How does a strong culture influence organizational performance? This is connected with Organizational Behavior.
The term organizational culture refers to the collective values and behaviors that "contribute to the unique social and psychological environment of an organization." This includes the principles and beliefs of specific members of that organization and other factors like product history, market environment, relevant technology, and so on. In order for a company to perform well, their culture must match the objectives of their company. For example, a data analysis firm would likely benefit from employing members who come from backgrounds that prioritize mathematics as a discipline. As a result, this company's organizational culture may be geared around personality types who are more introverted and numbers based. Consequently, this company may prioritize investment in cutting edge technologies like new computers, data programs, and so on, over amenities like TVs, couches, or refrigerators. In turn, this unity of objective may attract top-performers who seek an environment that is well suited to their skills. Overall, companies want their organizational culture to reflect the overarching goals of the company. Without a strong culture, it is unlikely that the company will be able to progress in the manner that it aspires to as unity (or lack thereof) is a major priority in any organization.
A strong organizational culture helps an organization attract and retain top talent. Professionals who want to achieve personal and organizational goals will be attracted to an organization that offers them opportunities to do so and that rewards them for doing so. As a result, employee turnover will be kept at a minimum, making it easier for the organization to continue to perpetuate its culture because it will not have to worry about continually training new employees in the culture. A strong culture also helps motivate employees to achieve results, and employees will be motivated to come to work because they will feel that they fit into the culture and that it is consistent with their beliefs and goals. Finally, a strong corporate culture creates shared goals and clarity about goals so that people can work together efficiently. Authors such as Gordon and DiTomaso (1992) have found that a strong culture, as measured by consistency of responses on a survey, predicts corporate growth (see the source below).
Gordon, G., & DiTomaso, N. (1992). "Predicting corporate performance from organizational culture." Journal of Management Studies 29:6. 783-798.
Organizational culture refers to common behavior patters within the group of people constituting the organization. A strong organizational culture means that people within the organization tend to have similar beliefs and behavior patterns. A strong organization culture also means that there is less tolerance for behavior that deviates from the accepted patterns. Weak organization culture on the other hand means that influence of the organizational culture in shaping the behavior if its individual member is weak rather than strong.
Strength of organizational culture is an important factor in determining the organizational performance. But much more important is the extent to which the pattern of behavior supported by it is in line with the requirements of an organization. An advertising organization can be more effective when its members are innovative and creative. This requires a culture which promotes people ready to take risks and experiment with new things. As compared to this the employees in a a hospital may need to be more cautious, requiring very different kind of culture.
The impact of strength of organizational culture itself is mixed. A strong organization culture tends to bind together the people of the organization and contributes to smoother functioning. However, a strong culture also tends to build in rigidities in the organization. It discourages change, and inhibits creativity. Therefore, a very strong organization culture may not be very suitable for organization operating in dynamic environment, requiring frequent changes in its working style.