Organizations define their purpose through mission statements and shape their culture based on various factors. Different types of organizations attract members based on shared interests, coercion, or material rewards.
An organization's purpose for existing is often defined through its mission statement which outlines its reason for being and whom it serves. This serves as a guiding principle for the organization's actions and decisions, giving employees a sense of direction and motivation.
Culture in an organization is shaped by factors such as founders' values, industry demands, and early goals. It is maintained through various processes like attraction-selection-attrition, leadership, and reward systems.
Organizations function within cultures and may fall into categories like normative, coercive, or utilitarian, depending on whether people join based on shared interests, coercion, or material rewards.
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