Organizational culture refers to the collection of values, beliefs, attitudes, systems, and rules that outline and influence employee behavior within an organization. It is the underlying beliefs, assumptions, values, and ways of interacting that contribute to the unique social and psychological environment of an organization. Organizational culture affects how people interact with each other, with clients, and with stakeholders. It is a social control system that promotes and reinforces "right" thinking and behaving.
Organizational culture is generally understood as all of a companys beliefs, values, and attitudes, and how these influence the behavior of its employees. It affects all aspects of a business, from punctuality and tone to contract terms and employee benefits. Culture is a key advantage when it comes to attracting talent and outperforming the competition. Companies that prioritize culture can also weather difficult times and changes in the business environment and come out stronger.
Organizational culture is reflected in the way people perform tasks, set objectives, and administer the necessary resources to achieve objectives. It affects the way individuals make decisions, feel, and act in response to the opportunities and threats. Culture shapes what behavior is acceptable or unacceptable. Organizational culture is usually set by a companys leaders.
In periods of organizational change, culture can either be a help or a hindrance. For example, an organization with a culture of collaboration and adaptability may embrace change, while a less flexible, more bureaucratic culture may not respond well to transformation. Leaders need to be aware of this when guiding their organization through periods of change.
Organizational culture will develop even without your input, but in the absence of that guidance, it may not be healthy or productive. Companies can improve communication with employees, start creating a culture of recognition, and take action to develop a healthy and productive organizational culture.
