Thursday, December 16, 2021

ORGANIZATIONAL CULTURE AND PERFROMACE


Organizational culture has been shown to be an important aspect of a firm, as it can, and does affect employee’s behaviors, motivation and values which reflect to the performance.

In evident to the article of Kandula (2006) the key to good performance is a strong culture. He further illustrates that due to difference in organizational culture, same strategies do not yield same results for two organizations in the same industry.


A positive and strong culture can make a better individual performance and achieve brilliantly whereas a negative and weak culture may demotivate an outstanding employee to underperform and end up with no achievement. 

In the article of Murphy and Cleveland (1995) explain that research on culture will contribute to the understanding of performance management. However, as illustrate by Magee (2002) contends that without considering the impact of organizational culture, organizational practices such as performance management could be counterproductive because the two are interdependent and change in one will impact the other.

Denison’s organizational culture model is based on four cultural traits involvement, consistency, adaptability, and mission that have been shown in the literature to have an influence on organizational performance (Denison, 1990; Denison & Mishra, 1995).

Figure 01- conceptual model of organization culture and performance management practices

Conclusion 

Essentially, culture determines “how things are and how things get done around here.” It is largely invisible, and very powerful. In evident to the article of Heneman (2007) also asserts that organizational learning, development, and premeditated change cannot be comprehended devoid of acknowledging culture as the prime cause of opposition to change.

Organizational performance management creates career paths for employees who remain in the firm for a long enough for a company culture to form. Thus, organization can implement such management practices that foster job security and internal career development to keep turnover low and maintain those social phenomena that comprise organizational culture (values, beliefs, norms, assumptions) within the organization, and therefore forming a strong organizational culture which drives performance.

References 
AIHR. 2021. Organizational Culture and HR’s Role in Shaping It. [ONLINE] Available at: https://www.aihr.com/blog/types-of-organizational-culture/. [Accessed 16 December 2021].

Armstrong, M., Baron, A. (1998). Performance Management: The New Realities, Institute of Personnel and Development, London

Denison, D. R., & Mishra, A. K. (1995). Toward a theory of organizational culture and effectiveness. Organization Science, 6(2), 204–223

Kandula, S. R. (2006). Performance Management, New Delhi: Prentice Hall of India private limited

Magee, K. C. (2002). The impact of organizational culture on the implementation of performance management (Doctoral dissertation). Available from Dissertations and Theses database (UMI No. 3047909)

Murphy, K. R., & Cleveland, J. N. (1995). Understanding performance appraisal: Social organizational and goal based perspectives. Thousand Oaks: Sage Publications

Vantagecircle. 2021. Organizational Culture and its Advantages. [ONLINE] Available at: https://blog.vantagecircle.com/types-of-organizational-culture/. [Accessed 16 December 2021].


10 comments:

  1. Organisational culture plays an major role in performance. Poor organisational culture creates high employee turnover which will lose skilled and qualified employees. And another disadvantage of Poor organisational culture is demotivated employees.

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  2. Organizational culture heavily influence performance and as Colyer (2000) suggest the performance can be understood better by analyzing organizational culture as firms respond to changing circumstances based on their established culture. A great article Manoj. Thanks for sharing

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  3. The organisational culture has an impact on both the individual as well as organisational performance. This is due to the fact that based on how the culture is designed within an organisation, the employee satisfaction and motivation decided. Therefore, it is essential for organisations to create a culture in which employees can feel equally treated and empowered, as well as engaged in decision making. This helps increase the level of satisfaction and motivation of employees, that contributes to the organisation performance in a positive manner. Thank you so much for sharing this valuable article.

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  4. A positive and strong culture can make an average individual perform and achieve brilliantly whereas a negative and weak culture may demotivate an outstanding employee to under perform and end up with no achievement. Therefore organizational culture has an active and direct role in performance management.

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  5. Culture of the organization contributes immensely for the performance of the employees. Its important to maintain good culture in the organization. This article provided valuable information.

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  6. A good corporate culture recruits and, more crucially, keeps excellent personnel. People are more inclined to stay with an organization if they feel like they belong to it. That means less turnover, fewer new hires to deal with, and improved team cohesion.Thank you

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  7. Better to include process and system driven culture too.

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  8. A better work environment directly affects the increased engagement of employees. This supports the company to drive towards their tasks in advance. Also, it supports employee long term retention and satisfaction which supports less turnover. Organizations are highly concerned with productivity and performance. So, corporate culture aids employees to work together with fewer disturbances and distractions on projects for higher productivity. (Indeed, 2021)

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  9. There are connections between organizational culture and two characteristics of performance measurement systems (PMS), namely measuring device complexity and the natural order of being used.

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