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Global Academic Journal of Economics and Business
Volume-4 | Issue-05
Review Article
Organizational Culture and Corporate Performance: A Review
Obah Amechi Christopher, Amah Edwinah
Published : Oct. 26, 2022
DOI : 10.36348/gajeb.2022.v04i05.001
Abstract
The study was to examine the relationship between organizational culture and corporate performance. It examines the way organizational culture influences corporate performance in companies. The study employs four elements of organizational culture mode (a) involvement (b) consistency (c) adaptability, and (d) mission. The establishment and upkeep of a successful organizational culture within the organization depends on the four components of the organizational culture model. The specific objective was to: evaluate the relationship between involvement and corporate performance and to assess the relationship between mission and corporate performance. The Denison model was used to examine the operational metrics for measuring organizational culture and corporate success. The research shows a statistically significant link between business performance and organizational culture. Additionally, engagement, adaptability, consistency, and mission impact the organization's non-financial performance. While training demonstrates the strongest association with organizational culture, involvement is the censorious aspect affecting how organizational culture affects corporate performance. This study concluded that lack of effective organizational culture is a primary cause of poor performance and productivity in the corporate organization. The relevance of an effective organizational culture must therefore be understood by company managers if they are to increase performance and productivity in the corporate setting. It was recommended among others that, there should be training for managers and employees on some principles that are important for effective performance. The conceptual underpinning for the investigation was provided by the Denison organizational culture model. The finding of the study included a well-defined mission that attribute to developing shared understanding between employees and managers and employee-focused leadership that contributed to motivating employees. The well-being of society through self-regulatory corporate social responsibility was one of the core corporate value findings. The finding single out in this study cloud have prospects for economic development in the local economy and may subscribe to social change with strategies business and improve the life standards of employees and the local community.

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