This is an argumentative essay on organisational culture and its impact on the organisational performance. The topic being picked up for this essay says that organisational culture is important for superior organisational performance. As far as learner’s point of views of organisational culture is concerned it is more into agreement with the essay topic. Hence, the thesis statement is:
“Organisational culture has a positive impact on organisational performance”
The office culture is comprised of three elements – behaviour, values and rules in any company. ‘Values’ is the most important in shaping and creating the culture. This includes an individual values in the company and his or her personal values as a leader. There are many firms that are not still too much serious about the organisational culture. Such organisations are also in profits. However, these firms might not be able to fetch benefits in long-term. These firms are simply ignorant to employee satisfaction, which actually matters (Acar and Acar 2014; p.24). They will most certainly continue to follow the same strategy and will hardly understand the importance of it till the moment it runs out of control.
This can be said that office culture has the strongest impact on employee retention and business results. It is mainly because it improves the level of self-esteem of employees. It is to be noted that employee turnover is costly. Hence, the companies cannot afford losing their employees. Indeed, they should look for ways to be able to retain employees and to enhance the level of employee satisfaction (Arifin 2014; p.38). It is a complete waste to impose unnecessary restrictions on employees. It happens when employees are forced to be in groups, which they do not like to be in. Instead of dividing employees into groups, they should rather be encouraged to do it on their own. This means employees should have freedom to select their choice of groups. However, such privilege should never come at the cost of organisational productivity. Indeed, positive cultural fit will most certainly boost the spirit of the employees. This will encourage them for the best and make them more capable of delivering the best out of their potentiality. Hence, such motivated workforce will also affect the business in number of ways. These are increased efficiency, boost in passion and better retention rate (Arifin 2014; p.38).
Increased efficiency, a healthy office culture will cause a positive impact on the employees’ efficiency to do their work. The efficiency can be boosted by providing them concise information, facilitating seamless collaboration with rest of the teams and days off as or when they require. These initiatives can easily be attained in strategic firms. Hence, the efficiency to work to the potentials will improve (Belias and Koustelios 2014; p.140).
Boost in passion, it is important to make the employees involved in the system. This can be done by creating an ideal culture, which is suitable to all needs. If this could happen the employees will most certainly love the organisational culture and feel passionate about the work that they have been doing (Belias and Koustelios 2014; p.143).
Better retention rate, it is important that firms are focused dealing with employee retention. Employee retention is hampered from increasing attrition rate. Hence, for a better retention rate it is more important to control the attrition of employees. The success of any company depends largely on their clients, employees and customers. A positive organisational culture will encourage listening to employees and so on. Hence, this will also improve the retention rate (Belias and Koustelios 2014; p.144).
This should be noted that employees who fit well in the culture have perhaps greater job satisfaction. They are also more recognised by their company. It also results in various other positive outcomes. These are superior job performance and enhanced commitment. There are too many companies that are largely reliant on having a cut-throat, take-no-prisoners culture and high-pressure to boost and drive their financial success. However, a large and growing body of research on identifying impacts of positive psychology on organisational performance confirms that a cut-throat environment is harmful to organisational productivity. It affects productivity over time. On contrary to this, a positive environment will result in increased benefits for employees, employers and the bottom line. Although it is a common assumption that pressure and stress push employees to perform faster and better. However, cutthroat organisation does hardly recognise the hidden costs that incurred (Bortolotti, Boscari and Danese 2015; p.190).
There are instances of workplace accidents being caused from excessive work pressure. It is to be noted that health care expenditures at cutthroat organisations is much more than at organisations with positive culture. Even if it is considered that accidents are not common to all cutthroat organisations but still employee morale to the least will be affected from. A reduced employee morale is never safe to an individual and also to the organisational productivity. These are hidden truths and will cost too much if not being treated with appropriate measures. Interestingly many organisations spend too much in ensuring that employee morale is high. Employees with high morale will most certainly deliver to their potentiality (Carlos Pinho, Paula Rodrigues and Dibb 2014; p.382).
While a cut-throat culture can only create fear in long-term. This brings inevitable stress, which will likely lead to reduced engagement over the long-term. It is to be noted that engagement in work is directly associated with feeling secured, valued, respected and supported. Indeed, this is negatively associated with a cut-throat culture and high-stress. Disengagement discussed as in the above paragraph is costly. These are commonly observed and have also been derived from several research body on the topic that disengaged workers had more accidents, absenteeism and errors and defects than those who are engaged. Organisations those that have less number of engaged workers experience lower profitability, productivity and share price and job growth. On contrary to this, companies with high number of engaged employees enjoy 100% more job applications (Hogan and Coote 2014; p.1618).
A cut-throat culture produces lack of loyalty in employees. It boosts up voluntary turnover. Such people decline the promotions and go for better jobs. They are not even also interested for any job related growth in the existing firm. They find one best option under such situation and that is to quit the current job and before that looking for a much better option. Overall this will impact the attrition rate, which will increase with such professionals quitting their jobs. It means the turnover cost is associated with recruiting and training. This eventually impact the productivity. Replacing one employee cost even more than one’s salary. This is the only the reason why many companies have established a wide range of perks starting from office gyms to working from home. However, these companies still do not know how to manage such situation. They still is not being aware of how to deal with such situation (Valmohammadi and Roshanzamir 2015; p.173).
By stating the organisational culture one only think of something that is personal. It means that organisational culture represents the individual. Hence, if this is representable employees will most probably enjoy being a part of such firm. Once this feeling of connectivity happens employees will be able to develop a positive relationship with the employer. Once they identify with the organisational values they are motivated to deliver their best work. As an end result of such move there will be respect for these people. A strong bonding of trust will then be created between the employer and employees. Nevertheless, this trust and alignment are key essentials for happy and engaged employees. This is understandable that happy and engaged employees are more productive. On the other hand, unhappy employees are far less productive. This could be said that a good culture is one of the critical success factors of organisational productivity. However, results won’t start happening soon after the feasible organisational culture is established. Indeed, this will take time. Benefits can be observed in long-term. It takes time to have an impact of organisational culture on bottom-line results (Wei, Samiee and Lee 2014; p.58).
The organisational culture according to executive level staffs is even more important than strategies. It means strict orders to force employees do something is not at all a very fruitful way to practice. This will work up to a certain degree of possibility. However, such line of action will someday become ineffective. The outcomes will face the saturation. Indeed, organisations with better culture is far more superior to those that have not. However, it never at all means that organisational culture will alone do the thing. It rather means that a positive organisational culture accompanies with good teams of talents will do the wonders. A strong culture helps to keep employees motivated to organisational goals under any circumstances. Companies that do a lot of strategy making and make spending as well will outperform those that really actually enjoys a positive organisational culture. Strong organisational culture is necessary to facilitate adaptation to an ever changing world. This is associated with strong financial results (Carlos Pinho, Paula Rodrigues and Dibb 2014; p.389). Companies that believe in organisational culture they remain focused on this aspect of organisational practice every day. These are the firms that are deliberate to make this happen. Moreover, such firms enjoy a constant business growth around the globe. However, this is possible only when other strategies are appropriately in place.
The impact of organisational culture is far broader than just satisfying an individual. This actually will improve performance, productivity and level of customer service. If this is not happening in a company it is high time to think of repairing the organisational culture. However, this could become very complicated and challenging as well to reinforce the organisational culture. Organisational culture cannot just be created or inspired by simply investing in it. Indeed, this will require a real strategy making from leaders. The revival process will see an inclusion of new practices. These new practices might not be well received at the employee level. Effective communication and training are the two most important things in this regard to ensure an adherence to change practices (Hogan and Coote 2014; p.1617). Effective communication will ensure that employees are aware of the changes going to take place. Training will provide opportunities to understand exactly what the change is all about. Moreover, training will also help to know about employees’ feedback to the change. These set of feedback could be used to understand the problem areas that are stopping people from accepting the change. Once the problem areas are known effective management strategies could be constructed to deal with these. Hence, the change to improve the organisational culture might take time but will most certainly happen in long-term.
Organisational culture is so important that it actually inspire employees to strive for the best. It is very much in-line with the students who when are happy from teachers and their behaviours to them perform much better than they do in opposite situation. In a similar way when employees feel that their needs and requirements are given an importance and that their demands are also understood they will perform. This helps to create a level of loyalty between employees and the management. Once employees become loyal to their employer they will work to their potentials. Results will also be good and even better than organisations those that continue with negative organisational culture. There are many firms who spend a lot on improving their organisational culture. For example, Deloitte in Australia has parental leave for the dads (Wei, Samiee and Lee 2014; p.63). Parental leave provides dads some time to spend with their wives to take care of them during their pregnancy time. Dads those don’t get leaves during such period will probably develop a less trust and loyalty with their employers. They will be demotivated and will feel not being valued for their association with the employer. They will certainly look for a change and consider a switch over to a comparatively better employer.
To conclude, this can be said that organisational culture has a positive impact on organisational performance. A positive organisational culture act as a motivating factor to employees. It gives employees a realisation of being with the employer. Employees will most certainly become loyal to the company. Hence, they will feel motivated to deliver to their potentials.
References
Acar, A.Z. and Acar, P., 2014. Organizational culture types and their effects on organizational performance in Turkish hospitals. EMAJ: Emerging Markets Journal, 3(3), pp.18-31.
Arifin, H.M., 2014. The influence of competence, motivation, and organisational culture to high school teacher job satisfaction and performance. International Education Studies, 8(1), p.38.
Belias, D. and Koustelios, A., 2014. Organizational culture and job satisfaction: A review. International Review of Management and Marketing, 4(2), pp.132-149.
Bortolotti, T., Boscari, S. and Danese, P., 2015. Successful lean implementation: Organizational culture and soft lean practices. International Journal of Production Economics, 160, pp.182-201.
Carlos Pinho, J., Paula Rodrigues, A. and Dibb, S., 2014. The role of corporate culture, market orientation and organisational commitment in organisational performance: the case of non-profit organisations. Journal of Management Development, 33(4), pp.374-398.
Hogan, S.J. and Coote, L.V., 2014. Organizational culture, innovation, and performance: A test of Schein’s model. Journal of Business Research, 67(8), pp.1609-1621.
Valmohammadi, C. and Roshanzamir, S., 2015. The guidelines of improvement: Relations among organizational culture, TQM and performance. International Journal of Production Economics, 164, pp.167-178.
Wei, Y.S., Samiee, S. and Lee, R.P., 2014. The influence of organic organizational cultures, market responsiveness, and product strategy on firm performance in an emerging market. Journal of the Academy of Marketing Science, 42(1), pp.49-70.
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