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The Importance Of Organizational Culture

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Introduction According to Schein (1992), organization culture is becoming very significant nowadays compared with the past because it will affect the overall performance of an organization. By understanding the organization culture, it enables managers to analyze the organization behavior in order to lead and monitor (Ojo, 2010). Organizational culture is the system of sharing the common actions, values and beliefs that develops within an organization despite the characteristic of the members are different and it will guides the behavior of its members (Schermerhorn et al., 2011, p 366). It acts as glue that holds the overall organization together with the common practices (Tichy, 1982). Pettigrew (1979) argued that style of an organization in conducting a business is mostly depends on the different level of culture based on the multifaceted set of beliefs, values and assumptions. This is how the culture differentiates the organizations and influences the thought and decision making of employees. Based on statement of Barney (1991), organization culture can become an aggressive competitive advantage provided it fulfills these three conditions. Firstly, it must be valuable and viable so that it will lead the organization to achieve the objectives and goals. Secondly, it must be rare and attributes as the culture of an organization is different from the common culture of majority organizations. Lastly, the culture must be imperfectly imitable. If the organization is trying

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