Impact of Organisational Culture on an Organisation’s Performance

Contemporary
Management Theory

Table of Contents
INTRODUCTION...........................................................................................................................3
Impact of Organisational culture on an organisation’s performance.....................................3
Role of stakeholders in an organisation..................................................................................5
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
Organisational culture is changing very fast and affecting the way it is functioning.
Present report is based on the way different aspects of a organisation are posing a effect on the
overall organisation functioning. It includes the role of stakeholder and discussion of laws that
are affecting a workplace (Busco and Quattrone, 2018). There is analysis based on retail sector
organisation that is TESCO. TESCO is a British multinational & a general merchandise retail
brand that is third largest in the world according to its gross revenues and is ninth largest
according to its revenues. Organisation culture is made up of the the way employees are
contributing towards the overall functioning. Various legal laws are also affecting the workplace
situations.
Impact of Organisational culture on an organisation’s performance
(Source: Hofstede’s Cultural Dimensions Theory, 2020)
Hofstedes cultural dimensions is a theory that is developed by Geert Hofstede. It is a
framework that is used for understand the differences across cultures that is key discern the way
business is done across different cultures. The aim of this theory is to develop a realize of the

way culture is varying in a organisation. The impact of organisational culture can be understood
with five factors that are posing a consequence on the workplace culture as mentioned below:
Power distance: It is a index that is regarded as the differences in work culture as the power is
delegated to employees (Nambisan, Zahra, and Luo, 2019). In this case the role played by team
managers and team leaders are in respective reams as they posses the challenge to extract best
talent from their team members., in TESCO there is presence of a hierarchy structure where
higher positioned employees are enjoying a special treatment from the team leaders that is
leading to delegation of responsibilities in a more appropriate manner.
Masculinity vs femininity: It is regarded as the differences between female and male employees
according to organisation culture. Sometimes females are unrepresented in leadership solutions
and there has to be evaluation of model to ensure higher equality in the organisation.
Individualism: In some organisation there is a strong reliability on teamwork. Here, individuals
with a common objective are coming together to work as a union in a team (Strydom and
Rudansky-Kloppers, 2016). In TESCO being a large organisation there is a diverse workforce
where there has to be following of a culture so that employees believe that they are working as a
single unit.
Uncertainty avoidance index: There are some of the unusual situations that may lead to where
there has to be development of a culture to avoid any type of future uncertainties. In TESCO
organisation is aiming to reduce these situations so that employees are prepared to deal with such
challenges.
Long term orientation: In this there is main focus on development of long term relationship so
that employees are living up to management expectations (Ghauri, Grønhaugand Strange,
2020). In TESCO there is focus on long term planning so that there can be development of better
opportunities.
From above mentioned different characteristic of the cultural dimensions of hofstede's
theory it can be said that depending on the requirement and feasibility a particular culture is
adopted by the top management in a organisation. Business leaders have recognizes that
corporate culture is very vital for a company's overall success and identify.