Impact of Organizational Culture on Performance

This report discusses the impact of organizational culture on the performance of an organization. It explores different theories and models of organizational culture and how they influence individual behavior and group dynamics. The report emphasizes the importance of a positive and flexible organizational culture in achieving success.

How does organizational culture impact on an organization’s performance?
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TABLE OF CONTENT
INTRODUCTION.........................................................................................................3
MAIN BODY...............................................................................................................3
CONCLUSION.............................................................................................................6
REFERENCES..............................................................................................................8
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INTRODUCTION
Organizational culture signifies value, behavior, expectation, philosophy which provides
guidelines to individual person regarding future expectation and goal in timely manner. This
entire element influence individual person within an organization and also provide direction in
such a manner that help in performing different task in proper way. In addition to this,
organizationalculture improves chances related to increasing success in future period of time. In
this report, the discussion regarding “how organizational culture imposes directs effect on
performance of company” and there are different theories as well as model explained in proper
way(Anitha, 2016).
MAIN BODY
Organizational cultureis determined as a base for every company. It is considered as a
system that is related to share, assumption, values that help individual person to behave in an
appropriate manner within company. Organizationculture imposes positive effect on individual
person in respective company. The culture includes custom, beliefs, values that are needed to be
followed. In assistance of this, it is analyzed that the organizational culture imposes direct impact
on individual person and group who interact with one another in proper way. It is important for
company to improve superior culture and it imposes direct effect on profit margin in future
period of time(Cropley and Cropley, 2017). Therefore, it is necessary to follow organization
culture for conducting various tasks in proper way. In addition to this, there are three level of
organization culturein which level one is related to Artefacts involves most visible things like
physical space, layout, output as well as spoken language or attitude of group member that is
important to analyze in order to perform different task in an appropriate manner. It is necessary
for company to provide positive ambience to its subordinates for performing different activities
in an appropriate manner. It is helpful in increasing sales and profit margin in future period of
time. In addition to this, the espoused value, the value as well as belief of company through
which individual person justify their behavior. Therefore, it is necessary to justify behavior of
individual person in order to conduct different activities in proper way. Apart from this, the basic
underlying assumption is third level of organization culture that provides guidance to behavior
and also considers how member of group perceive, think & feel regarding thing. It is necessary
to analyze the behavior of individual person that is helpful in increasing performance of
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company in proper manner. In addition to this, it has been analyzed that organization culture also
imposes direct effect on the performance of company during particular phase of time period.
Organizationalculture determines value as well as belief that offer contribution to specific
need of company. And also Handy divide culture into different categories which is determined
as power culture it has been assess that some business organization give power in hand of
different individual person which is specifically belongs from higher authority in this kind of
culture. There are several rules and regulation which must be followed by individual person
during particular phase of time period. Herein, the power helps in taking effective decision of
business organization for conducting different task in proper way. Power of taking decisions and
also assign role &responsibility to another person. In assistance of this, it is assess that in this
kind of culture, the subordinate is not free to share their opinion or ideas. The organization who
possesses power culture is General Electric in which process of decision making is in the hand of
few individual person later as well as manager and so on. The company possessing task
cultureemphasized on executingits activities for achieving target and overcome from different
kind of issues. In this task culture, the focus is on combining individual person who possess basic
specialization and assign role as well as responsibility to every person during particular phase of
time period(Globocnik,Rauter and Baumgartner, 2020). It has been assess that company with
possessing task culture is determined as bureaucratic example that is related to company. In
assistance of this, person culture in this kind of culture the company focuses on delegating role
&responsibility to individual person according to their qualification, experience as well as
interest. The employee feel free to take decision and also focuses on accept challenges. There are
different examples of business organization along with having this culture is McDonald's. Role
culture in this kind of culture, the employeesof business organization feelsignificant and their
concern is regarding role rather than goal of company. In this kind of culture, the employee
focuses on performing their work and they do not feel any loyalty in respect of management. In
assistance of this, the example related to this organization possessing role culture named TESLA.
It has been assess that from above given discussion,organization culture impose positive effect
on performance of company as it is considered that the execution of organizational culture
focuses on achieving competitive advantage over rivalries at marketplace. Herein, every culture
focuses on encouraging individual person in respect of corporate objective that help in increasing
profit margin in future period of time.Apart from this, the organization culture is significance
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because it helps in taking decisions that is helpful for conducting functions and task in an
appropriate manner. Therefore, the appropriate culture is useful in performing various activities
in proper way(Oyewobi,Abiola-Falemu and Ibironke, 2016).
The management team of business organization focuses on motivating individual person in
order to conduct every task in an appropriate manner. The organization culture is significant
because it is necessary to analyze how organization responds to environment that helps in
performing different task in proper way. There are different factors that influence culture of
company in which there are certain factors such as individual working within organization this
are determined as a significant factor that imposes direct effect on culture of company(Kuo and
Tsai, 2019). It is considered that employee’s focuses on performing or executing their role in
company and they also focus on increasing contribution in workplace of company as attitude and
perceptionof individual person imposes direct effect on the performance of business
organization. For example, if the company possessing majority of workforce of youngest that
increases competition level at workplace and they are focusing on executing their work in an
appropriate manner. The nature of organization possesses capacity that imposes direct effect on
culture of company. They focus on operating functioning in financial services that is based on
external element such as supply as well as demand and so on. Therefore,it imposes direct effect
on performance level during the period of time. The management and style of handling
subordinate helps in performing work in proper way. The management team tacklesemployees
that help in increasing performance of business organization. The company fulfills need as well
as requirement for performing different task in proper manner.
Apart from this, there are various model of organizational culture which imposes direct
effect on performance organizations such as Clan culture in this kind of culture the individual
person share commonalities with one another by executing operations like a big family. In
assistance of this, in this kind of culture the organization focuses on bounding by its tradition and
commitment. Furthermore, it is assess that the organization along with possessing culture
emphasize on collaboration team work as well as harmony. There are different example related
to clan culture is Tom's of Maine, this organization focuses on increasing their production related
to overall natural hygienic goods and the founder of organization appropriately maintain positive
relation with subordinate, supplier as well as consumer and many more. The adhocracy culture
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is kind of culture that signifies in respect of factors related to creativity and also energy. Herein,
the company focuses on maintaining subordinate in respect of taking risk through which leader
focuses on conducting function like innovator. The company emphasize on experimentation
which provide allowance to take appropriate decisions during the period of time. For example
related to this culture is Face book, the CEO of organization is named as Marks Zuckerberg who
focuses on encouraging subordinate to ensure success in future period of time. The market
culture this kind of culture focuses on a accomplishing favorable result and achieving
competitive advantage over rivalries at marketplace(Laforet, 2017). The primary purpose of
organization with possess market culture help in increasing profit margin and higher market
share of company during particular phase of time period. In addition to this, the hierarchical
culture is depending upon control as well as structure. In this atmosphere of organization, they
follow rigid rules, guidelines and many more. This kind of culture emphasized on monitoring &
coordinating different activities during the period of time. . In assistance of this, the organization
along with this culture in UK take example of this culture is McDonald. Hence, on the basis of
above given culture, it has been assess that every company possessing ideas, structure as well as
objective in order to achieve goal in time way. It is essential that company possess flexible
culture is successful in comparison to other who follow bureaucratic culture of business
organization. Hence, it is assess that the organization culture imposes direct effect on
performance of business organization(Oh and Han, 2020).
CONCLUSION
On the basis of above given information, it is assess that organizational culture signifies
value, behavior, expectation, philosophy which provides guidelines to individual person
regarding future expectation and goal in timely manner. This entire element influence individual
person within an organization and also provide direction in such a manner that help in
performing different task in proper way. In addition to this, organizational culture improves
chances related to increasing success in future period of time. In this report, the discussion
regarding “how organizational culture imposes directs effect on performance of company” and
there are different theories as well as model explained in proper way.In addition to this,
organization culture imposes positive effect on individual person in respective company. The
culture includes custom, beliefs, values that are needed to be followed. In assistance of this, it is
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analyzed that the organizational culture imposes direct impact on individual person and group
who interact with one another in proper way.
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REFERENCES
Books and Journals
Anitha, J., 2016. Role of Organisational Culture and Employee Commitment in Employee
Retention. ASBM Journal of Management, 9(1).
Cropley, D. and Cropley, A., 2017. Innovation capacity, organisational culture and
gender. European Journal of Innovation Management.
Globocnik, D., Rauter, R. and Baumgartner, R.J., 2020. Synergy or conflict? The relationships
among organisational culture, sustainability-related innovation performance, and economic
innovation performance. International Journal of Innovation Management, 24(01), p.2050004.
Kuo, T. and Tsai, G.Y., 2019. The effects of employee perceived organisational culture on
performance: the moderating effects of management maturity. Total Quality Management &
Business Excellence, 30(3-4), pp.267-283.
Laforet, S., 2017. Effects of organisational culture on brand portfolio performance. Journal of
marketing communications, 23(1), pp.92-110.
Oh, S.Y. and Han, H.S., 2020. Facilitating organisational learning activities: Types of
organisational culture and their influence on organisational learning and
performance. Knowledge Management Research & Practice, 18(1), pp.1-15.
Oyewobi, L.O., Abiola-Falemu, O. and Ibironke, O.T., 2016. The impact of rework and
organisational culture on project delivery. Journal of Engineering, Design and Technology.
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