Organizational Culture Firm Effectiveness -Myassignmenthelp.Com

Question: Discuss About The Organizational Culture Firm Effectiveness? Answer: Introduction: In the current scenario, organizational or corporate culture creates a major impact on the overall performance of the company. It affects the firms overall financial performance. Culture is the core values, beliefs, attitudes and behavior of the organization (Gregory et al. 2009). Most of the successful organizations in the recent times have attributed their success to their firms effective culture management. The report highlights the relationship between the organizational culture and performance of the company, from a financial perspective. The way people are treated within the organization directly affect the way they treat their customers that also affects the organizations financial performance (Flamholtz 2001). Corporate culture creates a positive influence on the decision-making and behavior of the firm. Akta?, E., iek, I. and K?yak, M., 2011. The effect of organizational culture on organizational efficiency: The moderating role of organizational environment and CEO values.Procedia-Social and Behavioral Sciences,24, pp.1560-1573. The journal sets out to highlight the concept of organizational culture and its efficiency in the current ever-increasing competitive environment. The journal is made to draw interests for both the practitioners as well as academic professionals. As per Aktas, Cicek and Krynak (2011), the factors responsible for affecting the organizational efficiency are researched with increased significance. According to the authors, organizational culture is a vital factor that affects the organizational efficiency due to its various types, which is to be researched. The section is based on the relationship between organizational efficiency and culture. Its effect of variability or stability in regards to internal and external environment is investigated. Moreover, the power of all the leaders, stimulation, and the values about their self direction is also been ascertained. In this section 40 organizational founders or top managers are therefore selected for the sampling process in the health sec tor. The method used to gather all the information is done through questionnaire technique and is primary and reliable source for data collection. The findings obtained from the analysis explores the types of organizational culture are directly related to few of the dimensions of organizational efficiency (Akta?, icek and K?yak 2011). It is seen that the values of organizational leaders in the form of stimulation and self-direction plays a crucial role on the stability of organizational environment. Siehl, C. and Martin, J., 1989.Organizational culture: A key to financial performance?. Graduate School of Business, Stanford University. The article showcases the importance of organizational culture, which has dramatically increased since the last few decades. According to Siehl and Martin (1989), the right set of culture creates high morale, intense commitment and excitement towards the organization and its objective. The authors questions on the unsubstantiated link between financial performance and organizational culture. As per the authors 62 well established financial firms are taken to identify the strong link between specified strong superior and culture performance. In the second version, the direct relation between various aspects of superior and cultural financial performance is also determined. The contingency argument that links culture to performance has also been proposed. It is significant to point out that culture literature assumes that organizational culture is vital to impair organizational effectiveness, which negatively impacts their financial performance. The methods to conduct the analysis were apparently unstructured and open-ended. An implicit bias leads many researchers to advocate the organizational relationship in the absence of empirical support to gather the reliable data. As the organizational culture is very effective variable to determine the performance of the organization in the current times. Yilmaz, C. and Ergun, E., 2008. Organizational culture and firm effectiveness: An examination of relative effects of culture traits and the balanced culture hypothesis in an emerging economy.Journal of world business,43(3), pp.290-306. According to the authors Yilmaz and Ergun (2018) organizational culture and performance are interdependent. The article explores the impact of four main culture traits affecting the organization. This includes consistency, involvement, mission and adaptability. The article evaluates the firm effectiveness by using data sources gathered from manufacturing firms in Turkey. The author hypothesizes that each of the cultural trait exerts positive effects the firm overall performance. Moreover, it is viewed that a balanced combination of the vital four traits would lead to superior organizational performance compared to empirical testing imbalanced combinations. The outcome indicates that mission trait is significant of all the traits in relation to the growth of firms overall performance, market shares, sales and ROA. The firms ability to create new products successfully is directly influenced by the consistency and adaptability traits. The methods used to gather the data is from primary sources, which is obtained from the surveys, questionnaires and interviews. The researchers have showcased empirical studies to identify the characteristics of cultural phenomenon of the organization as well as impact on its performance. It is viewed that employee satisfaction is known through the involvement trait. It is found that imbalanced combinations related too few of the cultural traits generate negative impact on the performance indicators. Flamholtz, E., 2001. Corporate culture and the bottom line.European Management Journal,19(3), pp.268-275. The article reveals the effect and impact of organizational culture on the performance of the company financially. As per Flamholtz (2001), the previous studies only researched the impact of corporate culture on performance by applying cross sectional data. This article explores organizational effectiveness only applying it within a single medium sized industry. The company had 20 comparable divisions and provides an opportunity to examine the effectiveness of corporate culture. The data is obtained through questionnaires from the manger of the company. Regression analysis was applied, which showed an important relationship (at 0.05 levels) between financial performances and corporate culture. This is further measured through EBIT also known as earnings before interest and taxes. The finding obtained from the analysis provides support for the earlier hypothesized relationship. The relationship between financial performance and culture as well as its relevant implications for manageme nt practices and theory is henceforth evaluated. Gregory, B.T., Harris, S.G., Armenakis, A.A. and Shook, C.L., 2009. Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes.Journal of Business Research,62(7), pp.673-679. The article sets out to identify the outcomes and values when organizational culture affects firm effectiveness. This assumption is held implicitly by management researchers and corporate managers. As per Gregory et al. (2009), the manuscript emphasizes on the detailed research done through examining the attitudes of employee. As formulated by the diverse measures and values framework related to companys effectiveness, employees acts as a crucial mediator between organizational culture and efficiency. The research was conducted across US in over 99 healthcare facilities. The method to ascertain the information is done by surveying members of leading management teams related to each facility. Physician satisfaction employee satisfaction was used as attitudinal variables. The objective of the research is to address both the direct and indirect impact of corporate culture on effectiveness. The findings of the study prove that the attitudes and beliefs of the employees directly affect th e effectiveness and culture relationship within an organization. The research revealed that balanced cultures lead to achieving higher level of patient satisfaction as compared to unbalanced culture. Conclusion: From the above discussion, it can be concluded that organizational culture has a positive impact on the firms financial performance. The study analyzed through the research of different articles facilities a rare opportunity to assess the affect of culture on financial performances. The outcome provides relevant support for earlier theoretical framework related to the importance of organizational culture, moreover the role of culture, for the firms success. The cultural impact on the bottom line is of vital importance related to influencing managerial practices. Corporate culture affects the planning-goal setting as well as indicators for human resource development. The self-direction attribute of the organizational mangers has been proved influential for goal setting and establishing plan or vision. External and internal business environment factors significantly influences the relations between organizational efficiency dimensions and various culture types. Adequate diagnosing of corporate culture is done through the determination of politics, human resource and strategic techniques or practices in relation to the organization. This will furthermore enable the organization to achieve desired corporate efficiency dimensions. This is related to the condition relying on the variability and stability related to both the external and internal environment. In addition to this an organization with positive cultural environment is identified by value sharing and ideas. The firm is more likely to achieve maximum growth in the long run through successful innovations. Furthermore, effective corporate culture leads in developing positive attitudes of the employees by team orientation and value empowerment. References: Akta?, E., iek, I. and K?yak, M., 2011. The effect of organizational culture on organizational efficiency: The moderating role of organizational environment and CEO values.Procedia-Social and Behavioral Sciences,24, pp.1560-1573. Flamholtz, E., 2001. Corporate culture and bottom line.European Management Journal,19(3), pp.268-275. Gregory, B.T., Harris, S.G., Armenakis, A.A. and Shook, C.L., 2009. Organizational culture and effectiveness: A study of values, attitudes, and organizational outcomes.Journal of Business Research,62(7), pp.673-679. Siehl, C. and Martin, J., 1989.Organizational culture: A key to financial performance?. Graduate School of Business, Stanford University. Yilmaz, C. and Ergun, E., 2008. Organizational culture and firm effectiveness: An examination of relative effects of culture traits and the balanced culture hypothesis in an emerging economy.Journal of world business,43(3), pp.290-306.