Organizational Culture and Why We Need It

We hear the term organizational culture bandied about a lot these days, but what does it actually mean? The definition of organizational culture is best summarized this way: This is the combination of beliefs, assumptions, values, and habits that make up the psychological environment of your workplace. And if that sounds like a mouthful, maybe think of it this way: Organizational culture just refers to the way people in your business interact with one another, and with the customer.

What is Organizational Culture?

Something else to know about organizational culture is that every business has one, whether you’re aware of it or

not. What that means is that all businesses have a choice: Either you can actively define your organizational culture, building a set of values and customs, or you can just allow your culture to happen haphazardly. If you choose the second option, don’t be surprised if your organizational culture turns out to be weak, ineffective, or even toxic.

That’s the basic organizational culture definition, but what does all of this mean practically? How can organizational culture impact your bottom…