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Examining the relationship between organizational
culture and performance: The perspectives of consistency and balance |
| ZHANG Mian 1, LI Hai 2, WEI Jun 3 |
| 1.Department of Human Resource Management and Organization Behavior, School of Economics and Management, Tsinghua University, Beijing 100084, China; 2. School of Business Administration, Beijing Normal University, Beijing 100875, China ; 3.School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China |
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Abstract Building on the Competing Values Framework (CVF), we investigated the relationship between organizational culture and performance. The perspective of consistency and that of balance were applied to examine the relationship. We tested our hypotheses on a sample of 270 companies in China, which resulted in two major findings. First, the consistency between organizational culture and external environment was found positively associated with organizational performance. Consistency was operationalized as a match between an organization’s current culture and its preferred future culture. Second, balance of organizational culture was found positively correlate with organizational performance. A balanced culture was defined as one in which values of each of the CVF culture types are equally held.
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Issue Date: 05 June 2008
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