Effects Of Strong Organizational Culture On The Performance Of The Organizations

Different characteristics of strong organizational culture

Organizational culture is mainly based on the behaviours and values which are able to provide high levels of contribution to unique psychological and social environment of the organization. The culture of an organization is thereby able to influence the ways by which people are able to interact with each other and context related to the development of knowledge as well. The beliefs, principles and collective values of the organization are represented in an effective manner by the culture and environment that has been developed (Ahammad et al., 2016). The assumptions and the collective behaviours of the employees who are a part of the organization have a major impact on the organizational culture.

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The essay will be based on the analysis of an argument that is related to the effects of the strong organizational culture on the performance that is depicted by the organization in the industry. The analysis will be helpful in providing an argument that is related to the importance or significance of organizational culture with respect to the performance levels of the organizations.

As discussed by Alagaraja and Shuck (2015), the effects of organizational culture or corporate culture is considered to be quite different for various organizations. The performance levels of organizations are analysed with the help of different types of opinions which are offered by researchers. The culture of an organization is based on the ideas that are shared by the employees and the ways by which they are able to make the decisions. The concept related to organizational culture is based on the proper determination of the differentiation that exists between the culture that is followed by the employees and national culture of the country in which the organization operates.

As argued by Barakat et al. (2015), the culture based concept is related to two major factors of the social group including, structural stability of the group and the process of integration of a single item based on superior standards. The values and the norms of an organization have been able to affect the culture that is developed in an effective way. The four major types of organizational culture mainly include, counter culture, sub culture, strong culture and weak culture. Counter culture is considered to be the culture that is based on the values and shared beliefs that are considered to be opposite to beliefs and values of broad organizational culture.

According to Baumgartner and Rauter (2017), sub culture on the other hand is based on the different segments of the culture which are able to depict different values, beliefs and norms due to huge differences between the departmental goals and geographical backgrounds as well. The organizational culture in which the bigger parts of employees show similar values and beliefs that are related to an organization can be termed as strong culture. The organizational culture that is loosely knit in nature and the employees are not able to depict similar values is termed as weak culture.

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Dimensions of an organizational culture

Different characteristics of strong organizational culture – The process that is used for maximizing values of the employees is considered to be a major asset of the organization. The culture is able to provide effective levels of support based on logical participation that is made with respect to individual learning and organizational learning. The norms in an organization are measured with the help of amounts of work that are done with the help of proper cooperation between the employees and the management. The rules that are defined for the behaviour of the employees are related to intergroup cooperation, relationship between the customers and productivity levels (Eisenbeiss, Van Knippenberg and Fahrbach 2015).

Dimensions of an organizational culture – The different dimensions of the culture of an organization can be depicted with the help of the example of a major global organization named IBM. The dimensions of the culture of the organization can be analysed with the help of Hofstede’s model. The major dimensions of Hofstede’s model include, power distance, individualism, uncertainty avoidance, masculinity. The dimensions are able to play a key role in providing an understanding of the differences that exist between the cultures of organizations that operate in different countries (Engelen et al. 2015).

Conceptualizations based on organizational culture – The organizational culture can be conceptualized with the help of two major processes that are named as, process oriented approach and classification based approach. The process oriented approach of the culture of an organization is based on the ways by which real problems can be solved with the help of processes and people who are a part of the company. On the other hand, the classification based approach of the organizational culture is related to ideas that are initiated with the help of two or more than two variables.

Performance based concept – The performance of an organization is mainly based on the achievement of mission that has been developed. Performance of the team is analysed in order to express range of the measurements related to transactional efficiency in the organization. The performance levels of an organization are related to the capabilities that are based on the capabilities of achieving goals by using the resources in an efficient manner. The strategic performance measurement system is considered to be an important part of the management of the performance levels of the company (Forés and Camisón 2016). The measurement of performance is able to play a key role in the ways by which the operations of an organization can be enhanced in an effective manner.

Conceptualizations based on organizational culture

According to Guerci et al. (2015), organizational culture of the firms is able to have a major impact on the performance levels. The US based organizations in the industry have been analysed in order to examine the effects of culture on the performance levels. The strong culture of an organization is able to affect the long-term based performance or the economic performance. Organizational culture is helpful in the proper development of the competitive advantage of an organization. Strong culture of an organization is able to act as a major driving force that is able to improve levels of performance.

As argued by Hyland, Lee and Mills (2015), the commitment of the employees and levels of self-confidence are also affected by the culture within the organizations. A sustainable and aggressive advantage is offered to the modern organizations with the proper development of a strong culture. The weak and strong cultures of the organizations are able to have a major impact on the organizational behaviour and the reduction stress levels of the employees as well. The improvement of organizational performance is based on the major levels of support that are provided by the culture of the organization.

According to Jung and Yoon (2015), the competitive advantage that is gained by an organization in the environment is based on the strength of the culture that has been implemented effectively. The beliefs and values of the employees in the organization are quite different from each other. The culture that has been developed in the organization is considered to be an important factor that has affected the performance levels. The impact of strong organizational culture on the performance levels of modern organizations is considered to be positive. However, the development of the common goals of the employees and alignment of the goals with the organizational objectives is considered to be an important factor for the formation of positive environment in the organizations (Jyoti and Dev 2015).

The effect of strong organizational culture on the organizational performance and work process of the employees can analysed in a detailed manner with the help of practical examples of global organizations. Zappos has been able to develop its position in the industry with the help of its fantastic organizational culture. The organization is mainly known for selling shoes online and has been able to provide opportunities to the employees based on growth. The cultural fit based aspects are highly important for the revenues and levels of profitability of the organization as well. The benefits that are provided to the employees are helpful for the organization to develop a dedicated and fun filled workplace (Körner et al. 2015).

Performance based concept

The employees of the organization are hired based on the cultural fit. Southwest Airlines is another major organization that is able to attract the loyal customers with the help of friendly and happy employees. The organization has been operating in the airlines industry for more than 40 years and has been able to communicate the vision and goals to the employees. The employees of Southwest Airlines are able to go an extra mile in order to provide happiness to the customers (Navimipour and Soltani 2016).

Twitter is an example of another multinational technological organization that has been able to develop a positive and strong culture for the employees. The employees of Twitter are also quite happy about the culture of the organization and different activities that are performed including, rooftop meetings, team-oriented environment and friendly co-workers. The members of different teams in Twitter are pleasant and friendly to each other (Valmohammadi and Roshanzamir 2015).

A major oil and gas based organization named Chevron has developed a strong organizational culture. The employees of Chevron are able to respond in a positive manner to the culture of the organization. Chevron cares for the employees by offering them health and fitness based benefits to them. The employees are also insisted to take regular breaks in the working hours (Walker, Chen and Aravind 2015).

Google is a major example of an organization that depicts a strong organizational culture which is further able to impact the performance as well. The performance levels of the organization are affected by the great culture that has been developed in Google. Google has been followed as an example of strong and positive organizational culture by many organizations in the technology based industry. Different benefits that are offered to the employees of Google include, parties and employee trips, free meals, open presentations provided by the high-level executives, dog friendly environment and gyms (Yahaya and Ebrahim 2016).

The Googlers are mainly known in the environment for their talent levels and being the best in the industry as well. Google has shown immense levels of growth and has been able to increase its revenues in the technology industry with the help of the culture that it has developed by the organization. The increase in size of the organization has led to the lack in uniformity of the culture of Google. The reviews that have been received by Google are mainly based on the perks, pay and the levels of advancement as well. The management of the organization has thereby aimed at reducing the stress levels of the employees that is related to the competitiveness of the environment (Valmohammadi and Roshanzamir 2015).

The analysis of the examples of different organizations with a strong organizational culture have been able to depict the strength of the culture is able to provide major levels of support to the performance levels. The performance of the organizations is based on the productivity of the employees. A positive working environment is thereby able to ensure that the employees are able to provide the highest levels of performance (Jyoti and Dev 2015).

Conclusion

The essay can be concluded by stating that a strong organizational culture has a major impact on the performance levels of the organizations. The development of positive culture leads to the formation of a positive working environment as well. This is considered to be a major factor that is able to increase the productivity levels of the employees. The analysis of relevant literature and researches made by different organizations have been able to depict that the organizations have improved and enhanced the performance levels in an effective way. The modern organizations have aimed at improving the organizational culture in order to enhance the levels of performance in the competitive industry. The competitiveness in the industry is considered to be an important factor which is able to affect the culture.

References

Ahammad, M.F., Tarba, S.Y., Liu, Y. and Glaister, K.W., 2016. Knowledge transfer and cross-border acquisition performance: The impact of cultural distance and employee retention. International Business Review, 25(1), pp.66-75.

Alagaraja, M. and Shuck, B., 2015. Exploring organizational alignment-employee engagement linkages and impact on individual performance: A conceptual model. Human Resource Development Review, 14(1), pp.17-37.

Barakat, L.L., Lorenz, M.P., Ramsey, J.R. and Cretoiu, S.L., 2015. Global managers: An analysis of the impact of cultural intelligence on job satisfaction and performance. International Journal of Emerging Markets, 10(4), pp.781-800.

Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability management to develop a sustainable organization. Journal of Cleaner Production, 140, pp.81-92.

Eisenbeiss, S.A., Van Knippenberg, D. and Fahrbach, C.M., 2015. Doing well by doing good? Analyzing the relationship between CEO ethical leadership and firm performance. Journal of Business Ethics, 128(3), pp.635-651.

Engelen, A., Gupta, V., Strenger, L. and Brettel, M., 2015. Entrepreneurial orientation, firm performance, and the moderating role of transformational leadership behaviors. Journal of Management, 41(4), pp.1069-1097.

Forés, B. and Camisón, C., 2016. Does incremental and radical innovation performance depend on different types of knowledge accumulation capabilities and organizational size?. Journal of Business Research, 69(2), pp.831-848.

Guerci, M., Radaelli, G., Siletti, E., Cirella, S. and Shani, A.R., 2015. The impact of human resource management practices and corporate sustainability on organizational ethical climates: An employee perspective. Journal of Business Ethics, 126(2), pp.325-342.

Hyland, P.K., Lee, R.A. and Mills, M.J., 2015. Mindfulness at work: A new approach to improving individual and organizational performance. Industrial and Organizational Psychology, 8(4), pp.576-602.

Jung, H.S. and Yoon, H.H., 2015. The impact of employees’ positive psychological capital on job satisfaction and organizational citizenship behaviors in the hotel. International Journal of Contemporary Hospitality Management, 27(6), pp.1135-1156.

Jyoti, J. and Dev, M., 2015. The impact of transformational leadership on employee creativity: the role of learning orientation. Journal of Asia Business Studies, 9(1), pp.78-98.

Körner, M., Wirtz, M.A., Bengel, J. and Göritz, A.S., 2015. Relationship of organizational culture, teamwork and job satisfaction in interprofessional teams. BMC health services research, 15(1), p.243.

Navimipour, N.J. and Soltani, Z., 2016. The impact of cost, technology acceptance and employees’ satisfaction on the effectiveness of the electronic customer relationship management systems. Computers in Human Behavior, 55, pp.1052-1066.

Valmohammadi, C. and Roshanzamir, S., 2015. The guidelines of improvement: Relations among organizational culture, TQM and performance. International Journal of Production Economics, 164, pp.167-178.

Walker, R.M., Chen, J. and Aravind, D., 2015. Management innovation and firm performance: An integration of research findings. European Management Journal, 33(5), pp.407-422.

Yahaya, R. and Ebrahim, F., 2016. Leadership styles and organizational commitment: literature review. Journal of Management Development, 35(2), pp.190-216.

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