Organizational culture refers to a collection of practices, values and expectations which informs and guides the actions of all employees within the workplace.

It can be defined as the collection of traits which make an organization what it is; a great culture is believed to exemplify positive traits which lead to improved performance, whilst a dysfunctional company culture brings out qualities than can even hinder the most successful organizations. 

Culture should not be confused with organizational goals or a mission statement, although both play part in helping to define it. It is believed that culture is created through authentic and consistent behaviors; culture is in action when one is able to view how a CEO's responds to a crisis, how a manager corrects an employee when a mistake is made is part of culture. 

Why culture is important within an organization

One of the main reasons why culture is important is because, it affects all aspects of the organization, right from punctuality and to contract terms and employee benefits. When workplace culture aligns with employees, they are more likely to feel more accepted and comfortable.

Part of speech:
Use in a sentence:
Your organizational culture is made up of more than machines, people and resources. It is the sum total of what your business organization is all about.