6. Organisational Culture and Performance
The culture within an organisation has an impact on every factor of the
business, including elements such as punctuality, communication style,
contractual agreements, and employee benefits. When the workplace culture is in
harmony with your employees, it increases the likelihood that they will
experience a greater sense of ease, support, and appreciation.
Performance evaluation gauges the extent to which an organisation
accomplishes its goals and advances its efficiency and competitiveness in
alignment with its organisational strategy (Riratanaphong, Voordt, & Sarasoja, 2012).
Organisational performance encompasses a multitude of indicators that
offer insights into the extent to which goals are achieved, promoting a broader
recognition of the importance of balancing financial and non-financial aspects
(Kaplan and Norton,1992).
What are the 8 Attributes of Management Excellence?
According to the Peters and Waterman (2004), proposed 8
attributes for high performing organisations in their book In Search of
Excellence, are as follows:
- A Bias for Action
- Close to the Customer
- Autonomy and Entrepreneurship
- Productivity through People
- Hands-on, Value-driven
- Stick to the Knitting
- Simple Form, Lean Staff
- Simultaneous loose-tight Properties
Organisational culture plays a vital role in shaping these attributes. A
strong and positive culture can facilitate the development and maintenance of
these characteristics, leading to high performance. Conversely, a dysfunctional
or misaligned culture can hinder an organisation's ability to embody these
attributes and achieve excellence.
To achieve high performance, organisations often need to align their culture with these attributes, foster the values and behaviors that underpin them, and continually adapt to changing circumstances. Peters and Waterman's work has influenced numerous organisations and scholars, contributing to the understanding of how culture can impact organisational performance.
What is the black box theory in HR?
As per Purcell (2003), the term "black box" refers to the
frequently unclear procedures that take place when inputs are transformed into
valuable outcomes.
Frequently labeled as the 'black box,' the connecting or intermediary
mechanisms between the implementation of optimal HRM practices and the
resulting positive outcomes in firm performance have yet to be definitively
identified.
Kaplan, R.S. and Norton, D.P. (1992). The Balanced Scorecard—Measures that Drive Performance. [online] Harvard Business Review. Available at: https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2 [Accessed 12 Nov. 2023].
Peters, T. and Waterman, R.H. (2004) In Search of Excellence: Lessons from America’s Best-Run Companies, Exmouth: Profile https://www.researchgate.net/publication/237068020_In_Search_of_Excellence_Lessons_From_America's_Best-Run_Companies
Purcell, J. (2003). Understanding the People and Performance Link: Unlocking the Black Box. [online] Google Books. CIPD Publishing. Available at: https://books.google.lk/books?hl=en&lr=&id=tf6QnWTiSmcC&oi=fnd&pg=PR6&dq=Purcell+et+al.+(2003)&ots=9TVZjg_lxx&sig=cltJ4V9M8cxc6tF3oYjV0UPmAag&redir_esc=y#v=onepage&q=Purcell%20et%20al.%20(2003)&f=false [Accessed 12 Nov. 2023].
Riratanaphong, C., Voordt, T. Van Der and Sarasoja, A. L. (2012) ‘Performance Measurement in the context of CREM and FM’, The added value of facilities management: concepts, findings and perspectives. Lyngby Denmark: Polyteknisk Forlag, pp. 1–21. https://www.researchgate.net/publication/260094608_Performance_Measurement_in_the_context_of_CREM_and_FM
www.google.com. (n.d.). organisational culture and performance - Google Search. [online] Available at: https://www.google.com/search?q=organisational+culture+and+performance&sca_esv=581742246&rlz=1C1CHZN_enLK997LK997&hl=en&tbm=isch&sxsrf=AM9HkKlhYYc4Mn6Y8O-zjHy3fS5ksZzZ_g:1699810364045&source=lnms&sa=X&ved=2ahUKEwjSubyH_76CAxXfTGwGHUZ2AcYQ_AUoAXoECAEQAw&biw=1366&bih=619&dpr=1#imgrc=fQiQWmEjOqu32M [Accessed 12 Nov. 2023].
Hi Sudesh,
ReplyDeleteWhile appreciating your content, I would like to make a query.
In light of these insights, a compelling question to consider might be: How can organizations effectively bridge the "black box" in HR, ensuring that the implementation of optimal HRM practices translates into tangible and positive outcomes in firm performance?
Dear Sumedha, Thank your for your question,
DeleteOrganizations can bridge the gap between HR practices and firm performance by leveraging data-driven approaches, aligning HR strategies with business goals, fostering communication, continuous evaluation, investing in technology, gaining leadership support, and engaging employees in the process.
In this article, This insightful exploration of Peters and Waterman's attributes for management excellence aptly highlights the interconnectedness of organizational culture and high performance. The clear delineation of each attribute, coupled with the emphasis on culture's role in shaping them, provides a valuable framework for organizations aspiring to achieve excellence.
ReplyDeleteDear Vidura, Yes I am totally agreed with your above statement
DeleteThis comment has been removed by the author.
ReplyDeleteHi Sudesh,
ReplyDeleteHow does organizational culture impact the development and maintenance of key attributes that contribute to high performance in an organization?
Dear Dinesh, Organizational culture significantly influences the cultivation and sustenance of key attributes crucial for high performance. A positive culture fosters collaboration, innovation, and shared values, driving employee engagement and commitment. Strong communication channels, supportive leadership, and a focus on continual improvement enhance skills, motivation, and adaptability—all pivotal for sustained high performance within an organization.
DeleteHow does organizational culture influence the development of maximum efficiency and productivity in an organization?
ReplyDeleteDear Mithini, Organisational culture profoundly shapes efficiency and productivity by encouraging shared values, norms, and behaviors that align with goals. Positive cultures promote teamwork, innovation, and employee engagement, nurturing a conducive environment where individuals thrive, leading to streamlined processes, enhanced collaboration, and a motivated workforce, ultimately boosting overall effectiveness.
DeleteAs per my opinion, a positive and strong organizational culture contributes to enhanced employee engagement, innovation, performance, and overall organizational success.
ReplyDeleteSudesh, In the Black Box theory, can we assume that the Intermediary mechanism inbetwean the organizational inputs and the performance of a firm is a mix cultural process of the particular organizational targets..
ReplyDeleteHi Sudesh.
ReplyDeleteThis enlightening discussion underscores the profound impact of organizational culture on every aspect of business, from employee experience to performance evaluation. The exploration of Peters and Waterman's attributes adds depth, emphasizing the crucial role culture plays in achieving management excellence. Furthermore, the introduction of the "black box" theory by Purcell contributes to a nuanced understanding of the complex processes involved in HRM practices and their outcomes. A comprehensive and insightful read.