Impact Of Organizational Culture On Organizational Performance

1453 Words3 Pages
bulb-icon

Recommended: Determinants of organizational culture

MM2021 Management and Organisation
Individual Assignment
Name: Lai Pui Chung
Student ID: 14126029D

How does organisational culture affect the overall performance of a firm?

Introduction
Organisational culture, or corporate culture, is “a “set theory” of important values, beliefs, and understandings that members share in common, culture provides better (or the best) ways of thinking, feeling and reacting that could help managers to make decision and arrange activities of organisation” (Sun, 2009). Every organisation creates and develops their own organisation culture which provides rules and boundaries for the members in the organisation.
Many people may think that “a firm’s organisational culture can affect its overall performance”. In this …show more content…

These firms only care for one thing – survival. To survive in the market, a firm must have its own strong cultures. How does strong organisational cultures lead to success?
Theories and Models
O'Reilly, Chatman, and Caldwell (1990) stated the following seven characteristics of organisational culture using an instrument that they developed in the Organisational Culture Profile (OCP) which are innovative, stable, respecting of people, outcome oriented, detail oriented, team oriented and aggressive. These seven characteristics can be seen as an organisational cultural model.
• Innovative (Innovation and risk taking): Organisations with this cultures which have encourage their members to have more innovation and take risks in their tasks.
• Stable (Stability): Organisations with this cultures which provide a consistent and predictable outcome, and well operate in unchanged market conditions. The culture can be said as rule …show more content…

Chatman and Cha (2003) indicate that strong organisational cultures are based on two characteristics: levels of agreement among employees and the levels of intensity. A strong organisational culture exists if both two characteristics are in high levels; if both are in low levels, the organisational culture is weak. Building up a strong organisational culture is very important for a new firm. It is the major core of success. Every organisation’s culture is unique, like a DNA (Practical Management, 2008). Organisational culture should be developed base on the firm’s own believes and

Show More
Related

  • The Effects of Organizational Structure, Culture and Management Style on the Performance of a Business

    958 Words  | 2 Pages

    The Effects of Organizational Structure, Culture and Management Style on the Performance of a Business

    Read More

  • Flight Centre's Culture And Organizational Culture

    1302 Words  | 3 Pages

    Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competitiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their actions to achieve its goals.

    Read More

  • SAS Institute Case Study: Case Analysis Of Sas Institute

    1112 Words  | 3 Pages

    Chapter sixteen in our textbook highlights the benefits of organizational culture and what it can do for any company with a strong culture perspective. In fact chapter sixteen-three(a) speaks widely on how a strong culture perspective shapes any organization up well enough to perform better than any of its competitors who do not balance any organizational culture. If not mistaken after viewing SAS institute case they are well on track with facilitating a high performance organization culture. First, SAS institute motivate all employees to become goal alignment in their field of work. This is where they all share the common goal to get their work done. In one of the excerpts taken away from this case, an employee- friendly benefits summary expresses the statement “If you treat employees as if they make a difference to the company, they will make a difference to the company.” “SAS Institute’s founders set out to create the kind of workplace where employees would enjoy spending time. And even though the workforce continues to grow year after year, it’s still the kind of place where people enjoy working.” Clearly highlighted from this statement that SAS Institute is mainly ran off of a fit perspective. Which argues that a culture is only as good as it fits the industry. Allowing a good blueprint or set up will

    Read More

  • Organizational Culture

    2435 Words  | 5 Pages

    The concept of organizational cultures was first raised in 1970s, and soon became a fashionable topic. Organizational culture is the shared beliefs, values and behaviours of the group. Theorists of organizations believe that organizational culture represents the pattern of behaviours, values, and beliefs of an organization. Hence, studies around organizational culture have been seen as great helpful and essential for understanding organizations and their behaviours. Additionally, organizational culture has been considered to be an important determinant of organizational success. Therefore, leaders and managers pay more than more attentions on this topic, focusing on constructing and managing organizational cultures.

    Read More

  • The Google Case: Aiming for an Evolutionary Advantage

    1812 Words  | 4 Pages

    Organizational culture can be defined as a system of shared beliefs and values that develops within an organization and guides the behavior of its members. It includes routine behaviors, norms, dominant values, and a feeling or climate conveyed. The purpose and function of this culture is to help foster internal integration, bring staff members from all levels of the organization much closer together, and enhance their performance.

    Read More

  • The Impact Of Culture On Organization

    1176 Words  | 3 Pages

    Simply speaking, a company’s structure and design can be viewed as its body, and its culture as its soul. Because industries and situations vary significantly, it would be difficult and risky to propose there is a “one size fits all” culture template that meets the needs of all organizations” (Nov 30, 2012). Those organizations who have shared beliefs and values and have organized methods on chain of command going to have positive outcomes. This will help shaping their employees views and performances. The growth and profit of the business relays on their employees and their performances. Culture is the core which will help and encourage all different level workers. If the core itself is weak, it will weaken the atmosphere of the business. Many companies announce that they have great culture but fail to implement to the lower level of workers. The basic issue is when organization has one set of culture and thinks one culture will meet the needs of all the workers. Each business is different and each individual is unique and have different beliefs and behaviors. The culture that is right for one individual might not work the same for the others. The ideal approach in this case would be, looking at the bigger picture of diverse working environment and give importance and respect to what are the ranges of business firms to achieve the perfect culture for organization. Sometimes one size fits all will not going to fit anybody, so the organization have to keep their ideas open and value everyone’s presence respecting all of their culture for the betterment and

    Read More

  • Essay On Organisational Culture

    1246 Words  | 3 Pages

    A strong organisational culture leads to higher organisational performance. Organisational culture can be defined as a total function of common beliefs, values, patterns of behaviour that are held and shared by the members of an organisation. It is also a valuable resource which can improve the competitiveness of a company and is used to distinguish the company (Barney 1986). From the 1970's the study of organisational culture has become an important issue and closely studied in the early 1980s. Since then, organisational culture has turned out to be one of the most important factors which affects the overall performance of a company.

    Read More

  • Culture Case Study

    1368 Words  | 3 Pages

    A business organisation also has its own culture. Since employees of business organisations spend a considerable amount of their time at workplace their personal lives are also affected accordingly. An organisational culture refers to beliefs, values, customs, traditions and principles of the individuals of an organisation share. This organisational culture is a determining factor in the success of a business organisation. The culture of a workplace mainly controls the way individuals behave amongst themselves as well as people outside

    Read More

  • The Importance Of Organizational Culture In MTN Nigeria

    1250 Words  | 3 Pages

    Organizational culture is the behavior attributed to the shared beliefs, values and assumptions which governs how the humans within an organization behave.

    Read More

  • Beliefs And Values Of Organizational Culture

    930 Words  | 2 Pages

    Organizational culture is the personality of a company and defines what a company stands for.

    Read More

  • Lincoln Electric Company Case Study

    1077 Words  | 3 Pages

    Organizational culture is imperative to the success of the organization. The strength and core values of the organization is supported by the organizational culture. This allows for organization to operate in a specific manner that is specific to that organization and can pave the path for success. Company founders are passionate about their vision and mission and they elude that passion into their employees. When that passion and mission is successfully implied to the employees the company strives in it 's path to success.

    Read More

  • Theory Of Organizational Culture

    739 Words  | 2 Pages

    The concept of organizational culture is one of the most debated topics for researchers and theorists. There is no one accepted definition of culture. People even said that it is hard to define culture and even more change it. It is considered a complex part of an organization although many have believed that culture influences employee behavior and organizational effectiveness (Kilmann, Saxton, & Serpa 1985; Marcoulides & Heck, 1993; Schein, 1985a, 1990).

    Read More

  • Substance Of Organisational Culture Essay

    2275 Words  | 5 Pages

    This essay will set out to define what is organisational culture, examine the main attributes that characterise it and how cultural originate and develop within it. At the same time, this essay will also assess the importance of organisational culture to the financial performance and continued survivability of firms.

    Read More

  • Globalization and International Management

    1580 Words  | 4 Pages

    Samson and Raft (2005) defined that Organisational culture as a: ‘system of shared meaning within an organisation that determines, in large degree, how employees act’.

    Read More

  • Organizational Excellence and Leadership

    482 Words  | 1 Pages

    Organizational culture is the key to organizational excellence and leadership is a function to create and manage culture (Chen 1992). Organizational researchers have become more aware of the importance of understanding and enhancing the cultural life of the institution. "This study is one of a group of companies with high-performance in North America, interest in organizational culture is an important element in organizational success. Tesluk et al (1997). Looking at the" soft "of the organization, the researchers claim that" the organizational culture may be suitable for a means to explore and understanding of life at work, and make them more humane and more pronounced (Tesluk et al, 1997), and the graves (1986) also stressed the importance of corporate culture, and the need for research strategies and methods of investigating the various elements and processes of the organizational culture. He argued the culture that meets the basic needs of belonging and security in an attempt to describe this gathering that culture is "the only thing that distinguishes one company from another gives them coherence and self-confidence and rationalises the lives of those who work for it. Standard that may seem random, is to enhance the life to be different, and safe to be similar, and culture is a concept that provides the means to achieve this compromise (p. 157).

    Read More

More about Impact Of Organizational Culture On Organizational Performance

Open Document