What does Organisational Culture mean and why is it important?
Reviewed by: Fibe Research Team
- Updated on: 15 Jul 2026

Newly Launched
Newly Launched
Reviewed by: Fibe Research Team

She serves as Deputy Manager of Content at Fibe, bringing over 9 years of writing experience across FinTech and beyond. With more than 6 years of specialised expertise in data-driven content for lending platforms and financial services, she has built a focused career in digital lending, personal finance, broking, investment education and making the world of FinTech understandable to everyday readers.
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“A company’s culture is the foundation for future innovation. An entrepreneur’s job is to build the foundation.”
Brian Chesky, Co-founder and CEO of Airbnb, accurately sums up the essential role organisational culture plays in today’s time. In this era of rapid economic acceleration and business expansion, understanding what we commonly refer to as “Organisational Culture” is more vital than ever. People seem to agree – in a survey conducted by Deloitte, 82% of the people who undertook the survey quoted that a good organisational culture is a potential competitive advantage. Organisational culture pertains to the behaviours and actions of the employees within the organisation, and is the summation of their actions and relations amongst themselves, with their personal goals and the organisation as a whole. It refers to the amalgamation of all external factors affecting the employee’s performance and association in a given work setup.
Culture is important for all the stakeholders in question, not only for their own development but for the development of the organisation as a whole. A healthy organisation culture contributes positively towards building the goodwill of the organisation. Consequently, it sees a reduction in labour turnover and absenteeism, in addition to the personal growth of the employees.
The right culture (whatever that is depending on the organisation), also improves the efficiency, promotes teamwork, and helps in the inculcation of leadership skills in all. Not only that, it contributes immensely in the achievement of personal growth of the employees which, in turn, leads to more prosperity of the employer at micro-level and the economy as a whole on the macro-level.
Having impressed enough on the pivotal role organisational culture plays, it is imperative that organisations strive to achieve a healthy culture as much as possible in this overtly competitive age. Some tips you may want to look at:
In the words of Louis V. Gerstner, Jr., CEO of IBM,
“Until I came to IBM, I probably would have told you that culture was just one among several important elements in any organization’s makeup and success — along with vision, strategy, marketing, financials, and the like… I came to see, in my time at IBM, that culture isn’t just one aspect of the game, it is the game. In the end, an organization is nothing more than the collective capacity of its people to create value.”