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Introduction of (Hrmg1202) Organisational Culture And Performance Assessment Assignment
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Organizational performance is a key determinant factor that resembles the structural and functional integrity within the workforce of a particular organisation. It associates with the ambience of the workforce and their collective temperament relative to the goals and output of the organisation. A well designed organisational culture that upholds the ethical values and motivational factors for the employees involved ensures the delivery of efficient corporate performance. The culture of a workplace reflects upon the output of respective employees within a particular workplace. A healthy workplace ambience reaps quality results while an exploitive ambience affects the overall performance negatively. The study focuses on highlighting the relation between the management of corporate performance and the organisational culture while analysing its effectiveness and manipulative aspects.
Organisational culture and corporate performance: discussion
Organisational culture is effectively responsible for the development and progress of the output of a company. According to Pathiranage (2019), a culture prevalent within an organisation among the workforce reflects upon the productivity and the relative rate of success of an organisation. A healthy cordial relationship prevalent among the employees and the management body propagates clarity and sensibility within the organisation. The performative result of an organisation is directly proportional to the sensibility and the ambience of the workplace. There are several theories to support the relative result of the quality of an organisation. Herzberg's two-factor theory is associated with two key factors that are required to be practised within an organisation to establish an effective professional environment within the workplace. As opined by Chiat and Panatik (2019), effective exchange of quality and respect to the workforce ensures a quality output of results and efficiency from the employees within the workplace. The working staffs are responsible for the growth and prosperity of the organisation and its relative rate of success.
According to the theory, the effective incorporation of motivational factors in the organisation ensures a healthy work-life balance and thereby generates quality in the result. For example, acknowledging and rewarding the employees' contribution to the organisation, provision of equal opportunities for growth and success and dividing equal responsibility ensure a healthy motivated ambience within the workforce. According to Alshmemri et al. (2017), the hygiene factors include the provision of remuneration to the employees at par with the industrial standards; improvising the working conditions and establishing effective communication within the workplace ensure clarity. The overall hygienic ambience of the workplace and provision of additional benefits to the employees ensures their dedication towards the organisational goals and success.
Tesco PLC is one such company that utilises the policies of the two-factor theory within their workplace that ensures productive output within the organisation and their relative employment drive. Provision lucrative salary figures to the employees and acknowledging their skills motivates the employees within the workplace. The company also incorporates effective leadership styles that ensure clarity among the workforce of the organisation; resultantly it reaps benefits from such practices. It ensures Tesco becomes one of the most successful marketing chains in the UK and it is also reflected within their general business revenue. However, the hierarchical system in Tesco PLC inhibits effective clarity of policies between the employees and the management body.
Number of employees in Tesco, PLC
(Source: statista, 2022)
The above figure reflects that as of 2021, Tesco employed 367,361 employees within the organisation. Most of the employees are working in the United Kingdom and the Republic of Ireland surmounting 336,392 employees (statista, 2022). It denotes a lack of diversity in the employment structure in the rest of the European regions.
The performance of the employees is related to the organisational culture of the corporation. The employees involved within an organisation are necessarily needed to be trained in adherence to the knowledge of workplace efficiency. The prevalence of a motivating ambience within the workplace ensures that the employees are provided with facilities that ensure their mental and physical health. Therefore, it is important that the employees are treated following the Maslow’s hierarchy of needs which is beneficial in ensuring effective business satisfaction of the employees within the workplace
Maslow’s hierarchy of needs
(Source: Mansaray, 2019)
Employees are known to perform better if their psychological needs are addressed catering to the provision of basic facilities for any human requirements. It is extremely important that the employees are provided with a sense of security with the provision of additional health-oriented facilities and services. As opined by Mansaray (2019), it propagates a sense of security to them and their family members that help the employees to focus better in the workplace and this strategy is also beneficial in the employee retention within the organisation. The establishment of cordial relationships within the organisation propagates a sense of intimacy between the workforce and the management body. Therefore, it establishes an effective clarity within the organisational structure.
It is also important that the employees are respected for their contribution to their organisation. According to Mansaray (2019), an organisational culture that promotes equality in status instead of hierarchical status boosts the self-esteem of the employees at work. More importantly, an effective reward system ensures that the employees are being noticed. This sense of acknowledgement goes a long way in generating results in the business models from the employees at work.
All these motivational strategies aid in the promotion of self-actualisation that drives a working staff to perform to the fullest of their respective potential towards the organisation they are involved within.
Despite all these factors, an organisation needs to promote equality and diversity within the workplace culture which is an intrinsic factor in driving the output of the organisation. It affects the overall structure of the workforce that propagates ethical values of inclusivity and social responsibilities associated with diversity.
Organisational culture and corporate performance: Analysis
The organisational culture of the company is reflected in the overall performance of the employees involved in the company. As opined by Tj and Hw (2018), it is established that an effective corporate culture is needed to be formulated with effective business strategies that ensure the productivity of the workforce and the overall quality of the output.
Organisational culture and corportate performance
(Source: Al Khajeh (2018)
It is, therefore, necessary to establish a clear structure of the structural model within the organisation that ensures propagation of the business model that ensures a smooth workflow. Hence it is thoroughly necessary for an organisation to implement effective leadership styles that have their method of driving the motivation factors within an organisation.
Several such leadership styles are noted in the structure of an organisation that is known to drive the rate of productivity among the employees. As opined by Al Khajeh (2018), transactional leadership is known to drive the employees to work in an ambience that propagates the practice of exchange, rewards are provided in exchange for effective services in this form of leadership. The rewards might include promotions, pay raises or additional new responsibilities however this has a negative impact, this kind of leadership propagates the tendency to resign expectancy which hinders the creativity and innovation of the employees as they only work to fulfil the given target.
Similar cases are evident in the practice of Charismatic leadership. The leadership propagates the value of the employees that generate effective results based on the guidance and leadership of one particular individual. According to Al khajeh (2018), one leader is responsible for driving the productivity and resultant output of the employees driving their motivation within the workplace. However, it also causes a sense of expectations and dependability of the employees. The individuals associated within a workplace are dependent upon that one individual, similar negative effects can be noted in the case of transformational leadership.
Therefore, it has been noted that a bureaucratic and autocratic leadership in the organisational culture helps in the propagation of organisational culture that ensures general productivity of the employees directly targeted towards the organisational goals and guidelines as laid down by the management bodies. This, in turn, inhibits the general productivity of the employees and occasionally demotivates their work process. As opiend by Triguero-Sánchez et al. (2018), organisational culture is dual nature that is reflected in the structure of the organisation. A healthy work-life ambience is responsible for the propagation of the growth of a business model.
Organisational culture is dependent upon the effectiveness of the working staff involved in the work process that propagates a competitive edge and gives financial progress to the company. However, there is a darker side to this organisational culture. If this structure is not managed properly it loses track of the corporate goals and goes dysfunctional. Therefore it has been observed that a regulated ambience of professionals is to be practised within a workplace that propagates healthy culture to the workforce thereby deriving effective results.
Conclusion
It is highly important that an organisation implement effective corporate strategies that promote a healthy work-life culture within the organisation. It is important that the workers are provided with effective benefits and a healthy work environment that promotes a culture of equality and sensitivity towards their workflow and their associative productivity. The organisational culture as propagated within the business model ensures general effectiveness in the resultant output in terms of sales and revenue. It is the responsibility of the management body to ensure an effective form of leadership is being practised that drives the motivation of the employees at work.
References
Journals
Al Khajeh, E.H., 2018. Impact of leadership styles on organizational performance. Journal of Human Resources Management Research, 2018, pp.1-10..
Alshmemri, M., Shahwan-Akl, L. and Maude, P., 2017. Herzberg’s two-factor theory. Life Science Journal, 14(5), pp.12-16.
Chiat, L.C. and Panatik, S.A., 2019. Perceptions of employee turnover intention by Herzberg’s motivation-hygiene theory: A systematic literature review. Journal of Research in Psychology, 1(2), pp.10-15.
Khan, W.A., Hassan, R.A., Arshad, M.Z., Arshad, M.A., Kashif, U., Aslam, F. and Wafa, S.A., 2020. The effect of entrepreneurial orientation and organisational culture on firm performance: The mediating role of innovation. International Journal of Innovation, Creativity and Change, 13(3), pp.652-677.
Mansaray, H.E., 2019. The role of human resource management in employee motivation and performance-An overview. Budapest International Research and Critics Institute (BIRCI) Journal, pp.183-194.
Pathiranage, J., 2019. Organizational culture and business performance: an empirical study. International Journal of Economics and Management, 24(2), pp.264-278.
Tj, H.W., 2019. Impact of Work Value Affecting Employee Job Satisfaction for Improving Organizational Performance. International Journal of Science and Society, 1(4), pp.88-96.
Triguero-Sánchez, R., Peña-Vinces, J. and Guillen, J., 2018. How to improve firm performance through employee diversity and organisational culture. Revista Brasileira de Gestão de Negócios, 20, pp.378-400.
Websites
Statista 2022. About Tesco group: number of employees worldwide 2020-2021, by region. Avaialbe from : https://www.statista.com/statistics/490890/tesco-group-number-of-employees-worldwide/#:~:text=In%202021%2C%20Tesco%20employed%20367%2C361,%2C%20Hungary%2C%20Poland%20and%20Slovakia. [Accessed on : April 25, 2022]
