Relationship between Organizational Culture and
Performance Management Practices: A Case of
University in Pakistan
Ul Mujeeb Ehtesham, Tahir Masood Muhammad, Shakil Ahmad Muhammad
The aim of this study is to expand the base of knowledge and empirically test the relationship between the components of organizational culture and performance management practices. The study adopted the exploratory research approach to explore the impact. In this study, primary data was collected through questionnaires from 140 employees at the COMSATS Institute of Information Technology. The sample consists of both male and female faculty members. The regression and correlation statistical analysis were used. The results from the statistical analysis show that, involvement is highly correlated with consistency and adaptability. Similarly, the other dimensions of organizational culture have a positive significant relationship with the performance management practices.
Key words: Performance Management Practices, Organizational Culture
Recent literature proved that management of human resource in company has become an increasingly important for firm performance and business vision achievement. Employees are considered as valuable assets to an organization, which require effective management of these employees in firms. A lot of research in organizational theory has focused on developed countries; 95 percent and whereas only 5 percent of the studies testing organizational theories are found to be done in developing countries (Farashahi et al., 2005) inspite of the highly dynamic environment. A number of scholars have questioned the applicability of western management practices in developing countries and since long time it has also been recognized that culture is a main source of difference in performance management practices (Daniels et al., 2004; Piercy et al., 2004). Many researchers (e.g., Denison, Haaland, & Goelzer in Yilmaz, 2008) have called to investigate the phenomenon of organizational culture in different cultural context particularly in non-western nations. Organizational culture and performance relation has been examined by many researchers (Ogbonna & Harris, 2000; Rousseau, 1990; Kotter & Heskett, 1992; Marcoulides & Heck, 1993), not much research has been done on organizational culture as a contextual factor of performance management (Magee, 2002). Therefore the second purpose of this paper is to determine the relationship between components of organizational culture and performance management practices, a pervasive human resource development and management practice. This study is indented to fill these gaps.
Dension theory of organizational culture implicitly explain the cultural traits of organizational perfornace, while performance management practices as fundamental human resource management practice support the view that employees and managers benefit from the understand78
Journal of Competitiveness | Issue 4/2011
ing of organizational culture as a contextual factor. For the present empirical analysis Denison theory of organizational culture is employed which focuses on four cultural traits involvement, consistency, adaptability, and mission as key determinants of business performance.
2. Literature Review
2.1 Organizational Culture
Having established that organizational culture comprises a range of complex social phenomena, it is not surprising that scholars have identified corporate culture as a multi-layered construct which can be divided into layers according to these phenomena’s observability and accessibility. Organizational culture has been defined as patterns of shared values and beliefs over time which produces behavioral norms that are adopted in solving problems (Owens 1987; Schein, 1990). The organization’s internal environment is represented by its culture and is construed by the assumptions and beliefs of the...
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