Influence Of Organizational Culture On Corporate Performance

In corporate culture, equality, talent, aptitude, ethics and loyalty develops the outlook for any employee from all the directions. Managers keep the supposed contemplations in the notice to decide the employees’ future responsibilities and pay scale. In fact, Compensation is always based on employees’ performance, loyalty towards the organization, job exploration, reliability factors, utility, and reputation in the internal environment of the business and so on. Also, sometimes, financial statistics of the company, salary grade, current salary, appraisal rating play a key role in disseminating bonus and other salary and job analysis decisions (Garen, 2006). However, it might happen that internal politics, hegemony, nepotism have a big part for the compensation and job related decisions as well.

Organizational culture shapes and reinforces certain employee attitudes and behaviors by creating a system of control over employees.

Organizational culture is the heart of the organization performance it is critical for organizational success. It is a culture in which the core values are intensely and widely shared among the employees and stake holders.

Culture effects performance! Each structural culture operates differently; in order for them to properly function they must combine their processes. These processes would include management styles, pay structures, capacity to communicate, compromise, understanding and accepting different cultures, conforming to meet planned goals, the ability to maintain and meet a new combined culture and working structures. An organizational culture’s effectiveness is determined by: coherence, persuasive and depth, and adaptability to

These include: basis for pay, skill-based pay, pay-for-knowledge programs or differential pay within a specific job, seniority based pay, performance based pay, or pay rates relative to market rates (market rate, above market rate, or below market rate). These strategies carry significant financial costs as well as employee morale, motivation, and productivity costs (DeNisi etal, 2008, pp. 288-290). In order to develop an effective and competitive pay system four basic tools are needed; updated job descriptions, a job evaluation method, pay surveys, and pay structure. Having an updated job description gives key tools in the design of pay systems to identify important characteristics of each job to determine worth to identify, define, and weigh compensable factors. The job evaluation method allows organizations to rate the worth of all jobs using a predetermined system. Pay surveys identify and survey pay rates in relevant labor markets to obtain the fair market value. Lastly, a pay structure establishes pay grades or ranges characterized by a point spread from minimum to maximum for each grade (Cascio, 2006, pp. 424-430).

An organization’s culture shapes the attitudes and behaviors of its employees by defining boundaries, providing a sense of identity and stability. It also establishes a standard in regards to what employees should say and do. Culture can be transmitted via stories, rituals, material symbols and language. Culture within an organization is no exception.

Corporate culture is refers to as the beliefs and behaviors that determine how a company employees and management interact and handle outside business transactions. It 's the attitudes, standards, and beliefs that characterize members of an organization and which defines its nature. Corporate culture by definition affects a firm 's operations as information is passed from management downward and outward, through the organization. it is also stated that, a healthy company culture may increase employees ' commitment and productivity, while an unhealthy culture may inhibit a company 's growth or even contribute to a business failure. In a healthy culture, employees view themselves as part of a team and gain satisfaction from helping the overall success of a company. When employees knows that they are contributing to a successful group effort, their level of commitment and productivity, and to the quality of the company 's products or services, are likely to improve. Employees in an unhealthy culture tend to view themselves as lowner, distinct from the company, and focus on their own needs. Who only performs the most basic requirements needed for their jobs, and their main motivation is their paycheck.

Since organization culture is the combination of many factors there are several factors that could affect it. Among the internal factors to consider are the company’s approaches to their processes, is the company more into results and profits or product quality and employee’s safety. Management style is another important feature that affects corporate culture micromanage companies tend to have less motivated employees. Technology these days influence organizations at all levels as the company’s approach to technology will go hand on hand with bettering processes. New factor affecting corporate culture these days is the different work arrangements that are needed these days with the implementation of flexing time and tele-working had commuting acceptable. The management approach to work environment, communication style will definite affect organization culture.

The Effects of Organizational Structure, Culture and Management Style on the Performance of a Business

Over the past few decades Scholars and laymen have been focused on how an organization’s culture affects performance and the overall effectiveness of an organization. This discussion dates back to the early discussions regarding organizational culture (SHRM.org, 2012). In 1994, D. Dension used a survey to show how there was a direct correlation between how involved employees were and how well an organization would do financially in the future (SHRM.org).

According to (Organic Workspaces, n. d) an organization’s culture refers to the observable, powerful forces in any organization, usually constituted by the employees’ shared values, beliefs, symbols, and behaviors. The organizational culture ideally influences its decisions and actions (Tharp, n. d). (Watkins, 2013) also defines organizational culture as a consistent and observable pattern of behavior in organizations. An organization’s culture channelizes individual decisions and actions at a subconscious level, and thus, can have a potent effect on an organization’s success. Organizational cultures facilitate the existence of a common ground for all stakeholders, particularly the employees and managers in addressing various issues within

Organizational culture is a vital aspect of any successful business or organization. A positive culture can help attract and retain loyal and committed employees, which, in turn, can strengthen relationships with customers and other partners. Just like any other asset, organizational culture must be monitored and nurtured to ensure that it reflects the organization and its

Organizational culture has an effect on the effectiveness of leadership. If the organizational culture is strong, it could influence the way leadership is created. If it is weak, the leadership models will also be imagined and implemented in different ways. Therefore, we will be able to find which key factors will positively or negatively influence the leadership effectiveness.

Can culture affect an organizations performance? The study of organizational culture, explores a wide range of factors which affect organizations. Each company creates their own culture based on the industry, people and goals. This summary will focus on culture within organizations and the issues, challenges and best practices that encompass it; while focusing on the technological industry.

The relationship between corporate/organizational culture and organizational performance/effectiveness has attracted the attention of numerous academic and business authors for many years. Some researchers have studied culture from a strategic perspective and argue that corporate culture can generate significant competitive advantages for a company (Barney 1986, Wilkins and Ouchi 1983). Other authors have developed explicit theories of corporate culture and organizational performance (Denison and Mishra 1995, Kotter and Heskett 1993).In addition, authors like Hofstede (1980), Trompenaars (1994, cited in Ghoshal and Bartlett 1998), and Adler (2002) who have conducted cross-cultural investigations on organizational culture, support that most management theories and practices should be modified in order to be adopted into different national contexts. The Corporate/Organizational Culture Academic research on the field of organizational culture and performance came on the surface over the year 1980. During the next years the concept attracted the immense interest of the business as well as the academic world and created a phenomenon known as the “culture revolution”.