What is organizational culture?

Organizational culture is the set of values, norms, beliefs and behaviors shared by the members of the organization. It defines how the organization operates, how decisions are made and how employees face each other. Organizational culture affects how employees are motivated, committed and perform their work.

Organizational culture can be, for example, hierarchical, where decisions are made from the top down, or participatory, where employees are encouraged to participate in decision-making. It can also be competitive, cooperative or innovative. Organizational culture can be visible, for example, in the work environment and employee behavior, but also hidden, such as in the organization’s values ​​and norms.

Organizational culture can affect an organization’s success and competitiveness. A well-functioning organizational culture can create a positive work atmosphere where employees are comfortable and motivated. On the other hand, a poorly functioning organizational culture can lead to conflicts, inefficiency and employee turnover.

Sources: TalentAdore, Kauppalehti