The effect of culture on organizational performance
By Dr Phil Chitagu, PhD
Introduction
Organizational culture is a system of shared values, beliefs, and norms that influence the way employees think, feel, and behave within an organization.
It shapes decision-making, communication, leadership styles, and employee engagement. As such, culture is not just a background element—it is a powerful driver of performance and long-term success.
Defining Organizational Culture
Organizational culture encompasses both visible elements—such as dress code, office layout, and rituals—and invisible elements—like underlying beliefs, assumptions, and attitudes. The culture of an organization can be strong or weak, positive or toxic, and adaptive or rigid.
How Culture Affects Performance
a) Employee Motivation and Bonding
A positive culture that values transparency, recognition, and growth tends to boost morale and motivation. Employees who feel valued are more committed and perform better. Conversely, a toxic culture leads to disengagement, absenteeism, and high turnover.
b) Teamwork and Collaboration
Culture promotes or inhibits collaboration. A culture that encourages open communication and trust leads to stronger teamwork and innovation, while a blame-focused or hierarchical culture stifles interaction and cooperation.
c) Decision-Making and Innovation
Cultures that reward creativity and tolerate risk foster innovation. Google and Apple, for example, thrive on innovation-friendly cultures. In contrast, rigid cultures discourage new ideas and slow down decision-making processes.
d) Leadership and Strategy Execution
The alignment between culture and leadership style is essential. A misalignment can result in poor strategic execution. Leaders must reinforce cultural values through their actions and communication to achieve strategic goals.
e) Customer Satisfaction and Brand Reputation
Culture affects how employees interact with customers. A service-oriented culture, like that of Southwest Airlines or Zappos, directly translates into higher customer satisfaction and brand loyalty.
Culture as a Competitive Advantage
A strong, adaptive culture is difficult to imitate and becomes a source of competitive advantage. Companies like Toyota, known for continuous improvement (Kaizen), and Netflix, known for its culture of freedom and responsibility, use culture to differentiate themselves in the market.
Challenges of Culture Management
Organizations undergoing mergers, leadership transitions, or globalization face cultural clashes. Poor cultural integration can lead to performance declines, while proactive cultural alignment can create synergy.
Building a High-Performance Culture
To leverage culture for performance:
•Define core values and purpose clearly.
•Hire and train for cultural fit.
•Empower leadership at all levels to model desired behaviors.
•Establish rituals and symbols that reinforce values.
•Continuously assess and realign culture with strategy.
Conclusion
Organizational culture is not just about workplace aesthetics or feel-good factors—it is a critical determinant of performance.
A well-aligned, healthy culture boosts productivity, innovation, and employee satisfaction, while a misaligned or negative culture can derail even the best-laid plans. Leaders must be intentional in shaping and sustaining a culture that drives high performance.
Is this what we are witnessing in Zimbabwean organisations? What can we learn from best in class?
Dr Phil Chitagu is an Executive and Team Coach. He is an author of HR and Leadership Books, an OD specialist, Strategy facilitator and a Keynote Speaker.
