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Effect of Organizational Culture on Employees and Organizations

Culture is the collection of various characteristics that distinguish one organization from another. Furthermore, a collective understanding of people’s minds brings the uniqueness of one company with another firm (Hironimus, 2019). Culture is also defined as a group of various values and behaviors believed to generate success in an organization. Culture can also mean a genuinely formed set of beliefs, behavior, and values (Hironimus, 2019). Summarily, culture can be said to be shared knowledge, values, beliefs, explanations and behaviors of a large society at the same time as they strive to achieve similar goals and drive to success (Hironimus, 2019).

On the other hand, organizational culture relies on cognitive systems that assist in explaining the reason behind employees’ thinking and reaching conclusions (Hironimus, 2019). Moreover, it entails a series of distinct levels of culture in relation to the multifaceted group of beliefs, values and assumptions that determines how the organization should carry out its operations (Hironimus, 2019). The normative glue holds the whole organization in place and on the same page with common beliefs, values, and urges to succeed (Hironimus, 2019). The organization’s culture could be made up of two key social groups: the group’s structural stability and a single item integration in superior standards (Hironimus, 2019). The norms and values of the firm have a significant impact on both the employer and employees that are usually invisible, but they tend to be a driving force towards the success of the firm at large (Hironimus, 2019).

Types of Culture in the Organization

Counter Culture refers to the organization’s common beliefs and norms that are directly different from the beliefs and values of the whole organization’s culture identified as the countercultures and usually inflicted on the employees by the forceful leaders (Hironimus, 2019). The firm may employ the culture when the organization’s performance is positively improving. However, it is dangerous to the initial culture of the company (Hironimus, 2019).

Subculture, on the other hand, is a section of culture that reflects distinct norms, values and behavior of the employees in the organization due to the geographical location or the goals of the departments and the requirements of the job in an organization (Hironimus, 2019). The idea of subculture in the employees was perceived to be tied to the commitment of the employees to the organization (Hironimus, 2019). Different groups in the organization are likely to have the same cultures that enable them to associate with each other even outside the firm (Hironimus, 2019).

Strong Culture is generally known to be strong in that a huge part of the workforce has the same values and beliefs as set out by the organization (Hironimus, 2019). In this case, leaders have to reduce the space between the workers to generate a strong relationship (Hironimus, 2019). Also, the management values the employees’ presence more than the firm’s set rules. On the contrary, a weak culture is loosely knit. It is likely to enhance individual thought and contribution instead of teamwork towards the success of the firm (Hironimus, 2019). The small part of the organization has its common beliefs, norms, and values compared to a strong culture (Hironimus, 2019). It could be a resourceful tool for the growing companies but not reliable. It encourages the strict improvement of rules on the workers, which is likely to lead to diversity between individual goals and the objectives of the company (Hironimus, 2019).

Effect of Organizational Culture on the employees and Organizations

Organizational culture has various functions in the origination, which include creating a clear difference between two firms(Satyendra, 2021); enhancing the identity of the employees; it cultivates commitment of the employees in embracing teamwork success rather than focusing on self-interest; it creates the right standards to be observed by every employee hence unifying the organization; it guides and shapes the behavior and attitude of every employee as it is a tool of meaning and control(Satyendra, 2021). Employees are very important elements of the organization and the main players in every activity there, hence ensuring the company is running smoothly. Their existence guarantees the company’s survival (Satyendra, 2021). Their performance determines the firm’s success, and in that regard, they are called upon to be proactive, committed, responsive and diligent to make sure they are always on top. The performance of the employees has a direct positive or negative effect on the performance of the organization at large (Satyendra, 2021). As such, there is a need for the organization to come up with a strong and widely used collection of beliefs that are highly encouraged by the structure of the company and a well-developed strategy (Satyendra, 2021).

A well-developed organizational culture makes make the employees understand the way their leaders want them to respond to any situation; enables them to believe that their response towards any situation is correct, and lastly, it ensures that employees are aware of the recognition and appreciation accorded to them in exchange of their loyalty to the values of the organization (Satyendra, 2021). Furthermore, the organization’s culture determines the employees’ expected behavior (Satyendra, 2021). It entails the beliefs and values that are shared and established by the origination’s management committee, which is communicated and reinforced by a number of ways which intern shapes the perception, understanding and behavior of the workers hence setting the context for every operation carried out by the company (Satyendra, 2021).

Moreover, organizational culture builds a conducive surrounding for the employees to work smoothly and peacefully (Satyendra, 2021). It is evident that there is a strong relationship between the organization’s performance, decision making, productivity, and the organization’s culture (Satyendra, 2021). The culture of the organization is widely spread in the company and is very powerful such that it can either hinder progress or speed up prosperity and at the same time can either bond the employees to the organization or call for their resignation (Satyendra, 2021). In that regard, many organizations are recently opting to build an organizational culture that embraces the methods of accomplishing the tasks in progress (Satyendra, 2021).

The organizational culture is pivotal in the well-being of the organization such that it is considered to be a measure that enhances the understanding of the espoused stability of the firm in question as well as the satisfaction, incentive and motivation of the employees with their jobs (Satyendra, 2021). Nevertheless, the company ought to be conscious that its workers are equipped with a strong, efficient, conducive, supportive and job-oriented workplace to build a productive and more skilled team worth handling and preserving (Satyendra, 2021). The management can only achieve such objectives in the presence of a strong and reliable organizational culture that encourages regeneration, innovation and invention (Satyendra, 2021).

Social exchange theory (SET), developed by Homans in 1958, described the activities taking place between the outcomes of employees, the culture of the organization and the engagement of the employees (Satyendra, 2021). The theory is impactful to the organization both economically and socially (Satyendra, 2021). In the event of creating a desirable organizational culture, the employee is motivated to work to their best, speeding the company’s good performance (Satyendra, 2021). In addition, a desirable exchange enhances the linkage between the organization’s management and its employees, which boosts the employees’ psychological bonding to their duties (Satyendra, 2021). It creates a good relationship between employees and their organization in terms of trust instead of obligations, flexibility rather than rigidness and enhancing cooperation (Satyendra, 2021). For that reason, there is a need for the organization to introduce a reliable, effective, sound and efficient organizational culture that will be appreciated and acknowledged by the employees hence making them feel their services recognized and appreciated they offer. In return, they give back good performance, loyalty and commitment to their duties and, as such, increase the organization’s productivity (Satyendra, 2021).


The organization’s culture can make employees be self-driven and work harder than ever expected if it looks into their contribution to the prosperity of the organization. Failure of the management to lead with lots of integrity will result in the underperformance of the employees (Satyendra, 2021). The culture only accounts for the patterns of behaviors and standards required for the organization to run smoothly, but leadership integrity also matters a lot (Satyendra, 2021). It does not make sense to have a strong organizational culture, and on the other hand, fundamental issues are being neglected by the management (Satyendra, 2021). The two go hand in hand, and therefore, leaders need to be very careful when exercising their powers and running their activities so as not to oppress their employees, and in return, superfluous returns will be realized (Satyendra, 2021).


Hironimus, E. (2019). The Effect of Organizational Culture, Organizational Commitment on the Employee Performance Trough Organizational Citizenship Behavior. European Journal of Business and Management.

Kashyap, D. (2015, September 30). Organizational Behaviour: Definition, Characteristics and Nature. Your Article Library.

Saravanakumar, A. (2019, January 16). UNIT 1 ORGANISATIONAL BEHAVIOUR. ResearchGate.

Satyendra, P. (2021). Impact of Organizational Culture on Employee Performance – IspatGuru. IspatGuru. Retrieved 2022, from

Swagatika, T. (2020, January 28). Group Dynamics: Definitions, Concept, Principles and Stages. Economics Discussion.


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