Human Resources Certification Institute (HRCI) Practice Exam 2026 - Free HRCI Practice Questions and Study Guide

Question: 1 / 400

What does the term 'organizational culture' refer to?

The salary structure within a company

The company's financial performance

The shared values, beliefs, and practices that shape the social and psychological environment of a company

Organizational culture refers to the shared values, beliefs, and practices that shape the social and psychological environment of a company. This concept encompasses the unwritten rules and norms that influence how employees interact, make decisions, and approach their work. Organizational culture is crucial because it impacts everything from employee engagement and morale to overall productivity and company performance. A strong culture can foster a sense of belonging and alignment among employees, while a weak or unclear culture can lead to confusion and disengagement.

Other aspects, like salary structure, financial performance, or technology, are important elements of a business, but they do not capture the essence of what defines the internal character and environment of an organization as effectively as the concept of organizational culture does.

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The technology used in the workplace

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