Cultural Waves In Company Performance
Abstract
One of the great challenges companies face today is globalisation and the gradually intensifying market competition under which competitive performance is becoming more and more demanding to assure. Companies respond individually to every challenge. The reason behind the diversity of reactions is that all companies follow different strategies, have different structures and different cultures with distinct sets of beliefs and attitudes. The author of this paper has developed indicators to measure company strategy, structure, culture and performance. The present article focuses on the relationship between the characteristics of organisational culture and company performance. For the evaluation company performance the Kaplan-Norton Balanced ScoreCard model has been used. On the basis of this model financial and non-financial indicators are also taken into consideration. To the analysis of organizational cultures Cameron and Quinn’s culture diagnostic questionnaire has been applied, which assesses a company’s culture on the axis of four cultural types that are clan, adhocracy, market and hierarchy. The empirical research has been performed with quantitative methods in 256 companies. The exploration and identification of the relationship between variables related to performance and organizational culture has been carried out with the help of the path model. During the research the effects variables concerning culture have been made numerical and this led to the conclusion that the rigid hierarchy culture, which employs bureaucratic principles, has negative effects upon company performance. It is much more effective for leaders to develop corporate culture into a supportive clan culture that supports personal development, or focus on the market culture that emphasizes result orientation.
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