What is Organizational Culture and Why is it Important?

When potential employees search for a new workplace, organizations with a work culture stand out the most. This applies especially to people on the hunt for a permanent job position and looking for a place of work that offers growth opportunities. What is organizational culture, and why is there a rising appeal to it? Keep reading to find out.

What Is Organizational Culture?

Organizational culture defines your company’s mission, vision, values, objectives, and expectations about the work that you do. Having a work culture gives the company more structure and helps all the employees be aligned with the company’s goals. Organizational culture sets up processes in place to promote employee growth and the overall development of the organization.

Types Of Organizational Culture

Here is a list of the different kinds of organizational culture: 

1. Normative culture 

2. Pragmatic culture 

3. Academy culture 

4. Baseball team culture 

5. Club culture 

6. Fortress culture 

7. Tough guy culture 

8. Bet your company culture 

9. Process culture 

The Importance Of Organizational Culture

Take a look at the reasons why organizational culture is necessary. 

#1 Increased employee engagement 

Organizational culture allows itself to be driven by clear goals and expectations. This aligns all the employees toward the purposes and motivations of the organization. Doing so helps them be more productive and engaged in the work they do. It allows them to feel connected to the organization while also enjoying the incentive of employee growth provided by work culture. 

#2 Lower turnover 

If the organization’s motives involve providing its employees with growth opportunities, they will be less likely to leave. Satisfied employees mean lower turnover, which will save the organization time, money, and effort in hiring new employees. 

#3 Smoother onboarding

Organizations with an established work culture have effective onboarding methods like orientation and training so that employees do not feel overwhelmed by the transition. The employee remains well-informed of what the company expects from them and can communicate better with their team due to this. 

#4 Enhanced productivity 

Increased employee engagement enables the team to be more productive, as they’re informed about the company’s goals and can work towards them. When people with similar interests and skills come together, there’s more room for productivity. 

#5 Stronger brand identity 

Having a well-defined organizational culture enhances brand identity. This subsequently creates a stronger perception of the company in the minds of existing as well as potential clients. Clients are more encouraged to do business with a company with an appealing brand image. 

#6 Healthy team environment 

Having an organizational culture not only brings the interests of all the employees together but also makes space for a healthy work environment. It gives way to smoother communication and better project planning, inculcating employee needs as well.


Organizational culture is essential to give structure to the functioning of a company as well as its identity. Organizations with a work culture are more sought-after by clients and employees alike in comparison with organizations that do not have a work culture.