Impact of Negative Organizational Culture on Firm Productivity

This research examines the impact of negative organizational culture on firm productivity and its relationship with quality techniques and operational performance. The study analyzes various articles and surveys from different industries and countries to understand the effects of organizational culture on employee commitment, motivation, and performance. The findings suggest that inappropriate beliefs, attitudes, and dissatisfied employees can negatively impact profitability and reduce the efficiency of the organization. The study also highlights the importance of effective communication, leadership, and organizational policies in improving productivity.

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“IMPACT OF NEGATIVE ORGANIGATIONAL CULTURE ON FIRM PRODUCTIVITY”

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“Impact of negative organizational culture on firm productivity”
Gambi, L. D. N., Boer, H., Gerolamo, M. C., Jørgensen, F., & Carpinetti, L. C. R. (2015).
The relationship between organizational culture and quality techniques, and its impact on
operational performance. International Journal of Operations & Production
Management, 35(10), 1460-1484.
According to Gambi, Boer, Gerolamo, Jørgensen and Carpinetti most of the organization
adopts the quality methods and focuses on maintaining better culture in the organization (Gambi,
Boer, Gerolamo, Jørgensen, & Carpinetti, 2015). The purpose of research is to examine the
effect of culture which organization has on the quality method or techniques as well as
performance of the organization. The data collection was done through survey from the 250
organizations situated in Denmark and Brazil. From analyzing the researcher finds that
organization culture does not have relationship with the quality techniques but it effects the
organization in both positive and negative manner. Researcher also finds that inappropriate
belief, attitudes and dissatisfied employees impacts negatively and reduce the profitability of the
organization. The limitation of the study is that it conducts survey based on the existing range
and analysis is done by using common method. Therefore in future researcher can organize the
face to face interview from the companies to know their organization culture.
Sriekaningsih, A., & Setyadi, D. (2015). The Effect of Competence and Motivation and
Cultural Organization towards Organizational Commitment and Performance of
organization in East Kalimantan Indonesia. European Journal of Business and
Management, 7(17), 208-220.
Sriekaningsih and Setyadi conducted the research for find in the influence of
organizational as well as managerial culture and commitment on the performance, motivation
level and productivity of the employees (Sriekaningsih & Setyadi, 2015). The data collection
was done by adopting the secondary approach that is by reviewing the articles which are
associated to the effect of organizational culture on firm results. From the analysis, the researcher
finds that ineffective strategies for the motivation lead inappropriate culture in the organization.
Researcher also reveals that poor policies and ineffective implementation of the strategies also
leads negative outcomes and reduce the capability of the organization to gain competitive

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advantage. The study does not use models as well as theories in analyzing the data; in future
researchers can apply several models in evaluating information. However, in future researchers
could also focuses on the commitment of the organization as well as degree of impact
organizational culture have on the productivity of the organization.
Saha, P., & Mazumder, S. (2015). Impact of working environment on less productivity in
RMG industries: A study on Bangladesh RMG sector. Global Journal of Management And
Business Research 15(2), 541-550.
Saha and Mazumder purpose of the research is to evaluate the working environment of
the RMG sector in Bangladesh. The other objective is to understand the impact of organization
culture in smooth functioning of the organization (Saha & Mazumder, 2015). The data collection
was done by through the survey method as well as by taking the interview in several factories
such as Style Garden Ltd, Apparels industry Ltd. From the analysis, the researcher finds that
poor communication method, lower workforce diversity leads in reducing the efficiency of the
company in the long run. In this study researcher does not focus on the variables of
organizational culture to provide in depth information about their impact. Therefore, in future
researchers can take several variables such as involvement, communication system; authority-
responsibility relationship etc. These factors will provide accurate information about the
accuracy of organization culture and their influence on the productivity.
Nguyen, L., & Watanabe, T. (2017). The impact of project organizational culture on the
performance of construction projects. Sustainability, 9(5), 781-790.
Nguyen and Watanabe conducted the study to examine the culture of the organization as
well as their impact on the performance of the organization and the construction of projects
(Nguyen & Watanabe, 2017). The data was done by through the questionnaire method in 199
construction projects in several companies. From the analysis the researchers find that ineffective
culture leads in affecting the organization and their construction project in negative manner.
Researchers also find that there was low commitment among the workers and ineffective
communication. Researchers also suggest implementing the sustainability strategies to increase
profitability. Therefore, the sample size of the study was small as well as lack of providing
accurate information because main focus of the study is on the construction projects. In future

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researcher can conduct study on large sample size by focusing on several organizational culture
variables.
Taştan, S. B., & Davoudi, S. M. M. (2017). The relationship between organisational climate
and organisational innovativeness and cultural of the organization: testing the moderating
effect of individual values of power and achievement of firm. International Journal of
Business Innovation and Research, 12(4), 465-483.
Taştan and Davoudi aim is to know the effect of business culture on the individual and
also in the performance of organization (Taştan & Davoudi, 2017). In study researchers takes the
variables such as climate and innovation to know their impact on the productivity of the
organization. The information is gathered from the managers as well as non-managers by taking
the sample size of 312 in Turkey. From analyzing the researcher finds that organization culture
and performance of the organization have direct relationship. Researcher also finds that the poor
structure of the organization that is inappropriate rules, inadequate code of conduct, poor
leadership affects the outcomes of the company and decreases the profitability of the
organization. The study also has limitations that it only provides the information about the
impact of culture on performance but it does not provide the information about the amount of
affect organization culture have on productivity.
Pakdil, F., & Leonard, K. M. (2015). The effect of organizational culture on implementing
or sustaining lean processes and on organization performance. Journal of Manufacturing
Technology Management, 26(5), 725-743.
According to Pakdil and Leonard organization culture is important because it helps in
generating more profits and also provides the opportunity to take competitive advantage (Pakdil
& Leonard, 2015). The objective of research is to understand the influence of culture which the
organization is presently having in the implementation of the strategies as well as development
of the organization. The data was gathered by examining various articles regarding the
organizational culture and their impact on organization performance. From the analysis,
researchers find that poor organization culture leads the negative impact on the implementation
of the lean process and decrease the efficiency of the employee. In this analysis is done by using
only literature. However, there is several method of analyzing the information so, in future

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researchers can adopt other techniques and method for analyzing the data and this helps in
providing in-depth information.
Deshpande, R., & Webster Jr, F. E. (2015). Organizational culture and marketing: defining
the research agenda. Journal of marketing, 53(1), 3-15.
According to Deshpande and Webster organizational culture is considered a significant
aspect in increasing the revenue as well as profitability of the organization (Deshpande &
Webster, 2015). The Research is conducted to investigate the impact of organization culture and
marketing management on the result of the corporation. The information is gathered by using the
secondary approach that is by reviewing journals, company reports etc. From analyzing, the
researchers find that organizational culture effects the company in various forms such as it leads
difficulty in managing the marketing strategies as well as provide negative. Researchers also find
that it is due to the inappropriate environment and satisfied employees. The study also has
various limitations that the study was only conducted through gathering information from
secondary sources. Therefore, in future researchers can conduct the research in various
companies by taking appropriate sample size.
Kaliannan, M., & Adjovu, S. N. (2015). Effective employee engagement and organizational
success: a case study. Procedia-Social and Behavioral Sciences, 172(5), 161-168.
Kaliannan and Adjovu conducted the study to know the impact of organization culture on
the productivity as well as profitability of the firm (Kaliannan & Adjovu, 2015). The study is
also conducted to find the amount of organization be impacted due to change in the organization
culture or inadequate culture of the organization. Data was collected by adopting the qualitative
approach that is taking the survey from the 137 respondents in Ghana. From the analysis, the
researcher finds that the influence of culture impacts the organization in relatively higher
amount. Researcher finds that it there are several reasons that are inadequate leadership,
inappropriate values and norms of the organization which reduce the efficiency of the
organization. The limitation of the study is that the research is conducted by taking small sample
size. Therefore, in future researcher can take the large sample size and can focus of different
sectors, so that researchers can get the information about the organization culture effects on
companies of different sector.

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Yilmaz, C.,& Ergun, E. (2015). Organizational culture and firm effectiveness: An
examination of relative effects of culture traits and the balanced culture hypothesis in an
emerging economy. Journal of world business, 43(3), 290-306.
Yilmaz and Ergun conducted the study to examine the effects of inadequate
organizational culture with performance of firm by focusing on four variables participation,
mission, stability as well as adaptability (Yilmaz & Ergun, 2015). The data collection was done
by using secondary and primary approach in Turkey that is by reviewing various articles and by
taking survey from the 103 countries. From the analysis, the researchers find that ineffective
statement of the mission effects the sales growth of the company, expansion as well as overall
performance of the firm. Researchers also find that no involvement of the employees leads
dissatisfaction among the members and results in negative outcomes. The Limitations of the
study shows that this research does not focus on applying the theory to get the effectiveness of
culture in the organization. Therefore, in future researcher can apply defined theory to know the
accurate result about the productivity of organization.
Nikpour, A. (2017). The impact of organizational culture on organizational performance:
The mediating role of employee’s organizational commitment. International Journal of
Organizational Leadership, 6(3), 65-72.
According to Nikpour presently organization does various innovations for the
development of the organization to increase profitability of firm (Nikpour, 2017). The present
research is conducted to inspect the importance of the employee commitment a s well as the
association among the culture of the organization and their impact on productivity of
organization. Data was collected from the 190 respondents from the office of education and
descriptive statistics is adopted foe evaluating the information. From the analysis, the researcher
finds that culture of the organization has influenced directly to the productivity of the
organization through the intervention of workforce commitment. Researcher also finds that
degree of negative impact is high in comparison to positive impact that is negative impact leads
in affecting overall sustainability of the organization because of decrease in the satisfaction of
the employees, inappropriate norms and philosophies of the organization.

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References
Deshpande, R., & Frederick, E. F. (2015). Organizational culture and marketing: defining the
research agenda. Journal of marketing , 53 (1), 3-15.
Gambi, L. D., Boer, H., Gerolamo, M. C., Jørgensen, F., & Carpinetti, L. C. (2015). The
relationship between organizational culture and quality techniques, and its impact on
operational performance. International Journal of Operations & Production Management
, 35 (10), 1460-1484.
Kaliannan, M., & Adjovu, S. N. (2015). Effective employee engagement and organizational
success: a case study. Procedia-Social and Behavioral Sciences , 172 (5), 161-168.
Nguyen, L., & Watanabe, T. (2017). The impact of project organizational culture on the
performance of construction projects. Sustainability , 9 (5), 781-790.
Nikpour, A. (2017). The impact of organizational culture on organizational performance: The
mediating role of employee’s organizational commitment. International Journal of
Organizational Leadership , 6 (3), 65-72.
Pakdil, F., & Leonard, K. M. (2015). The effect of organizational culture on implementing and
sustaining lean processes. Journal of Manufacturing Technology Management , 26 (5),
725-743.
Saha, P., & Mazumder, S. (2015). Impact of working environment on less productivity in RMG
industries: A study on Bangladesh RMG sector. Global Journal of Management And
Business Research , 15 (2), 541-550.
Sriekaningsih, A., & Setyadi, D. (2015). The Effect of Competence and Motivation and Cultural
Organization towards Organizational Commitment and Performance of organization in
East Kalimantan Indonesia. European Journal of Business and Management , 7 (17),
208-220.
Taştan, S. B., & Davoudi, S. M. (2017). The relationship between organisational climate and
organisational innovativeness an culture of the organization: testing the moderating effect

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of individual values of power and achievement of firm. International Journal of Business
Innovation and Research , 12 (4), 465-483.
Yilmaz, C., & Ergun, E. (2015). Organizational culture and firm effectiveness: An examination
of relative effects of culture traits and the balanced culture hypothesis in an emerging
economy. Journal of world business , 43 (3), 290-306.