Organizational Culture and Its Significance

Topic: HR Management
Words: 827 Pages: 3


Regardless of the industry in which a firm operates, it will always have its own unique culture. Individuals of the same and different professions sometimes share cultural similarities and differences. Organizational culture refers to a system of shared assumptions, values, and beliefs that indicate which types of conduct are appropriate and which are not in a particular firm. It refers to the collection of principles, norms, and customs that serves as a compass and guides the activity of all team members. A company’s culture is its most valuable asset or its most significant burden. In reality, organizations that retain a culture that is distinct and difficult to copy have a competitive advantage.

The engrained standards of a corporation make up its organizational culture; they include the ideals and behaviors adopted by the firm. It considers concepts that have happened in the past, different ways of thinking, the ideas that already exist, and the expected results. Furthermore, it is characterized by ingrained behaviors and emotional responses. It results from an existing institutional perspective shared by all personnel (Lubis & Hanum, 2020). The more time passes for a corporation, the more refined and robust the cultural values that it upholds become. The early ideas directly influence the principles a company will uphold in the future that it instills in its culture. A firm’s culture determines the kind of people it will hire and those it will not hire, both in terms of inclusion and exclusion. In addition, after new personnel is brought on board, the company adapts them to the organization’s culture and teaches them the appropriate procedures.

A robust organizational culture emerges when the working environment makes sense for the company and its employees. How employees would like to perform their jobs, the facilities and layout that affect the employees’ experiences, and everything else that helps them feel the most at ease or productive. Due to how vital this matter is, business owners should prioritize creating a culture that meets both their and the company’s needs (Paais & Pattiruhu, 2020). Given that the culture will significantly affect the company in the long run, it is essential to consider the needs of the company’s employees and anyone else with a direct or indirect stake.

Relevance of Organizational Culture

Organizational culture matters to every company; therefore, business enterprises should emphasize their culture. A robust organizational culture facilitates the development of a constructive and well-organized work environment, enabling the entity to realize its ambitions and find success. The organizational culture plays a significant role in significantly promoting employee engagement. It is essential to remember that a goal constantly propels a workplace with organizational culture and that clear expectations accompany this purpose. When creating new firms, it is important to remember that the company’s culture will motivate and inspire employees to be more interested in their job and connections with coworkers.

Companies with effective cultures typically have onboarding processes that are easier to navigate. Standardizing standards have been established to ensure that newly-hired employees have access to the resources necessary for adjusting to and assimilating into the workplace culture during the transitional phase. Improving onboarding procedures typically results in enhanced employee loyalty and overall longevity (Paais & Pattiruhu, 2020). During this phase, effective communication of culture will assist new employees in comprehending the company’s fundamental principles and day-to-day activities.

How a company communicates its brand has an impact on both its marketing activities and its corporate culture. The public’s perception of the company and its standing in the marketplace is reflected in its brand. Although certain components of the brand image are controlled by external sources, most of it will originate from the firm’s culture and any interactions that individuals have with employees and executives. The potency of a company’s brand identity tends to increase proportionately with the health of its corporate culture (García-Fernández et al., 2018). Even without additional persuasion, employees can become individual brand advocates for their employer.

When a company’s culture helps create individual growth, community, and inclusivity, it will assist increase employee performance, ultimately leading to the accomplishment of more goals. When coupled, high levels of employee happiness and improved performance create a robust talent pool of devoted workers who will continue to appreciate their roles within the organization (García-Fernández et al., 2018). When compounded over time, it results in a positive cycle that can significantly boost the organization’s level of success.


Acquiring an organizational culture is not an overnight process, but with continuous effort, any given organization can make its culture a major strength that attracts great talent and drives business success. An effective corporate culture includes essential elements of recognition, value, leadership, a sense of belonging, and employee voice. These are all necessary ingredients. It is imperative to recognize the efforts made by all employees, regardless of how inconsequential they may seem. When employees are recognized for their contributions to the firm, they are more likely to remain dedicated to advancing the organization’s objectives.


García-Fernández, J., Martelo-Landroguez, S., Vélez-Colon, L., & Cepeda-Carrión, G. (2018). An explanatory and predictive PLS-SEM approach to the relationship between organizational culture, organizational performance and Customer Loyalty. Journal of Hospitality and Tourism Technology, 9(3), 438–454.

Lubis, F. R., & Hanum, F. (2020). Organizational culture. Proceedings of the 2nd Yogyakarta International Conference on Educational Management/Administration and Pedagogy (YICEMAP 2019).

Paais, M., & Pattiruhu, J. R. (2020). Effect of motivation, leadership, and organizational culture on satisfaction and employee performance. The Journal of Asian Finance, Economics and Business, 7(8), 577–588.

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