The functions of organizational culture include stability, behavioral moderation, competitive advantage and providing a source of identity. Organizational culture is a term that describes the culture of many different kinds of groups.
The culture of an organization can apply to a family unit, a company, a social group, a community or an entire society. Generally speaking, people use organizational culture as a way to provide a sense of stability for themselves. A large group or community can also dictate, to a certain degree, how people behave or interact with the world around them.
Competitive advantage refers to the ability of large groups to encourage growth and evolution to enrich the well-being of the group as a whole. Finally, belonging to a group can facilitate an individual's ability to define herself socially in terms of her relationship to and role in an organization.