Organizational Culture and Its Impact on Company Performance


The concept of organizational culture has emerged as a powerful force for transforming the performance and effectiveness of different corporations. Leaders planning to establish a superior strategy should begin by introducing ideas, processes, and procedures that resonate with their firms’ missions and visions. Such initiatives will create a new culture that empowers and encourages all employees and supervisors to collaborate and deliver positive results. This paper discusses the importance of organizational culture and how it can impact a company’s ability to respond to the market, adapt to change, and improve its performance.

Organizational Culture: Adapting and Responding to Market Changes

The ultimate objective of every business firm is to maximize profits through the use of sustainable practices and processes. Many organizational theorists have presented evidence-based ideas and insights that leaders can consider taking their companies from point A to B (Suwaryo et al. 69).

Such scholars have also identified corporate culture as a powerful concept that has the potential to make a difference for any firm. Nesbit and Lam define “organizational culture” as the atmosphere of shared ideas, beliefs, norms, procedures, and practices within a given company (314). In most cases, firms will align such attributes with the established visions and missions. The overall outcome is that all employees and leaders will remain dedicated and focus on the changing needs of the targeted customers.

A corporation with a healthy organizational culture will identify market changes and respond to them efficiently. This means that the leaders will collaborate with their followers, implement change within the shortest time, solve emerging problems, and promote superior practices depending on the existing market trends. A positive culture creates the best environment whereby workers share their ideas, solve emerging problems, and propose superior strategies for driving organizational performance (Suwaryo et al. 71). They will remain loyal, support the outlined vision, and set higher objectives that can make the targeted company profitable.

The involvement of leaders and supervisors in an organization’s wider culture is something that creates the best environment for adapting and responding to the market. For instance, all stakeholders will collaborate, implement evidence-based change, and introduce adequate resources that will eventually drive performance (Suwaryo et al. 71). In the private sector, various public companies have managed to use their cultures to adapt to the changes and developments experienced in the global market. For example, Google Incorporation is a leading organization that continues to leverage its powerful culture to respond to developments in the market.

Since its employees are empowered, they find it easier to innovate and produce superior apps that meet the changing needs of the global consumer. Similarly, many private corporations pursue the unique benefits of organizational culture to adapt and respond to the market efficiently (Felipe et al. 2365). A good example is Salesforce that encourages its workers to chase their interests while at the same time identifying issues that can add value to the community. Consequently, it has managed to respond to the demands of the market, thereby remaining a competitor in its industry.

Organizational Culture and Behavior: Adapting to Change

Companies that manage to establish positive organizational culture promote the establishment of evidence-based behaviors. According to Felipe et al., the concept of organizational behavior (OB) focuses on the ways employees and stakeholders act whenever working in groups (2361). A positive OB makes it easier for leaders to streamline all existing processes and business functions. A powerful leadership style informs a superior OB whereby managers address emerging issues, solve conflicts, and create the best environment for delivering positive results. This analysis indicates that organizational culture and behavior work synergistically to influence various processes that can enhance business performance.

The concept of organizational change applies to any initiative or procedure implemented to introduce or replace a specific process, culture, or structure in a given company. This transformation is essential since it makes it possible for companies to achieve their goals much faster or improve their competitive advantages. Throughout the change implementation process, it is appropriate for leaders to involve all stakeholders and followers (Nesbit and Lam 319).

Many workers will tend to criticize or resist the proposed change if it is not intended to improve their working conditions or expectations (Suwaryo et al. 74). The occurrence of objection throughout the process can affect the effectiveness of the company.

With his kind of understanding, it becomes necessary for organizational managers to take the issue of organizational culture and behavior seriously. This move will ensure that all workers are involved, responsive, and willing to undertake actions that can add value to the company. Appropriate norms, practices, teams, and procedures will support a reliable and positive culture. This means that the leader of the targeted organization will only consider the existing attributes and use an effective change model to deliver positive results. For example, Kurt Lewin’s change theory is appropriate whenever implementing and supporting a new transformation initiative.

The presence of a pleasing organizational culture will ensure the entire process succeeds (Felipe et al. 2367). Companies that combine organizational customs and change processes will not experience these challenges: resistance from employees and prolonged implementation. All workers will be willing to be part of the process, sacrifice their competencies and skills, and form teams to support the initiative.


Many small and large organizations that make culture a critical aspect of their respective business strategies or models achieve their objectives much faster. Firms that promote a positive organizational culture find it easier to empower their employees, solve problems, and promote superior processes that have the potential to drive organizational performance (Nesbit and Lam 322). A good example or strategy is that of Apple Corporation. The leaders at this organization embrace the power of culture to encourage all workers to innovate continuously, identify emerging trends in the global market, and produce superior products that will meet the needs of all customers.

Similarly, Boeing has been focusing on the most appropriate initiatives to empower its employees using a desirable organizational culture. The outcome is that most of its employees remain supportive whenever implementing new change initiatives. Consequently, the corporation has remained a leading player in its industry (Felipe et al. 2369). Companies that ignore the importance of organizational culture will, therefore, find it hard to achieve their goals since their employees remain uncommitted or disempowered.


The above discussion has identified organizational culture as a powerful force for supporting employees, promoting change, and driving performance. The presented cases of Google, Apple, and Boeing have also revealed that companies that embrace the concept will find it easier to solve existing problems, promote innovation, and create evidence-based processes and procedures. In conclusion, managers should use their competencies to develop strong organizational cultures if they want to empower their employees and drive organizational performance.

Works Cited

Felipe, Carmen M., et al. “Impact of Organizational Culture Values on Organizational Agility.” Sustainability, vol. 9, no. 12, 2017, pp. 2354-2376.

Nesbit, Paul L., and Elman Lam. “Cultural Adaptability and Organizational Change: A Case Study of a Social Service Organization in Hong Kong.” Contemporary Management Research, vol. 10, no. 4, 2014, pp. 303-324.

Suwaryo, Joko, et al. “Organizational Culture Change and its Effect of Change Readiness throughout Organizational Commitment.” International Journal of Administrative Science & Organization, vol. 22, no. 1, 2015, 68-78.