Understanding Organizational Culture

Corporate culture is defined by many writers as being “the way we do things round here”. Organizational culture can be said to consists of shared beliefs and values established by leaders and then communicated and reinforced through leadership actions which ultimately shape employee perceptions, behaviors and interactions with others. Leaders can and do influence organizational culture, often for the worse. Have you ever worked in an organization in which you felt under-valued, disrespected, and your opinions ignored? Then you were likely in an organization with a toxic work culture. A successful organizational culture can bring benefits such as increased trust and cooperation, fewer conflicts and more effective decision-making. In many organizations, the culture also provides an informal control mechanism, where the employees feel a strong sense of identification with the organization and shared understanding among employees about what is important. In this lesson on understanding organizational culture, we will look at the characteristics of different cultures, and what leaders need to learn, to start shaping and improving the work environment for their people.