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Impacts of organizational culture and employee performance

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Impacts of organizational culture and employee performance

Part 1

Organizational culture is the practices or code of conduct in an organization that determine the performance and routine running of activities within the firm. Therefore the leadership within the organization determines the culture; the leaders have to be actively involved in setting the culture since their behavior is often emulated by others. For example, if the leaders are hardworking and arrive to work early, this will be the culture followed in the organization; however, when there is unethical behavior and poor treatment of customers by the leadership, the employees are going to directly follow the negative behavior.

Therefore according to Hardiyono et al. (2017), the culture is everything that occurs in the organization, including the roles and responsibilities, promotion, mission, objectives, teamwork, and conflict resolution mechanisms. However, the best cultural features include feedback ad communication approaches; generally, the culture includes both the written and unwritten norms within the organization. Just like in society, culture normally determines to people interact, behave and respond to issues. Within the organization, culture is crucial since it helps in the development of a specific identity among people, ensuring there is a sense of belonging when people share culture; they have similar norms, values, and beliefs which they normally identify with.

Culture is related to great performance within the organization, example when a culture of transparency is fostered within the firm, employees normally understand the expectations from the management and are required to issue feedback and direct communication regarding issues faced; additionally, culture helps in management recognizing the best performers while others work harder to be rewarded and recognized in future. The organization should also nurture a culture of independence, openness, and honesty, which promotes cooperation and efficiency when delivering daily routines in the organization. Generally, the culture boosts motivation since it ensures there is an open relationship between the management and subordinates. Therefore such employees feel valued and are more empowered to perform better. Hardiyono et al. (2017)

Employee loyalty is among the key factors that promote the general performance of the firm. However, loyalty can be boosted through people viewing themselves as an integral part of the organization, where during the running and management of routine daily activities, they are actively involved, which is embedded in the organization's culture. For an organization to succeed, it has to recognize and support its employees. Through the culture, there is teamwork and shared values. During teamwork, success is not attributed to a single member but to the entire team. Workers have a unique relationship where the weaker ones are provided with improvement mentorship programs.

The organization's culture also helps in orienting new people into the organization by providing them with the required behavior, communication approaches, and conducts. Therefore new employees understand the high expectations from the management and society, thus increasing their performance. However, when employees find an organization with no positive culture, their motivation to work often fades away, thus reducing performance significantly. Hardiyono et al. (2017). Therefore culture is an essential tool that either reduces or improves performance significantly within the organization. It creates unique ties within the workforce and ensures people gain new approaches to accomplish tasks.

The author agrees that the workplace environment is a great determinant of employee motivation and performance. Therefore when there is a positive influence, performance increases significantly; that is why the culture plays an essential role in ensuring there is effectiveness and efficiency. The culture also helps in performance representation and ensures everyone is involved in the development process within the organization; the culture includes values that are embedded within the guidelines and philosophy of the work, thus creating policies for employee management.

For a culture to be considered strong, it should support the goals of the corporation and eliminate negative events that may significantly lower its performance. The leaders should support and embrace shared values, thus converting them into a great culture. The authors further introduce the job satisfaction concept that is related to culture and performance. Therefore in case if employees are not satisfied with their jobs, they are more likely to get less involved and be emotionally unpleased with their work, which also reduces performance. Therefore the culture should be geared towards a positive attitude and cooperation between the management and regular workers. Hardiyono et al. (2017)

In conclusion, effective workplace culture is essential for the achievement of organizational goals. The culture creates routine and ways of operations of the firm that considers employees as humans and not robots. The culture is not just related to good performance but also to job satisfaction and loyalty. Therefore the author agrees that culture is a great tool to improve performance or lower it significantly if not well implemented.

Part 2

As the author agrees, the organization's culture is a great tool in ensuring employee performance is great and higher job satisfaction. According to the author, culture determines the values, norms, and how people behave. Therefore when the culture encourages positive behavior such as respect, teamwork, and transparency, the same behavior is adhered to throughout the organization. However, the culture may also lead to poor performance of employee's example; if there is no culture at all or the culture is negative, the employees are forced to follow the negative behavior. For example, if the management normally uses corruption and non-compliance with business ethics, the employees are also likely to follow the same, which leads to poor performance generally.

When the culture is negative, there is reduced performance of the organization, while most workers will leave their current organization for others where there is a great appreciation of values and norms. The culture further determines the engagement and loyalty of employees. When there is an inclusivity culture, the employees are likely to be happier since they are directly involved in the running of daily activities within the firm. The culture should also include teamwork and interdependence between employees where they do not consider each other as competitors but as a team involved in delivering organizational objectives.

Reference

Hardiyono, H., Hamid, N., & Yusuf, R. (2017, October). The Effect Of Work Environment And Organizational Culture On Employees' Performance Through Job Satisfaction As Intervening Variable At State Electricity Company (Pln) Of South Makassar Area. In 2nd International Conference on Accounting, Management, and Economics 2017 (ICAME 2017) (pp. 86-96). Atlantis Press. https://www.atlantis-press.com/article/25885681.pdf