Organisational culture, a central concept in the study of organisational behaviour (OB), refers to the shared values, beliefs, norms, and assumptions that shape how employees think, feel, and behave within the workplace (Robbins & Judge, 2021). It forms the social glue that binds members together, influencing not only employee conduct and motivation but also the strategic identity and long-term effectiveness of the organisation.
Foundations of Organisational Culture
The prominence of organisational culture emerged in the late 20th century, particularly after scholars sought to understand why some firms outperformed others despite having access to similar resources. Schein (2010) proposed a three-level model of culture:
- Artefacts – visible, tangible elements such as office design, rituals, dress codes, and language.
- Espoused values – articulated strategies, goals, and philosophies.
- Basic underlying assumptions – unconscious beliefs and values deeply embedded within the organisation.
This model highlights that culture goes beyond surface practices; it reflects deep-rooted assumptions that guide day-to-day behaviours, shaping how employees interpret organisational realities.
Influence on Employee Behaviour and Attitudes
Culture serves as a behavioural compass, signalling to employees what is acceptable and what is not. For example, a culture that values innovation and risk-taking will reward creative initiatives, whereas a culture that emphasises stability and control may discourage experimentation.
Cameron and Quinn (2011) developed the Competing Values Framework (CVF), identifying four culture types:
- Clan culture (collaboration, trust, commitment)
- Adhocracy culture (innovation, risk-taking)
- Market culture (competition, achievement)
- Hierarchy culture (control, structure)
Each type has a distinct influence on employee attitudes, motivation, and satisfaction. For instance, clan cultures often foster belonging and loyalty, leading to higher employee retention.
Research supports the notion that positive organisational culture improves outcomes. A study by Shahid and Khalid (2024) found that cultures emphasising trust and support correlated strongly with higher employee motivation and job satisfaction. Conversely, toxic cultures marked by internal rivalry and poor communication often increase stress, absenteeism, and turnover.
Organisational Identity and Culture
Culture also defines an organisation’s identity, shaping how members perceive themselves and how external stakeholders perceive the company. According to Barney (1986), a strong culture that is valuable, rare, and inimitable can serve as a source of sustained competitive advantage.
For instance, Google’s culture of innovation fosters creativity and attracts top talent, while Toyota’s culture of continuous improvement (Kaizen) has been essential to its manufacturing excellence. These cultural identities not only differentiate organisations in the market but also act as strategic resources that competitors find difficult to replicate.
Pandey (2025) illustrates how cultural collisions in cross-cultural workplaces may threaten organisational identity if values clash. This highlights the importance of cultural alignment in multinational corporations, where blending diverse cultural identities into a cohesive whole is crucial for effectiveness.
Culture and Organisational Effectiveness
Organisational effectiveness is often mediated by culture. Otasowie, Aigbavboa, and Oke (2025) argue that addressing cultural gaps in organisations enhances employee efficiency and strategic performance. Similarly, Islam, Hossain, and Cabral (2025) found that leadership motivation styles were effective only when aligned with cultural values, reinforcing the idea that culture is a context within which performance is shaped.
Strong cultures can enhance coordination, decision-making, and goal alignment, allowing employees to act cohesively without extensive managerial oversight. However, overly strong cultures may lead to groupthink, reducing adaptability in volatile environments (Kotter, 1996).
Managing and Changing Organisational Culture
While culture can be an asset, it can also become a liability when it resists necessary change. Deeply ingrained assumptions may prevent organisations from adapting to technological disruption or global competition.
According to Kotter (1996), leaders play a pivotal role in managing cultural change by:
- Establishing a sense of urgency for change.
- Building a guiding coalition of cultural champions.
- Aligning new practices with core values.
- Reinforcing desired behaviours through communication and recognition.
Transformational leaders, in particular, are effective at reshaping culture. Degbey and Ding (2025) argue that strengths-based leadership fosters motivation and job satisfaction by aligning employee capabilities with cultural values.
Moreover, informal culture—manifested in social networks and peer norms—can either reinforce or undermine formal efforts at change (Schein, 2010). Leaders must therefore engage with both formal structures and informal networks when cultivating or reshaping culture.
Organisational Culture in the Modern Context
In today’s globalised and digitalised work environment, organisational culture is even more critical. Virtual teams, hybrid work models, and multicultural collaboration demand cultures that are adaptive, inclusive, and innovative.
Recent literature highlights that:
- Inclusive cultures improve employee engagement and creativity (Kazabeyeva, 2024).
- Learning-oriented cultures support continuous improvement and adaptability in dynamic industries (Shakki & Rad, 2024).
- Sustainability-focused cultures enhance corporate reputation and align with growing social expectations (Otasowie et al., 2025).
Thus, culture has evolved from being viewed as a static internal phenomenon to a dynamic and strategic enabler of organisational survival and growth.
Organisational culture is more than a background element of organisational life—it is a defining force that shapes identity, behaviour, and effectiveness. By guiding employee behaviour, reinforcing organisational identity, and influencing strategic outcomes, culture acts as both a performance driver and a competitive differentiator.
A strong, positive culture enhances motivation, job satisfaction, and innovation, while toxic or misaligned cultures undermine effectiveness. However, because culture is deeply embedded, managing and reshaping it requires careful leadership, alignment with strategy, and recognition of both formal and informal dynamics.
In an era of rapid change, organisations that cultivate adaptive, inclusive, and innovation-oriented cultures will be better positioned to thrive. Understanding and managing organisational culture is, therefore, not merely a managerial responsibility but a strategic imperative for success.
References
Barney, J. B. (1986) ‘Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?’, Academy of Management Review, 11(3), pp. 656–665.
Cameron, K. S. and Quinn, R. E. (2011) Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Jossey-Bass.
Degbey, W. Y. and Ding, H. (2025) ‘Strengths-Based Leadership’, in Elgar Encyclopedia of Leadership. Edward Elgar.
Islam, M. N., Hossain, S. F. A. and Cabral, P. M. F. (2025) ‘Motivation styles of leaders and organizational performance’, Frontiers in Organizational Psychology, 10, pp. 1–15.
Kazabeyeva, V. (2024) ‘The essence and definition of corporate culture in modern organizational theory’, Proceedings of the 8th International Conference on Management Studies.
Kotter, J. P. (1996) Leading Change. Harvard Business Review Press.
Otasowie, O., Aigbavboa, C. O. and Oke, A. E. (2025) ‘Gaps in Circular Economy Business Model Theoretical Frameworks’, in Circular Economy for Construction Organisations. Springer.
Pandey, M. (2025) ‘Cultural collisions: the struggle for recognition in a cross-cultural workplace’, Emerald Emerging Markets Case Studies, 15(1), pp. 45–59.
Robbins, S. P. and Judge, T. A. (2021) Organizational Behavior. 18th ed. Pearson.
Schein, E. H. (2010) Organizational Culture and Leadership. 4th ed. Jossey-Bass.
Shahid, A. and Khalid, R. (2024) ‘Exploring the dynamics of paid academic writings in Pakistani and foreign universities’, Apex Journal of Social Sciences, 1(1), pp. 15–29.
Shakki, M. H. and Rad, M. R. (2024) ‘Designing a security-oriented leadership model of Mazandaran University of Medical Sciences’, Management and Educational Policy Journal, 12(2), pp. 44–62.
