What does the term 'organizational culture' refer to?

The term 'organizational culture' refers to the shared values, beliefs, and behaviors that shape how members of a specific organization interact with each other and conduct their work. It encompasses the norms, rituals, traditions, and overall atmosphere within the organization, influencing everything from decision-making to employee engagement and performance. Understanding an organization's culture is crucial because it can affect motivation, efficiency, and overall effectiveness.

In contrast, national business practices are broader cultural norms that might impact organizations within a particular country but do not focus on individual organizational behavior. Market competition analysis pertains to evaluating the competition within a specific marketplace, unrelated to how an organization operates internally. Corporate governance policies deal with the framework of rules and practices that govern how a company is directed and controlled, which again is a different concept from the intrinsic societal dynamics of organizational culture.