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Do not blame the organizational culture for poor performance
1University of Tasmania, 80 Argyle St, Hobart, Tasmania, 7000, Australia.
Summary
Organizational culture, the behaviors guiding activities, is often blamed for underperformance. However, evidence suggests that changing culture does not reliably improve organizational performance.
Area of Science:
- Organizational Behavior
- Management Science
- Sociology of Organizations
Background:
- Organizational culture encompasses the formal and informal behaviors guiding activities within an organization.
- Culture is frequently cited as the cause of inadequate performance or underperformance.
- Interventions aimed at improving organizational performance often target cultural change.
Purpose of the Study:
- To critically examine the assumption that altering organizational culture leads to improved performance.
- To evaluate the effectiveness of strategies implemented for cultural change in organizations.
Main Methods:
- This study reviews existing literature and theoretical frameworks regarding organizational culture and performance.
- It analyzes the causal link posited between cultural change initiatives and performance outcomes.
- The effectiveness of common cultural change strategies is assessed based on empirical evidence.
Main Results:
- There is limited empirical evidence to support the claim that changes in organizational culture directly result in improved performance.
- Strategies implemented to foster cultural change frequently fail to alter the organization's fundamental culture.
- The assumption that culture is the primary driver of performance and amenable to change is questioned.
Conclusions:
- The link between organizational culture change and performance improvement is not well-established.
- Current strategies for cultural transformation are often ineffective.
- Organizations should critically assess the role of culture and the efficacy of change interventions before implementation.
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