Organizational culture is defined as aunique system of shared meaningheld by members that distinguishes the organization from other organizations. This system of shared meaning is a set of key characteristics that the organization values. It represents the "common perception" held by the organization's members; even though individuals may have different backgrounds or occupy different levels in the hierarchy, they tend to describe the organization's culture in similar terms.

Culture is the social glue that helps hold the organization together by providing appropriate standards for what employees should say and do. It acts as a boundary-defining element, creates a sense of identity for employees, facilitates commitment to something larger than individual self-interest, and enhances the stability of the social system. While physical parameters (Option A) or HR programs (Option B) may reflect or support the culture, the culture itself is the underlying shared cognitive framework—the "way we do things around here"—that guides employee behavior and shapes their organizational experience.