What does the term "organizational culture" refer to?

Organizational culture refers to the shared values, beliefs, and practices that characterize an organization. It encompasses the ways in which employees interact with one another, the underlying assumptions that guide their behavior, and the rituals and traditions that frame the work environment. This culture shapes the company's identity and influences how business is conducted, impacting everything from employee satisfaction to customer interactions.

Understanding this concept is essential because a strong organizational culture can lead to enhanced communication, increased employee engagement, and overall improved performance. A positive culture fosters collaboration and innovation, while a negative culture can lead to high turnover and reduced productivity. By focusing on values and practices, organizations can create an environment that aligns with their goals and missions, driving success.