How can Organizational Culture Lead to Company Performance?
Gandhi Heryanto, Management Consultant, Indonesia, Member
Sorensen (2000) found that if an organization maintains a strong culture by demonstrating a well integrated and effective set of specific values, beliefs, and behaviors, then it will perform at a HIGHER LEVEL OF PRODUCTIVITY.
On the other hand, the performance of an organization is dependent on the degree to which the values of the cultures are widely shared as Krefting and Frost (1985) argue that an organizational cultures may create a COMPETITIVE ADVANTAGE which is linked to performance.
Based on the above arguments, do you agree that such strong and widely shared organizational cultures can have positive influence on organizational performance of the company? What other mechanisms do you see that connect culture to performance?...