The warning signs of a failing company culture come in many different forms.
Gossip and rumour among staff, or complaints of unfair treatment or favouritism, can indicate falling trust. The formation of social cliques suggests the breakdown of a wider culture and will lead to some employees feeling excluded. Ultimately, you’ll see a reduction in job satisfaction and productivity, coupled with increases in sickness absence and staff resignations.
Managers finding out about a problem weeks or even months after its discovery by staff should be seen as a major warning sign of a dysfunctional culture. This indicates that employees don’t feel able to communicate, or that management are inattentive or absent.