Research Project: Organizational Culture and Firm Performance

This research project investigates the correlation between organizational culture and firm performance, aiming to determine how a positive and healthy organizational culture can contribute to improved firm outcomes. The study employs a positivism philosophy, deductive approach, descriptive design, and survey research strategy, collecting primary data from 30 employees using probability sampling. The research explores the impact of leadership, employee engagement, and company policies on organizational culture and, consequently, on firm performance. The analysis of the survey data reveals that employees perceive a positive correlation between organizational culture and firm performance, with motivated, committed, and engaged employees contributing to the effective use of organizational resources and the achievement of goals. The project includes an introduction, literature review, methodology, data analysis, and conclusion with recommendations, providing a comprehensive overview of the topic and its implications.

Running head: RESEARCH PROJECT
The Correlation between Organizational Culture and Firm Performance
Name of the Student:
Name of the University:
Author’s Note:

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The current research aims towards determining the correlation between organizational culture
and firm performance. The ultimate purpose of the organizations is to maximize profit, generate
revenues and gain competitive advantages. Challenges arise constantly when it comes to
establishing positive and healthy organizational culture that ensures improved firm performance.
Support and coordination from the ones within the organization followed by lack of transparency
are major challenges that arise when it comes to building appropriate organizational culture.
Positivism philosophy, deductive approach, descriptive design and survey research strategy has
been used. Hence, 30 employees has been selected using probability sampling technique for
surveying them in order to know how positive organizational culture impacts the performance of
the firm. As a result, primary data collection process and quantitative data analysis technique has
been used where the response of the employees is interpreted in percentages and the presented
using bar graphs and charts.
From the data analysis, it can be said that the employees agree that organizational culture is
correlated with firm performance. The employees believe that positive and healthy culture within
the organization has been effective for them. The employees have felt motivated, committed and
highly engaged towards their roles and responsibilities if the culture within the organization is
positive. The existing resources of the organizations are also used effectively and contribute in
achieving the organizational goals and objectives successfully.

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Table of Contents
Chapter 1: Introduction....................................................................................................................7
1.0 Overview...........................................................................................................................7
1.1 Problem statement.................................................................................................................7
1.2 Research aim..........................................................................................................................7
1.3 Research objectives...............................................................................................................7
1.4 Research questions.................................................................................................................8
1.5 Research hypotheses..............................................................................................................8
1.6 Research rationale..................................................................................................................8
1.7 Structure of the dissertation...................................................................................................9
1.8 Summary................................................................................................................................9
Chapter 2: Literature review..........................................................................................................10
2.0 Overview..............................................................................................................................10
2.1 Conceptual framework.........................................................................................................10
2.2 Organizational culture.........................................................................................................10
2.3 Factors affecting organizational culture..............................................................................11
2.4 Benefits and challenges of healthy organizational culture..................................................12
2.5 Firm performance................................................................................................................13
2.6 Factors affecting firm performance.....................................................................................13

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2.7 Impact of organizational culture on firm performance........................................................14
2.8 Summary..............................................................................................................................14
Chapter 3: Research methodology.................................................................................................15
3.0 Overview..............................................................................................................................15
3.1 Research outline...................................................................................................................15
3.2 Research philosophy............................................................................................................15
3.3 Research approach...............................................................................................................15
3.4 Research design...................................................................................................................16
3.5 Research strategy.................................................................................................................16
3.6 Sampling technique and sample size...................................................................................16
3.7 Data collection process........................................................................................................17
3.8 Data analysis technique.......................................................................................................17
3.9 Ethical considerations..........................................................................................................17
3.10 Accessibility issues............................................................................................................17
3.11 Summary............................................................................................................................17
Chapter 4: Data analysis and discussions......................................................................................18
4.0 Overview..............................................................................................................................18
4.1 Findings and interpretations................................................................................................19
4.1.1 Demographic questions................................................................................................19
4.1.2 Objective questions.......................................................................................................20

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4.2 Summary..............................................................................................................................29
Chapter 5: Conclusion and recommendations...........................................................................30
5.0 Conclusion...........................................................................................................................30
5.1 Linking with objectives.......................................................................................................30
5.2 Recommendations................................................................................................................32
5.3 Future scope of the study.....................................................................................................32
References......................................................................................................................................34
Appendix 1.....................................................................................................................................38
Survey questionnaire.................................................................................................................38

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List of Figures
Figure 1: Conceptual framework...................................................................................................10
Figure 2: Demographics................................................................................................................19
Figure 3: Organizational culture impact on employees.................................................................20
Figure 4: Leadership and organizational culture...........................................................................21
Figure 5: Policies and rules and organizational culture.................................................................22
Figure 6: Stress free environment and organizational culture.......................................................23
Figure 7: Employee commitment and engagement and organizational culture............................23
Figure 8: Benefits of positive organizational culture....................................................................24
Figure 9: Benefits of improved performance.................................................................................25
Figure 10: Motivation and improved firm performance................................................................26
Figure 11: Effective communication and firm performance.........................................................27
Figure 12: Organization culture and its affect on performance of firms.......................................27
Figure 13: Correlation between organizational culture and firm performance.............................28

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Chapter 1: Introduction
1.0 Overview
The ultimate purpose of the organizations is to maximize profit, generate revenues and gain
competitive advantages. However, for a firm to perform their best several factors contribute to
make it possible and organizational culture is one of them. Positive and healthy organizational
culture develops a stress free environment that influences and encourages individual to show
better engagement and participation. As a result, the firms are able to deliver best quality work
on time with minimal or no compromise at all (Alvesson and Sveninggsson 2015).
1.1 Problem statement
In spite of the significance of organizational culture, it is difficult to achieve. Challenges
arise constantly when it comes to establishing positive and healthy organizational culture that
ensures improved firm performance. Support and coordination from the ones within the
organization followed by lack of transparency are major challenges that arise when it comes to
building appropriate organizational culture that imposes negative impact and the performance of
the firm is compromised largely (Bortolotti, Boscari and Danese 2015).
1.2 Research aim
The current research aims towards determining the correlation between organizational
culture and firm performance.
1.3 Research objectives
The objectives of the research are:
 To understand the concept of organizational culture and firm performance

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 To critically analyse the factors affecting organizational culture those affect the
performance of the firm
 To assess the relationship between organizational culture and firm performance
 To provide suitable recommendations for improving the existing culture within the
organization
1.4 Research questions
The questions of the research are:
 What do you mean by organizational culture and firm performance?
 What are the factors affecting organizational culture those affect the performance of the
firm?
 What is the relationship between organizational culture and firm performance?
 What are the suitable recommendations for improving the existing culture within the
organization?
1.5 Research hypotheses
The hypotheses of the research are:
H0: There is no relationship between organizational culture and firm performance
H1: There is relationship between organizational culture and firm performance
1.6 Research rationale
Working on this research project is significant because the project helps in investigating
and assessing the relationship between organizational culture and firm performance. A firm
highlights improved performance when the existing culture within the organization is positive

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and healthy. This investigation will help to know whether organizational culture is one of the
factors that contribute and influences improved firm performance thereby, determining its
importance for any firm (Chang and Lin 2015).
1.7 Structure of the dissertation
The overall structure of the research project is divided into five major chapters. The five
chapters include introduction, literature review, research methodology, data analysis and
discussions and conclusion and recommendations. Each of the chapters need to be developed
chronologically, as this ensures the flow in maintained and the ultimate purpose of the research is
served.
1.8 Summary
Hence, in this chapter, it can be summarized that adequate background information has
been provided that helped in identifying the problem of the ongoing research that lead to the
formulation of research aim, objectives and hypotheses. This chapter is successful is laying the
overall foundation of the research project.

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Organizational culture
Leadership
Employees
Policies and practices
Size of the organization Firm performance
Chapter 2: Literature review
2.0 Overview
The chapter is developed with the purpose of reviewing past researches and studies about
organizational culture and firm performance and critically analyzes them accordingly for using
them in developing the current research project with quality and enriched data.
2.1 Conceptual framework
Figure 1: Conceptual framework
(Source: Created by the Author)
2.2 Organizational culture
Several past studies have been conducted on organizational culture because it is found to
have an impact on the performance of the organization. As mentioned by Chang and Lin (2015),
the behaviors and values of the firm that encompasses to the development of unique

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psychological and unique atmosphere of the business are termed as organizational culture.
However, as criticized by Korner et al. (2015), many consider organizational culture as the
values, beliefs, assumptions and methods of interacting with a particular organization. Though
the definitions of organizational culture vary, the ultimate purpose is to develop and establish a
healthy and positive culture within the organization so that the best can be given for own benefits
in the business sectors.
2.3 Factors affecting organizational culture
Leadership is one of the factors that influence organizational culture because appropriate
leadership style facilitates the development of healthy work atmosphere and influences positivity
and coherency among the employees. Additionally, leadership also mitigates conflicts and
develops a stress free culture that brings the best out of the employees (Walker and Aritz 2015).
However, on the contrary, one leadership style is not suitable of all organizations and hence,
identifying the most appropriate one is often challenging (Ashikali and Groenevold 2015).
Another factor that influences the organizational culture is the employees and the reward system
the organization have for the employees.
As mentioned by Hartnell et al. (2016), policies and rules within the organizations need
to be encouraging and motivating for the employees. This creates positivity because the
employees are appreciated and acknowledgement for the effort they put in towards achieving the
goals and objectives. Hence, if the organizational policies are more inclined and focused towards
penalization rather than appreciation, then a negative and harmful organizational culture is
created that affects the overall firm. However, as argued by Shim, Jo and Hoover (2015), even if
the policies and rules are encouraging, some employees fail to give their best no matter what that
compromises the culture of the organization.

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2.4 Benefits and challenges of healthy organizational culture
Having and maintaining healthy organizational culture offers several advantages to the
organizations in terms of profit and competitive advantage. According to Ahmady, Nikooravesh
and Mehrpour (2016), healthy organizational culture develops stress free working environment
that minimizes the chances of poor health conditions of the employees in terms of physical and
emotional conditions. As the employees working are surrounded with positivity, it is reflected in
their performance that contributes towards organizational effectiveness and efficiency. However,
as argued by Schmiedel, Müller and vom Brocke (2019), as the organizations are subjected to
continuously changing business environment, establishing a positive organizational culture is
challenging. Communication and lack of transparency often becomes issue that is reflected on
the way employees interact within the organizations. Grudges and conflicts develop that leads to
unhealthy relationship and the organizational culture is subjected to severe consequences
(Sensuse, Cahyaningsih and Wibowo 2015).
As mentioned by Driskill (2018), positive and healthy organizational culture fosters
greater commitment and engagement within the employees that eventually leads to the
development of loyal employees thereby, minimizing the rate of employee turnover. As the
policies and rules indicate appreciation, the employees feel motivated and become highly
productive. This results in increased profit and revenue generation that contributes towards
gaining competitive advantage. However, as criticized by Brettel, Chomik and Flatten (2015), if
the policies and rules are more focused towards penalization, keeping the employees in such an
environment is highly challenging.

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2.5 Firm performance
Organizational or firm performance has also been widely studied in the past that offers
several benefits to the firm in the business sector. As mentioned by Barrick et al. (2015), firm
performance is said to be the analysis of the performance of a firm or company compared to the
objectives and goals of the firm. If the analysis of the performance shows that the company or
the firm has been successful to achieve their goals and objectives on time and ensuring quality,
then it can be said that firm performance is at its best. However, as criticized by Liu et al. (2015),
organizational performance is defined as the technique or approach that ensures that the existing
resources of the company or the firm are used properly for pursuing the goals and objectives of
the company.
2.6 Factors affecting firm performance
The performance of a firm is also affected by different factors such as motivation,
leadership and effective communication. According to Soto-Acosta, Popa and Palacios-Marqués
(2016), motivation acts as a catalyst that influences the employees to keep on pushing and
performing to the best of their abilities. Once the employees are motivated, they show higher
level of engagement and dedication towards their job roles and responsibilities. Motivated
employees take extra initiatives and put in more effort for achieving organizational goals and
objectives. As the organizations are able to use the resources suitably for achieving the goals and
objectives and give better outputs than intended, the overall performance of the firm is improved.
However, as argued by Wang et al. (2015), employee motivation is a difficult thing to achieve
because motivating factors for each employee is inconsistent.
As mentioned by Lonial and Carter (2015), effective communication also affects the
performance of a firm because uninterrupted communication ensures smooth flow of work and

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repetition of work is minimized. As a result, the firms save time and resources those are further
used in a way that the organizational goals and objectives are achieved with quality and
precision. However, as argued by Sharif, Purohit and Pillai (2015), conflicts arise among the
employees due to communication that affects the firm performance negatively.
2.7 Impact of organizational culture on firm performance
Past studies reveal that organizational performance has both positive and negative
impacts on the performance of the firm. As mentioned by Gambi et al. (2015), positive
organizational culture ensures improved firm performance because the employees working are
supportive, friendly and cooperative towards each other. Additionally, organizational policies
and rules facilitating appreciation and acknowledgement towards the effort put in by the
employees creates a positive organizational culture and the employees are convinced to
contribute more that is eventually reflected on the performance of the firm. As a result, firms
have increased profit. However, as criticized by Dubey et al. (2017), the negative impact of
organizational culture is that the employees do not contribute and perform their roles and
responsibilities effectively that results in compromised firm performance.
2.8 Summary
Hence, in this chapter, it can be summarized that the organizational culture plays a crucial
role when it comes to success and efficiency of the organizations irrespective of the industry or
sector. Positive and healthy organizational culture helps in creating stress and conflict free work
environment ensures that the purpose of the organization is aligned with the purpose of the
employees. Hence, this compatibility of goals and way of thinking pushes the employees to be
self-directed and perform well that eventually results in improved firm performance.

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Chapter 3: Research methodology
3.0 Overview
This chapter is developed with the purpose of shedding light on existing methodological
techniques those can be used for determining the correlation between organizational culture and
firm performance.
3.1 Research outline
For determining the correlation between organizational culture and firm performance,
positivism philosophy, deductive approach, descriptive design and survey research strategy has
been used. Hence, 30 employees has been selected using probability sampling technique for
surveying them in order to know how positive organizational culture impacts the performance of
the firm. As a result, primary data collection process and quantitative data analysis technique has
been used where the response of the employees is interpreted in percentages and the presented
using bar graphs and charts.
3.2 Research philosophy
Positivism philosophy has been used because this enabled using facts and logic related to
organizational culture that helped in determining its impact on the performance of firms.
Additionally, positivism philosophy is also appropriate because the data can be interpreted using
numerical and percentages followed by making quantifiable observations (Kumar 2019).
3.3 Research approach
For this research, deductive approach has been used because past literatures and studies
can be referred to about organizational culture and firm performance that facilitates critical

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evaluation of the findings and sing it for developing the current research accordingly (Mackey
and Gass 2015).
3.4 Research design
Descriptive design has been used because the challenges related to organizational culture
can be identified followed by determining the impact of the challenges on the performance of the
firm. Hence, the cause and effect relationship between organizational culture and firm
performance can be investigated that helps in understanding the correlation between the two
variables (Fletcher 2017).
3.5 Research strategy
Survey research strategy has been used because this helps collecting data from large
population and hence, developing the research based on large data sets. Survey is used because it
is easily administered and in minimal time huge data can be gathered. For this research, close-
ended questions has been developed about organizational culture and firm performance and has
been circulated through the emails of the employees so that they can take the survey according to
their convenience and share authentic opinions (McCusker and Gunaydin 2015).
3.6 Sampling technique and sample size
Probability sampling technique has been used that helped in selecting 30 employees
randomly out of the entire employees population. All the employees had equal chances to share
their opinion about organizational culture and firm performance and selecting randomly out of
them ensured lack of biasness that is necessary for the research (Antwi and Hamza 2015).

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3.7 Data collection process
Primary data collection has been used because this facilitated collecting recent data from
the employees and developing the research based on that. This indicated the current views and
opinions of the employees about the role organizational culture plays on the performance of a
firm (Hickson 2016).
3.8 Data analysis technique
Quantitative data analysis technique has been used because this helped in separating the
opinions of the employees based on numbers and interprets it accordingly. The percentages were
presented in pie charts and bar graphs (King and Mackey 2016).
3.9 Ethical considerations
The different ethical considerations that needed to be abided by are data confidentiality,
collecting data with consent, strict prohibition of data manipulation, collecting information from
original sources and using the information collected only for academic purposes (McInroy 2016).
3.10 Accessibility issues
The main accessibility issues those emerged while commencing with the research project
are time and budget. Limited time and budget forced the researcher to compromise on certain
aspects.
3.11 Summary
Hence, it can be summarized that the most appropriate methodological tools have been
selected for this research project and suitable justifications are provided for selecting the specific
tools.

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Chapter 4: Data analysis and discussions
4.0 Overview
In this chapter, the responses of the employees are analyzed for determining the
correlation between organizational culture and firm performance. The employees have been
asked several close-ended questions that is explained and interpreted by considering the
percentages. Additionally, the responses of the employees are presented in pie charts that provide
opportunities to determine the correlation between organizational culture and firm performance.
The findings from the data analysis are analyzed critically thereby, developing a data enriched
chapter. After interpreting the responses of the employees based on the numerical, the findings
are discussed by referring to past researches and findings.

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4.1 Findings and interpretations
4.1.1 Demographic questions
Figure 2: Demographics
The above three pie charts describes the demographic attributes of the 30 employees
those took part in the survey. From above pie chart, it can be seen that out of 30 employees,
63.3% of the employees were male whereas 36.7 % of the employees female belonging to age
group 25-30 years followed by 31-35 years, 36-41 years and 42 years and above. Out of the 30
employees, 30% of the employees have been employed and is working in an organization for 11
years and above and 7-10 years followed by 26.7% of the employees working in an organization
for less than 3 years and 13.3% of the employees working in an organization for 4-6 years. The
views and the opinion of the employees belonging to these specific demographic characteristics

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are considered for determining the correlation between organizational culture and firm
performance. As the majority of the employees are working in an organization for long er
duration, their opinion is significant in determining the correlation.
4.1.2 Objective questions
Figure 3: Organizational culture impact on employees
The above pie chart indicates whether the culture of the organization impacts the
employees or not. Out of 30 employees, almost 56.7% of the employees have shared positive
view indicating that the culture of the organization has an impact on them. The above finding can
be supported by the information presented by Ahmady, Nikooravesh and Mehrpour (2016) in the
literature review that states as the employees working are surrounded with positivity, it is
reflected in their performance that contributes towards organizational effectiveness and
efficiency. However, 26.7% of the employees beg to differ and says that the culture of the
organization does not have an impact on them whereas 16.7% of the employees share a mixed
review about organizational culture and its impact on them. Similarly, the negative opinion of the
employees can be supported by the information presented by Schmiedel, Müller and vom Brocke

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(2019) that mentions organizational culture does not have an impact on the employees because
other factors are equally significant when it comes to firm performance.
Figure 4: Leadership and organizational culture
The above pie chart depicts the role played by leadership in creating an appropriate
organizational culture. From the above pie chart, it can be seen that almost 40% of the employees
have agreed to the fact that leadership helps in creating an appropriate culture within the
organization. This finding can be supported by Walker and Aritz (2015) that state Leadership is
one of the factors that influence organizational culture because appropriate leadership style
facilitates the development of healthy work atmosphere and influences positivity and coherency
among the employees. On a contradictory note, 23.3% and 36.7% of the employees have said
that leadership does not contribute in creating a positive organizational culture. Ashikali and
Groenevold (2015) support this finding and have also questioned the role of leadership in
creating appropriate culture within the organization. This is because selecting the most
appropriate leadership style according to the organization becomes a major challenge thereby,
questioning the effectiveness.

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Figure 5: Policies and rules and organizational culture
The above pie chart indicates the effectiveness of organizational policies and rules in
influencing the organizational culture. It can be depicted that almost 50% of the employees agree
that the organizational policies and rules influences the culture of the organization largely.
Hartnell et al. (2016) in the literature review also mentions in the research that the organizational
policies and rules developed should aim towards encouraging and motivating the employees. The
organizational policies and rules need to focus more on appreciating the employees rather than
penalizing thereby, creating a positive organizational culture. However, on the contradictory
note, 16.7% and 33.3% of the employees beg to differ because they feel policies and rules do not
create positive organizational culture. Shim, Jo and Hoover (2015) support this finding because
contributing towards organizational culture is more of an individual affair.

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Figure 6: Stress free environment and organizational culture
The above pie chart indicates whether positive organizational culture helps in developing
a stress free working environment or not. The above pie chart depicts 33.3% of the employee
agree that positive and healthy organizational culture helps in creating a stress free working
environment and provide adequate opportunities to give their best. Ahmady, Nikooravesh and
Mehrpour (2016) in the literature review also state that healthy organizational culture develops
stress free working environment that minimizes the chances of poor health conditions of the
employees in terms of physical and emotional conditions. Hence, as the employees are
surrounded with positivity it is reflected in their performance that contributes towards
organizational effectiveness and efficiency. However, on the contrary, 40% and 26.7% of the
employees feel that stress free environment not the result of positive organizational culture
because other factors play more crucial role in developing a stress free working environment for
the employees.
Figure 7: Employee commitment and engagement and organizational culture
From the above pie chart, it can be depicted that 53.3% of the employees agree that
positive organizational culture influences employee commitment and engagement. This is
supported by Driskill (2018) in the literature review that mention positive and healthy

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organizational culture fosters greater commitment and engagement within the employees that
eventually leads to the development of loyal employees thereby, minimizing the rate of
employee turnover. However, on the contrary, 23.3% of the employees feel that employee
engagement and commitment is not the result of positive organizational culture. Brettel, Chomik
and Flatten (2015) support this finding that other factors such as motivation and leadership are
more important in creating employee engagement and commitment.
Figure 8: Benefits of positive organizational culture
The above pie chart depicts that 56.7% of the employees agree that having a positive
organizational culture is beneficial. Ahmady, Nikooravesh and Mehrpour (2016) support this
finding and state that healthy organizational culture develops stress free working environment
that minimizes the chances of poor health conditions of the employees in terms of physical and
emotional conditions. As the employees working are surrounded with positivity, it is reflected in
the firm performance. However, almost 26.7% and 16.7% of the employees beg to differ and say
that positive organizational culture is not beneficial because as the organizations are subjected to
continuously changing business environment, establishing a positive organizational culture is
challenging. Schmiedel, Müller and vom Brocke (2019) and Sensuse, Cahyaningsih and Wibowo

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(2015) support this finding in the literature review the questions the benefits of having positive
organizational culture,
Figure 9: Benefits of improved performance
The pie char above indicates that 56.7% of the employees agree that it is beneficial for
the firm to have and highlight improved performance. Soto-Acosta, Popa and Palacios-Marqués
(2016) agree with the finding and mention that having efficient and improved performance
provides adequate opportunity for the organization to maximize profit, generate revenue and gain
competitive advantage. However, 23.3% and 20% of the employees beg to differ mention that
improved firm performance is not beneficial and dos not offer required advantages.

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Figure 10: Motivation and improved firm performance
The above pie chart indicates 40% of the employees agree that motivation results in
improved firm performance. This finding is supported by Soto-Acosta, Popa and Palacios-
Marqués (2016) that firmly mention that motivation acts as a catalyst that influences the
employees to keep on pushing and performing to the best of their abilities. Once the employees
are motivated, they show higher level of engagement and dedication towards their job roles and
responsibilities. Additionally, motivated employees take extra initiatives and put in more effort
for achieving organizational goals and objectives. As the organizations are able to use the
resources suitably for achieving the goals and objectives and give better outputs than intended,
the overall performance of the firm is improved.
However, on the contrary, 26.7% and 33.3% of the employees beg to differ and feel
motivation does not ensure improved firm performance. Wang et al. (2015) in the past research
support this finding because the study have found that employee motivation is a difficult thing to
achieve because motivating factors for each employee is inconsistent. Hence, focusing on the
motivating factor of one employee might cause distress and disappointment among other
employees thereby, creating a negative and unhealthy working environment that is reflected on
the performance of the firm.

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Figure 11: Effective communication and firm performance
The above pie chart depicts that 46.7% of the employees believe that effective
communication improves the performance of a firm. Lonial and Carter (2015) in the research
support this finding. This research indicates effective communication also affects the
performance of a firm because uninterrupted communication ensures smooth flow of work and
repetition of work is minimized. As a result, the firms save time and resources those are further
used in a way that the organizational goals and objectives are achieved with quality and
precision. However, on the contrary, 26.7% of the employees disagrees and disapproves that
effective communication ensures effective and efficient firm performance. The research by
Sharif, Purohit and Pillai (2015) also highlights similar findings and mention that conflicts arise
among the employees due to communication that affects the firm performance negatively.
Figure 12: Organization culture and its affect on performance of firms
From the above figure, it can be depicted that 53.3% of the employees agree that
organizational culture has an impact on the performance of the firms. Past researches by Gambi
et al. (2015), Ahmady, Nikooravesh and Mehrpour (2016) and Driskill (2018) mention that
positive organizational culture ensures improved firm performance because the employees
working are supportive, friendly and cooperative towards each other. Additionally,

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organizational policies and rules facilitating appreciation and acknowledgement towards the
effort put in by the employees creates a positive organizational culture and the employees are
convinced to contribute more that is eventually reflected on the performance of the firm and
hence, firms have increased profit. However, 20% and 26.7% of the employees share a different
yet contradictory opinion about organizational culture and its impact on firm performance.
Dubey et al. (2017), Lonial and Carter (2015) and Liu et al. (2015) support the different yet
contradictory finding of the above pie chart by mentioning that the negative impact of
organizational culture is that the employees do not contribute and perform their roles and
responsibilities effectively that results in compromised firm performance.
Figure 13: Correlation between organizational culture and firm performance
The pie chart above depicts that 43.3% of the employees agrees that organizational
culture and firm performance are correlated. Past researches mentioned in the literature review
section mentions that organizational culture is one of the significant aspects that determine the
performance of the firm and hence, they are correlated. Past researches by Ahmady, Nikooravesh
and Mehrpour (2016), Driskill (2018) and Walker and Aritz (2015) indicates that organizational
culture and firm performance are correlated considering the positive impacts it has to offer in
terms of performance of the firms. However, 23.3% and 33.3 of the employees beg to differ and

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present a negative view about the correlation between organizational culture and firm
performance. According to the past studies, the correlation between organizational culture and
firm performance is questioned because of the potential challenges those keep on emerging
repeatedly. Dubey et al. (2017) and Sharif, Purohit and Pillai (2015) support the contradictory
finding because the challenges are evident and cannot be mitigated completely.
4.2 Summary
Hence, in this chapter, it can be summarized that the employees agree that organizational
culture is correlated with firm performance. The employees believe that positive and healthy
culture within the organization has been effective for them. The employees have felt motivated,
committed and highly engaged towards their roles and responsibilities if the culture within the
organization is positive. The existing resources of the organizations are also used effectively and
contribute in achieving the organizational goals and objectives successfully. As the organization
is able to fulfill their goals and objectives, it is reflected in the performance of the firm. Hence, it
can be said that organizational culture and firm performance are correlated.

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Chapter 5: Conclusion and recommendations
5.0 Conclusion
From the information in the above chapters, it can be concluded that organizational
culture is one of the factors that affect the performance of a firm. Past researches also reveal that
organizational culture is one of the factors that needs to be considered and continuous work
because if appropriate culture is absent within the organization, it is reflected on the way the firm
or the organization performs. To a large extent, the policies and rules of the organization have an
impact on the culture that pertains. For instance, organizational rules and policies facilitating
help and cooperation for the employees develops a positive and healthy culture that acts as
motivation to them.
Under such organizational culture employees work without stress and negativity and
hence, show higher level of dedication, participation and commitment. As a result, the works
they do are of high quality and is also delivered within time. As the entire workforce within the
organization works with same level of sincerity and indulgence, improved firm performance can
be noticed. The organizational resources are used effectively in achieving the goals and
objectives that derives efficient results. However, the negatives or the challenges of having a
suitable organizational culture are evident and keep on emerging that have negative
consequences on the firm in terms of performance.
5.1 Linking with objectives
Objectives 1: To understand the concept of organizational culture and firm performance
Objective 1 is linked with literature review sections 2.2 and 2.5. Both these sections
highlight information about organizational culture and firm performance that helps in developing

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an understanding. The views and opinions of past researches are also mentioned in this section
that enabled critical analysis followed by making suitable interpretations. On the other hand, the
entire survey questionnaire is developed with the purpose of understanding organizational
culture and firm performance by determining their correlation.
Objectives 2: To critically analyze the factors affecting organizational culture those affect
the performance of the firm
Literature review sections 2.3 and 2.6 are linked with objective 2. These sections mention
different factors affecting organizational culture and firm performance. Each of the factors
identified having an impact is subjected to critical analysis that helps in developing a data
enriched chapter. On the other hand, survey questions developed based on the factors affecting
organizational culture and firm performance are related to this objective.
Objective 3: To assess the relationship between organizational culture and firm
performance
Literature review section 2.7 is linked with objective 3. This section talks and sheds light
about the impact of organizational culture on firm performance by highlighting both positive and
negative impacts. This section helps in understanding the correlation between the two variables
by critically analyzing the views of past researchers. On the other hand, the entire survey
questionnaire is developed with the purpose of understanding organizational culture and firm
performance by determining their correlation.
Objective 4: To provide suitable recommendations for improving the existing culture
within the organization

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Objective 4 is linked with literature review section 2.4. This section sheds light on the
potential challenges that is encountered while developing and establishing a healthy
organizational culture. The survey questions developed aim towards knowing the challenges
followed by making suitable recommendations for improving organizational culture and firm
performance.
5.2 Recommendations
From the identified challenges, the suitable recommendations for improving
organizational culture are listed below:
Developing organizational policies and rules accordingly
As the organizational policies and rules forms an integral part and is reflected in the goals
and objective as well, developing policies those extend support and cooperation towards the
employees when in need will help in developing positive organizational culture that will act as a
motivator for the employees thereby, ensuring efficient firm performance.
Appropriate leadership style
Form the different types of leadership styles, selecting the most appropriate one will also
help in developing healthy and positive culture within the organization that will eventually
reflect on the performance of the firm.
5.3 Future scope of the study
The current study focuses on the views and opinions of the employees working in
organizations about the impact of organizational culture on firm performance. Hence, in the
future research can be conducted by subjecting the variables to inferential analysis that will

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derive specific values thereby, helping in determining the correlation between organizational
culture and firm performance. Supporting the findings with specific statistical values will enrich
the quality of the research in the future.

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Appendix 1
Survey questionnaire
Demographic questions
Please specify your gender
Male Female
Which age group do you belong to?
25-30 years
31-35 years
36-41 years
42 years and above
How long are you being employed?
Less than 3 years
4-6 years
7-10 years
11 years and above

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Objectives questions
Do you think the culture of your organization has an impact on you?
Yes No Maybe
Does leadership help in creating an appropriate organizational culture?
Yes No Maybe
Do the policies and rules of the organization influence its culture?
Yes No Maybe
Does healthy organizational culture creates a stress free environment?
Yes No Maybe
Does healthy organizational culture promotes greater commitment and engagement among
employees?
Yes No Maybe
Do you think having a positive organizational culture is beneficial?
Yes No Maybe
Is it beneficial for the firms to have improved performance?
Yes No Maybe
Does motivation improves the performance of the firms?
Yes No Maybe

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Does effective communication facilitate improved firm performance?
Yes No Maybe
Does positive and healthy organizational culture affects the performance of the firms?
Yes No Maybe
Do you think organizational culture and firm performance are correlated?
Yes No Maybe