Important of Organizational Culture Organizational culture refers to a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior. These values have a strong influence on employee behavior as well as organizational performance. In fact, the term organizational culture was made popular in the 1980s when Peters and Waterman's best-selling book In Search of Excellence made the argument that company success could be attributed to an organizational culture that was decisive, customer-oriented, empowering, and people-oriented. Since then, organizational culture has become the subject of numerous research studies, books, and articles. Organizational culture is still a relatively new concept. In contrast to a topic such as leadership, which has a history spanning several centuries, organizational culture is a young but fastgrowing area within management. A shared organizational culture helps to unite employees of different demographics. Many employees within an organization come from different backgrounds, families and traditions and have their own cultures. Having a shared culture at the workplace gives them a sense of unity and understanding towards one another, promoting better communication and less conflict. In addition, a shared organizational culture promotes equality by ensuring no employee is neglected at the workplace and that each is treated equally. Organizational culture helps to keep employees motivated and loyal to the management of the organization. If employees view themselves as part of their organization's culture, they are more eager to want to contribute to the entity's success. They feel a higher sense of accomplishment for being a part of an organization they care about and work harder without having to be coerced. Organizational culture create competition, Healthy competition among employees is one of the results of a shared organizational culture. Employees will strive to perform at their best to earn recognition and appreciation from their superiors. This in turn increases the quality of their work, which helps the organization prosper and flourish. Guidelines contribute to organizational culture. They provide employees with a sense of direction and expectations that keep employees on task. Each employee understands what his roles and responsibilities are and how to accomplish tasks prior to established deadlines An organization's culture defines its identity. An entity's way of doing business is perceived by both the individuals who comprise the organization as well as its clients and customers, and it is determined by its culture. The values and beliefs of an organization contribute to the brand image by which it becomes known and respected. Organisational culture evolves continuously from interactions with employees, customers, suppliers and the wider community. It is the DNA of the organisation, the way things are done, and it influences every action and interaction. Organisational culture change shakes up the existing culture and aligns fresh beliefs and behaviours with the vision, values and purpose of the organisation. Culture Consultancy's experienced practitioners help organisations to firstly understand their culture and then to map the way towards the creation of a strong culture which will enable the organisation to thrive. A strong culture creates greater synergy. A strong culture brings people together. When people have the opportunity to (and are expected to) communicate and get to know each other better, they will find new connections. These connections will lead to new ideas and greater productivity - in other words, you will be creating synergy. A strong culture creates energy and momentum. Build a culture that is vibrant and allows people to be valued and express themselves and you will create a very real energy. That positive energy will permeate the organization and create a new momentum for success. Energy is contagious and will build on itself, reinforcing the culture and the attractiveness of the organization A strong culture is talent-retainer. How likely are people to stay if they have other options and don't love where they are? Your organizational culture is a key component of a person's desire to stay. A strong culture makes everyone more successful. Any one of the other six reasons should be reason enough to focus on organizational culture. But the bottom line is that an investment of time, talent and focus on organizational culture will give you all of the above benefits. Not only is creating a better culture a good thing to do for the human capital in the business, it makes good business sense too. Culture can affect business outcomes in a number of ways, both positive and negative. For example, cultures that are not aligned with corporate strategy can lead to decreased loyalty, a lack of motivation, and high employee turnover. Healthy cultures, however, impart pride and a sense of purpose to employees, leading to increased productivity and a greater understanding of corporate goals, as with the employee at the car manufacturing plant. Strategy, operational performance, and culture are all strongly related. High-performing companies often view culture as an enabler of strategy and performance, and want to create a culture that will support and enable employees in achieving those goals. Reference [1] Chatman, J. A., & Eunyoung Cha, S. (2003). Leading by leveraging culture. California Management Review, 45, 19-34; Kerr, J., & Slocum, J. W. (2005). Managing corporate culture through reward systems. Academy of Management Executive, 19, 130-138. [2] Barney, J. B. (1986). Organizational culture: Can it be a source of sustained competitive advantage? Academy of Management Review, 11, 656-665. [3] Why culture can mean life or death for your organization. (September, 2007). HR Focus, 84 [4] Kotter, J. P., & Heskett, J. L. (1992). Corporate Culture and Performance. New York: Free Press; Marcoulides, G. A., & Heck, R. H. (1993, May). Organizational culture and performance: Proposing and testing a model. Organizational Science