Question

What does the research evidence say about the three theories concerning the relationship between organizational culture and, performance.

Answer 1

Three theories on the Relationship Between Organizational Culture and Performance are interlinked and help to increase the productivity and drives an organization towards success. Some of the research evidence says:-

• Strong Culture Perspective:- Organizational culture with the consensus on the organizational values to drive the organization. Strong organizational culture facilitates performance because it is recognizable even to outsiders, easily be characterized by goal alignment and helps to create a high level of motivation.
• Fit Perspective:- Organizational culture should fit into the organizational strategies then only we can consider it as a good organizational culture. Organizational culture should match with the organizational environment. A good organizational culture helps to improve the performance to drive a competitive environment, fulfills customer requirement and societal expectation.
• Adaptive Perspective:- Organizational culture encourages confidence and risk taking among employees. It has leadership that produces change and focuses on the changing needs of customers.