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The Importance Of Organizational Culture

Decent Essays
The Business Dictionary defines organizational culture as values and behaviors based on “shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time” (“Organizational Culture”, 2017). Simply put, organizational culture is how people learn, think and act on a daily basis within an organization. But if organizational culture is only unique social and psychological environments within a business, then how is it possible that it can be just as influential as business strategy? Research suggests that a strong organizational culture is a key competitive advantage of business because it can be the driving force behind innovation and alignment of goals, help motivate and engage employees, and generate fierce customer loyalty. Organizational culture, also referred to as corporate culture, is a key competitive advantage of business because it can be the driving force behind innovation and alignment of goals. Innovation is the foundation upon which most businesses are built. It allows businesses to offer a new or improved product or provide a service in a way that sets them apart from competitors. Because consumer tastes are always changing, businesses have to align innovation with their business strategy to stay competitive. Any company can simply proclaim that their strategy will focus on innovation but if its employees are discouraged from being creative, if output quantity drives their paycheck, or if the company’s hierarchical
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