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name of the term: Cultural Fit
descriptions of the term:

Cultural Fit

A specific corporate culture is expressed by values and behavior of the employees. Depending on the company and corporate culture, these behaviors reflect varied degrees of homogeneity and are strongly based on personal characteristics of the employees and their experiences. Resulting from this, specific work methods, degrees of cooperation/team orientation and management styles are found in the everyday business environment. Cultural fit is understood as the degree of compatibility between an individual and the respective organization, meaning the company, with respect to values, behaviors and work ethics. Companies often consider a high cultural fit when making hiring decisions, in the belief that a high cultural fit will lead to a high business performance. There are however, companies that intentionally hire employees with a very low or no cultural fit. This is done assuming that “exotic” employees have a high contribution value by bringing in new ideas, experience and behaviors to the company. The intention is to break down “encrusted structures” and to increase the overall business performance. Overall, it is very advisable to deliberately control to what extent and in which parts of the company - or which employees – which form of cultural fit is required – especially M&A situations face this challenge on a regular basis.

Type of term: definition
Language of the term (2 char ISO code): en