IBUS3001: Relationship Between Corporate Culture And Performance

Relationship between Corporate Culture and Performance
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Relationship between Corporate Culture and Performance
For long, organizational culture has been linked to the overall performance of organizations. Organizations that have a reputation for a strong organizational culture that engages all of its employees and creates a happy workplace performs better than those with a weak corporate culture. The company that engages its employee's help's its bottom line. However, a higher performance does not translate to a positive culture. The article demonstrates how corporate culture is related to the performance of an organization.
To demonstrate this, the article analyzed a study of 95 auto dealerships over a period of six years. In the study, the employees were asked to on their involvement and mission at work. The researchers concluded that culture influences the performance of an organization. The article goes further to assert that companies that received better grading regarding organizational culture from employees reported higher profits. However, the authors suggest that the rewards of a strong organizational culture do not come quickly. This demonstrates that for a company to boost its sales and satisfy its customers, it must embrace a positive corporate culture in which all employees involved.
However, despite boosting the performance of an organization, it is a challenge making changes to the existing culture. With globalization becoming the norm of the modern business environment, organizations need to embrace cultural diversity as well. To create a strong and positive organizational culture, the employees need to be rewarded based on merits and not on favors. There should be equality in the workplaces regardless of gender, race or ethnicity.
Moreover, a positive corporate culture originates from the top management. The values of the management should be about context and not control to create a right environment that motivates all employees, provides direction as well as transparency. This will enhance teamwork and collaboration among the employees. As mentioned earlier, it is challenging when maki...