The Influence of Organizational Culture on Organizational Effectiveness

Topic: Corporate Culture
Words: 1529 Pages: 6


Organizational culture refers to a set of values and beliefs that exist in a business setting. These norms have significant influences on employee performance because they affect decision-making, apart from shaping their attitudes and behavior towards work. The culture of a successful company is based on the beliefs that are widely shared and firmly held among co-workers. It enables workers to understand the requirements of the top management and demonstrate organizational values to earn positive rewards. Mesfin et al. (2020) note that a company’s culture determines its performance and survival, apart from shaping the welfare and growth of employees. Having a leadership approach that values teamwork and collaboration is key to sustaining care coordination in hospitals. It enables stakeholders to successfully exchange information when serving patients to meet treatment goals (Runtu et al., 2019). This paper analyzes the influence of organizational culture on a firm’s effectiveness.

Organizational Culture and Effectiveness Based on CVF

The five domains of CVF include group, developmental, clan, rational, and balanced cultures. An organization that encourages group values promotes cohesiveness and participatory decision-making (Wu & Chen, 2018). This culture improves a firm’s effectiveness by providing considerable support for co-workers. At the same time, managers utilizing this approach uphold organizational values through employee empowerment, and mentoring to improve performance. As a result, group culture encourages sales growth, cost savings, and competitiveness, which indicate a company’s effectiveness.

The developmental culture emphasizes organizational flexibility to adapt to changes and encourage growth. With it, leaders focus on entrepreneurial ventures, apart from inspiring creativity among staff members. Applying this approach enables a company to recognize change, evaluate existing organizational culture, determine the desired values that will actualize visions and strategies, transform leadership behavior, and reinforce positive performance (Marampa et al., 2021). Overall, a developmental culture encourages risk-taking and innovativeness, enabling them to respond to changes in particular operating settings and remain effective in competitive activities such as resource acquisition.

Furthermore, a rational culture utilizes externally focused control, such that achieving objectives is the key factor motivating employee actions. The approach enables companies to direct workers’ behavior toward the external environment (Mesfin et al., 2020). In a hospital setting, a rational culture encourages healthcare practitioners to make decisions that offer the greatest benefits to clients, apart from creating mutual satisfaction among staff members. It primarily promotes productivity, and positive achievement, which are indispensable for organizational effectiveness.

Similarly, a firm that utilizes a hierarchical culture ranks roles and responsibilities according to levels of significance. This value fosters organizational effectiveness because it clarifies authority and expectations, apart from ensuring stability and control in the supervision of work. Additionally, it supports growth because it emphasizes internal efficiency through stringent measures that regulate behavior (Zeyada, 2018). Hierarchical culture promotes effectiveness when it is less dominant, apart from encouraging creativity and interpersonal relationships. This argument is consistent with Runtu et al. (2019) who found 15.8% of workforce bullying in a company that practiced hierarchical culture. The authors note that nurses comprised a majority of the staff members that experienced oppression. Therefore, having a clearly defined system of commands improves organizational effectiveness while a dominant criterion reduces efficiency by creating disunity.

A balanced organizational culture comprises values associated with all the domains of CVF. In this case, a company is more effective because it can adapt and manage the unprecedented changes affecting its business environment. Runtu et al. (2019) note that the approach encourages meaningful care coordination. A balanced culture fosters diversity and inclusion, apart from supporting positive relationships among employees (Cardona & Rey, 2022). The approach promotes organizational effectiveness in the labor market because it acknowledges different backgrounds and perspectives. As a result, the firm would benefit from greater innovation, better decision-making, and higher participation in the workplace. The company’s competitiveness indicates effectiveness, attracting highly qualified personnel.

Employee Attitudes and Organizational Culture

Workers’ attitudes are significantly dependent on organizational culture such that a company that emphasizes employee satisfaction will effectively execute goals. This approach focuses on empowering workers, acknowledging their decisions, and strengthening cohesiveness to create an environment that fosters contentment. Furthermore, a company that emphasizes common goal attainment is effective because every worker is encouraged to achieve mission-oriented outcomes such as high product quality and profit (Marampa et al., 2021). A range of basic guidelines, for example, general agreement on particular objectives controls their actions. Each individual feels committed to fulfilling such goals, which are also limited and they require specific indispensable resources to achieve them.

The qualitative model measures the effectiveness of organizational culture on effectiveness based on several principles that are closely related. As such, an organization’s level of effectiveness is high when all the parameters are incorporated into operations to prevent negative ramifications on total functioning. The principles include cost effectiveness, social cohesion, corporate image, physical facilities, course development, public responsibility, employee relations, and investment in human resources (Cardona & Rey, 2022). Thus, a firm’s effectiveness is multidimensional and it can be assessed from various perspectives, including systems’ efficiency, leadership, and the potential to cope with unprecedented circumstances (Marampa et al., 2021). A company that reflects these features is effective and it will encourage commitment from stakeholders such as workers, suppliers, and shareholders. Employee determination, particularly, develops within the organization. Almeida & Coelho (2021) states that higher enthusiasm to work on assigned tasks indicates a firm’s effectiveness because stakeholders take responsibility for the goals, visions, and missions of the company they are associated with. This engagement results in excellent business performance, high productivity, and profitability, as well as employee retention.

Organizational Effectiveness Based on the Levels and Nature of Culture

The levels approach indicates effectiveness depending on whether organizational culture is weak or strong. Essentially, a company incorporates a culture that is highly acceptable to its stakeholders, apart from being oriented to visions and missions. Thus, values are strong when each staff member agrees on a particular pattern of behavior that seems effective in context and content to the company (Marampa et al., 2021). A weak culture originates from autocratic leadership, while a strong culture is characterized by collaboration among health workers. Organizational culture in a clinical facility is insignificant when stakeholders do not uphold the widely shared values, and therefore their performance compromises effectiveness (Mesfin et al., 2020). For example, when nurses develop goals that are aligned with the facility’s missions and visions, the organization would be effective in delivering patient care. A weak culture is characterized by practitioners’ adherence to hospital rules and regulations due to the fear of facing consequences such as job loss. Therefore, an organization should foster a positive strong culture and discourage negative values to ensure effectiveness. Practically, a company can motivate workers to commit to achieving organizational goals and demoralize them for actions that compromise organizational survival.

Furthermore, the systems resource approach has been used to elaborate on the influence of organizational culture on its effectiveness. It illustrates efficiency from the perspective of being able to acquire the necessary resources from the external environment. This approach can be applicable when managers consider the business internally and externally (Cardona & Rey, 2022). It encourages explicit stakeholder involvement in decision-making, apart from valuing shared understanding of particular problems. The systems resource approach ensures organizational effectiveness because it considers each part of a system. The framework is qualitative such that input and output measures must be appealing to demonstrate efficiency.

Moreover, a company’s culture indicates effectiveness based on whether it is manipulative or participative. In a manipulative environment, an individual exercises self-fulfilling behaviors that focus on gaining power (Dalkrani & Dimitriadis, 2018; Delani, 2019). The approach could either be destructive or constructive influencing organizational efficiency. It is destructive if it is non-fulfilling among the parties involved. If leaders exercise compulsive needs to care, organizational effectiveness will decline because there would be no allowance for acknowledging other people’s opinions. Domineering values compromise effectiveness by discouraging transparency in various systems. However, a participative culture indicates strong organizational effectiveness because it builds employee capability and creates a shared belief of ownership and accountability (Delani, 2019). Thus, if a firm invests in a participative culture, stakeholders would feel proud to engage in the planning and execution of strategic initiatives.

A culture that emphasizes stringent work ethics promotes organizational effectiveness. It considers how employees perceive their responsibilities, as well as the level of trustworthiness the company can place on them (Runtu et al., 2019). Strong work ethics include positive attitudes, mutual respect among coworkers, constructive behavior, effective communication, as well as support for teamwork. In a healthcare setting, stakeholders should emphasize integrity, honesty, and accountability to ensure effectiveness in service delivery and maintain positive patient outcomes.


This paper analyzed how organizational culture affects a company’s effectiveness. It was noted that a firm’s values are instrumental in fostering efficiency and ensuring long-term sustainability. Employees’ level of commitment and attitudes in the workplace determine organizational effectiveness. Their enthusiasm is built within the company by fostering values that positively reinforce behavior. The analysis revealed that upholding a culture that encourages actions tailored to achieve common goals indicates a higher level of effectiveness. Overall, a company promotes efficiency through strong work ethics, collaboration in decision-making, demoralizing non-compliant behavior, and motivating workers’ accountability in the workplace.


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