Organizational Culture Vector Important for the Performance of a Company

Abstract

Organizational culture has become a fashionable subject in recent years, a topic that has been approached frequently in both academic and economic environments. Its importance is mainly reflected by the impact it has on the results of an organization. Thus, whether a public institution, a state-owned or a foundation society, we can definitely appreciate that a healthy organizational culture is a safe chance for success, it is one of the main factors that can determine the performance of that organization. In this context, the paper addresses a topic that has been little explored in the Romanian literature: to establish a possible link between the organizational culture and the performance of an organization. In order to achieve a first pragmatic approach to the research topic, we have conducted a case study on the assessment of organizational culture within a power generation company. This study evaluated the organizational culture in the company and analyzed whether the organizational culture influences its performance. The case study is not representative of Romania, but it is only a trend reflected by a company that produces electricity and which has posed the issue of assessing the organizational culture and its impact on its long-term performance. The research was conducted on a representative sample for management and executives. Through the research, the organizational culture was evaluated, its specificity was highlighted, and the organizational culture within the company was observed. It has been analyzed whether the organizational culture is understood by the employees and whether they fully adhere to it, but also the link between this concept and the company's performance. The management segment that refers to organizational culture is of great importance in the structure of a company as it can influence its results. Culture could be used to improve employees' actions within a company if it is managed correctly, creating a competitive advantage, thus differentiating companies from one another. Taking these issues into account, understanding and using the concept of organizational culture as a tool within a company has become impetuously necessary if a company targets a top position in the ranking of the domain in which it operates. It is obvious that understanding of culture is crucial to managerial and organizational action, not just a causal relationship between organizational culture and performance.