THE IMPACT OF ORGANIZATIONAL CULTURE ON THE PERFORMANCE OF A COMPANY

THE IMPACT OF ORGANIZATIONAL CULTURE ON THE PERFORMANCE OF A COMPANY

According to the opinion of  Mats Alvesson, (2002), there's a decent reason for having organizational culture as one of the most common themes in educational analysis and education in structure theory and management observe today: dimensions of culture is central to any or all aspects of structure life.

Today, it's clear to most managers that the key to long-run success lies not in individual methods and effective management of resources, but in, up to now mostly neglected dimension of governance, the cultural dimension (Cardona, Ray, 2009).

An organizational culture like "the operative system" leads a corporation and its activities, shaping the method staff think, work and the way they feel (Vukotić et al., 2014).

The example that's usually used to show the importance of organizational culture for doing business is the company Federal express, better-known for the values shared by its employees. during the UPS strike within the summer of 1997, several new consumers turned to the company Fed Ex. after the company was overcome with extra 800,000 parcels a day, thousands of workers came to the headquarters and volunteered to sort packages, clearly demonstrating the company's worth in terms of providing service to the consumers. Only after the strike was over, the staff was awarded extra wage related to the financial gain earned during the strike (Jay et al., 2002).

Inside of an organization, sub-units such as functional departments, product groups, hierarchical levels,  or even teams,  may also reflect their own unique cultures (Cameron, Quinn, 2006).  Their own perspectives set of values and principles of business can be the cause of conflict between them. Developed commercial awareness allows to understand much of what is happening in the business environment, to what it happening fit into an existing framework and to successfully cope with business challenges.

In order to successfully match into the trendy economic surroundings, some organizations have to modify their organizational culture. as an example, when troubled for survival,  the Chrysler company has accepted a modification of culture therefore that the entire method concerned people centered on learning, place stress on quality and they once more became a successful and profitable company (Krouse, 2012).

Although changes will be a difficult and a long-term method for an organization, the rewards that follow are indisputable.  Cameron  and  Quinn  emphasize  in their work,  ”Diagnosing and changing organizational culture; based on competitive  values framework”  (2006), without changing  the  culture  there  is very little  hope  for  lasting improvement in organizational performance

References

Alvesson, M., (2002). Understanding organization culture, SAGE Publications, London

Vukotic,  V.,  Sukovic,  D.,  Rasevic,  M.,  Maksimovic,  S. and  Goati,  V., (2014). (Anti) liberalism and economics, Center for Economic Research of Institute of Social Sciences, Belgrade

Krouse, H., (2012). Organizational culture and entrepreneurship, International Review 

(2012 br.3-4), 27- 33

Cameron, S. and Quinn, E. (2006), Diagnosing and changing organizational culture; Based  on  competing  values  framework,  revised  edition,  The  Jossey-Bass  A  Wiley Imprint, San Francisco

Cardona, P. and Rey, C. (2009) Management by mission, Mate, Zagreb