This document discusses organizational behavior and culture. It defines organizational behavior as the study of how people and groups act in organizations. Organizational culture is defined as shared assumptions, values and beliefs that govern how people behave in an organization. There are seven key characteristics of organizational culture ranging from innovation to stability. Effective ways to manage culture include focusing on critical behaviors, expanding change capabilities, and activating informal networks. The key to building an effective culture is understanding people and having consistent communication, celebrating successes, transparency, respecting all contributions, and continually benchmarking performance.