Importance of Culture - Organizational Culture

When people are successful at what they undertake, the ideas and values that led to that success become institutionalized as part of the organization's culture. Culture gives employees a sense of organizational

Related identity and generates a commitment to particular values and ways of doing things. Culture serves two important functions in organizations:

(1) It integrates members so that they know how to relate to one another, and

(2) It helps the organization adapt to the external environment.