Organizational Culture

Abstract

Abstract Organizational culture is a reflection of the attitudes, beliefs, and values of an organization. These values and norms for behavior are shared by members within the organization and influence behavior and interaction inside and outside the organization. Organizational culture is a group‐level construct that is socially constructed through the shared history and experiences of the individuals within an organization. Organizational culture often guides an organization's values, standards, behavioral norms, and pursuit of goals on an organizational level. On an individual level, organizational culture guides acceptable behaviors and expectations. Organizations with a healthy organizational culture are characterized by strong values favoring productivity, fairness, communication, personal development, and pride. Organizations with healthy cultures are associated with profitability, growth, efficiency, and worker satisfaction and loyalty. Additionally, a strong organizational culture (clearly defined and communicated values and norms) is associated with more successful and productive organizations. Organizations with a weak organizational culture (poorly communicated, ambiguous values and norms) often are less efficient and require more complex bureaucracies to communicate goals and expectations.