Organizational culture is a system of shared values, beliefs, and assumptions that guide how employees behave in an organization. These shared values influence how people work, interact, dress, and perform their duties. Every organization develops its own unique culture, which sets clear guidelines and boundaries for employee behavior. Employees observe and understand these values and adjust their actions according to the organization’s expectations.
Organizational culture includes different characteristics that together shape the identity of the organization. Each organization gives importance to these characteristics in its own way, and this creates a distinct working environment. Employees judge how much importance their organization gives to these values and then align their behavior with them.
Just like people behave differently at a rock concert and a classical music event, employees also change their behavior based on the environment they are in. For example, people dress and act differently at a football match compared to a golf tournament. These unwritten rules help individuals understand what behavior is acceptable in different situations.
