• Topic:

 The impact of organizational culture on

employee performance

 Introduction

• Organization
An organization is a systematic arrangement of people to accomplish some
specific purpose and Non-random arrangement of components or parts interconnected
in a manner as to constitute a system identifiable as a unit. and the other thing
organization define as a Sequential form in which a body of knowledge, data, people,
things, or other elements, is purposefully arranged.
Social unit of people, systematically arranged and managed to meet a need or to
pursue collective goals on a continuing basis. All organizations have a management
structure that determines relationships between functions and positions, and
subdivides and delegates roles, responsibilities, and authority to carry out defined
tasks. Organizations are open systems in that they affect and are affected by the
environment beyond their boundaries.

• Culture
The sum of attitudes, customs, and beliefs that distinguishes one group of
people from another. Culture is transmitted, through language, material objects, ritual,
institutions, and art, from one generation to the next.
Broadly, social heritage of a group (organized community or society). It is a pattern of
responses discovered, developed, or invented during the group's history of handling
problems which arise from interactions among its members, and between them and
their environment. These responses are considered the correct way to perceive, feel,
think, and act, and are passed on to the new members through immersion and
teaching. Culture determines what is acceptable or unacceptable, important or
unimportant, right or wrong, workable or unworkable. It encompasses all learned and
shared, explicit or tacit, assumptions, beliefs, knowledge, norms, and values, as well
as attitudes, behavior, dress, and language. See also organizational culture.
• The quality in a person or society that arises from a concern for what is
regarded as excellent in arts, letters, manners, scholarly pursuits, etc.
• That which is excellent in the arts, manners, etc.
• A particular form or stage of civilization, as that of a certain nation or
period: Greek culture.
• Development or improvement of the mind by education or training.
• The behaviors and beliefs characteristic of a particular social, ethnic, or
age group: the youth culture; the drug culture.
• Anthropology. The sum total of ways of living built up by a group of
human beings and transmitted from one generation to another.
 • Organizational culture
Pervasive, deep, largely subconscious, and tacit code that gives the 'feel' of
an organization and determines what is considered right or wrong, important or
unimportant, workable or unworkable in it, and how it responds to the unexpected
crises, jolts, and sudden change. All new employees must assimilate this code ('learn
the ropes') to know the correct way to behave and what to expect from other employees.
Organizational culture is the sum total of an organization's past and current
assumptions, experiences, philosophy, and values that hold it together, and are
expressed in its self-image, inner workings, interactions with the outside world, and
future expectations. It is based on shared attitudes, beliefs, customs, express or implied
contracts, and written and unwritten rules that the organization develops over time and
that have worked well enough to be considered valid. Also called corporate culture, it
manifests in
(1) The ways the organization conducts its business, treats its employees, customers,
and the wider community.
(2) The extent to which autonomy and freedom is allowed in decision making,
developing new ideas, and personal expression.
(3) How power and information flow through its hierarchy.
(4) The strength of employee commitment towards collective objectives.
It is termed 'strong' or 'weak' to the extent it is diffused through the organization. It
impacts the organization's productivity and performance, and provides guidelines on
customer care and service; product quality and safety; attendance and punctuality; and
concern for the environment. It extends also to production-methods, marketing and
advertising practices, and to new product creation. Expressed commonly as "It's how
we do things here," it is unique for every organization and one of the hardest things to
Organizational values also known as "beliefs and ideas about what kinds of goals
members of an organization should pursue and ideas about the appropriate kinds or
standards of behavior organizational members should use to achieve these goals.
From organizational values develop organizational norms, guidelines or expectations
that prescribe appropriate kinds of behavior by employees in particular situations and
control the behavior of organizational members towards one another."
The Organization culture talk about how the organisation progress on time, how
employee behave or should behave, how tasks and job has to be done. So Culture is a
descriptive term that is the way employee perceives the characteristic of an organisation
.in comparison how to show there performance
Culture is a powerful component of an organization's success, laying the tracks for
strategy to roll out on. It is the foundation for profit, productivity and progress. While
it can accelerate getting to the next level of performance, it can just as easily act as
drag. Culture-Strategy Fit is a leading organizational culture consulting firm
conducting groundbreaking culture diagnosis and change projects to help
organizations leverage their culture to drive strategy and employee performance.
Turbulent times require new kinds of conversations with groups of leaders and
employees to set a path for shaping culture for future needs. We have deep
understanding about how organizational culture operates and have created
sophisticated yet practical diagnostic tools to uncover how organizational culture
plays out in day-to-day work life. We are able to determine how it nourishes
organizational health and accelerates strategy or debilitates it through 'culture drag'
  Use culture for competitive edge
Engaging groups in exploring organizational culture and taking targeted actions to
better align it for future success can result in:
• A high engagement work environment that attracts, motivates and
retains top talent
• Higher productivity by eliminating 'culture drag' that impedes group
performance
• New capacities for adapting to external changes and emerging as a
stronger player
• Development of hard-to-imitate practices and behaviors that create
competitive advantage
• A safe environment for employees to feel free to talk about what they
are experiencing
• Delivery of brand promise for increased client loyalty
• On-time projects and improved change planning when the way things
really get done is better understood and responded to

• Employee performance
Basically the employee performance is activities to ensure that goals are
consistently being met in an effective and efficient manner. Employee Performance
can focus on performance of the organization, a department, and processes to build a
product or service.
Managing employee performance every day is the key to an effective performance
management system. Setting goals, making sure your expectations are clear, and
providing frequent feedback help people perform most effectively. Learn more about
managing performance.

 How to improve the performance of employee?

• Maintain or improve each employee's job satisfaction and morale by
letting him/her know that the supervisor is interested in his/her job progress
and personal development.

• Serve as a systematic guide for supervisors in planning each

employee's further training.

• Assure considered opinion of an employee's performance and focus

maximum attention on achievement of assigned duties.

• Assist in determining and recording special talents, skills, and

capabilities that might otherwise not be noticed or recognized.

• Assist in planning personnel moves and placements that will best

utilize each employee's capabilities.

• Provide an opportunity for each employee to discuss job problems and

interests with his/her supervisor.
 • Assemble substantiating data for use as a guide, although not
necessarily the sole governing factor, for such purposes as wage adjustments,
promotions, disciplinary action, and termination.

 Benefits of Employee performance

Managing employee or system performance facilitates the effective delivery of
strategic and operational goals. There is a clear and immediate correlation between
using performance management programs or software and improved business and
organizational results.
For employee performance management, using integrated software, rather than a
spreadsheet based recording system, may deliver a significant return on investment
through a range of direct and indirect sales benefits, operational efficiency benefits
and by unlocking the latent potential in every employees work day i.e. the time they
spend not actually doing their job. Benefits may include:

 Direct financial gains

1) Grow sales
2) Reduce costs
3) Stop project overruns
4) Aligns the organization directly behind the CEO's goals
5) Decreases the time it takes to create strategic or operational changes by
communicating the changes through a new set of goals
 Motivated workforce
1) Optimizes incentive plans to specific goals for over achievement, not just business
as usual
2) Improves employee engagement because everyone understands how they are
directly contributing to the organizations high level goals
3) Create transparency in achievement of goals
4) High confidence in bonus payment process
5) Professional development programs are better aligned directly to achieving
business level goals
 Improved management control
1) Flexible, responsive to management needs
2) Displays data relationships
3) Helps audit / comply with legislative requirements
4) Simplifies communication of strategic goals scenario planning
5) Provides well documented and communicated process documentation

• Impact of organization culture on employee

performance
The objective of the study is to investigate and analyze the influence of
Organization culture on Employee performance. The research is expected to answer the
importance question: Are Organization culture influenced Employee performance or
not? The answer is yes the Organization culture are influence the performance of the
employee. The Organization cultures talk about how the organisation progress on time,
.how employee behave or should behave, how tasks and job has to be done
Organization development is concerned with the analysis and diagnosis of the factor
that determine organizational effectiveness, and the planning and delivery of
programmers to increase that effectiveness.

Organizations want to obtain the commitment of their employees. Management would

like its employees to identify with the values, norms and behavior of the organization,
hence the need for organizational culture.

Management needs to clearly explain its culture in its employees; this will enable the
employee to get familiar with the organizational system. During this process of
explanation, the employee learns about the organizational culture and decides whether
they can continue their jobs with this culture or they can leave from there. This means
that each organization is a learning environment.

It is the proper understanding of the organizational culture that the performance of the
employee in the organization. Performance is the extent to which an individual is
carrying out assignment or task. It refers to the degree of accomplishment of the task
that makes up an employee’s job. Job performance is the net effect of an employee’s
effort as modified by abilities and roles or task perceptions.

The culture of the organization should be developed to support continuous

improvement, improve employees’ style of performing their job and thus develop
quality awareness.

To operate successfully across cultures, it is important to be able to recognize cultural

differences and be adaptable. Organizational culture finds expression through the
thoughts, intentions, actions and interpretations of members of the organization.

Academic interest in Organizational culture is evidenced by the level of attention it

has received over the last few decades. The relationship between corporate culture
and performance has been the subject of abundant research in several fields, including
strategic management, organizational behavior, and industrial organizations.

Despite a lot of studies on Organizational culture in the last few decades, there is no
widely accepted causal relationship between Organizational culture and performance.
The empirical evidences emerging from various studies about the effect of
Organizational culture on performance have so far yielded mixed results that are
inconclusive and contradictory.
Because of these contradictory results, the question of whether Organizational culture
improves or worsens employee’s performance is still worthy of further research such
as the one being undertaken in this study.
Thus the impact of the organizational culture on employee performance is to be done
the work more effectively efficiently, and done all the task related to the organization
in a good manner, and the organization culture support the employee to improve his
work according to the situation.