The Impact of Corporate Culture on Company Performance

The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. Once culture is established and accepted, they become a strong leadership tool to communicate the leader 's beliefs and values to organizational members, and especially new comers. When leaders promote ethical culture, they become successful in maintaining organizational growth, the good services demanded by the society, the ability to address problems before they become disasters and consequently are competitive against rivals. The leader 's success will depend to a large extent, on his knowledge and understanding of the organizational culture. The leader who understands his organizational culture and takes it seriously is capable of predicting the outcome of his decisions in preventing any anticipated consequences. What then is organizational culture? The concept of organizational culture has been defined from many perspectives in the literature. There is no one single definition for organizational culture. The topic of organizational culture has been studied from many perspectives and disciplines, such as anthropology, sociology, organizational behavior, and organizational leadership to name a few. Deal defines organizational culture as values,

This report takes a look at the Fortune 1000 company Wells Fargo in respect to organizational culture. Every organization is impacted by the cultural environment within the organization as well as in a specific industry which can impact the efficiency and effectiveness of the organization.

The organizational culture can encourage or discourage effectiveness, depending on the nature of the values, beliefs, and norms” (Ivancevich, Konopaske, & Matteson, 2011). Organizational culture can be very friendly, very task oriented, competitive or driven to be highly productive or it can be disorganized and unproductive. The culture is based on the history of the company and the atmosphere that is created and nurtured over time. This culture guides the language the employees use their loyalty and many more areas. Organizational culture is an important social characteristic that influences organizations, group, and individual behavior with in a company (Hartnell, Ou, & Kinicki, 2011). The Culture of an organization affects the way people behave, how they address customers, the atmosphere, perception, values, and beliefs. Employee’s performance and effectiveness can also be determined by an organization’s culture. Every organization has its own culture based on shared expectations, values and attitudes and its influence on individuals and groups (Ivancevich et al., 2011). People inside of an organization have a big effect on the culture because of their values, beliefs, and ideology. Companies try to hire people who have the same values as the company so that they will fit into the organization. People stay with organizations that have a

Organizational culture creates a unique identity that diversifies an organization from its opposition. Ogbonna & Lloyd (p, 32, 2002) defines organizational culture as “the collective sum of beliefs, values, meanings and assumptions that are shared by a social group and that

The sustained superior financial performance of a firm’s excellent management can be communicated through the managerial view of organisational culture, where strong culture can evidently been seen as the endeavour to an organisation’s success. (Barney 1986) emphasises the need for strong culture not only to enhance the firm’s performance, but it is also vital in improving employee morale or quality of work life. Due to the relationship between conflicts in the workplace originated from poor management, culture’s diverse values, assumptions, beliefs and symbols interweave the affiliation between employees and management. Culture therefore, aids in the behaviour which allows the increasing progress of economic value and sustained superior financial performance to the firm thus, benefiting their interest in profit maximisation (Ulrich & Brockman 2005). The progress of this management has been assisted by the careful selection and recruitment of employees through valid and reliable methods (Carmeli & Tishler 2004), with training and development in order to maintain this performance in the work organisation. Likewise, Westco, of the top five food retailing organisations in the UK is

Organizational culture comprises the fundamental values, assumptions, and beliefs held in common by members of an organization (O’Hagan, & Persaud, 2009). What is known is that employees often impart the organizational culture to their colleagues whereupon the culture effects how employees relate to one another and their work environment. What can be said is that the development of an organization’s culture is dependent on elements such as structure, change and policies (Urrabazo, 2006). Furthermore, according to Griffin, Moorhead and Gregory (2009), it is recognized that employee’s behaviours and attitudes can be influenced in a

Organizational culture is a set of key values, assumptions, and beliefs that are shared by an organization's members. The combined key values create a custom attitude or culture that is followed by the organization's members. The culture represents the "personality of the organization" (McNamara, 1999). Through the observation of employee behavior one can help predict an organization's culture that influences its business attitude. Organizational culture can also help distinguish two companies from each other. One company may have an aggressive culture while the other a more conservative culture. Most importantly, organizational culture is a key element that helps define, support and reinforces the standard for appropriate

The single most critical problem that the managers are facing today is managing the people.This is the most challenging issues that every kind of organizations is dealing with now aday. Organizational behaviour is the study of individual, group and organization as a whole that examines the effect of organizational structure and culture on organizational performance. Therefore, it mostly tries to define the performance and efficiency factors of anorganization.Organizational structure and organizational culture are highly correlated performance factors.It basically defines the appropriate structure of an organization in order to get more thanaverage performance. Organizational culture is a primary factor for employee turnover and job satisfaction (Bolden, 2004). If an organization possesses a strong culture of self-respect and employee affiliation, it is no wonder that the employee retention rate would be very high(Tracy, 2013).In this report, the relationship between organizational culture and organizational structure will be pointed out. While doing so we

Depending upon the strengths of the organization, the culture followed in the organization can have a pervasive impact on the effectiveness of the organization. Employees belonging

An organization’s culture governs day to day behavior. This type of power may be seen as a control mechanism, which businesses use to manipulate internal and external perception. Every organization has a set of assumed understandings that must be adopted and implemented by new employees in order for them to be accepted. Conformity to the culture becomes the primary basis for reward by the organization. “The role of culture in influencing employee behavior appears to be increasingly important in today’s workplace, as organizations have widened spans of control, flattened structures, introduced teams, reduced

The Culture of a Company, or the Organizational Culture like it is mentioned in Principles of Management, has gotten a new dimension for me in terms of importance to assure the success of a company. This Organizational Culture is based on a series of values that are defined and established by the founder of a company for instance, which has a deep relation with his ethics and moral values. Therefore, the first factor to outline would be what the culture of a company shows, that can describe already how their managers behave and think. Managers with good intentions will place their workers ahead of profits, image or technology. The Lincoln Electric Company is a good example of that. In this welding manufacturing company, there were

Company culture can have a major impact on an organisations success. This culture is known as organisational culture which is defined as a system of shared assumptions, value and beliefs that show people what is appropriate or inappropriate behaviour (Carpenter, Taylor, & Erdogan, 2009). These shared assumptions, values and beliefs strongly influence how well employees behave and how well a company will perform. “The factors that are most important in the creation of an organization’s culture include founders’ values, preferences, and industry demands.” (Carpenter, Taylor, & Erdogan, 2009). Different organisations have different and distinct cultures based on their needs. One company with a distinct organisation culture is Lincoln Electric Company. This essay look at the company’s culture by analysing the influence of the founders of the company, the performance appraisal system, the merit pay and bonus plan, the way people communicate in the company, and the management style of Lincoln Electric Company.

In many ways organisational culture helps to the organisation to achieve their goal and to formulate strategies and propaganda so that proper and effective decision making process should work in favour of the organisation. The organisation culture directly put effects on organisational policies like structure of the organisation , team behaviour, group psychology, working

The culture of an organisation can be seen as a set of core characteristics that are collectively valued by all members of that organisation; and, corporate culture is believed to be a key element in the success of any organisation (Visagie et al. 2002). Schein (2004) emphasises that organisational cultures provide group members with a way of giving meaning to their daily lives, setting guidelines and rules for how to behave and most important, reducing and containing the anxiety of dealing with an unpredictable and uncertain environment. The aim of this paper is to provide a clear demonstration of appropriate theoretical frameworks in relation to corporate culture; with the concentration on analysing its positive and negative influences

An organisation’s culture is defined as the values, attitudes and beliefs of the people working in an organisation that control the way they interact with each other and with external stakeholder groups. It defines what is ‘normal’ in an organisation, suggesting that it is possible for the same employee to act differently in different organisations. The reason why culture is important to a business is because it gives the business a sense of identity and shows how the people within the organisation view the world and respond to it in trying to achieve certain goals. Also, the culture of an organisation is a powerful force in any