Preview

Organizational Culture and Performance – Evidence from the Fast Food Restaurant Industry

Powerful Essays
Open Document
Open Document
8730 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Organizational Culture and Performance – Evidence from the Fast Food Restaurant Industry
Blackwell Science, LtdOxford, UKFSTFood Service Technology1471-5732Blackwell Publishing Ltd, 20055••2334Original ArticleCulture and performanceT. Øgaard, S. Larsen & E. Marnburg

Peer review

Organizational culture and performance – evidence from the fast food restaurant industry
Torvald Øgaard,* Svein Larsen*† and Einar Marnburg*
*The Norwegian School of Hotel Management, Stavanger University, Stavanger, Norway; †Department of Psychosocial Science, University of Bergen, Bergen, Norway

Abstract
Correspondence: Torvald Øgaard, The Norwegian School of Hotel Management, Stavanger University, N-4036 Stavanger, Norway. Tel: +47 51 83 15 97; Fax: +47 51 83 37 08; E-mail: torvald.ogaard@nhs.his.no Keywords: hospitality industry, organizational culture, performance, restaurant management

This paper explores the relationship between organizational culture and the performance of managers in the restaurant industry. We also introduce the managers’ job efficacy and commitment to the organization as variables intervening between organizational culture and performance. Data were collected in a restaurant/fast food operation which included franchisees as well as employed managers. Results suggest that there are relationships between culture and manager’s efficacy and organizational commitment, and that some cultural aspects are related to performance variables such as personnel cost and additional sales. In addition, managers’ commitment and efficacy are also related to performance.

General background
In multi-outlet operations within the service industry, there has been a tendency to ‘production-line’ (Levitt 1972, 1976) service deliveries. As evidenced in the phenomenal success of franchise operations within the fast food business, the ‘production-lining’ and accompanying division of labour has allowed specialization and efficiency that may be very successful. However, two trends may have major influence on the viability of the continuing success of the standardized



References: © Blackwell Publishing Ltd. 2005 Food Service Technology, 5, pp. 23–34 Culture and performance T 33 Fitzgerald L, Johnston R, Brignall R, Silvestro R, Voss C (1991) © Blackwell Publishing Ltd. 2005 Food Service Technology, 5, pp. 23–34 34 Culture and performance T. Øgaard, S. Larsen & E. Marnburg Schein EH (1992) © Blackwell Publishing Ltd. 2005 Food Service Technology, 5, pp. 23–34

You May Also Find These Documents Helpful

  • Better Essays

    Functions Paper

    • 1430 Words
    • 6 Pages

    References: Powers, T., & Barrows, C. (2006). Management in the Hospitality Industry (8th ed.). Simultaneously, Canada: John Wiley&Sons Inc.…

    • 1430 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    West Jest vs Air Canada

    • 1204 Words
    • 5 Pages

    References: Barney,J.B, 1986, Organizational Culture: Can it be a source of Sustained Competitive Advantage? Academy of Management Review, 11, 656-665…

    • 1204 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Osoian, C., & Petre, A. (2013, Dec). Human Resource Management Practices and Hotel Innovation. Studia Universitatis Babes-Bolyai, 58(3), 80-89. Retrieved from http://p2048-www.liberty.edu.ezproxy.liberty.edu:2048/login?url=http://search.proquest.com.ezproxy.liberty.edu:2048/docview/1492958461?accountid=12085…

    • 1091 Words
    • 3 Pages
    Good Essays
  • Best Essays

    The essay will outline the positive and negative impacts that identity and corporate culture can cause to the hospitality industry if not incorporated correctly by the managers of the organizations, which can then cause a rejection of the culture and therefore affect an individual’s performance, which in the long run will affect the organisations performance when it comes to competition.…

    • 2449 Words
    • 10 Pages
    Best Essays
  • Best Essays

    Worsfold, P (1989) ‘Leadership and managerial effectiveness in the hospitality industry’, International Journal of Hospitality Management, 8(2), 145-155.…

    • 2456 Words
    • 10 Pages
    Best Essays
  • Best Essays

    Annotated Bibliography

    • 1702 Words
    • 7 Pages

    Since culture plays a significant role in how the employees and managers work in the firm,…

    • 1702 Words
    • 7 Pages
    Best Essays
  • Good Essays

    Every industry to include the hospitality industry is impacted by external factors which directly influence organizational behavior and decision making. There are numerous factors to be considered, but political, economic, and social are three of the most influential. These outside factors sway managerial operational decisions daily regarding personnel, spending, policy, and short-term and long-term strategic planning concerning both core and exterior operations. As within every industry, the hospitality industry has unmanageable elements that affect management or ownership of hospitality establishments (Lewis 2017). Understanding these factors is important because it provides an opportunity for contingency planning (Lewis, 2017). The…

    • 953 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Boutique Hotels

    • 4081 Words
    • 17 Pages

    References: 6.1. (2011). France, 4 652 '00.29"N, 0 53 '57.66"E, 149. 731.30. [Accessed 5th December 2011]. Available from: earth.google.com. Big Hospitality, 2011.UK performance the past, present and future. [Online] Available at: www.bighospitality.co.uk/Trends-Reports/UK-hotel-performance-the-past-present-and-future [Accessed 1 December 2011] Big Hospitality, Unknown Date, UK Hotel Report, available at: http://www.bighospitality.co.uk/Trends-Reports/UK-hotel-performance-the-past-present-and-future, (accessed December 2011) Bizymoms Hotels, date unknown, The History of Boutique Hotels, [online] Available at: http://www.bizymoms.com/besthotels/boutique-hotel.html [Accessed 12 November 2011]. Boutique Hotels, date unknown, Homepage, [online] Available at: http://www.boutiquehotelswebsite.co.uk/ [Accessed 12 November 2011]. Callan, R.J, Fearon R, (1997). Town house hotels - an emerging sector. International Journal of Contemporary Hospitality Management, Vol. 9 Iss: 4, pp.168 – 175. Caterer and Hotel keeper(2010).Tim and Kit Kemp-what we think. Available at:http://www.caterersearch.com/Articles/01/07/2010/334121/Caterersearch.com-100-Tim-and-KitKemp.htm (Accessed 22rd November 2011) Deloitte, March 2011, French Hotel Industry Performances, [online] Available at: http://rss.hsyndicate.com/file/152004581.pdf, [Accessed 10 December 2011] Design Hotels (2011) Murano Resort Paris, available at: http://www.designhotels.com/hotels/europe/france/paris/murano_resort_paris (accessed November 26th 2011) Hotel facilities for a number of boutique hotels in France (2011) Available at: http://www.greatsmallhotels.com/france/blanquefort/boutique-hotels/chateau-grattequina Accessed on: 16th December 2011) Hotel Facilities for a number of boutiques (2011) Available at: http://www.mrandmrssmith.com/us/hotel-search-results. (Accessed on December 16th 2011) Hotel Facilities for a number of boutiques (2011) Available at: http://www.mrandmrssmith.com/us/hotel-search-results. (Accessed on December 16th 2011) Hotel Petit Paris (2011), Home Page, available at: http://www.hotelpetitparis.com/uk/index.php. (Accessed 21st November 2011) Hughan Design,(2011). Boutique Hotel Sumit 2011, Available at: http://hughandesign.com/news/category/hd-news/boutique-hotel-summit-2011.(Accessed 11th November 2011). 9…

    • 4081 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Behind every successful leader is a vibrant culture that engages and energizes employees. In almost every case, that culture has been defined, shaped and personified by the leader. Shaping a culture is a formidable task, since many of the valuable qualities a leader might have are never taught in a classroom. Culture is defined as "the set of key values, assumptions, understandings, and norms that is shared by members of an organization and taught to new members as correct." In a culture-driven company emotional maturity, authenticity, and a strong character are all necessary for a leader to be effective. All of these things can be learned through lessons and life experience. There are three levels that culture consist of; artifacts, expressed values, and underlying assumptions. Leaders must understand these levels if they are to institutionalize the values that led to the success that the company is involved in. Cultures serve two important functions in an organization. It integrates members so that they know how to relate to one another and it helps the organization adapt to the external environment. Not only do leadership and culture coexist inside an organization, but it also exist through connections and new marketplaces as more and more organizations expand their sales around the globe; not only to the other side of the United States, but also to the other side of the world through global teams. Leaders need to be conscience of culture if the are to lead. Otherwise they will only manage a group of people rather than lead them. Organizational culture and leadership are very important to each other. Leaders need a strong culture to produce a well knit team; culture allows a team to develop internal integration, external adaptation, and cultural leadership.…

    • 1579 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Organizational culture is defined as the “shared social knowledge within an organizational regarding the rules, norms, and values that shape the attitudes and behaviors of its employees. It is one of the most important building blocks for a highly successful organization and an extraordinary workplace. Organizational success relies on the how to operate the business in a effective and productive way. Leaders of the organizations are looking for effective ways to organize business in an simple way. Employers who get involvement in the management is responsible for leading employees to understand organizational culture. If members of organizations can understand the organizational culture very well, their performance can be improved effectively.…

    • 611 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Organizational Culture

    • 813 Words
    • 4 Pages

    The definition of culture varies with an estimate of 164 individual definitions of organizational culture. One potential catalyst for the number of definitions comes down to the application of theory to the abstract concept of culture within an organization. The more theorist and different organizational fields of study you have the more individual definitions are spawned. Though there may be many definitions of culture one point is understood, the strength of a company is directly related to how culture is rooted in its strategies and way of doing business. Culture acting as a corner stone allows the company to take risks being more innovative as the company expands and succeeds. Culture defines the company becoming a brand from which both employees and customers will flock to. This paper will discuss organizational culture. More specifically, this paper will open by looking at what organizational culture is before covering the history of culture, cultural functions and four types. This will be followed by discussing some of the common theories and models of culture before turning to discuss the importance of leadership within organizational culture. This paper will conclude by addressing elements of organizational culture and how to manage organizational culture. Three high performance organizations will be examined to compare high to low performance companies.…

    • 813 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    OJT REPORT

    • 1887 Words
    • 9 Pages

    This Narrative Report on the “ON-THE-JOB TRAINING: Max’s Restaurant” prepared and submitted by Ms. Charisse D. Marentes in partial fulfillment of the requirements for the Degree of BACHELOR OF SCIENCE IN INDUSTRIAL TECHNOLOGY major in FOOD TECHNOLOGY has been examined for acceptance and approval.…

    • 1887 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    BUSINESS AND FINANCIAL DE

    • 2577 Words
    • 18 Pages

    Aleksandra Stanković Miloš Mitrić MBA, CPA, CFE, Cr. FA Faculty of Hotel Management and Tourism Vojvođanska nn, 36210 Vrnjačka Banja, Serbia aleksandra.stankovic@kg.ac.rs Faculty of Hotel Management and Tourism Vojvođanska nn, 36210 Vrnjačka Banja, Serbia milos.mitric@kg.ac.rs Ph.D. Snežana Knežević Faculty of Organizational Sciences Jove Ilića 154, 11000 Belgrade, Serbia snezana.knezevic@fon.bg.ac.rs…

    • 2577 Words
    • 18 Pages
    Powerful Essays
  • Powerful Essays

    1. Testees (or participants) all present positive and active points of view about organizational culture and service innovation’s influences on business performance.…

    • 8791 Words
    • 37 Pages
    Powerful Essays
  • Best Essays

    Motivation

    • 3131 Words
    • 13 Pages

    Mărăcine, M 2012, 'ORGANIZATIONAL CULTURE - BASIC ELEMENT OF ORGANIZATION PERFORMANCE ', Young Economists Journal / Revista Tinerilor Economisti, 9, 18, pp. 149-155, Business Source Complete, EBSCOhost, viewed 6 May 2013.…

    • 3131 Words
    • 13 Pages
    Best Essays