The paper 'The Role of Corporate Culture in Organizational Performance' is a wonderful example of a human resources case study. Organizational performance refers to how an organization utilizes its technological, physical, and human resources to achieve its objectives. It takes into account several parameters including productivity levels. Every organisation has its own organisational culture. These are unwritten values and practices which employees, over a considerable length of time in the organisation, have adopted and learnt to adhere to. Since organisational culture underlies the utilisation of human resource within an organisation to achieve operational effectiveness, it follows that organisational culture plays a key role in enabling organisations to achieve performance in their operations.
This paper examines the role of corporate culture in organisational performance. To do this, a general examination of theories and concepts of organisational culture is given. Definitions and description of key concepts of organisational culture, including roles and functions, is given. This is followed by a general examination of the concept of operational effectiveness and performance. Parameters used to determine the level of performance of organisations are explored. Lastly, the paper examines various ways in which organisational culture contributes to organisational effectiveness and performance. Organizational culture can be defined as a set of attributes perceived by individuals and deemed to have an impact upon the willingness of individuals to perform at their best.
This system of shared meaning differentiates one organization from the others. Two salient features of organizational culture are evident in this definition. One is that culture refers to what individuals react to both physically and psychologically. The second feature of organizational culture is that it is composed of enduring characteristics that not only define the organization but also affect the behavior of human resources in the organization (Daft, Murphy & Willmot 2010, p.
400). Dessler (1976, cited by Dwivedi 1995, p. 10) stated that culture can be analyzed in three different approaches: subjective, structural, and synthetic. The subjective approach of culture emphasizes individual and collective attitudes of human resources towards the organization. Culture, in this case, defines how individuals feel about the organization. On the other hand, culture, basing on the structural approach, is viewed as a set of characteristics that are eternally distinct in differentiating an organization from others.
Culture creates the uniqueness of an organization, therefore setting an organization apart from the rest. A synthetic cultural analysis emphasizes the role of both subjective and structural approaches in creating a holistic definition of organizational culture. The corporate culture of an organization is what defines its salient features, strengths, and general performance. The complete picture of an organization’ s culture can be summed up in four key characteristics. These characteristics provide a complete picture of how the organization is perceived by its human resource in its operations and general performance. The first characteristic of organizational culture is that it defines the extent of risk tolerance within the organization.
This is expressed by the degree to which employees are expected to exhibit characteristics of innovativeness, aggressiveness, and risk tolerance in their day-to-day operations. Secondly, organizational culture defines the identity of members of an organization. Organizational culture influences employees to identify with the organization rather than their professions or job responsibilities. Third, organizational culture expresses the degree to which an organization is people-centered.
This explains to what extent the management takes into consideration the impact or decision making processes on the lives of employees. Fourth, organizational culture defines the reward policy within an organization. Organizations reward employees by basing on objective criteria such as performance and merit as opposed to favoritism and seniority (Miner 2007, p. 74). Rewards, according to the reinforcement theory, act to influence the behavior of employees towards adopting a particular pattern of cultural behavior within the organization (Murray, Poole & Jones 2006, p. 78).
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