Types Of Organization Culture Commerce Essay


This study defines and measures the impact of organizational culture on performance. To measure and examine the concepts of organizational culture and employee performance is the objective of this study. The study is expected to enable their effective role of organizational culture and help the managers to implement the culture and help to increase the efficiency of performance and productivity. After analysis of wide literature, we have come to know that organizational culture has a positive impact on employee performance. Cultures that are agreed upon by the employees working in the same organizations showed that the level of performance increase and helps the business grow effectively. More research can be worked on to understand the relationship between organizational culture and employee performance.

Keywords: Employee Performance, Organizational Culture, Productivity


Organizational development can be improve if we know that on which factors it depends upon. Organizations and managers of organization should know about the employees, their commitment and their needs, through this productivity can be increased. Managers should arrange meetings with new employees to tell them about their norms, values and mission of the organization which helps in understanding the organizational culture. This is the responsibility of managers to arrange meetings about organization's culture with the new employees that will help their employees to know the organization's system. Managers should develop and maintain environment in the organization through which employees can learn something. If employees know the organizational culture then they will perform well. Employee's performance is back bone for the industry and it plays a vital role in the development of organization. Therefore organizations aim to get full attention of the employees to their work and they should be loyal. The growths of multi-national companies have also increased the responsibilities of managers. From how long a manager manages the HR, equipment, and other tools in an organization. i.e. it was very difficult task to manage a huge number of employees which come from different culture. They are not only managing the human resources in an Impact of Culture on Employee Job Performance but the different culture's of their employees, which was a great challenge for them to achieve their organization goals and targets.

What is Culture?

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"Culture is a scattered box of different attributes that express an organization anddifferentiate the firm from other firms" (Forehand and von Gilmer, 1964). According to Hofstede (1980), "culture is the bulk thinking of minds which create a difference between the members of one group from another". The concept of organizational culture first emerged in the 1970s and 1980s (e.g., Hofstede, 1981; Ouchi& Price, 1993; Pettigrew, 1979; Schwartz & Davis, 1981), and "soon became one of the most influential but also most controversial concepts in management research and practice" (Crane, 1995; Jarnagin & Slocum, 2007). According to Geertz (1973); culture is "and historically transmitted pattern of meaningsembodies insymbols, a system of inherited conceptions expressed in symbolic forms by means of which men communicate, perpetuate and develop their knowledge about and attitudes towards life. Robins (2000), defines it as the social glue that helps hold the organization together. Organizational culture according to Robins (2000), refers to a system of shared meaning held by members that distinguishes the organization from other organizations. Strong organization cultures have a great influence on the behavior ofits members. It is worthy of note to mention at this point that national culture overrides an organization's culture and has a great impact on employees than does their organizations culture.

Types of organization culture:

Normative Culture: In normative culture, the norms of the organization are defined earlier and employee should follow all the rules of the organization.

Pragmatic Culture: In a pragmatic culture, there is no rule and regulation; they should only satisfy their customer. This is their duty.

Academy Culture: In this type of culture, organizations hire the skilled employees and they don't interfere in their work. They follow the rules which they made for themselves.

Baseball team Culture: A baseball team culture is a culture in which organizations think that their employee is very important asset for them and they never set rules for them. Advertising agencies, event management companies, financial institutions follow such a culture.

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Club Culture: In this culture, organization hire specialists and they task them in which they are best. These organizations do appraisal regularly.

Fortress Culture: this culture is followed in the organizations in which they can fire any employee anytime. If organization is not performing well, they can fire their employees. Stock broking industries follow such a culture.

Tough Guy Culture: In a tough guy culture, performance of employees is reviewed time to time; their supervisors supervise them and give instructions on their work.

Literature review

Concept of organizational culture:

Culture is stated as "the direction of life for a whole society". The culture of a group can be defined as: "Anoutline of shared basic conventions that the group erudite as it solved its problem of external variation and internal assimilation that has worked enough to be considered valid and therefore to be taught to new members as the correct way of observe, think and feel in relation to those problems" (Schein, 1990).

In any organization, every employee wants to be favorable in an organization and wants an environment which will be suitable for him and then he will give his best to the organization and wants organizational development. This is the challenge for the juniors who want to impress his boss and want a culture which will helpful for him.

Organizational culture plays the role of backbone in an organization. Johnson and Scholes (1999) gave definition of organizational culture as "it is encompassed of essential principles, notions and verdicts that are shared by members of an organization". The features of a dominant Journal of Quality and Technology Management organizational culture includes a flexible learning of environment in which environmental changes can be absorbed and consisting of the workforce that is highly friendly, hard working, powerful, responsible and well inspired (Barratt, 1992). "Indisputably organizational culture has been documented as an essential aspect in bringing the organizational success in getting most wanted business performance outcomes" (Irianto, 2005; Sigler and Pearson, 2000; Madu, 1997). Organizations in private sector are well-known by their competitive, performance based reward system, diverse and office conflict among employees and groups, and other responsibilities and discharging of employees.

Performance is something which is done by the employees. This concept tells us the difference of performance from outcomes. Outcomes are the result of performance of an individual but they are also the result of other influences. In other words, there are some more factors that determine outcomes than just an employee's behaviors and actions.

Campbell states that performance cannot be directly observed. It consists of the work an employee done. However, performance is under the control of some individual.

Theoretical framework

Employee Performance

Organizational Performance


H1: Organizational Culture is positively related to Employee Performance.

H2: Organizational Performance is positively related to Employee Performance.


The discussion about methodology adopted in research is included in this section. The discussion is about questionnaire and participants.


Data was collected through a questionnaire. A six point Likert Scale was used to measure the variables. Total number of 150 questionnaires ware distributed and out of which 110 were received.

b)Population and Sample

Population for present study includes employees of different organization. Convenient Sampling technique was used and questionnaires were distributed among employees in different organizations of Rawalpindi, Chakwal and Islamabad.


The variables were analyzed by Bi-variate Correlation at first whereas the outcome of this statistical operation is quite feasible. The factor table shows the correlation coefficient of the three variables according to our Hypothesis i-e H1 & H2. These hypotheses were tested in order to find out the association of independent and dependents.



Org. culture



ystem of inherited

Org. culture

Pearson Correlation



Sig. (2-tailed)






Pearson Correlation



Sig. (2-tailed)





**. Correlation is significant at the 0.01 level (2-tailed).

The above correlation shows that the dependent (employee performance) are significantly correlated to the independent variable but the other dependent variable (organizational culture) is relatively less correlated.


Model Summary

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R Square

Adjusted R Square

Std. Error of the Estimate






a. Predictors: (Constant), Orgculture



Sum of Squares


Mean Square

















a. Dependent Variable: employee performance

b. Predictors: (Constant), Orgculture



Unstandardized Coefficients

Standardized Coefficients




Std. Error














a. Dependent Variable: employee performance


Case Processing Summary













a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's Alpha

N of Items




Everyone who works in an organization have different norms and values. When he joins the organization he should know the culture of that organization and then follow them. Culture is made for organizational development. Organizational culture has an impact on the employee's performance that can improve the output and increase the organizational performance. "More than 60 research studies was directed between 1990 and 2007, which cover more than 7600 small business units and companies to find out the cultural impact on the organizational performance" (Gallagher,2008). Results of our study show positive relationship between strong culture and performance development.

Conclusion of our study shows that organizational culture has a positive impact on the employee's job performance. Our research shows that everyone in the organization comes from different culture and they try to adjust themselves with the norms and values of the organization. When an employee accepts the culture of organization then he performs well. According to the study of Gallagher 2008, positive performance of an employee can cause the profit of an organization.

Development of organization is very easy when there is a common way of living and everyone is following the same norms and rules. In our study, it is observed that successful organizational culture really helps for the new employees to follow the organizational culture and they can adjust very easily in any organization and to get the competitive advantage under the particular circumstances. Previous study tells that if employee does his works with loyalty and perform well with group and it plays very critical role to adopt the value and beliefs of the organization and increasing the performance of the organization.