Definition

Organisational culture is the shared system of values, beliefs and assumptions that shapes behaviour within a firm (often described as "the way we do things here"). Organisational climate is employees' collective perception of the work environment at a given point: whether it feels fair, supportive, inclusive and psychologically safe. Culture changes slowly; climate can shift more quickly in response to leadership behaviour. In an APC context, both matter because the RICS expects members and regulated firms to maintain environments that are professionally competent and actively inclusive.

Why this matters for Diversity, Inclusion and Teamworking

  • Level 1 knowledge: you must explain the difference between culture and climate and describe how each influences HR performance in a surveying firm.
  • A negative climate — characterised by fear, blame or exclusion — reduces output quality because team members self-censor and avoid initiative.
  • Culture determines whether D&I policies are implemented in spirit or only on paper.
  • RICS assessors probe candidates on how their firm supports CPD and development — climate indicators taken seriously at interview.
  • High turnover, poor engagement and formal grievances are symptoms of climate problems a surveying manager must diagnose and address.

Key principles

The relationship between culture and performance

Culture operates as an invisible set of rules that governs behaviour without formal enforcement. In a high-performance culture, team members share a commitment to accuracy and client service; they challenge each other's work constructively. In a blame culture, the same team hides errors, avoids responsibility and resists change. The difference is rarely pay; it is the behavioural norms modelled by leaders.

Climate and psychological safety

A leader who takes over a team after a period of poor management can begin to shift climate within months through consistent, fair and transparent behaviour. Key levers include: how errors are responded to (learning versus blame); how decisions are communicated (openly versus opaquely); and whether diverse contributions are visibly valued. Positive climate is strongly associated with psychological safety.

HR performance indicators and culture change

Culture and climate are measurable through: staff turnover rate; number of formal grievances; engagement survey results; and CPD completion rates. Culture change is driven from the top but embedded by managers at every level through visible senior sponsorship of D&I initiatives, consistent conduct standards and recognition of behaviours (not just outputs) in appraisal frameworks. Herzberg's insight is relevant: salary (a hygiene factor) will not improve engagement if the culture lacks recognition and growth.

Relevant RICS guidance and legislation

  • RICS Rules of Conduct (effective 2 February 2022) — Rule 4 (respect); Rule 2 (competence, including competent people management).
  • Equality Act 2010 — culture and climate that tolerate harassment expose firms to legal liability.
  • RICS Inclusive Employer Quality Mark — benchmarks for inclusive workplace culture.
  • ACAS guidance on building positive workplace cultures — practical engagement and fairness frameworks.

Ethics and Rules of Conduct angle

A surveying manager who permits a toxic climate to persist, even without personally engaging in misconduct, may breach Rule 4 (respect) and Rule 5 (professional service delivery). Rule 1 (honesty and integrity) also engages where cultural pressures lead team members to conceal errors. An ethical leader creates a climate where transparency is safe, errors are reported promptly and standards are applied consistently.

APC-style Q&As

Q (Level 1)What is the difference between organisational culture and organisational climate?

Culture is the deep-rooted system of shared values and assumptions shaping long-term behaviour in a firm. Climate is employees' current perception of the work environment: whether it feels fair, supportive and inclusive. Culture changes slowly; climate can shift more rapidly in response to leadership behaviour.

Q (Level 1)Name three indicators a surveying manager could use to assess team climate.

Staff turnover rate; the number of formal grievances raised; and CPD completion rates across the team. A manager might also draw on participation levels in team meetings and feedback from one-to-ones.

Q (Level 2)How does a blame culture affect the quality of a surveying team's output?

In a blame culture, team members conceal mistakes rather than reporting them promptly, so errors compound before they are identified. Staff become risk-averse, avoiding complex instructions. A constructive approach, where errors are learning opportunities reported without fear, produces better outcomes because problems surface early enough to be managed.

Q (Level 2)Describe one step you have taken to positively shape the climate within your team.

(example) After a period of high pressure I noticed the team had stopped raising concerns in the weekly meeting. I introduced a standing "blockers and risks" agenda item and explicitly thanked team members who raised issues. Within two months informal concern-raising also increased, and the team recovered a three-week programme delay by addressing issues early that would previously have been hidden.

Q (Level 3)Your firm has high turnover among female graduates at the two-year mark. Using culture and climate, how do you diagnose and address this?

(example) I would gather qualitative data through confidential exit interviews and a staff survey segmented by gender and length of service, to understand whether the issue is cultural (structural values that are inhospitable) or a climate problem (a specific team or manager). Common findings include workload allocation that disadvantages those with caring responsibilities or appraisal processes that do not credit work outside high-visibility instructions. I would present findings to senior leadership with recommendations covering mentoring, flexible working and inclusion of retention metrics in partner performance targets. I would report progress quarterly, recognising that Rule 4 of the Rules of Conduct and the Equality Act 2010 create an obligation to act.