A company's culture is its personality that signals to employees how to do their work through communication from leaders. It determines how members act and contribute through teamwork, problem solving, innovation and productivity. A company's culture is often at the root of problems like motivation, morale and retention. By observing how people act, one can understand if the culture is open and engaged or defensive and passive. Key areas that impact work atmosphere include leadership effectiveness, communication, staffing and workload, compensation practices, recognition, and sustaining high performance and outcomes.