CONTEMPORARY MANAGEMENT THEORY

CONTEMPORARY MANAGEMNET THEORY

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This essay will focus to explain the impact of organizational culture on performance of an
organization. Organization culture leads to influence its environment and deemed to be a
significant element for improved employees’ performance. Culture of organization is composed
of many different values as well as shared beliefs of employees who work within the
organization as the whole. Essay will present the role of organization culture on many different
organizational characteristics which are important to improve organizational productivity and
behavior. Characteristics of the culture within the organization can play the significant role in
growth as well as nourishment of employees and organizations ( Alvesson, and Sveningsson, 2015).
Essay will explain the different role and importance of culture in relation to improving the
employee’s commitment level, engagement level, and loyalty level to work. This discussion will
include the different articles as well as journals to present the impact of organizational culture on
an organization’s performance.

Culture of an organization is formed from different kinds of beliefs as well as attitudes of the
employees who perform in a company (Baird, Hu, and Reeve, 2011). Management of discrete
cultures in an organization which is substantial to be measured as it results within the design of
healthy environment that presents the level of progress. There has been different cultural
described which presents the nature of culture within the organization in an effective way. First
character is linked with invention and risk taking in which organization leads to encourage
employees to work with the risks and ensure innovation within the organization. Cultural
characteristic of creating the innovation and taking the risk is significant as it leads to assist the
organizations and employees to dig something inventive as well as influential which assists the
organizations within the different ways. Overall organizational performance can be valued when
level of improvements and modifications are applied within the businesses practices. Tolerance
against many risks can be created in organization through creating the right innovations to
accomplish the organizational strategic objectives and ambition.

Another important characteristic which leads to influence the organization is linked with level of
attention and focus of employee to work ( Birasnav, 2014). Organizational culture should be
formed within the way which enables every person to remain enough motivated to the goals and
focus to all objectives. There are many benefits of employees focus on work. This enables the
organization to improve the level of productivity. Overall when cultural values of the
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organization are deemed to put highly emphasis on employee commitment as well as loyalty to
perform then it creates at ultimate level integration response and positive response of employees
thus influencing performance of organization. There are many view point which focus on
attention of employees to improve the intrinsic motivation within the work. This result in
improve the performance of organization. Positive relationships between organizational culture
and culture leads to improve the organizational performance which is linked at direct level with
each other as culture is recognized as one of the significant element which support in
development of good terms amongst every employee.

Organizational performance is improved through organizational culture as it remains link with

stability in employees (Bortolotti, Boscari, and Danese, 2015). When organizations leads to support
the every employee to work within the environment in which their dignity is valued then it would
result within the balanced as well as positive atmosphere causing improved organizations
productivity. Stability is accomplished within the organization when different cultural values as
well as norms are reinforced. This eradicates workplace discrimination. This is acknowledged
that organizations moral become lower and devalued when cultural characteristics which
organization at deliberate level are not followed. Role played through the cultural elements and
characteristics on performance of organization cannot be neglected as all these factors found the
basis in relation to engagement of employees’ to work. Organizations which focus on providing
the many different opportunities to employees regardless of cultural differences gain progressive
response from each element (Büschgens, Bausch, & Balkin, 2013).

Generally organizational culture has substantial effect on employee performance and found the
linkage of growth because of the different aspects amongst which cultural characteristics of the
organization are one of them (Cook, and Yanow, 2011). Motivation, responsibility, stability, and
decision making capability amongst the every employee and organization can be developed with
the support of organizational cultural values and traits. In relation to accomplish the success,
progress, and enriched organization performance it is important to apply such characteristics
within the organization which values individuals beliefs as well as faith. Fairness to discrete
cultural elements of organization should be followed as the utmost level regarding the sake of
productivity and positivity within the organizations. Negative level of organizational culture can
lead to destroy the image and motivation of employees thus creating them to engage within the
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actions other than organizations strategic level objectives. This is obligatory that every
organization should apply effective culture in the business which improve the employee’s
motivation and improve the level of productivity (Hartnell, Ou, and Kinicki, 2011).

One of the effective and big organizations in UK is recognized as Unilever. The company is
working with application of the Denison Model. This has supported the organization to links its
culture to organizational performance. It has enabled the company to work with the four cultural
traits as the main base. These are mission, adaptability, involvement and consistency ( Hogan, and
Coote, 2014). Unilever is working with the mission to add vitality to life. In relation to achieve
the mission it is focused on successful procedure with clear level of direction and sense of the
objective that presents organizational objective to articulate the vision of how it will look in
future. In case of any change within the organizational underlying mission element of
organizational culture are changed to improve organizational performance. This was found that
businesses that are considered to be effectively integrated are not easy ones in relation to be
changed. Overall external level adaption as well as internal integration can be at many chances.
Organization like Unilever is adaptable within the cultural term which is driven through
customers. It is more willing to take the huge number of risks as well as learn from mistakes. The
company has the ability as well as experience in relation to creating the change. System within
the organization is modified at regular level for improving the collective capability and provides
the values to customers.

In today’s competitive business environment organization that consists of effective systems are
effectively coordinated, highly consistent and effectively integrated to use the strong culture as
well as work appropriately (Noruzy, et al., 2013). Unilever behaviors and attributes are recognized
as the roots of core values and leader and followers have the different view point but they are
skilled to improve the organizational performance on the basis of strong organizational culture.
Overall sort of consistency is recognized as the internal integration and powerful resource of
stability that will result from high conformity and general mindset. Everyone within the case of
Unilever works with the sense of involvement. Organizational culture has enabled Unilever to
work with the responsibility to ensure positive organizational performance through direct
relations to objectives of the organization.
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One of the effective organizations like Tesco has utilized the Hofstede cultural model and its
dimensions at frequent level. Organizational culture of Tesco presents the wider international
culture followed through it that is presented and practiced individually within the every location
and office. Power distance index in relation to Tesco refers that intensity and degree of inequality
which exists between people as well as different individual groups in an organization relied on
power they possess. Organization like Tesco is working with the low power distance culture. The
company is working with the flatter organizational hierarchy which supports to ensure visibility
and easier access to management. Decision making practices within the Tesco is decentralized.
This refers that regions group have the authority. Individualism versus collectivism presents the
nature of job works and activities in a business ( Obiwuru, et al., 2011). Organization like Tesco
values employees’ privacy within the workspace and personal life. The company engages
employees with many challenging works and objectives. This engages the every employee to
optimally perform.

Masculinity versus femininity presents how the roles and tasks of job have been allocated
between organizational members (males and female) (Orabi, 2016). Organizational culture of
Tesco is driven through life quality within the workplace as there is less level of competition
relied on many compensatory elements, advantages and nature of allocated tasks. Company
ensures work life balance as well as flexibility is work to meet and suit the employees
requirements. This enables the company to manage at optimal level performance levels of
employees. Uncertainty avoidance index refers the organization have controlling perspective in
which they have the higher level of requirement to be within the control and knowledge of
everything. In relation to Tesco level of learning and procedure of decision making are open-
ended within the nature. The company is flexible within the strategies and many department
activities to meet the necessary demands and requirements of organizational objective and nation
specific requirements. Long time orientation versus short time normative orientation leads to
present the nature of organizational culture. Organization like Tesco works with the long time
orientation within the all strategic level focus as well as development while execution and
associated actions of the same are driven through the short time orientation.
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Organizational culture is fixed at extreme level with social control which may lead to cause the
impact on decisions and behavior of employees ( Park, & Shaw, 2013). This works as the social
glue in relation to bound the every employee altogether ensure to feel the strong part of corporate
experience that is important to attract new employees and retain the best employees or
performers. Organization culture leads to create the usefulness with right level of support to
decision making procedure which supports to understand the events and objective organization.
This leads to improve the employee effectiveness and efficiency. Strong organization cultural
works as the driven force in relation to improve the every employee performance. This improves
the self-confidence as well as commitment of employees. It enables to minimize the stress level
in a job and improve the ethical behavior of employees. Organizational culture

In the limelight of the discussion it can be concluded that organizational culture leads to
influence the organizational performance. This leads to improve the performance and behavior of
organization and employees. Cultural values and traits within the organization play the
significant role to maintain the level of flexibility as well as positive environment for everything.
This essay has presented the different characteristic of culture which was explained in
accordance with discrete viewpoint of authors. This can be presented through the research that
organizational success and progress can be accomplished with effective level of organizational
culture. Overall stability, focus, and innovation are recognized as the important cultural
characteristics which supports in improving the employees performance and benefit
consequently organizations. Organizations which do not follow and integrated cultural values
then faces many demise there it is obligatory as well as necessary to understand the every
employee moral values and accomplish the success.
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References
Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change work in
progress. Routledge.

Baird, K., Hu, K.J. and Reeve, R., 2011. The relationships between organizational culture, total quality
management practices and operational performance. International Journal of Operations & Production
Management.

Birasnav, M., 2014. Knowledge management and organizational performance in the service industry: The
role of transformational leadership beyond the effects of transactional leadership. Journal of business
research, 67(8), pp.1622-1629.

Bortolotti, T., Boscari, S. and Danese, P., 2015. Successful lean implementation: Organizational culture
and soft lean practices. International Journal of Production Economics, 160, pp.182-201.

Büschgens, T., Bausch, A., & Balkin, D. B. (2013). Organizational culture and innovation: A meta‐analytic
review. Journal of product innovation management, 30(4), 763-781.

Cook, S.N. and Yanow, D., 2011. Culture and organizational learning. Journal of Management
Inquiry, 20(4), pp.362-379.

Hartnell, C.A., Ou, A.Y. and Kinicki, A., 2011. Organizational culture and organizational effectiveness: a
meta-analytic investigation of the competing values framework's theoretical suppositions. Journal of
applied psychology, 96(4), p.677.

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.

Noruzy, A., Dalfard, V.M., Azhdari, B., Nazari-Shirkouhi, S. and Rezazadeh, A., 2013. Relations between
transformational leadership, organizational learning, knowledge management, organizational innovation,
and organizational performance: an empirical investigation of manufacturing firms. The International
Journal of Advanced Manufacturing Technology, 64(5-8), pp.1073-1085.

Obiwuru, T.C., Okwu, A.T., Akpa, V.O. and Nwankwere, I.A., 2011. Effects of leadership style on
organizational performance: A survey of selected small scale enterprises in Ikosi-Ketu council
development area of Lagos State, Nigeria. Australian journal of business and management
research, 1(7), p.100.

Orabi, T.G.A., 2016. The impact of transformational leadership style on organizational performance:
Evidence from Jordan. International Journal of Human Resource Studies, 6(2), pp.89-102.

Park, T. Y., & Shaw, J. D. (2013). Turnover rates and organizational performance: A meta-
analysis. Journal of applied psychology, 98(2), 268.