With the pressure of building profits and staying competitive in an ever-expanding market, it’s easy to lose focus on other business necessities, like ensuring you have a positive organizational culture. Yet the culture of your organization distinguishes you from other organizations, and can impact your employees and business outcomes, either positively or negatively.
Organizational culture encompasses the shared values, beliefs, and assumptions of the organization and its members, and provides information on the norms and expected behaviors of your employees (Robbins & Judge, 2013). The culture of an organization helps employees shape their behavior based on their surroundings, facilitates commitment to the organization, and gives employees a stable sense of what is expected of them. Organizational culture goes above and beyond the explanation of “how things are done around here,” to providing employees with a sense of purpose and identity.
There is strong support for the relationship between organizational culture and organizational effectiveness: