Organizational culture and It's performance


Organizational culture and It's performance

 


Every company has its own distinct culture. The organization's culture has a direct impact on the performance of its employees. Employee performance will be higher if the organization has a positive culture. Most firms are attempting to modify their cultures to a more favorable level in order to achieve their strategic goals. Organizational culture and employee performance are inextricably linked, as evidenced by several studies over the last few decades. Furthermore, the majority of organizations use organizational culture as a measurement instrument. It will aid in the evaluation of the company's financial performance. Organizational culture has been defined in a variety of ways by various authors and experts.

Organizational culture is defined as "common beliefs and values inside the organizational pattern of personnel." (Kotter & Heskett,1992). According to Gordan and Cummins (1979), is the drive that recognizes the work and participation of the organization's members and gives a holistic picture of what and how is to be accomplished, how goals are interrelated, and how each person can attach goals. Hosftede (1980) defined organizational culture as a collective mental process that distinguishes members of one group from those of another.

According to Martias and Terblanahe (2003), culture is closely linked to the values and beliefs that employees in a company hold. Klein (1995) defined organizational culture as "the core of organizational activity that has a cumulative impact on the organization's overall performance and product and service quality." The set of shared values, beliefs, and norms that impact how employees think, feel, and behave in the workplace is referred to as organizational culture (Schein,2011). There are four functions of organizational culture: As a primary tool for moulding behavior, it provides members with a feeling of identity, increases their loyalty, and reinforces corporate ideals and services (Nelson &Quick,2011)

Organizational Performance

The effectiveness of an organization can be measured in a variety of ways. It encompasses things like quality assurance, productivity, efficiency, and profit, among other things. According to Richard (2002), performance is a wide term that encompasses factors such as productivity, quality, and consistency. Performance metrics, on the other hand, can include outcomes, behaviors, and relative performance (normative) Measures, education, and training concept and instrument, including management development and leadership training, for developing the requisite performance management abilities and attitudes.

How it affects the performance of the organization

Every corporate leader and management should understand how to create an effective organizational culture. Because achieving the organization's goals and objectives is so vital nowadays. Corporate culture can have a substantial impact on every aspect of performance, such as long-term success, staff development, and retention, and so on. People are the ones who can create positive or harmful culture, thus culture is all about them. If a company has a strong corporate culture, it will be able to attract skilled and talented personnel.

The company's success is directly dependent on the talent and competence of its employees. Take a look at Google, the world's most successful company. In comparison to other companies, Google boasts one of the best HR policies and a favorable culture. If Google has a job opening, thousands of applications are received and applications are submitted. Everyone wants to work at a place like Google. The philosophy and values of the organization are described. Employees working toward common aims and objectives must be aware of the company's values. Furthermore, organizational culture can be employed as a control mechanism, which will aid in the prevention of undesirable behavior. Furthermore, a positive culture contributes to a happy staff. As we know engage and happy employee is more productive and they can deliver an outstanding result for the organization.

Conclusion

The importance of organizational culture in achieving the organization's aims and objectives cannot be overstated. Culture and its impact are inextricably linked. Every employee in the company should be aware of the company's cultural values and standards and work in accordance with them. Every business leader should be responsible for fostering a favorable culture within their organization in order to achieve exceptional results.

References

1.Available at https://www.emergenetics.com/blog/corporate-culture-affect-performance/[accessed:04May,2022].

2.Available at https://www.researchgate.net/publication/224008707_Literature_Review_on_Organizational_culture_and_its_Performance[accessed:04May,2022].

3.Available at  https://www.researchgate.net/publication/314587860_Impact_of_Organizational_Culture_on_Employee_Performance_and_Productivity_A_Case_Study_of_Telecommunication[accessed:04May,2022].

Comments

  1. As discussed above, Employee performance and motivation can be affected by organizational cultures in several ways. Employees who see themselves as part of the business environment are more likely to work harder to attain organizational goals. Good article

    ReplyDelete
  2. This article emphasized that the organizational culture has been linked to performance in theory as well as practical because of its effect on employee attitude and conduct. According to the literature, the strength of organizational culture and its alignment with strategy and structure are essential factors in explaining business performance. Interesting article, keep the good job.

    ReplyDelete
  3. Organizational cultures can have a variety of effects on employee performance and motivation. Employees who consider themselves as part of the company are more inclined to work harder to achieve the company's objectives. Important article

    ReplyDelete
  4. As you mentioned ,A work environment that possesses organizational culture is driven by purpose and clear expectations. This motivates and inspires employees to be more engaged in their work duties and interactions with others.

    ReplyDelete
  5. Organization culture is having direct impact on the it’s own performance. This simple article has elaborated the co-relations among organization culture and it’s performance. Summarized article and important topic to expand the discussion.

    ReplyDelete
  6. Changing an organization's culture is a difficult task. Employees are sometimes resistant to change and can form a unified front against a new culture. As a result, it is the responsibility of leaders to persuade their staff of the benefits of change and to demonstrate that the new culture is the best way to function in order to achieve success through collective experience with new habits. Good Luck

    ReplyDelete
  7. Because of its impact on employee attitude and behavior, organizational culture has been connected to performance in theory and practice, according to this article.
    The strength of organizational culture and its alignment with strategy and structure, according to the research, are critical elements in explaining corporate performance.
    Keep up the wonderful work on this article.

    ReplyDelete
  8. One of the most significant aspects of a successful business is its solid organizational culture which contributes for the employee engagement and employee retention. In an organization with a solid culture, its employees have a clear idea regarding how they should act and they know that it is expected response in the organization
    The organization's culture has a direct impact on the performance of its employees by a way of employee engagement , employee retention etc. You have nicely shown how the culture affects to the performance of an organization. Great article. All the best.

    ReplyDelete
  9. Every corporate executive and management team should know how to build a strong organizational culture. Because meeting a company's goals and objectives are so important and Organizational culture has a direct impact to the same. Good job Achala

    ReplyDelete

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