Influence of Organisational Culture and Values on Motivation

Introduction: The Invisible Force Behind Effort

If work design shapes how tasks are experienced, organisational culture shapes how work is interpreted. Culture is not written only in policy manuals; it is expressed in daily behaviours, informal norms, leadership actions, reward systems, and shared assumptions.

Two organisations may offer similar salaries, job roles, and performance incentives. Yet one may experience high engagement and loyalty, while the other struggles with cynicism and turnover. The difference often lies in culture.

Organisational culture functions as the psychological climate within which motivation either flourishes or deteriorates.

I. Understanding Organisational Culture

Organisational culture refers to the shared values, beliefs, norms, and assumptions that guide behaviour within an organisation. It answers implicit questions such as:

• What is truly valued here?

• What behaviours are rewarded?

• What behaviours are discouraged?

• How are mistakes treated?

• How are conflicts resolved?

Culture shapes employee motivation because it influences how individuals interpret fairness, opportunity, recognition, and purpose.

If we describe culture metaphorically, it resembles the soil in which motivation grows. Fertile soil nurtures growth; toxic soil inhibits it.

II. Culture as a Motivational Climate

A motivational climate emerges from cultural patterns. Researchers often distinguish between two broad types:

Performance-Oriented Culture

In performance-driven cultures, competition, achievement, and measurable outcomes are emphasised. Success is defined by results.

Such cultures can generate high intensity and short-term productivity. However, if competition becomes excessive, collaboration may decline, and stress may increase.

Mastery-Oriented Culture

Mastery cultures emphasize learning, improvement, and collective growth. Mistakes are treated as opportunities for development rather than grounds for punishment.

These cultures promote intrinsic motivation and long-term engagement.

Most sustainable organisations balance performance expectations with developmental support.

Case Study: Netflix’s Culture of Freedom and Responsibility

Netflix is known for its high-performance culture built on two principles: freedom and responsibility. Employees are given significant autonomy but are expected to perform at high standards.

The company’s culture document openly states that it seeks “highly effective people” and maintains transparent communication about expectations.

This combination of autonomy (need satisfaction), accountability (goal clarity), and transparency (procedural fairness) creates strong intrinsic motivation for those who fit the culture. However, it may be challenging for individuals seeking high job security, illustrating that cultural alignment matters.

III. Leadership as Cultural Architect

Leadership behaviour is the most visible expression of organisational values. Leaders communicate cultural priorities not only through formal statements but through decisions and daily actions.

If leaders reward collaboration publicly, collaboration becomes normative. If leaders tolerate unethical shortcuts to meet targets, employees internalise that behaviour is secondary to results.

Case Study: Ford Motor Company Under Alan Mulally

When Alan Mulally became CEO of Ford during financial crisis, he introduced weekly review meetings where executives were encouraged to openly report problems.

Initially, leaders feared admitting issues. Over time, Mulally reinforced transparency by praising honesty rather than punishing failure.

This shift strengthened psychological safety and procedural fairness. Employees became more willing to take responsibility and propose solutions. Motivation improved because trust replaced fear.

Leadership behaviours signal what is safe, valued, and expected.

IV. Ethical Culture and Trust

Ethical climate directly influences motivational stability. Employees are unlikely to commit deeply to organisations that compromise integrity.

Trust acts as a psychological stabiliser. When employees trust leadership:

• They invest effort confidently.

• They accept difficult decisions.

• They remain committed during uncertainty.

Without trust, motivation becomes transactional.

Case Study: Johnson & Johnson’s Tylenol Crisis

In 1982, Johnson & Johnson faced a crisis when cyanide-laced Tylenol capsules caused deaths. The company immediately recalled products nationwide, prioritising public safety over short-term profit.

This response reinforced its stated values. Employees reported pride in their organisation’s ethical stance. Motivation strengthened because corporate actions aligned with core values.

Ethical consistency reinforces organisational identity and commitment.

V. Social Identity and Belonging

Employees derive part of their identity from organisational membership. When organisational values align with personal values, identification strengthens.

Social identity theory suggests that individuals seek positive association with groups. If employees feel proud of their organisation, motivation intensifies.

Case Study: Patagonia

Patagonia’s environmental mission is central to its culture. Employees are encouraged to participate in environmental activism, and the company donates a percentage of profits to sustainability initiatives.

This value alignment attracts individuals who share ecological concerns. Motivation stems not only from salary but from shared purpose.

Belonging to a value-driven culture deepens emotional investment.

VI. Cultural Diversity and Inclusion

Modern organisations operate globally, bringing diverse employees together. Inclusive cultures enhance motivation by ensuring that employees feel respected and valued regardless of background.

Case Study: SAP’s Autism at Work Program

SAP launched a global initiative to hire individuals on the autism spectrum. By redesigning hiring processes and providing structured support, SAP created an inclusive environment.

Employees reported higher engagement and loyalty because inclusion demonstrated genuine respect for diversity.

Inclusion strengthens both belongingness and fairness perceptions.

VII. Toxic Culture and Motivational Decline

Just as positive culture enhances motivation, toxic culture destroys it.

Characteristics of toxic culture include:

• Fear-based management

• Lack of transparency

• Discrimination

• Blame-shifting

• Unrealistic pressure

Case Study: Uber’s Internal Crisis

Uber experienced internal turmoil when reports of discrimination and harassment emerged. Employees described a competitive and aggressive culture that tolerated misconduct.

Motivation declined sharply. Reforms and leadership changes were necessary to rebuild trust and restore engagement.

Toxic culture erodes fairness, belonging, and psychological safety simultaneously.

VIII. Integrating Culture with Needs, Expectations, and Goals

Organisational culture influences every motivational pillar:

• It shapes whether needs for belonging and respect are satisfied.

• It affects whether employees trust the effort–reward system.

• It determines whether fairness is visible.

• It frames how goals are communicated and pursued.

If culture rewards unethical achievement, goal clarity may produce harmful outcomes.
If culture promotes transparency and learning, goals become motivating rather than threatening.

Thus, culture functions as the integrating context within which motivational mechanisms operate.

Conclusion: Culture as the Motivational Ecosystem

Organisational culture is not an abstract concept. It is a lived psychological reality influencing how employees interpret every experience.

A culture grounded in trust, ethical integrity, inclusion, and developmental support nurtures sustainable motivation.

Conversely, cultures rooted in fear, opacity, and inequity produce disengagement, even when financial incentives are attractive.

Motivation cannot be separated from values.
Effort cannot be separated from trust.
Performance cannot be separated from culture.

Organisations that consciously cultivate supportive and ethical cultures create environments where motivation becomes resilient and self-reinforcing.