The values and behaviours that contribute to the unique social and psychological environment of an organisation are what is referred to as organisational culture.
Organisational culture includes an organisation's expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid.
Also called corporate culture, it's shown in
- The ways the organisation conducts its business, treats its employees, customers, and the wider community
- The extent to which freedom is allowed in decision making, developing new ideas, and personal expression
- How power and information flow through its hierarchy
- How committed employees are towards collective objectives.
Culture affects the organisation's productivity and performance, and provides guidelines on customer care and service, product quality and safety, attendance and punctuality, and concern for the environment. It also extends to production-methods, marketing and advertising practices, and to new product creation. Organisational culture is unique for every organisation and one of the hardest things to change.
For more information on organisational culture, please see our resources below.