3.2: Explain the impact of organizational culture on employees.

Question 1

What is organizational culture?

Answer 1

The collective understanding of beliefs and values that guide how employees behave—often described as the “personality” of the organization.

Question 2

How does organizational culture form?

Answer 2

It begins with the original business owner and develops as new people join and interpret the founder’s values and actions.

Question 3

What helps sustain culture over time?

Answer 3

Consistent actions aligned with core beliefs, leadership, and family or organizational values passed through generations.

Question 4

What are some ways organizational culture influences employee behavior?

Answer 4

Guides behavior (e.g., openness, disclosure)

Shapes interaction and decision-making norms

Influences whether innovation and failure are supported

Affects safety, risk-taking, and employee satisfaction

Question 5

What aspect of management can culture NOT overlook?

Answer 5

Health and safety—certain risks must not be tolerated even in cultures that encourage innovation.

Question 6

What everyday factors reflect an organization’s culture?

Answer 6

Dress code, decision-making autonomy, ability to take risks, learning from mistakes, teamwork.

Question 7

What do successful organizational cultures support?

Answer 7

Innovation, learning, risk-taking, well-being, flexibility, and fun.