Organizational Culture & Organizational Performance

 

  

 

Organizational Culture is the commonly held beliefs, attitudes and values that exist in an organization. Simply, culture is ‘the way we do things around here’.

Furnham and Gunter (1993)

Organizational culture can be formed based on different orientations/ factors.

Link between Organizational culture and Strategic Human Resource Management?
Strategic HRM is an approach to the strategic management of human resources in accordance with the intentions of the organization on the future direction it wants to take.
(Armstrong, 2007)

Culture of an organization is something that has developed over a long period of time and as a result it has got embedded in to its people. In other words, it defines how the decisions are made, how people behave, how the organization differentiate itself, the approach towards competitors as well as how organization would impacts its social cultural environment.

Main aspects of organizational culture are,
1.       Values
2.       Norms
3.       Artefacts
4.       Leadership styles

(Campodonico, 2011)
Strategic Human Resource Management needs to be formed based on these cultural aspects, unless otherwise there will be a huge disconnect between how employees operates and how HR expect them to operate.
Organizational Culture and Organizational Performance

Performance of an organization depends 100% on its employees.

And it is the organizational culture that promotes/ (or not) empowerment, work life balance, diversity of work force, digitalization of operations, research and innovations … etc. These factors leads to employee motivation, engagement, retention as well as attraction of potential candidates.

If we consider 3M as an examples, anyone keen on innovations would like to join the company as 3M is well known as an organization with innovative culture.

When we take, Google is offers a unique culture to its employees which is highly technically driven, creative and extra sophisticated working environment.

Simply organizational culture can make an organization a great place to work and the same will drive it s employees for better performance.

Organizational culture impacts the external environment as well. If the organizations value ethical conduct of operations, rules against child labor, compliance in terms of working hours, safety … it will contribute towards creating a positive image of the organization in the eyes of customers, suppliers and shareholders. As a result, same as potential candidates there will be customer, suppliers keen to be in business with the organization.

Hence organizational culture plays a major role in how organization position itself in the eyes of both macro and micro environments.

References

Armstrong, M. (2007). A Handbook of Human Resource Management Practice. In M. Armstrong, A Handbook of Human Resource Management Practice (p. 115). London &Philadelphia: Kogan Page.

Campodonico, S. P. (2011). Culturology: Using Organizational Culture for Strategic Growth. In S. P. Campodonico, Culturology: Using Organizational Culture for Strategic Growth (p. 32).

Gunter, F. a. (n.d.). Organisational Culture. Retrieved December 23, 2017, from iwise2.com: https://www.iwise2.com/organisational-culture

Johnson and Scholes. (1993).

R.K.Dwivedi. (1995). Organizational Culture and Performance. In R.K.Dwivedi, Organizational Culture and Performance (p. 30). New Delhi: Ansari Printers.