Organisational Culture Definition

Organisational culture is the shared values, beliefs and norms of an organisation. It encompasses the way that the organisation’s employees behave, how they interact with each other and with customers, and the way that the organisation itself operates.

The concept of organisational culture emerged in the early 1980s, as businesses began to recognise that their employees were their most important asset. A strong organisational culture can give a company a competitive advantage by motivating and inspiring employees to do their best work, and by instilling a sense of pride and loyalty in them.

There are many different ways to define organisational culture, but there are three key elements that are essential to any definition: values, beliefs and norms.

Values are the principles that guide an organisation’s behaviour. They set out what the organisation stands for and what it believes in. Values can be explicit or implicit, but they should be clear to all members of the organisation.

Beliefs are ideas or convictions that an organisation holds to be true. They may be about the nature of business, the role of employees, or the way that things should be done. Like values, beliefs can be explicit or implicit, but they should be widely shared within the organisation.

Norms are rules or standards of behaviour that members of an organisation are expected to follow. They prescribe how people should act in specific situations, and they help to create a common identity among members of the organisation.