Do you think culture is important to organizational performance? By TAN KAR CHU

The topic I choose for this assignment is “Do You Think Culture Is Important To Organizational Performance”. There are many definition of Organizational culture that had been made but based on what I had learn, Organizational culture is the value and assumptions shared within an organizational which defines the important and unimportant in the company and, consequently, directs everyone in the organization toward the “right way” of doing things (McShane & Glinow, 2009). But according to Maher (2014), organizational culture is a major factor which affects the speed and frequency of innovation. Nowadays, new develop organization should know that to establish a successful organizations they should adopts and adapts culture to their organization in order to know whether their organizational performance is good or not. I believe that culture is important to organizational performance. First of all organisations that want to be innovative must transform their organizational culture so that it has innovation-oriented culture (Szczepańska, 2014), which means that the employee has to be able to generate innovative ideas in a short times. When the innovation-oriented organizational culture has been create, it will forming a climate that would be positive to the organizational changes. But, in order to toughen the culture for innovation within and across the organisations, employee should be brave enough to try a new idea without fear the destructive consequences but in the same time find a solution to the destructive consequences and the leaders should learn from the mistake rather than punishing the employee because of the destructive consequences of their ideas, the leaders should be grateful of the mistake because it show that there is idea implemented rather than no idea at all. Employee should also know that they have the support of their leaders while develop innovative ideas and also financial resources to support the ideas. Innovation-oriented culture is the appropriate organizational of work because of the working conditions that will encourage employees to be creative, which will help the organizational performance especially in producing new product. In a business sense, the main items in an organization are the values and beliefs which the organization are started on. The values will then make up the designs and materials of the organization. But the leaders in that organizational play an important role in order to bring out all the value that is existed. Which mean, leaders had to make sure he or she believe in them, more understanding, easy to communicate and rewarding them when they accomplice something. Leaders also has to make sure their employee practicing and modelling the values for other to see. Employee need to have responsibility because the value of organizational if depends on them, if one employee apply the value really well, other employee will definitely follow and employees need to work together as a team. As the organizational grow, values should also grow because it will making the organizational currently successful in a long run.

Based on Shahzad et al., (2012), strong organizational culture is very essential for business because of three important function:
1. Organizational culture will influence the employee’s decisions and behaviour because of the social control that is extremely fixed.
2. Organizational culture can attract new staff and retain best performers because it’s work as social glue to bond employees together and make them feel a strong part of the organizational experience.
3. Organizational culture is very useful to assist the sense making process, helps the employees to understand the organizational events and objectives, which enhance the efficiency and effectiveness of the employees.
When employees embraced the same value, it is considered a strong culture. The gap between employees should also be reduced, in order to develop a strong relationships.
When there is positive effect, there will also have negative effect of the organizational culture on an organizational. The negative organizational means that the culture is aiming in the wrong direction and tends to go against the organizational, but it is better to have a negative culture in the wrong direction rather than a culture that is organised in the negative direction with a strong impact (Klobucher, 2006). A weak culture in negative direction occurs when the organizational is lack of value for the employee to follow, resulting in the employee make their own but at least their still following something so there is no strong impact. There are also employee that follow their own personal values even though the organizational has already create its value. When the economy demands happen, traditions in old company is very difficult to change even when it is a strong culture. An example of a strong impact of negative culture happen when a decision made by management doesn’t gain any trust from the employee, since there is lack of trust employee won’t follow the leadership which will create a negative culture impact throughout the organizational. Negative culture had a negative impact on the organizational performance that can leads to organizational failure.
As a conclusion, the organizational has to properly figure the pro-innovative culture because innovation is an elements that termites the competitive position in the markets. Each organizational in this world is unique because of their own system of value, rules and most important is their own organizational culture but to have a strong culture it’s depend on who run the organizational because the value will be created by the person who run organizational. Through organizational culture the value of the company are protected and without strong culture and value the organizational will not be success. Organizational culture has a big impact on the employee’s performance that can affect the improvement in the productivity and enhance the organizational performance.