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Organizational Culture and its Impact on Organizational Performance
Muhammad Aslam Khan
Organizational culture has a definite bearing on organization performance and facilitates employees to become valuable elements within the system. This study illustrates the dimension of organizational culture and evaluates its impact on organization performance with respect to the demographic profiles. A sample of 278 individuals, working in eight different organizations, was selected. Questionnaires, comprising four parts, were sent directly to the targeted segments. The first set of nine questions pertained to personal and organization profiles; second part consisted of sixty questions, based on the Denison organizational culture survey concerning Involvement, Consistency, Adaptability & Mission, and the last part related to eight questions on organization performance. The study shows that organizational culture dimensions, such as Involvement, Consistency and Mission have positive impact on organization performance while Adaptability borders around negative region. Organization performance enhances 69.5 % due to organizational culture. Furthermore, organization performance amplifies between the ranges of 07 percent and 39 percent, due to Involvement, Consistency and Mission but organization performance trims down by 06 percent due to Adaptability. The overall, model is significant (p<0.05) and organizational culture has strong linkage with the organization performance, though with varying levels in different demographic profiles i.e. age groups, education levels, management levels, experiences, organization sizes, organization status, and languages in different organizations. The study highlights that organizational culture is a vital ingredient in the success of an organization. Core organizational culture typically emphasizes special themes such as performance excellence, effective integration, workers' involvement and orientation towards organizational objectives.