Impact of organizational culture on performance management
Organizational culture accommodates the unwritten customs,
behaviors and ideals which decide the ‘regulations of the game’ for choice
making, structure, and power. It consists of a system of ideas and concepts,
customs, traditions, tactics and behavior for functioning in a particular macro
culture. It is implicit, invisible, intrinsic, and informal awareness of the
business enterprise which directs conduct of the personnel and which ends from
their conduct. It is primarily based totally at the shared records and
traditions of the business enterprise blended with the contemporary management
values. In effect, culture dictates the manner the organizational capabilities
are performed. The organizational survival techniques which facilitate
assimilation and personal fulfillment depend on the organizational culture.
Although,
many researchers had examined the link between organizational culture and
performance (Ogbonna & Harris, 2000; Rousseau, 1991; Kotter & Heskett,
1992; Marcoulides & Heck, 1993). Not much research has been done on
organizational culture as a contextual factor of performance management (Magee,
2002). Therefore
the second one reason of this paper is to decide the connection among additives
of organizational culture and overall performance management practices, a
pervasive human resource development and management practice. This study is
indented to fill those gaps. Performance management practices as essential
human resource management exercise assist the view that employees and managers
enjoy the information of organizational culture as a contextual factor. For the
prevailing empirical evaluation Denison principle of organizational culture is
hired which specializes in 4 cultural traits involvement, consistency,
adaptability, and mission as key determinants of business performance.
Lee and Yu (2004) studied on corporate culture and its impact on
organizational performance, particularly to validate the cultural construct and
its impact on the performance. The study detected that culture influences
numerous processes within the organization and its performance. Balthazard et
al. (2006) measured behavior norms and expectations and its impact on the
performance. The results explain positive influence of deductive culture style,
whereas negative impact was illustrated as regard to dysfunction, defensive
styles on the people, and organization.
The Relationship between Organizational
Culture and Performance Management
According to Kandula (2006) the key to good
performance is a strong culture. He further maintains that due to difference in
organizational culture, same strategies do not yield same results for two
organizations in the same industry and in the same location. A positive and
strong culture can make an average individual perform and achieve brilliantly
whereas a negative and weak culture may de-motivate an outstanding employee to
underperform and end up with no achievement. Therefore organizational culture
has an energetic and direct function in overall performance management and without
thinking about the effect of organizational culture, organizational practices
inclusive of overall performance control will be counterproductive because the
two are interdependent and change in one will impact the other.
In Denison’s model comparisons of 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) the four traits of organizational culture in Denison’s framework are as
follows:
Involvement
Consistency
Organizations additionally
have a tendency to be powerful due to the fact they have “strong” cultures
which are especially consistent, properly coordinated and properly integrated
and behavior is rooted in a fixed of
middle values, and leaders and followers are professional at achieving
settlement even if there are numerous points of view.
Adaptability
Internal integration and external adaptation can
regularly be at odds. Adaptable corporations are driven by their customers,
take risks and learn from their mistakes, and have capability and experience at
creating change and continuously changing the system so that they are improving
the organizations’ collective abilities to provide value for their customers.
Mission
Successful organizations have a clear sense of purpose and path that defines organizational desires and strategic objectives and expresses a vision of how the organization will look in the future and when an organization’s underlying mission changes, changes also occur in other aspects of the organization’s culture.
A conceptual model of organization culture
and performance management practices
Reference:
Balthazard, A. P., Cooke, A. R.,
& Potter, E. R. (2006). Dysfunctional Culture, Dysfunctional Organization:
Capturing the Behavioral Norms that Form Organizational Culture and Drive
Performance. Journal of Managerial Psychology, 21(8), 709–732.doi:10.1108/02683940610713253
Kotter, P. & Heskett, L.
(1992). Corporate Culture and Performance, Macmillan, New York, NY
Lee, S. K. J., & Yu, K.
(2004). Corporate culture and organizational performance. Journal of Managerial
Psychology, 19(4), 340–359. doi:10.1108/02683940410537927
Marcoulides, G. & Heck, R.
(1993). Organizational culture and performance: Proposing and testing a model.
Organization Science, 4(2), 209-225.
Ogbonna, E. & Harris, L.
(2000). Leadership style, organizational culture and performance: Empirical
evidence from UK companies. International Journal of Human Resources
Management, 11(4), 766-788.
Rousseau, D. (1991). Quantitative
assessment of organizational culture. Group and Organizations Studies, 15(4),
448-460.
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The strong culture is key to good performance (Kandula, 2006) Further he has described that same strategies do not give same results even in the same industry or same location because organizational culture is different from each other..The positive culture cause for high performance and negative culture thrive employees for underperformance.
ReplyDeletePerformance management practices as fundamental human resource management practices support the view that employees and managers benefit from the understanding of organizational culture as a contextual factor. For the present empirical analysis, the Denison theory of organizational culture is employed which focuses on four cultural traits (involvement, consistency, adaptability, and mission) as key determinants of business performance.
ReplyDeleteA structured, transparent, and innovative painting way of life will assist enhance worker engagement and, as a result, enhance worker’s overall performance stages too. So, in case you need to construct a high-acting workforce, the primary factor you must spend money on is enhancing your administrative center’s way of life. Changing the organizational way of life and worker engagement techniques isn't a smooth feat. However, it's far actually really well worth the investment (Possiblework, 2022)
ReplyDeleteReferences
Possiblework, 2022. https://possibleworks.com/. [Online]
Available at: https://possibleworks.com/blog/how-organizational-culture-impacts-employee-engagement-and-performance/#:~:text=The%20impact%20of%20organizational%20culture,what%20is%20expected%20of%20them.
[Accessed 01 05 2022].
An interesting aspect of an organization's culture is how it tolerates outsiders or conforms to its standards. Some companies are open to allowing their employees to work the way they want to. The culture is simply how we do in our workplace. Culture is different in each organization, The culture tends to make more performance.(rainedigital,2020).
ReplyDeleteShahzad et.al (2012)in their research for Impact of organizational culture on organizational performance, concludes that organizational culture has deep impact on the variety of organizations process, employees and its performance. It also suggests that if employee are committed and having the same norms and value as per organizations have, can increase the performance toward achieving the overall organization goals. Managers and leaders are recommended to develop the strong culture in the organization to improve the overall performance of the employees and organization.
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