Impact of organization culture in contemporary context

The culture of an organization is the most influencing factor for its decisions and actions. A company’s prevailing ideas, values, attitudes, and beliefs guide the way in which its employees think, feel, and act—quite often unconsciously. Therefore, understanding culture is fundamental to the description and analysis of organizational phenomena. For some, culture is considered the “glue” that holds an organization together and for others, the “compass” that provides direction. Watson (2006) emphasises that an important trend in managerial thinking in recent decades is to create strong organisational cultures. Schein (2004) suggests that culture and leadership are conceptually intertwined and its help to create uniqueness for an organization.

Strong corporate cultures create excellent business performance, (Kotter & Heskett, 2012) show that while many shared values and institutionalized practices can promote good performances. In some instances, cultures can be characterized by arrogance, inward focus, and bureaucracy.

Proper understanding of organizational culture should lead towards improvement of employee’s performance. As per organizational development is concerned, employee’s performance considers as a back bone for the industry. So, the organization’s wants to get the loyalty of their employees towards organization.  The overall knowledge and awareness of organizational culture must help to improve the ability to examine the behaviour of organization that assists to manage and lead (Brooks, 2006). 

Culture is an organization is dynamic for any business due to three important functions culture is related to social control of an organization and this can influence on employee’s decisions and behaviour. secondly it works as a social binding to bond the employees together. So that they may feel a strong bond and this will be useful to attract new staff. Thirdly this will help the employees to understand objectives and events which enhance efficacy and effectiveness of the employees. (Luqman , et al., January 2012)

Brooks, I. (2006). Organizational Behavior: Individuals, Groups and Organization. Essex: Pearson Education Limited.

Kotter, j. P. & Heskett, j. L., 2012. Corporate culture and performance. 2nd ed. New york: the freepress.

Luqman , R., Khan , A. & Shabbir , L., January 2012. Impact of Organizational Culture on Organizational Performance: An Overview. Journal of Contemporary Research in Business, 3(9), pp. 976-978.

Schein, E.H.(2004) Organizational Culture and Leadership, Third edition, San Francisco:Jossey-Bass.

Watson, T.J. (2006) Chambers Dictionary of Etymology, Edinburgh