HR Glossary

Organizational Culture

What is Organizational Culture?

Organizational culture is the set of shared values and assumptions that guide the behavior of the employees in an organization. It is the collective result of the individual actions of the employees. Organizational culture is shaped by the environment in which the organization operates, the history of the organization, and the leadership of the organization. It can be positive or negative, and it can be a source of strength or a source of weakness for the organization.

What are the components of Organizational Culture?

There are many components to organizational culture, but some of the most important include the following:

  • Mission: The mission of an organization is a statement of its purpose or reason for existence. It defines the organization’s goals and objectives, and sets the tone for the culture.
  • Values: The values of an organization are the fundamental beliefs that guide its employees in making decisions. They represent the organization’s priorities and define what is important to it.
  • Behaviors: The behaviors of an organization reflect the way its employees interact with one another and with customers. They are the outward expression of the culture.
  • Leadership: The leadership of an organization influences the culture by setting the tone for how employees should behave and what values they should uphold.

What are the benefits of Organizational Culture?

There are many benefits to having a strong organizational culture. First, it can help to attract and retain top talent. Employees want to feel like they are a part of something special, and a strong culture can provide that feeling. Additionally, a strong culture can help to motivate employees and encourage them to work harder. It can also help to build a sense of team spirit and cooperation. Finally, a strong culture can help to ensure that everyone in the organization is on the same page and working towards the same goals.

What sort of companies need Organizational Culture?

Organizational culture is important for companies that need to create a sense of identity and purpose for their employees. Organizational culture can help to define the company’s values and goals, and can help to create a sense of community among employees. Organizational culture is also important for companies that need to create a sense of stability in a rapidly changing world. By establishing a strong organizational culture, companies can help to ensure that their employees remain focused on their goals and values.

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