Effects of Organizational Culture on Employee Performance

Effects of Organizational Culture on Employee Performance

Effects of Organizational Culture on Employee Performance

Organizational culture provides a framework with respect to the behavior of employees in their workplace. Depending on the type of culture that is created in an organization, it can have a positive or negative effect on employee performance. Let’s look at a few organizational situations that result in either positive or negative employee performance.

An organizational culture where employees are considered an integral part of the growth process of the organization fosters employee commitment towards the organization. They align their goals and objectives with those of the organization and feel responsible for the overall well-being of the organization. As their efforts are in turn appreciated by the management and suitably rewarded, they have immense job satisfaction. In such organizational cultures, the employees are committed to achieving their goals and thus have a positive effect on the overall performance of the organization.

In organizations where managers are not facilitators but taskmasters,employees live with fear and distrust and work is nothing but a dreary chore. Since they are not involved in the overall organizational goals, they do not understand the implications of their tasks and hence may not be committed to achieving them. An organization where there is no cooperation between different departments ends up having employees working in silos or working towards undermining the efforts of the other departments which is detrimental to the overall health of the organization.

Organizational culture to a large extent determines the performance of the employees. Therefore, it is in the interest of organizations to eliminate negative factors that slow down employee performance in order to foster a positive workplace environment or a positive organizational culture.

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  • Martin

    Very good explanation of the effect of corporate culture on the overall performance of an organization..