Relationship between organizational culture and performance

Topics: Organizational culture, Organizational studies, Management Pages: 7 (1666 words) Published: April 14, 2014
HANOI UNIVERSITY
FACULTY OF MANAGEMENT AND TOURISM
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RELATIONSHIP BETWEEN ORGANIZATIONAL
CULTURE AND PERFORMANCE
(1391 words)

The two primary articles:
1.”Impact of Organizational Culture on Employee Performance” written by Awadh, A.M and Sadd, A.M. (2013)
2. “Organizational Culture as a Root of Performance Improvement” written by Rose, R.C; Kumar, N; Abdullah, H and Ling, G.E. (2008)

Teacher:

Ms. Nguyen Thi Thanh Hang

Student:

Nguyen Thi Hai Linh

Class:

Tut 2 AC k12

Course:

Introduction to Management

Date:

December 06, 2013

TABLE OF CONTENTS

I.

Introduction ......................................................................................................1

II.

Discussion of findings ......................................................................................1 1.

Organizational culture .....................................................................................1

2. Performance and its closely knit relationship with organizational culture ....3

III.

Conclusion ........................................................................................................4

REFERENCES .............................................................................................................5

i

I.

Introduction

The topic of the link between organizational culture and performance have drawn considerable interest from both academics and practitioners because this theme can help managers design suitable strategies and goals to increase level of performance as well as providing competitive advantage to firms. Among numerous studies discussing about this subject, I found two journals that contains valuable data for interpreting the close relationship between them: “Impact of Organizational Culture on Employee Performance” of Awadh and Saad (2013) and Rose et al. (2008)’s “Organizational Culture as a Root of Performance Improvement”. Both journals stated a hypothesis that there is a transparent link between them and a good organizational culture may positively influence its performance. While the former journal focused on indentifying and measuring strong relationship between performance and organizational culture in general, the latter examined this relation in specific case among American, Japanese, European and Malaysian multinational companies operating in Malaysia by obtaining necessary data from self-administered questionnaires designed for respondents of high technology industry. Sixteen items adapted from Rajendar and Jun Ma’s (2005) work were used to assess the organizational culture on seven-point scale which represents the agreement of respondents. This secondary research paper which is used as a report of my understanding after reading these two journals will focus on general useful information about organizational culture, performance and their mutual influences.

II.

Discussion of findings

1. Organizational culture
Since culture plays a significant role in how the employees and managers work in the firm, the organizational culture is one of the most popular and controversial concepts in the fields of management and organizational theory (Ogbonna and Harris, 2000). Awadh and Saad

(2013) defined organizational culture as a combination of shared complex social phenomena such as values, beliefs, communications and explanations guiding employees’ behaviors. This definition is widely agreed by many other researchers such as Ehtesham et al. (2011) who stated that each organization has a unique culture as its 1

valuable source of competitive advantage and Lunenburg (2011) who explained more clearly about four major functions of organizational culture: “gives members a sense of identity, increases their commitment, reinforces organizational values, and serves as a control mechanism for shaping behavior”. The culture of an organization can do its functions and transfer its messages to...


References: Awadh, A.M. Sadd, A.M. 2013. Impact of Organizational Culture on Employee
Performance
Ehtesham, U.M. Muhammad , T. M. Muhammad, S.A. 2011. Relationship between
Organizational Culture and Performance Management Practices: A Case of
Hofstede, G. 1980. Culture’s Consequences: International Difference in Work Related
Value, London, Sage Publication.
Hofstede, G. Bond, M. H. 1998. The Confucius Connection: from Cultural Roots to
Economic Growth, Organ Dyn, 5-21.
Lunenburg, F. C. 2011. Organizational Culture-Performance Relationships: Views of
Excellence and Theory Z
Ogbonna, H. Harris, L.C. 2000. Leadership style, organizational culture and
performance: empirical evidence from UK companies
Rose, R.C. Kumar, N. Abdullah, H. Ling, G.E. 2008. Organizational Culture as a Root of
Performance Improvement: Research and Recommendations
Robbins, S.P. Coulter, M. 2009. Organizational culture and environment. Management.
Schwartz, S.H. 1994. Beyond Individualism/ Collectivism: New Cultural Dimensions of
Values
Trompanaar, F. 1993. Riding the Waves of Culture. London: Economist Books.
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