Explain three theories about the relationship between organizational culture and performance.

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Explain three theories about the relationship between organizational culture and performance.

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Explain three theories about the relationship between organizational culture and performance.

Answer & Explanation (1)

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Culture and performance are an organization's two important aspects.

Explanation
There are certain assumptions for establishing a relationship between an organization's culture and the employees' performance. The following theories regarding the relationship between an organization's culture and the employees' performance can be summarized as follows:

Strong culture outlook: It states that an organization's strong culture helps the employees to achieve the goals. It is highly against alterations. It is the harmony of organizational values that are easily identifiable even to strangers. The organizational values direct the performance of the employees.
Fit culture outlook: It refers to the fact that an organization's culture must be aligned with organizational strategy. It means that a small change in the industry results in changes in the organizational culture as well. It is based on market competition, community expectations, and customer needs.
Adaptive outlook: It refers to the fact that organizational culture must be responsible and flexible. It states that adaptive culture significantly helps an organization to be successful in the long run Such a culture motivates trust and a carefree attitude among the employees. It also emphasizes the customers' changing tastes.
Verified Answer
The employees' performance is directly related to the organization's culture. The theories with respect to a connection between organizational culture and employee performance are as follows:

Strong culture outlook: It states that an organization having standardized culture has a positive impact on the employees' performances.
Fit culture outlook: It states that an organization has acceptable culture only if it is suitable for the organization's action plan.
Adaptive outlook: It states that the employee performance will be high when the organizational culture is flexible according to the dynamic environmental changes.

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