Many organisations experience a glaring tension between achieving high performance and maintaining employee well-being. The quest for competitive advantage often pushes organisations to prioritise productivity at the expense of their most valuable asset — people. Yet, the evidence challenges that status quo: organisations that prioritise both organisational performance and employee well-being outperform those that do not. In this thought piece, Azra Rajab – a Senior Consultant at Africa International Advisors (AIA) goes one step further to say; organisations that do not seek to prioritise both business performance AND the employee experience may be at risk of falling into the four unhealthy workplace cultures.
Culture is the invisible hand that guides behaviour within an organisation. It shapes how employees interact, make decisions, communicate and perceive their roles. An ideal culture is one where employees feel valued, engaged, and motivated, leading to enhanced performance, increased productivity and overall satisfaction. It requires strategic planning, deliberate actions and a commitment to understanding what makes people thrive.
Deloitte’s research paints a vivid picture on this topic: 94% of executives and 88% of employees agree that a distinct, positive culture is crucial to a business’s success. And for companies that get it right, the rewards are staggering, as there is a fourfold increase in revenue growth and a sevenfold boost in innovation and agility compared to organisations that are not intentional about their workplace culture through employee engagement. In short, a positive culture made up of engaged employees is the secret sauce that turns good companies into great ones. According to Gallup's State of the Global Workplace 2024 Report; not only are highly engaged teams reporting higher satisfaction rates—they also deliver 21% higher profitability and 41% lower absenteeism. And if that’s not enough clarity on the matter, disengaged employees are dragging down the global economy to the tune of $8.8 trillion in lost productivity.
When times get tough, it’s the engaged employees who roll up their sleeves, while the disengaged watch from the sidelines. Gallup’s research shows that during economic downturns, businesses with high employee engagement are more resilient and better equipped to weather the storm. It turns out that culture doesn’t just eat strategy for breakfast—a healthy culture chews through adversity for lunch and dominates the market for dinner.
So why are organisations struggling to create positive workplace cultures? Ask any leader what the most difficult part of their job is and they are most likely to answer, managing people. The reality is that employees are people, each with a unique history, set of values, beliefs, and expectations. These diverse backgrounds shape how individuals perceive their work environment, respond to change, and interact with colleagues and leaders. Moreso, employees bring different levels of trust, engagement, and commitment, which can be influenced by past experiences that occurred in the organisation or elsewhere. Managing this complexity requires (1) an assessment of the existing culture, (2) a clear vision and direction towards a desired culture and most importantly (3) crafting balanced perspectives throughout an organisation that enable an ideal culture.
Identifying unhealthy workplace cultures is the first step towards cultivating a balanced one. By identifying issues early on, ideally through an official assessment process, organisations can take targeted action to address them. This prevents culture issues from escalating into entrenched organisational problems. Through our work across Southern Africa, AIA has identified the core elements that most significantly shape an organisation's culture: organisational performance, the employee experience of their workplace, the leadership’s values and approach, and the employee’s values and approach.
Our comprehensive organisational culture assessments and numerous culture visioning workshops with executive leaders have revealed that; when there is a bias towards one or more of these components by either the leadership or employees of an organisation then specific dysfunctional cultures are likely to emerge. We've seen it time and time again — too much of a focus on performance without valuing the employee experience breeds a Disgruntled Culture. When leadership places undue emphasis on the employee experience at the expense of the organisation’s performance, a culture of financial uncertainty quickly takes hold.
To identify and address these imbalances, we have designed a framework (see the AIA-Rajab Culture Assessment Framework below) that plots these components on an axis, showing five distinct types of workplace cultures. At the four corners, we see cultures shaped by an imbalanced approach. But at the intersection, where a focus on organisational performance aligns with the employee experience of the workplace and where leadership and employee values meet, lies the sweet spot: a Balanced Culture. This is the ideal state where both the people and the organisation thrive. In this balanced state, the organisation achieves optimal productivity and morale, fostering an environment that supports both individual well-being and collective success. Completely, there may also be scenarios where organisations fall directly on the line of the axes, therefore straddling the line between two types of unhealthy cultures.
Where does your organisation place its focus? And what type of culture forms as a result?
Do any of these workplace cultures describe your organisation?
Disgruntled Culture emerges when the leadership of organisation focuses disproportionately on organisational performance, often at the expense of employee well-being. In this environment, the pressure to achieve targets, meet deadlines, and deliver results is relentless, and it overshadows any consideration for the human aspect of the workforce. Employees may feel undervalued, overworked, and underappreciated, with little to no recognition for their efforts or acknowledgment of their needs. The atmosphere in such a culture is often marked by frustration, low morale, and growing discontent. Communication from leadership tends to be top-down, directive, and narrowly focused on numbers and metrics, with little room for dialogue or feedback from employees. There is a palpable lack of empathy and support from leaders, who may view any concern for work-life balance or mental health as secondary, or even as a sign of weakness.
As a result, employees in a disgruntled culture often feel alienated, disengaged, and disconnected from the organisation’s mission. Turnover rates tend to be high, with low productivity and absenteeism becoming a common issue. Trust between employees and management erodes, and an atmosphere of blame and resentment can take root, ultimately hampering both the morale of the workforce and the long-term sustainability of the organisation’s performance.
Burnout Culture in the workplace arises when employees themselves place a disproportionate emphasis on organisational performance, often sacrificing their own well-being in the process. In such a culture, there's a pervasive drive to exceed expectations, deliver results, and meet ambitious targets at any cost. Employees are often self-motivated, high achievers who equate their personal worth with their professional output, pushing themselves beyond reasonable limits.
The environment in this kind of workplace is characterised by high stress, constant pressure, and a relentless pace. Employees frequently work long hours, skip breaks, and forgo time off, driven by a sense of duty, competition, or fear of falling behind. There's a general reluctance to speak up about fatigue, stress, or the need for rest, as doing so may be seen as a lack of commitment or weakness. Colleagues may even unintentionally reinforce this culture by praising overwork and viewing exhaustion as a badge of honour.
This self-imposed pressure results in diminishing returns: productivity starts to suffer, creativity declines, and decision-making becomes impaired due to exhaustion. Physical and mental health issues, such as anxiety, depression, insomnia, and other stress-related illnesses, become prevalent. Over time, burnout leads to increased absenteeism, higher turnover rates, and a decline in team morale, as the relentless push for performance begins to drain the organisation of its most valuable resource—its people. The irony is that while the initial intent is to boost performance, the unsustainable pace ultimately undermines both individual well-being and the organisation's long-term success.
A Culture of Financial Uncertainty occurs when the leadership of an organisation have an intentional or unintentional focus on appeasing employees at the risk of effectively managing individual performance. On the one hand this can be due to a consistent and overwhelming amount of employee complaints and negative talk throughout the organisation. And on the other hand, it could be a result of the leadership avoiding the hard conversations and decisions required to shift fundamental performance issues affecting the organisation’s financial health. In such an environment, leadership spends a disproportionate amount of time and energy trying to pacify employees, address grievances, diffuse tensions, and put out fires—attempting to keep peace between dissatisfied employees and management. This constant effort to maintain short-term morale sidesteps the real issues and prevents meaningful discussions about individual development plans, planned dismissals, cost reduction, revenue growth, or strategic change.
A reactive approach takes root which creates a vicious cycle: as leaders become preoccupied and sometimes triggered with resolving conflicts and placating employees, they lose sight of the organisation's strategic objectives and financial health. Decisions are often made hastily to appease immediate concerns or dismiss employees rather than aligning to achieve long-term goals, which can result in inconsistent policies, unclear priorities, and poor allocation of resources. The constant focus on keeping the peace and soothing discontent detracts from producing work deliverables causing financial stability to waver.
Eventually, despite efforts from leadership to diffuse the tension, the initial relief that employees may experience of being heard gives way to frustration as they perceive leadership as ineffective and unable to address deeper systemic problems. Meanwhile, leaders feel besieged by the relentless complaints, and internal discord, struggling to balance employee perspectives with the need for sustainable performance. The lack of clear direction and the constant crisis management fuel a climate of anxiety and uncertainty. The organisation begins to face a double bind: employees feel increasingly insecure about their jobs and the organisation's future, while leadership becomes paralysed by the pressure of maintaining a harmonious environment at the cost of financial stability. In this scenario, both employees and leaders experience a state of financial uncertainty, where morale and trust deteriorate, and the organisation’s long-term sustainability is put at serious risk.
In an Us vs. Them Culture, there is a bias by employees towards their workplace experiences, often attributing their experience to leadership. This disproportionate emphasis often with a focus on personal grievances can overshadow the broader organisational goals and productivity. Employees become preoccupied with their dissatisfaction, leading to a lack of engagement and motivation to contribute effectively to the organisation's success. This bias creates a divisive and adversarial relationship between employees and leadership. Employees see themselves as the victims of a system they believe is perpetuated by leadership, fostering resentment and distrust. Leadership, in turn, may feel alienated and criticised, leading to a lack of effective communication and understanding between the two groups.
As a result, organisational performance suffers. The ongoing conflict and blame game detract from the focus on achieving collective goals, causing inefficiencies and misalignment. Both employees and leadership are pulled in different directions, undermining productivity and hindering the organisation’s ability to thrive.
Balanced workplace cultures fall at the intersection between leadership and employee values and approaches, where high performance and employee well-being coexist in harmony. On one axis, this culture navigates the middle ground between leadership and employee approaches, ensuring that the organisation's goals and employees' needs are both respected and addressed. Leadership actively seeks to understand and integrate employees' perspectives, while employees recognise and support organisational objectives, leading to mutual respect and collaboration.
On the perpendicular axis, this culture achieves its sweet spot where a focus on achieving high performance and positive employee experience of the workplace are not seen as competing priorities but as complementary components of success. Performance is driven by clear goals, effective support, and a commitment to excellence, while employee well-being is nurtured through a supportive work environment, work-life balance, and opportunities for personal and professional growth. This balance helps employees feel valued and motivated, directly contributing to their productivity and the overall success of the organization.
In such a culture, communication is open and transparent, feedback is constructive, and there is a shared sense of purpose. Both leadership and employees work together towards common goals, with each party's contributions and well-being being integral to achieving high performance. This alignment fosters a positive and productive atmosphere where employees are engaged and empowered, and organisational objectives are consistently met. Achieving this balance requires deliberate effort from both leadership and employees. It is a collaborative process that hinges on distinct areas of accountability and a willingness to engage in honest, introspective dialogue. Leaders must be willing to listen, adapt, and act on feedback, while employees must engage constructively and embrace change.
Collaboration, Introspection and Accountability: The Keys to Creating a Balanced Culture
Addressing cultural issues, by intentionally building a workplace culture requires a collaborative approach. Leaders and employees must work together to create solutions that address the root causes of their cultural dysfunctions. This might involve re-evaluating workloads, improving communication, or providing more support for employee well-being. The key is to create an environment where both high performance and well-being are valued and where everyone feels that they have a voice and a stake in the organisation’s success.
As a first step in this transformation process, we must be able to identify and give language to what leader’s and their workforce may be experiencing. The beauty of the AIA-Rajab framework lies in its ability to spark dialogue. When employees feel that their grievances are a reflection of a broader culture dynamic clearly articulated through strategic language their engagement levels soar. They become not just workers, but stakeholders in the organisation’s success. The framework fosters this sense of ownership, encouraging each voice to contribute to a culture that balances high performance with genuine well-being. Every company faces challenges, but those that place employee engagement at the heart of their strategy don’t just survive—they thrive. Prioritising engagement directly impacts the bottom line, leading to lower turnover, higher productivity, and improved profitability.
The Role of Leadership in Shaping Organisational Culture
Leaders are the architects of organisational culture, modelling the desired cultural blueprint through their attitudes, decisions, and behaviours. They set the tone, for better or worse. To truly cultivate a culture that values both performance and well-being, leaders need to be as introspective as they are proactive. Leaders are encouraged to ask themselves critical questions to gauge whether their actions and policies are fostering a healthy culture. It urges leaders to ask themselves tough questions: Am I valuing delivery over my team's well-being? Am I genuinely promoting work-life balance, or just paying lip service? Am I able to receive feedback about my leadership style, especially when it isn’t positive? Do I escalate tensions in the work environment or do I neutralise them? These questions aren’t merely self-reflective exercises—they're tools designed for spotting cultural red flags and potential areas of imbalance before they become entrenched or morph into a business crisis.
In our work on organisational culture transformation, we hear it all—grievances about favouritism, bullying, and public shaming that leave employees feeling anything but psychologically safe. The usual suspects? Managers. But here’s the challenge: when this feedback makes its way up the chain, how do leaders react? Often with defensiveness, if not outright dismissal. Our job as advisory consultants is to turn that raw, uncomfortable feedback into a constructive dialogue that executives can actually work with. Think of us as a translator for tough truths—we cut through the noise and helps both sides introspect beyond their defences, unlocking the potential for real change.
Transparency and communication are the bedrock of trust in any organisation. When leaders are candid about the challenges the company faces and actively involve employees in the decision-making process, they foster a culture of creativity and mutual respect. In short, good leadership isn’t just about steering the ship; it’s about ensuring everyone onboard feels included, valued and heard, through a culture of accountability and collaboration.
The Role of Employee Engagement in Shaping Organisational Culture
Balanced organisational cultures aren't crafted by leadership alone; they are a collective effort. We make this clear by holding both leaders and employees accountable. Through our Culture Transformation work employees are nudged to take a closer look at the culture they are a part of and the role they play in shaping it; what aspect of my work overwhelms me? Do I feel valued, or like another cog in the machine? Do I truly understand what the leadership is trying to achieve? Am I contributing to a negative culture through the words I speak? These questions are the first step in a transformative process that empowers employees to understand the organisation’s culture, their role in manifesting it and the type of improvements that are reasonable to request from leaders.
When employees start to reflect on their contributions, positive or negative, to the workplace culture, they begin to see where they can enact change. If an employee recognises that they are adding to a culture of negativity, we encourage them to take ownership and make a conscious effort to shift their behaviour. This level of self-awareness doesn't just improve individual well-being; it radiates outward, cultivating a more positive, resilient organisational environment.
The Future of Work in Africa
As we look to the future, the importance of cultivating balanced cultures in African organisations becomes both a strategic imperative and a moral responsibility. The rapid pace of technological advancement, coupled with the unique socio-economic challenges of the continent, necessitates a holistic approach that prioritises both employee well-being and organisational performance.
Achieving a balanced culture requires us to first ask ourselves the right questions, no matter how uncomfortable it feels, in order to introspect with the level of maturity needed for an actual shift in perspective. Collaboration requires leaders to let down their defences and ask themselves hard questions that could lead to balanced answers, and it requires employees to do the same.
At AIA, we remain committed to pushing the boundaries and finding innovative solutions that harmonise the needs of individuals and organisations in Africa. By being intentional about culture, embracing collaboration, and leveraging introspective insights, we can create workplaces that not only thrive but also contribute positively to the development of the broader society.
The journey towards an ideal culture is ongoing; it requires constant effort, reflection, and adjustment. But with the right mindset and tools, we move closer to a future where African organisations are not just places of work but vibrant communities where individuals are empowered to achieve their fullest potential. In this future, the balance between well-being and performance is not a distant dream but a living reality, driving success and prosperity across the continent in an increasingly competitive global landscape. In this future, our organisational leaders understand that the path to profitability is paved with the well-being of their employees.
Please get in touch via email at Azra.R@africaia.com if you would like to explore any of AIA’s advisory services on Workplace Culture, such as:
- Capacity building sessions for yourself or your organisation on Culture Transformation and / or Leadership-Employee Engagement
- Organisational Culture Assessment / Diagnostic Services
- Development of Organisational Culture Transformation Strategy and supporting workshops
- Change Management Services
Organisational Culture Organisational Performance
Azra Rajab
Sep 2024