What is Organizational Culture?

Organizational culture is known as the collective values, beliefs, practices, and behaviors that shape an organization's social and psychological environment. Social psychologist Geert Hofstede believed that while national cultures are based on deeply held values, organizational cultures are more concerned with practices. The repetition of those practices or behaviors within a workplace help to define the organization’s culture.

The culture of an organization is also influenced by a number of “people factors” as well, including but not limited to the personalities and leadership style of the executive team, the workforce mindset, the dynamics within the teams and departments, the presence of organization development (OD) professionals and processes, and the interconnectivity of the organization as a whole.

Other factors, such as the organization’s industry, the reward and incentive systems within the business, the benefits packages, the politics of the time, the local culture, and the community involvement, can all highly influence the organizational culture.

By putting OD processes in place, OD and human resources professionals can change the company culture, but it will require extensive action planning. According to the Organizational Culture Assessment Instrument (OCAI), it distinguishes between four types of culture:

An organizational culture is dynamic; it evolves and adapts to the times and the organization’s leaders and staff. An OD practitioner can help create a great organizational culture by identifying problems and putting structures and processes in place to ensure the culture survives through periods of growth and challenge. To be effective, OD practitioners should be knowledgeable in behavioral science and OD interventions.

All organizations with great company culture must have shared values in place. These values help emphasize a common culture throughout the organization and help recruiters find the right culture fit.

Along with shared values, an organization should have a shared mission or vision: Why does the organization matter? How does the organization’s work matter? What does the future of the organization look like? Having a shared vision helps to foster unity and a shared goal.

One way to evaluate your company brand is through a culture audit to analyze whether your organizational culture is strong and grounded in company values. Once you have audited and identified areas that need work, create a culture committee or invite people within the company to serve as culture liaisons. The culture liaisons do not have to be in human resources, but a reward and incentive system, either through human resources or through the culture liaisons, should be in place. Those employees who are amplifying your company’s core values should be rewarded for making the extra effort.

A strong company culture or brand attracts the right talent. Ensure you are attracting talent that buys into your company culture by embedding organizational values into the language and requirements of an application.

An organization’s culture essentially communicates to employees how the company values them. A strong workplace culture, especially one that emphasizes learning, delivers several clear business and workforce benefits:

Case Study: Explore the cultural expectations at Amazon. When culture is intentionally shaped through learning and development, it becomes a competitive advantage for the entire organization.

Organizational culture is not a "default" state for high-performing companies; it is a deliberate implementation. Corporate culture also has many stereotypes that lead employees to believe companies want a “market culture” where executives are more focused on metrics such as revenue and are results-oriented. While this may lead to business success, it may leave employees feeling unsatisfied at work.

A positive workplace culture is a healthy culture. A healthy company culture is the primary drive for employee engagement, productivity, and long-term profitability. But creating a healthy culture is easier said than done.

Based on the article “Breathe Life into Your Organization's Culture” by Sam Silverstein, here is a summary of the core concepts to creating a positive organizational culture:

Culture is rooted in foundational beliefs. It determines how an organization hires, makes decisions, and establishes acceptable behavior. Simply posting "values statements" is insufficient; core values must be observable through consistent actions. If values are undefined, a cross-functional task force should be used to establish them. Analyzing organizational culture in its current state will help OD practitioners develop an improvement strategy.

Leaders must serve as the "walking model" of the organization’s shared values. Employees will constantly observe leadership for congruence and transparency. Integrity is tested most when a leader must make a difficult decision (such as firing a high performer) because that individual has violated the organization’s standards.

Culture must be a constant part of your organization’s internal dialogue. It cannot be assumed that employees understand the "why" behind the culture without explicit instruction. Shared values should be integrated into every meeting and conversation across all levels of the organization, not just within the executive suite.

This is often cited as the most difficult stage. It involves treating core values as non-negotiable and refusing to make exceptions, even when those exceptions would be easier or more profitable in the short term. Defending your corporate culture means finding creative solutions when two values conflict (e.g., "family first" vs. "getting the job done") rather than abandoning one.

Recognition reinforces the desired behavior. Sharing success stories where decisions were made based on core beliefs creates positive momentum. Tying organizational success directly to the culture helps every employee understand that the culture is the engine behind the company’s performance.

Creating a positive culture is an ongoing process rather than a one-time project. Continuous focus on these five steps leads to higher energy within the workforce and superior financial performance on the income statement. Often, it takes the initiative of an OD professional to improve company culture, but it should be a strategic imperative of the business.

There are many factors that can become “organizational culture influences.” For example, your organization may emphasize a culture of learning, but there’s no budget for courses, no time allocated for learning, and no clear development paths. Over time, motivation and retention decline even as your culture is still “focused on learning.”

Another barrier could be that senior leaders never attend training or prioritize development in meetings. Employees quickly see it as optional (or worse, performative). Poor communication, resistance to change, lack of inclusion, and other factors can all lead to a breakdown in culture.

Building a learning culture involves engaging employees through feedback, self-directed learning, and aligning goals, while leadership promotes lifelong learning and psychological safety. Embedding learning into processes, encouraging open communication, and fostering adaptability drive tangible outcomes like skill development, productivity, innovation, retention, and business performance. Focus on continuous improvement and organizational growth.

Small but repeated moments are what ultimately shape culture. Over time, they signal to employees what matters, regardless of what’s written in company values.

These are the steps an organization takes to mitigate or eliminate its root problem. No singular correct solution exists to any organizational problem. Possible solutions include assessments, coaching, job aids, role analysis and redesign, team building, and training.

Here are five things to remember about the solution phase:

Solutions generally occur at three levels:

Because culture influences everything from employee retention to customer satisfaction, measuring it requires looking at both employee perceptions and organizational outcomes. Some of the most common methods ATD recommends or references for measuring organizational culture include:

Employee surveys: Culture surveys provide a broad view of how employees perceive the organization's values, leadership, communication, trust, inclusion, and work environment. Organizations often use annual culture surveys supplemented by shorter pulse surveys throughout the year to track trends and changes over time.

Focus groups and listening sessions: Focus groups help explain the "why" behind the data. Facilitated discussions allow employees to share experiences, uncover barriers, and highlight gaps between stated values and actual workplace behaviors.

Interviews: One-on-one interviews with employees, leaders, and stakeholders can provide deeper insight into cultural norms, decision-making practices, and employee experiences. Interviews are particularly useful when organizations undergo significant change or trying to understand specific cultural challenges.

Workforce metrics: Many organizations measure culture indirectly through business and talent metrics to help determine whether the culture supports organizational goals and employee well-being. These indicators can include:

Onboarding and exit feedback: Collecting feedback from new hires and departing employees can provide valuable insight into how culture is experienced at critical moments in the employee lifecycle.

Best Practice: Use Multiple Methods

No single measurement tells the whole story. The most effective culture assessments combine quantitative data (surveys and metrics) with qualitative data (focus groups, interviews, and observations) to create a more complete picture of organizational culture. (

ATD members can access tools and templates to help guide measuring organizational culture, such as the Talent Development Learning Culture Checklist or the Fostering a Learning Organization course.

Organizations typically measure culture through employee surveys, pulse surveys, focus groups, interviews, workplace observations, and workforce metrics such as retention, engagement, and turnover. Many organizations also analyze onboarding and exit feedback to understand how employees experience the culture. Using multiple methods provides the most accurate picture of organizational culture.

Becoming a successful OD practitioner requires skill in collaboration and leadership, performance improvement, business partnering and consulting, change management, talent management, and project management.

Organizational culture change is a long-term process, not a one-time initiative. Because culture is shaped by repeated behaviors, leadership actions, systems, and employee experiences, meaningful change often takes months or years. Successful culture transformation requires consistent communication, reinforcement, accountability, and alignment between values and everyday practices.

Leaders have a significant influence on organizational culture because employees often look to them for cues about acceptable behaviors and priorities. Leaders shape culture through their decisions, communication, actions, and the behaviors they recognize and reward. When leaders consistently model organizational values, they help strengthen and sustain the desired culture.

Yes. Organizational culture influences how employees feel about their work environment, relationships, growth opportunities, and sense of belonging. A positive culture that supports development, inclusion, well-being, and clear communication can improve employee engagement and retention. Conversely, a negative culture can contribute to disengagement, turnover, and difficulty attracting talent.

ATD offers a wide range of professional development opportunities, including workshops, webinars, conferences, and certification programs specifically tailored to the needs of OD professionals. These resources can help practitioners stay up to date on the latest trends, learn best practices in organizational development, and connect with other professionals in the industry.

Additionally, ATD provides access to research and publications that help practitioners deepen their understanding of organizational dynamics. Using research improves their ability to drive positive change within their organizations. For access to more resources, practical tools and templates, research, and insights, become an ATD member. Learn more.

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