Organization consists of many people working together to achieve their goals. In the olden days there were only few sets of people belonging to particular type of class, whereas, of late as the market has opened up as a result of globalization, people are not scared to go from one place to another. Globalization has in fact lead to removal of geographical barriers. This saw people joining from different walks of life, wherein different values and beliefs started creeping up, as they try to bring in the values and beliefs they have been taught.
However, these values and beliefs are insufficient for helping the individuals to achieve their goals, resulting in individuals trying to adopt to new culture, new values and new beliefs which are inherent in the organization. Some times these values may entirely differ from individual values, as individuals come into contact with organization, they have to adopt to the norms laid down by the organization in terms of dress, formal rules and regulations, code of discipline in terms of behavior, rituals, tasks, pay systems, jargon and jokes and also the stories people tell about what goes on, which are only understood by the insiders, hence a new entrant has to mould himself to understand the very culture of the organization.
However when members within the organization attempt to interpret these values, the very meaning of all varies from person to person. These differing interpretations of the same phenomenon gradually leads towards the establishment of organizational culture, which ultimately takes the perfonnance into effect. Thus organizational culture consists of beliefs and values. Beliefs represent the individuals perception of reality. Values are more stable, long lasting beliefs about what is important. They help individuals define what is right or wrong or good or bad.