Relationship between Organizational Culture and Organizational Performance

Abstract

The purpose of this study was to examine the relationship between organization culture and organization performance. We used Trompenaars typology as organisational culture lens and measured performance using the balanced scorecard framework in a survey of 129 respondents from 43 commercial banks. Questionnaires were used to collect data which were analyzed using both descriptive and inferential statistics. A significant relationship existed between organization culture and performance. Cultures that are formal and task oriented, namely Guided missile and Eiffel tower were more significantly related with better performance, compared to those that are person oriented, which are incubator and family cultures. Further, flexible cultures (family cultures) are more strongly related to organization performance compared to inflexible cultures (Eiffel tower cultures). This research is among the first attempts to use Trompenaars culture topologies to study the relationship between organization culture and organization performance. These findings have important implications for managers with regard to what cultures to promote in the banks in order to improve performance