Organizational Culture And Performance By Kotter And Heskett

Organisational culture refers to a diverse system of shared values, principles and behaviors that influence the behavior of employees in organisations. Organisations exist to achieve certain goals, ranging from profits and reputation to efficient work practices and an efficient working environment. The culture of an organisation has a strong influence on employee behavior and organisational performance and is therefore the catalyst which determines the success or failure of an organisation. As stated by Kotter and Heskett in their book ‘Corporate Culture and Performance’ â€Å"strong corporate cultures that facilitate adaptation to a changing world are associated with strong financial results† (2015). The true value of a company is no longer determined by looking through financial statements. In the 21st century, a strong organisational culture is viewed as an intangible asset through its ability to improve performance and the success of the organisation. However, in an organisation with a weak organisational culture, it can be viewed as a liability that possesses the potential to hinder business performance and success. There are three levels of organisational culture that enforce its presence. The first layer of organisational culture refers to that of assumptions. Assumptions are usually taken for granted yet reflect beliefs about desires, practices and reality. They are the fundamental components on how an employee determines the right behavior and feels about his job andShow MoreRelatedOrganizational Culture And Human Behavior1323 Words   |  6 Pages2014). A major factor of a project’s success is the behavior of the employees. Employee behavior is influenced by organizational culture and leadership. This paper will briefly explore the influence organizational culture and human behavior have on the success of projects, in particular projects plagued with conflict. 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