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Literature review

Effect of organizational culture on organizational performance

Engr.Hafeez Ur Rehman
BS Electronics Engg. UCET IUB
MS Electrical Engg. UET Lahore
MBA Exec. VU Pakistan

Abstract:

The objective of this review article is to demonstrate the relation between two variables i.e. organization’s culture & its performance. After study and analysis of wide literature, it is reasoned out that organizational culture has deep impact on the variety of organizational process, employees and its performance. This also describes the different dimensions of the culture which have impact on organizational performance. Research shows 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.

What is an Organizational Culture?

Organizational culture is the set of shared values, beliefs, and norms that influence the way employees think, feel, and behave in the workplace (Schein, 2011). Organizational culture has four functions: gives members a sense of identity, increases their commitment, reinforces organizational values, and serves as a control mechanism for shaping behavior (Nelson & Quick, 2011).
Organizational culture facilitates the acceptable solution to know the problems, which members learn, feel and set the principles, expectations, behavior, patterns, and norms that promote high level of achievements (Marcoulides & Heck, 1993; Schein, 1992).

What is an Organizational Performance?

Performance is a broader indicator that can include productivity, quality, consistency, and so forth. On the other hand, performance measures can include results, behaviors (criterion-based) and relative (normative) measures, education and training concepts and instruments, including management development and leadership training for building necessary skills and attitudes of performance management (Richard, 2002).
Undoubtedly the

References: Bulach, C., Lunenburg, F. C., & Potter, L. (2012). Creating a culture for high-performing schools: A comprehensive approach to school reform (2nd ed.). Lanham, MD: Rowman & Littlefield Nelson, D Kotter, J. (2012). Corporate culture and performance. New York, NY: Free Press. Marcoulides, G. and Heck, R.H. (1993). Organizational Culture and Performance: Proposing and Testing a Model, Organizational Science, 4(2) : 209-223. Schien, E.H. (1992). Organizational Culture and Leadership, 2nd Edition, San Francisco; Jossey-Bass. Richard, C. (2002). Experiments with New Teaching Models and Methods. Ernst, H. (2001). Corporate culture and innovative performance of a firm. Management of Engineering & Technology, 2, 532-535 Kopelman, R. E., Brief, A. P., & Guzzo, R. A. (1990). The role of climate and culture in productivity. In B. Schneider (Ed.), Organizational climate and culture (pp. 282-318). San Francisco, CA: Jossey-Bass. Denison, D. R. (1990). Corporate culture and organizational effectiveness. New York, NY: Wiley. Bulach, C., Lunenburg, F. C., & Potter, L. (2012). Creating a culture for high-performing schools: A comprehensive approach to school reform (2nd ed.) Siehl, C. & Martin, J. (1998), Measuring Organizational Culture: Mixing Qualitative and Quantitative Methods, in Jones, M.O, et al Ittner, C.D. and Larcker, D.F. (1998). Innovations in Performance Measurement: trends and research implications, Journal of Management Accounting Research, Vol.10, 205-38.