Management And Organization Essay

2107 Words9 Pages
Does a strong organizational culture increase the overall performance of a firm? Illustrate a firm (firms) to support your arguments. A strong organizational culture can have positive and negative impacts on the overall performance of the organization. Different organizations contain different internal values that are widely accepted by their employees. Some research has been made to explain the relationship between the strength of organizational cultures and overall performance of organization. In this essay, this relationship will be examined and some cases will be provided to support the idea. It is important to understand what strong organizational culture is. Culture is a set of shared values and beliefs about what works and what doesn’t work within a particular environment. Organizational culture is “As the pattern of basic beliefs and assumptions that a group has invented, discovered or developed while it learns to cope with its problems of external adaptation and internal integration, and that has functioned so well to be considered valid, and consequently is taught to new members as the correct way of perceiving, thinking and feeling regarding those problems” (Ignacio Gómez Roldán & Rafael Guillermo Ricardo Bray, 2009, p.10). A strong organizational culture means that most of the employees in the organization accept the key or internal value of the firm. The overall performance of a firm can be measured by some objective units such as asset returns, the growth of sales, market-to-book ratios (Denison, Ritchie, Kotrba, et.al, 2009, p.6) First of all, a strong organizational culture or high consistency is positively related to effectiveness (Dension & Mishra, 1995, p.215). Consistency can be measured by core values, agreement, coordination and integration (Denison, D. R., Janovics, J., Young, J., et.al, 2006, p.7).A strong culture can increase

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