The Link Between Corporate Culture and Performance

There is an inherent link between corporate culture and performance. When the corporate culture is strong, performance of the company as a whole and individual employees also is strong. But who is responsible for developing the right corporate culture?

Developing the right corporate culture is not the sole responsibility of the human resources. It has to be a collective effort involving the management, human resources and employees. After all, the culture of the organization has an impact on the productivity and morale of employees. And, good corporate culture is not just about having productive employees. It is about aligning the employees’ goals to the vision of the organization. This is the reason there is a shift from using corporate culture as a toll of recruitment to engaging employees at all levels.


Laying the Foundation for Growth

Every organization has its own culture, which also can be called a set of values and beliefs based on which the organization achieves is long-term goals. These values and beliefs are the very foundation for growth.

An organization should be looking to build its values and beliefs around innovation, technology, teamwork and using resources properly. Having the right values in place allows employees to get out of their comfort zone and take up challenges that otherwise they would not have done. When this happens, not only do employees become accountable for their performance, they also seek to excel and become more productive at work. As productivity increases, growth occurs.

Emphasis on Innovation and Teamwork

The link between corporate culture and performance is irrefutable. This is the reason more organizations are engaging employees and encouraging them to become more responsible and accountable for their deeds and action. Ownership works as a motivating factor and creates an inclusive culture, which, in turn, empowers employees to do their job.

However, no employee is an island and every employee has to join forces to work towards the same goals. As a result, teamwork should be encouraged. When an organization has strong teams, they work effectively together by making the right decisions to fulfill the primary objectives and goals of the organization.

How Human Resources Can Help?

While the human resources is not really responsible for corporate culture and performance, it does play a major role in shaping and building corporate culture. HR is the link between the management and employees. It has the responsibility of communicating to the employees why the management has taken certain steps and also let the management know the expectations of employees.

HR should be looking to attract and retain employees who have the same values and beliefs that make up the corporate culture of the organization. This allows new employees to assimilate seamlessly into the organization and aids in strengthening the culture even further.

When it comes to corporate culture and performance, an organization should be looking to align its culture with the performance management system it has. This will ensure employees’ acts and behavior help achieve organizational goals.