Understanding Organisational Culture and Organisational Performance: Are They Two Sides of the Same Coin?

Abstract

The understanding of organisational culture is increasingly viewed as a necessary requirement for high performance in the organisation. This is also suggestive that the culture of an organisation may have a significant impact on the success of the organisation. The term ‘organisational culture’ is used widely, however inappropriately and occasionally defining and using it incorrectly. While there is universal agreement that organisational culture exists and that it plays a crucial role in shaping behaviour and performance in organisations, there is little consensus on what organisational culture is and how it impacts on organisational performance. Without a reasonable understanding of the concept of organisation culture and its definition, we cannot understand its relationships with organisational performance. This paper explores the notion and the understanding of the concepts of organisational culture and organisational performance. If we can define and understand the concept of organisational culture, then we can understand how it can impact on organisational performance.