The Importance Of Organizational Culture In Organizational Performance

Correlation Organization Culture Performa

Correlation Between Organizational Culture and Performance

What Is The Importance Of Organizational Culture In Organizational Performance?

How Organizational Culture Is Correlated With Firm Performance?

What Are The Differences In Organizational Performance Of Strong Organizational Culture And Weak Organizational Culture?

What Possible Strategic Changes Are Required In Organizational Culture For Enhancing Organizational Performance?

The aim of this research study is to explore the correlation between the organizational culture and performance of the firms. The research study will give much focus on building strong organizational culture for enhancing the performance level of the organizations. Throughout the research, this research study will highlight different aspects of strong organizational culture that have strong influence on enhancing the success level of the organizations. management the outcome of the research study will indicate the way in which the organizations having strong organizational culture outperform the comparative firms lacking these characteristics.

Organizational culture provides the framework of employee behavior in an organization. The shape of organizational culture is dependent on the values, norms, code of conduct and behavior of the employees. According to Hogan and Coote(2014), organizational culture is set of different behavior and culture, which may guide the success level of organizations. Effective organizational culture helps the employees to understand the organizational stands and its operations. Hence, such organizational culture can better guide the employees towards the main focus of organizations leading to high level of organizational success. An organizational culture, where the employees are considered as an important part of organization growth, can better foster the employee commitment towards organizational success. On the other hand, Valmohammadi and Roshanzamir(2015) opined that open communication in an organization culture facilitates the employees to better understand the organizational goals and objectives. In this way, they can effectively focus on those goals and objectives for achieving organizational success. On the contrary, Ahammadet al. (2016) argued that organizations having closed organizational culture are unable to communicate the organizational goals and objectives to the employee properly. Hence, such employees always suffer from role conflict, which leads to decreased performance level of the employees leading to reduced organizational performance.

Organizational culture decides the adaptability of the organizations to adapt new and innovative business ideas. Lonial and Carter(2015) pointed out that the organizations having innovative organizational culture are always open to new and innovative business ideas for fostering innovation. In this way, such organizations can get high level of organizational success through offering innovative products and services. However, O’Reilly IIIet al. (2014) pointed out that the organizations having strict organizational culture limit the organizational innovation by restricting them to traditional business ideas. Hence, such organizations lag behind the innovative organization in terms of enhancing customer satisfaction. accounting to Cao et al.(2015), the employees of a flexible organizational culture can openly communicate with the upper management level. Hence, such employees can get huge support and cooperation from their upper mangers, which motivate them towards enhancing organizational performance through putting more effort.

This research study will discuss the correlation between organizational culture and performance level of the organizations. Moreover, the research study will demonstrate the way strong organizational culture helps the organizations to outperform the organization having weak organizational culture. For this research, the research study will research on two organizations of UAE namely The One Retail and Apparel Group. These two organizations are having differing organizational culture. The one is having strong organizational culture leading to high level of organizational success. However, Apparel Group is having weak organizational culture, which is somewhat restricting its ultimate organizational success.

Different Aspects of Strong Organizational Culture for Enhancing Success

The research study is aimed at exploring the correlation between the organizational culture and performance level of organizations.

• To identify the importance of organizational culture in organizational success
• To assess the correlation between organizational culture and firm performance
• To recognize the difference in organizational performance of strong organizational culture and weak organizational culture
• To identify the possible strategic changes are required in organizational culture for enhancing organizational performance

Flexible and open organizational culture has huge impact on the performance level of organizations. Open communication in flexible organizational culture facilitates the employees to better understand the organizations goals and stands. Proper understanding of organizational stands encourages the employees to work hard towards getting ultimate organizational success. On the other hand, organizational members in an open organizational culture are more likely to adapt with innovative business thoughts and ideas (Anderson, Poto?nik and Zhou 2014). Hence, such organizations can foster high level of organizational innovation towards meeting unique needs of customers. However, some organizations are still having traditional and weak organizational culture. Such organizations are restricting themselves with traditional thoughts and ideas, which limiting their innovation. Furthermore, closed organizational culture leads to restricted communication and non-cooperation between the employees and managers.

Likewise, the Apparel Group of UAE is having somewhat weak organizational culture. The employees are not able to communicate openly with their immediate supervisors. In this way, they are facing huge issues and complexities in their job roles, which are ultimately preventing their performance level. Furthermore, the organization is associated with somewhat traditional values, which is limiting their abilities in innovating more unique design of apparel.

Organizational culture shapes the value, belief, behavior, code of conduct and discipline of an organization. Strong organizational culture is considered as the driven force towards improving the performance level of organizations. According to Sarooghi, Libaers and Burkemper(2015), in strong organizational culture, the employees are considered as the most significant resources for organizational growth. Hence, such organizational culture enhances the enthusiasm level of the employees to work hard for getting high level of organizational success. Moreover, strong organizational culture makes the employees highly committed on achieving organizational success. On the other hand, Ramdhani, Ramdhani and Ainissyifa(2017) opined that flexible and innovative organizational culture encourages organizations to think beyond the traditional business ideas. Hence, such organizations are highly capable of offering customized and innovative products and services as per the unique demands of the customers. In this way, the organizations having strong organizational culture are highly effective in gaining high level of customer satisfaction. While considering the example of The One retail in UAE, it has adopted strong organizational culture, where the employees are allowed enough to share their own innovative ideas to manufacture furniture and other home accessories. In this way, the organization is highly capable of offering uniquely designed furniture and home accessories to the customers. Moreover, strong organizational culture is ultimately contributing in the customer satisfaction level of the organization.

In strong organizational culture, the employees can align the organizational goals with their individual goals. Hence, such employees feel responsible for the overall wellbeing and success of the organizations. According to Tseng and Lee(2014), cooperative organizational culture leads to warm cooperation among different departments of an organization. Such cooperation motivates the departments to help each other in solving their work complexities. Hence, such cooperative organizational culture leads to enhanced organizational performance through reducing organizational complexities. On the other hand, Barricket al. (2015) opined that a non-cooperative organizational culture encourage the organizational departments to undermine each other’s performance, which ends up having conflicting working situation and reduce departmental performance. The organizations having strong organizational culture are more likely to retain talented employees for longer period of time. Moreover, the employees can openly share their issues with high level management in an open organizational culture. In this way, such employees get immediate support and solution for their issues, which reduce the degree of employee dissatisfaction. Hence, less number of employee are likely to leave such open and flexible organizational culture leading to less attrition rate of talented employees.While considering the example of AMZ Group of UAE, the organization always follows cooperative and collaborative organizational culture among different departments. In this way, the organization has been getting constant success is each of its business portfolio over the world.

Adaptability of Organizations to New and Innovative Business Ideas

Hofstede’s cultural model has huge contribution in improving the organizational culture in a business organization. This model can be perfectly used to create strong organizational culture, which has high level of correlation with organizational performance. As per this theory, performance oriented organizational culture is shaped based on six dimensions namely Power distance index, Individualism vs. collectivism, Uncertainty avoidance index, Masculinity vs. femininity, Long-term orientation vs. short-term orientation and Indulgence vs. restraint.

According to Lonial and Carter(2015), the organizations having low degree of power distance follow equal organizational power distribution among the organizational members. Hence, the employees can free share their opinions towards organizational success. On the other hand, Anderson, Poto?nik and Zhou(2014) opined that the employees can work in collaborative working environment in collectivism organizational culture. In this way, the teamwork of such organizations ultimately enhance overall organizational performance. The organizations, which follow femininity, are more likely to provide equal power to both male as well female employees. Hence, such organizations can exploit the real talent of high talented female employees for getting organizational success. On the other hand, Beugelsdijk, Maseland and Hoorn(2015) opined that the organizations having high degree in long term orientation are more likely to adopt innovative thoughts and ideas for business development. Hence, such organizations can get long term success through adapting themselves with the changes in the market.

Positivism research philosophy will be selected for conducting this research study. Positivism philosophy helps in gathering most authentic and factual information. Hence, such psychology helps in achieving accurate research result. On the other hand, research approach facilitates in gathering relevant and accurate information regarding the topic of the research. Inductive approach allows in creating new and innovative theories and models for gathering relevant information about the research topic. On the other hand, deductive approach allows in using previous theories and models relevant to the research topic for gathering most authentic research information. This research study will use deductive research approach, as it saves the time and budget of the research by allowing the use of previous theories and models. Research design assists in gathering useful information regarding different research variables. Explanatory design facilitates in identifying the relationship among various research variables. Furthermore, exploratory variables facilitates in gathering authentic information regarding the background of the research topic. Moreover, it gathers the social causes behind the research topic. On the other hand, descriptive research design helps in getting actual explanation of the research study. Hence, descriptive design will be chosen for this research to frame effective research objectives and questions to gather more relevant research information.

The research study will use primary method of data collection to gather most relevant research information. In this method, survey method of data collection technique will be used for gathering first hand data regarding the topic of the research. In this technique, the respondents will be selected from both The One retail and Apparel Group for comparing their organizational culture on their organizational performance. The respondents will be distributed with set of questionnaires relevant to the research topic. Moreover, the respondents will be allowed to answer the questionnaires from their own point of view. Furthermore, the gathered data from the respondents will be analyzed through SPSS software, where chi square test will be performed for analyzing the categorical variables of the research

The research study will be conducted by following the below mentioned stages:

• Determining the aim of research
• Framing the research objectives based on research aim
• Setting the research questions on the basis of research objectives
• Evaluating the involvement of research topic on the particular discipline
• Selection of appropriate theories and models relevant to organizational culture
• Collection of data from selected respondents
• Analysis of data through proper data analysis method

Reference List

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.

Anderson, N., Poto?nik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of Management, 40(5), pp.1297-1333.

Barrick, M.R., Thurgood, G.R., Smith, T.A. and Courtright, S.H., 2015. Collective organizational management: Linking motivational antecedents, strategic implementation, and firm performance. Academy of Management journal, 58(1), pp.111-135.

Beugelsdijk, S., Maseland, R. and Hoorn, A., 2015. Are scores on Hofstede’s dimensions of national culture stable over time? A cohort analysis. Global Strategy Journal, 5(3), pp.223-240.

Cao, Z., Huo, B., Li, Y. and Zhao, X., 2015. The impact of organizational culture on supply chain integration: a contingency and configuration approach. Supply Chain Management: An International Journal, 20(1), pp.24-41.

Hogan, S.J. and Coote, L.V., 2014. Organizational culture, innovation, and performance: A test of Schein’s model. Journal of Business Research, 67(8), pp.1609-1621.

Lonial, S.C. and Carter, R.E., 2015. The impact of organizational orientations on medium and small firm performance: A resource?based perspective. Journal of Small Business Management, 53(1), pp.94-113.

O’Reilly III, C.A., Caldwell, D.F., Chatman, J.A. and Doerr, B., 2014. The promise and problems of organizational culture: CEO personality, culture, and firm performance. Group & Organization Management, 39(6), pp.595-625.

Ramdhani, A., Ramdhani, M.A. and Ainissyifa, H., 2017. Conceptual Framework of Corporate Culture Influenced on Employees Commitment to Organization. International Business Management, 11(3), pp.826-830.

Sarooghi, H., Libaers, D. and Burkemper, A., 2015. Examining the relationship between creativity and innovation: A meta-analysis of organizational, cultural, and environmental factors. Journal of business venturing, 30(5), pp.714-731.

Tseng, S.M. and Lee, P.S., 2014. The effect of knowledge management capability and dynamic capability on organizational performance. Journal of Enterprise Information Management, 27(2), pp.158-179.

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

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