policies, leadership decisions, or the overarching corporate culture. Moreover, the meaning of concepts, goals, and behaviors can shift significantly from one microculture to the next.
When microcultures are healthy, they strengthen teams, enhance engagement, and improve retention. But when they feel threatened—whether by restructuring, policy changes, or leadership decisions—the fallout can be catastrophic. If left unaddressed, these tensions can lead to communication breakdowns, high turnover, low morale, decision-making paralysis, and workplace divisions.
Stop Fixing, Start Understanding
The instinct in organizational culture work is often to jump straight to solutions: to standardize, formalize, and proceduralize. But microcultures don’t work that way. They can’t be managed through another corporate initiative, another checklist, or another best practice borrowed from a different company. The biggest mistake organizations can make is assuming that what worked once will work again or that a single approach will fit all microcultures.
So before trying to “fix” microcultures, stop. Observe. Listen. Shift from doing to being aware.
Rather than forcing integration, start by understanding how microcultures naturally emerge and function. Instead of prescribing engagement tactics from the top, pay attention to where people already feel engaged. What keeps teams together? What unspoken norms make them thrive? And where do microcultures resist, disengage, or turn toxic?
The modern workforce exists in a delicate balance between personal identity and social belonging, between choice and collective expectations. Organizations that fail to recognize this reality risk alienating employees rather than fostering connection. The most effective leaders won’t be those who impose uniformity but those who navigate complexity with curiosity, adaptability, and a deep respect for the different identities that shape their organizations.
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Editor’s Note: This article was originally published in Performance Magazine Issue No. 32, 2025 – Employee Performance Edition.
Applying agility in the workplace has become a trend during the past few years for its wide range of benefits, such as adaptability, faster work speed, and innovation. However, some companies fail to implement it in its correct sense and gain its fruits. This raises several questions: is it because agile is only successful for software companies? Or is it because some companies may have a limited or ambiguous understanding of the concept and its implementation?
What does Agile mean?
Despite the fact that agility is one of the most popular and challenging concepts, there is no one common definition explaining it. A study explained that there are four main factors that most definitions highlight to define agile organizations. The first two are the organization’s ability to act to change in internal or external business environments at the right time and its response to act proactively on and predict change to make the most of it as an opportunity.
The third component involves learning and continuously expanding or accumulating skills, knowledge, and experience. Last but not least, agile organizations have to build a network structure, a people-centered and purpose-driven culture, as well as iterative processes to improve/enhance a product, service, and the like. Taking into consideration those factors, Petermann and Zacher define an agile organization as “a network of self-organized teams in which employees are able to autonomously make decisions and change the course of action”.
How to apply agility in your workplace
Although the rate of organizations applying agility in the workplace is accelerating, not all organizations are applying it in the right manner which might affect the employees’ performance in a negative way. This is not because agility works only in IT or software companies; agility can be implemented in almost all types of organizations. It is because companies are not embedding the concept in the right sense.
There are several building blocks for developing agility in the workplace such as strategy, values, agile team, organizational structure, agile leaders & managers, culture, and processes. These building blocks can be grouped into two categories: organizational level (strategy, organizational structure, culture, and agile leaders) and team and individual levels.
Organizational level
Strategy: For companies to successfully embrace agility, they should create an agile strategy that is aligned with their overall business strategy. This would create a clear roadmap for applying agility in the whole company.
Organizational structure: Having a long hierarchy that does not allow smooth decision-making does not allow for the successful implementation of agility.
Culture: Companies should embed agility and its components into their culture to successfully implement it.
Agile Leaders: In applying agility, leaders are not only knowledge experts or experienced managers anymore; instead, they are supportive leaders that allow decision-making and delegation within their teams.
Reward systems: Ashutosh Muduli (2019) recommends that allowing nontraditional rewards – like skill-based pay systems, improvement-based incentives, and nonmonetary rewards – do help in fostering workplace agility.
Information systems: They are crucial to boosting operational speed and flexibility within the workforce agility. Muduli pointed out that information systems will help in giving access to timely information associated with the customer, accounting, and business performance, as well as management, organizational leaders.
Team and individual levels
a. Team level (definition and characteristics)According to Petermann and Zacher, agile teams are defined as “teams that use agile methods in their daily business”. Despite a wide range of agile methods and practices, most of them involve common characteristics. Those characteristics include self-organization, delegation, a quick exchange of information, rapid and continuous two-way communication, and feedback with the customers as well as within the team.
Based on those factors, agile teams are able to develop high transparency and a method to measure progress. They have the capability to use iterative processes and respond to changes efficiently and successfully. Agile teams will be able to direct their attention on simple designs that reveal incremental steps that are easy to understand for everyone included.
b. Individual Level (definition and characteristics)
There is not one common definition for agile individuals that is accepted by everyone. Petermann and Zacher describe agile individuals as “people who have the abilities, knowledge, and skills to proactively seek opportunities, and are able to quickly adapt to new situations.” They are also characterized as people who have the required skills to predict, apply, and make full use of and derive benefit from changes.
c. Individual characteristics and team formation
Since individual characteristics and team formation are critical for implementing agility, Petermann and Zacher suggest that companies should re-evaluate their recruitment and development practices. Recruiters should highlight agility skills in their job postings in order to attract candidates with an agile mindset and personality. During interviewing and selection phases, HR people should focus on personality characteristics and cognitive abilities that focus on change.
Training and development are also very important to help agile teams adapt rapidly to changing market requirements. Agile teams need to get updated with the latest skills and knowledge to respond successfully to market changes. Leaders should also be provided with training to lead their teams successfully and efficiently.
Moreover, organizations should train their employees about various methods and tools (such as scrum) that could aid them to apply agility in the workplace. However, it has to be noted that not all circumstances are treated with the same amount of agility and not all methods and practices can be applied in all workplaces. Companies need to ensure that the methods they are using do suit their environments.
There is no doubt that implementing agility is not a piece of cake and companies need to understand the concept and its implementation thoroughly. You can find below some ideas on how you can do that:
Start small: It is better to apply agility on a smaller scale. For instance, you can start with the research and development department. When the team members master agility, they can transfer the knowledge and methods to other departments.
Stop and review: During the implementation phase, you should always stop and assess the current situation to make sure that you are applying agility in the right way, whether in decision-making, meetings, processes, or others. This will also help in assessing whether the teams do really understand the concept of agility or not.
Communicate: Always allow for two-way communication and feedback within the team members and from top-down and down-top in the company. This will enable feedback and continuous learning across the organization.
To sum up, agility can be applied in almost all companies and in any industry, however, they need to make sure that it is applied in the right sense to gain its fruits. Moreover, companies need to make sure that they need agility in the first place before they go into the hustle of its implementation rather than just trying to follow a trending concept.
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Editor’s Note: This article was originally published on January 07, 2022 and has been updated as of October 09, 2024.
What is the most crucial asset owned by an organization? In the modern business landscape, a company might possess a well-defined vision, mission, and set of value drivers, along with a carefully articulated strategy and aligned objectives throughout all levels of the organization. Nevertheless, employees may fail to adopt these values, as these are not inherently embedded in their actions due to the absence of a performance-driven culture.
Hence, the company must foster a culture that actively facilitates the execution of its strategy. This culture should empower every employee to operate in alignment with the established value drivers, behavioral norms, and competencies set forth by the organization to fulfill its mission while being consistent with overarching corporate goals.
Central to cultivating a successful performance-driven culture are leaders. They stand as key influencers, coaches, and role models. Organizations must shift their focus from having managers who assert authority to nurturing leaders who coach and guide. These leaders should serve as advocates for aligning and interpreting corporate objectives for employees at all levels. Proper training is fundamental in equipping them to effectively manage their subordinates.
To enable leaders to construct a thriving performance-driven culture, organizations can implement the following steps:
Build the desired organizational culture. Foran organization to define the fundamental characteristics of its desired culture, it must translate its mission and vision into tangible value drivers, anticipated behaviors, and needed competencies. These elements must be communicated extensively to all employees, ensuring their adoption, with an emphasis on starting this process with the leaders themselves.
Highlight a leader’s role in cultivating performance excellence. Leaders are essential in shaping the desired performance culture within an organization. They lead by example, embodying cultural values, behaviors, and skills. This sets a motivating tone for their teams and encourages others to follow suit. Effective leaders foster openness and feedback, which leads to transparency and collaboration. They recognize and reward behaviors that match the culture.
Additionally, they provide coaching and growth opportunities to empower employees. This creates an environment where everyone feels valued and engaged, forming the basis of a performance-driven culture.
Foster performance by promoting employees’ mental wellness. In creating a culture of performance, the importance of nurturing a healthy mindset and prioritizing employees’ mental well-being cannot be overstated. A positive mindset is crucial for a culture of excellence. Employee mental health directly affects engagement, productivity, and satisfaction. Providing resources like counseling, stress management, and flexible work options not only demonstrates commitment to well-being but also leads to a focused, creative, and productive workforce. A mental health-supportive culture enhances individual well-being and aligns employees with organizational values, ultimately improving performance.
Empower performance culture through data interpretation. Organizations have a wealth of data that offer insights into employee engagement, performance, and overall health. Leaders must use data analytics to guide culture development. By studying metrics like satisfaction, productivity, and alignment with values, leaders can spot improvement areas and measure initiative impacts. This data-driven approach refines strategies based on evidence, creating a flexible culture. Regular data analysis shows employees that their contributions matter, boosting transparency and commitment to growth.
Successful examples
Googleprovides a noteworthy example of a strong performance culture as exemplified by initiatives like Project Aristotle and Project Oxygen. Project Aristotle highlights team dynamics and psychological safety, fostering an environment where all members freely share ideas and take calculated risks. Meanwhile, Project Oxygen focuses on effective leadership qualities such as coaching, communication, and genuine care for team members. These initiatives underscore Google’s dedication to establishing a culture of collaboration, innovation, and leadership, creating a thriving workplace for both teams and individuals.
Another notable example is Netflix,which embodies a performance culture centered around “seeking excellence.” This entails encouraging each employee to excel and contribute to produce their best work. Netflix values individual responsibility and open feedback, creating an environment where high standards and innovation are prized. The company hires top talent and empowers them with trust and autonomy. This adherence to excellence shapes their decision-making and has contributed to Netflix’s success.
Creating the right organizational culture lays the foundation for success. Leaders drive performance excellence by setting an example and supporting their teams. Taking care of employees’ well-being adds to the positive atmosphere, and using data helps leaders make smarter choices. Combining these aspects builds a culture where everyone thrives, innovation flourishes, and organizations prosper.
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This article is written by Chadia Abou Ghazale, a seasoned banking professional with 24 years of experience and who excels in budgeting, sales performance management, data analysis, and resource planning. Beyond banking, she is a dedicated reader of self-development topics and passionate networker. Chadia believes that life’s purpose is the pursuit of knowledge. Her extensive expertise and unwavering enthusiasm are a dynamic combination, driving success in her career and enriching her life’s adventurous journey.
Like a captain steering a ship through a stormy sea, leadership plays a crucial role in shaping the organizational climate, which in turn affects the individual’s level of commitment to the organization, job satisfaction, and productivity. Creating a positive organizational climate requires management to focus on promoting autonomy, freedom, and support. Organizations can use internal environment scanning methods such as employee surveys, focus groups, and organizational culture analysis to gain insights into how leadership affects the work environment—knowledge that can then be used to create a positive climate to enhance employee knowledge, behavior, and effectiveness.
Critical factors such as interaction with team members, behavioral patterns, and the quality of the leader’s information—which covers updates, decisions, and strategic plans that they need to communicate to their team—all shape the organizational climate. Leadership behavior can significantly influence employee attitude and behavior. Studies have shown that managers who acknowledge their team members’ accomplishments can improve the perception of the organizational climate and leadership quality.
Conducting an internal environment scan can help assess the current state of the organizational climate and identify opportunities for improvement. Theorganizational culture analysis, a method of internal environment scanning, involves reviewing the values, beliefs, and behaviors of employees and aims to gain insights into how leadership is perceived and how it is influencing the culture of the organization.
One company that values itsorganizational culture and recognizes the significant role of leadership in shaping the work environment is Netflix. The company empowers employee decision-making by widely sharing internal documents, such as memos on title performance, strategy decisions, and product features.
Additionally, Netflix prioritizes open and direct communication by investing in coaching and modeling behaviors. To promote good decision-making, the company emphasizes the need for highly effective people and fewer management layers. The company encourages a “context not control” culture where leaders are expected to coach, set context, and provide feedback instead of micromanaging while employees make their own decisions. To foster this culture, Netflix values certain behaviors and skills in its employees, such as good judgment, selflessness, courage, communication, inclusion, integrity, passion, innovation, and curiosity.
The company employs a feedback system that includes surveys and focus groups to continuously improve its operations. A recentinitiative to promote work-life balance involved the implementation of an unlimited vacation policy, which was contingent on fulfilling job responsibilities and goals. To set a precedent, leaders take vacations themselves and urge their teams to do likewise.
As we can clearly see from Netflix’s example, leadership has a significant impact on the organizational climate. This highlights the importance of internal environment scanning to identify opportunities for improvement.
Improve your organizational climate by enrolling in ourCertified Strategy and Business Planning course. Gain valuable insights into the process of internal environment scanning and learn how to identify areas for improvement within your organization.
The COVID-19 pandemic has forever altered how organizations around the world operate. In the IBM Institute for Business Value’s study “COVID-19 and the future of business Executive epiphanies reveal post-pandemic opportunities,” 55 percent of respondents say the pandemic has resulted in “permanent changes to their organizational strategy.” An even larger 60 percent say COVID-19 has “adjusted their approach to change management” and “accelerated process automation,” with 64 percent acknowledging a shift to more cloud-based business activities.
In planning, one of the most important aspects organizations nowadays must tackle is workplace strategy. According to Gallup’s most recent survey on what employees want going forward, five in 10 say they want hybrid work arrangements for the future. For organizations worldwide, this means planning and managing moves to hybrid work environments.
What is a hybrid work strategy?
Hybrid working environments are the out-turn of the COVID-19 pandemic and refer to corporate arrangements by which some employees operate on-site while others work from home. The manifestation of more flexible working conditions in times of the COVID-19 pandemic has shifted employee expectations and desires greatly as far as the perceived benefits of in-person work. Consequently, organizations who do not embrace remote working conditions as part of their overall short-term and long-term workplace strategy may be at an increased risk of employee turnover, disengagement, and inability to attract and retain talent in the future.
Crafting the hybrid work strategy
One of the main aspects organizations must understand about hybrids is that there is no standard approach to it. Short-term planning will most likely imply experimenting with working schedules and juggling on-site and remote working arrangements to find the best fit for the organization. As for long-term planning, organizations will have to agree on their strategic position regarding a hybrid working model and relate it to their specific organizational context. A strategy plan that embraces the future outlook of a hybrid working environment should therefore consider the following:
The overall strategic position of the organization towards hybrid working as well as the development of internal policies and procedures to support that position;
A communication plan to share the organization’s hybrid working model with all employees and other stakeholders of the organization;
An approach to the adoption and dissemination of new technology as well as reviewing existing systems and equipment for updates and renewal;
A plan to put in place the necessary security measures that ensure system integrity and data protection;
A training and development plan for managers to enhance their skills in effectively coordinating remote individuals and teams; for employees to understand the operational and legal implications of hybrid working
Performance management as part of the hybrid work strategy
As part of a hybrid work strategy, organizations generally have to adapt to increased remote working requirements. In this context, performance may become harder to observe, and managers will ultimately have to admit that they can no longer monitor every aspect of performance, nor should it be necessary for them to do so. Planning for a hybrid strategy would therefore have to consider the following:
The re-configuration and re-design of the performance management system and processes to fit the purpose of a remote working environment;
A shared organizational culture that embraces flexibility encourages presenteeism and stimulates the right remote working approaches and behaviors;
The re-shaping of managerial skill and aptitude to manage performance based on outcomes, contribution, and value;
Principles of communication that promote regular social and human connection opportunities to support employee engagement and team building
Measures introduced to ensure staff safety in the workplace
In terms of physical working place, many organizations may feel the need to proceed in a cautious wait-and-see mode while taking active steps to increase the safety of their working environments and ensure the well-being of their employees. Some straightforward actions in this respect can refer to the following:
Altering working space layouts by moving workstations apart and having employees work back-to-back or side-to-side (rather than face-to-face);
Staggering shifts – having employees start and finish work at different times – or staggering break times as a way of reducing the number of people in the workplace or taking breaks at any one time;
Reducing the number of meetings or the duration of such meetings as a temporary measure to maintain social distancing
Short-term vs. long-term hybrid strategy
The last question one has to answer here is: “Does our organization plan for a short-term hybrid strategy or a long-term one?”. When planning a hybrid strategy short-term, an organization must absolutely think “workplace value proposition.” This involves the benefits employees have for returning to on-site work. It’s quite clear that pointing to job requirements as the primary reason employees must return to the office will not work. In this context, organizations may need to focus on the distinct opportunities that an on-site environment creates as opposed to a remote one and find the best way to effectively communicate them.
When planning for a hybrid strategy long-term, executives have already accepted that pandemic-related changes in strategy, management, operations, and budgetary priorities are here to stay. These are generally organizations with an international structure with employees working from different parts of the world, companies that operate through digital tech and cloud adoptions, and entities that are more project-based and service oriented, rather than product-based with intricate supply-chain networks.
So when adopting a hybrid working model and strategy, it is mainly important that one considers the organization itself, the roles that meet remote work criteria, the interdependency level of team members, and individual comfort with work from home conditions and protocols.
References:
CIPD (2021), Planning for Hybrid Working, Advice on how organizations can plan and manage a move to hybrid working. Available at: Planning for hybrid working | CIPD
IBM Institute for Business Value (2020), COVID-19 and the future of business Executive epiphanies reveal post-pandemic opportunities. Available at: COVID-19 and the future of business (ibm.com)
