Organizational culture encompasses values and behaviors that contribute to the unique social and psychological environment of a business. It is the pattern of such collective behaviors and assumptions that are taught to new organizational members as a way of perceiving and, even thinking and feeling. Organizational culture therefore defines the proper way to behave within the organization, ultimately shaping employee perceptions, behaviors and understanding. Thus organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. In addition, organizational culture may affect how much employees identify with an organization.
An organization improves over time as it gains experience. From this experience, it is able to create knowledge. This knowledge is broad, covering any topic that could better an organization. Examples may include ways to increase production efficiency or to develop beneficial investor relations. Knowledge is created at four different units: individual, group, organizational, and inter organizational.
Knowledge Management seeks to achieve organizational objectives by making the best use of knowledge. It supports objectives such as improved performance, competitive advantage, innovation, the sharing of lessons learned, integration and continuous improvement of the organization. Often these efforts enable Organizational Learning by shifting the focus on the management of knowledge as a strategic asset and on encouraging the sharing of knowledge.
Deals with the overall arrangement of the organization and its functions, including both the long- and short-term identification and development of its human resources. It includes the process of enhancing the effectiveness of an organization and the well-being of its members through planned interventions, the set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands, coaching and training, succession planning, and other aspects of leadership and skills development. It also includes matters that focus on careers, communications, legal and regulatory issues, technology, metrics, and outsourcing in the organizational and employee development fields, as well as effective practices and global issues.