Organizational Culture and its Impacts - Essay Sample

Introduction

Organizational culture refers to the organizational practices that are embraced through the organizational expectations, philosophy, experiences, as well as the important values that define and guide the employees' behavior. In this regard, culture in an organization has been majorly expressed through the inner workings, self-image, as well as the interactions. An organization culture should be developed based on the vision and mission, norms, values, and beliefs. Therefore, organizational culture has a significant impact on the performance of a business.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Functions of Organizational Culture

Organizational culture influences how employees are treated hence how they behave when interacting with their customers. Organizational culture creates a sense of identity within the employees and members of the organization. This implies that culture defines what the organization is about which gives the members an important identity to perform the desired function. Secondly, organizational culture defines the boundaries of its members. It should be noted that an organization has invisible boundaries that assist in professional working. In this regard, culture defines the employees' behavior which enables them to perform their duties with respect to each other. Culture has also been noted to develop commitment among the employees they feel valued in the entity. Besides, organizational culture enables justification of the employees' behavior which is imperative in achieving the organizational goals.

The Relationship between Organizational Culture and Performance

Organizational culture has a significant impact on the overall performance of the organization. Cultural misunderstandings have been noted to cause inefficiency in the organization which leads to poor performance. Thereby properly established organizational culture leads to the improved quality of the customer service. In multicultural organizations, the employees are likely to face a challenge in integrating the cultural values for all the employees. This can have detrimental effects on the overall performance of the employees which in turn affects the organizational performance. An organization culture that is built on effective communication, recognition of cultural values and respect of different cultures facilitates performance efficiency. Therefore, organizational culture impacts on the overall performance efficiency in the entity.

Assessing Organizational Culture

Managers assess their organizational culture regularly to establish the presence of leadership structure and operations that are in line with the organizational goals. Besides, it is important to analyze the company culture based on the action steps to establish sales processes and returns. To achieve this, managers can evaluate the onboard process. This entails the evaluation of the onboard processes to establish whether the employees recruited are competent, innovative, and dedicated in accordance with the mission of the entity. Managers can also gauge the openness within the organization. In an organization with a positive culture, it is important to be open. Therefore, employees can evaluate this openness to establish the ability of the leadership's agility and mindset. This entails observing the interactions of the teams since the strongest organizational cultures have been noted to be forged with human connections. While evaluating the incentive programs, the manager can establish whether the organization is within its values.

Summary and Reflection

From the analysis, it is evident that organizational culture impacts on the performance of an entity. Considering that culture influences the interactions of employees, it definitely influences their output. In an organization without formidable teamwork, the success is derailed. Positive culture will, therefore, develop a healthy competition that facilitates better performance. Besides, such an entity will likely attract the best brains and like-minded people which influence the overall performance. Without a formidable culture, employees show poor mentality and less commitment. This can lead to poor performance and making of losses which can make it hard for the organization to survive.