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Definition

Organizational culture

Organizational culture refers to the “characteristic values, traditions, and behaviors and a company’s employees share.”

A value is a basic belief about what is right or wrong, or about what you should or shouldn’t do. (“Honesty is the best policy” would be a value.) Values are important because they guide and channel behavior. Managing people and shaping their behavior therefore depends on shaping the values they use as behavioral guides.


Organizational culture is the set of important assumptions and beliefs (often unstated) that members of an organization share in common.

Every organization has its own culture. An organization’s culture is similar to an individual’s personality- an intangible yet ever-present theme that provides meaning, direction, and the basis for action. In much the same way as personality influences the behavior of an individual, the shared assumptions among a firm’s members influence opinions and actions within that firm. 


In psychology organizational culture term denotes 'culture' that is not only the shared beliefs, values, attitudes and expectations of its members make up the culture of an organization, but also the unquestioned assumptions about its traditions and ways of doing things.  

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