This document discusses organizational culture and its impact on employees and the organization. It defines organizational culture as the set of key characteristics that distinguish an organization, such as innovation, detail orientation, and aggressiveness. Strong cultures have great influence on employee behavior and result in lower turnover. Factors like stories, rituals, and language help employees learn the organizational culture. The founders and top management establish and maintain the culture through role modeling, socialization, and selection processes. Managing cultural change takes dramatic events, leadership turnover, or a weak existing culture. An ethical and customer-responsive culture is created through leadership, communication, training, and reward systems.