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Organizational Culture

What is Organizational Culture?

Organizational culture is the beliefs, norms, values, systems, and habits contributing to the environment of an organization, both socially and psychologically. It plays an essential role in shaping the way in which organizations and their members behave. The organization’s mission statement or goals can help to define the organizational culture, but they don’t create it. Consistent behaviours and attitudes create the organizational culture.

Organizational culture enables the development of a shared understanding between individuals with differing interests and perspectives, also known as the process of ‘sense-making’. Individuals in the organization develop shared ideas and beliefs, enabling goals, actions and purpose to be in alignment.

The Importance of Organizational Culture

Organizational Culture effects all aspects of your organization, from things such as attitudes and tones to employee benefits and contracts. It helps to define your company’s identity both internally to employees and externally to customers.

When employees align with the culture of a workplace, they are much more likely to feel supported, valued and stay loyal, enabling the organization to withstand change and challenging times and keep its best people.

According to studies, organizational culture is a top indicator of employee satisfaction and is a key reason that around 65% of employees remain in their organization. Thus, organizational culture not only has the advantage of reducing employee turnover, but it also helps to attract talent if candidates align with the culture of the organization.

A well-functioning organizational culture assists with onboarding new talent through aligning them with the values, norms, and behaviours.

Want to learn more about Organizational Culture?

What is Organizational Culture?

Harvard Business Review- Organizational Culture

7 Reasons Why Organizational Culture is Important

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