Organizational Culture

Introduction to Internal Factors of Organizational Culture

There are many obstacles and challenges organizations face on a daily basis. This section will explore a variety of internal factors and how they contribute to organizational culture. Identifying these internal factors and understanding how to influence them to change culture is a valuable life skill. Organizational culture can be found within every family unit, every friendship, school system, corporation, or wherever there is a group dynamic. Understanding factors associated with organizational culture can help you to better navigate relationships in your everyday life.

Internal Factors

The best part about internal factors is that organizations control them. In this section, we will explore different types of internal factors and examine both how they influence organizational culture and how an organization can influence them.


People are a huge internal factor that impact organizational culture. As we discussed in previous sections, every individual has a unique set of personality traits, backgrounds and experiences.

While organizations cannot fully control individuals and the way they act, they can use guidelines and mandated expectations to help guide the behavior of their employees. A mission statement, code of ethics, and policies and procedures guidelines are among a large number of documents and standards organizations use to help foster and direct their employees.

Organizations also have control over who they hire. Even one bad hire has the potential to negatively impact organizational culture. By developing a hiring process that focuses on making smart hiring decisions, organizations are better able to hire individuals that embody the vision and mission of the company. This is crucial to maintaining and promoting a strong culture.


Organizational culture is outlined at the highest level of an organization and then communicated, supported, and enforced throughout every other level. Therefore, leadership is a big internal factor that drives culture. A poor leader can have a detrimental impact on company culture. A bad leader who disregards the rules and behaves as they please sets a terrible precedent and gives permission for other employees to behave the same way. Leaders should lead their teams by example and set the standard for expected behavior. In addition, they should be comfortable to course correct employees who stray from the path of desired behavior and performance.

Capability & Support

As we discussed in external factors, training and development is a big part of a successful organization. The best way for a company to support their employees is to provide them with the support and training necessary to complete their job functions. Employees who are supported and have the capabilities to complete their job are generally happier and more satisfied with their company. By hiring qualified candidates and continuing to support their education and training, organizations can have a positive impact on their culture.



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Organizational Behavior by Icfai Business School is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License, except where otherwise noted.