The impact of organizational culture on employee Performance

Abstract

The primary objective of this study is to understand the conceptualization of organizational culture and analyze the impact of culture in the airline industry on the performance of its employees. The study focused on establishing a relationship between the organizational culture and employees’ performance. The study was based on survey and used the Denison’s cultural model to analyze the cultural traits of Pakistan International Airline (PIA). A total of 150 questionnaires were distributed amongst the employees of four selected departments; with the response rate of 62%, 102 respondents were included in the final analysis. The descriptive measures used in the study are mean and standard deviation. The findings showed that there is a significant relationship between culture and organizational performance. The findings also showed that four culture dimensions involvement, consistency, adaptability and mission jointly measure the culture of the companies in air industry. All the previously mentioned dimensions demonstrated positive association with the employee performance as indicated by the correlation coefficient. Furthermore, application of regression analysis revealed a good model fit and validated the existence of positive relationship between organizational culture and employee performance on a sample drawn exclusively from the population of PIA. It is also revealed that performance of the employees is not going to be affected unless the whole corporate cultural of PIA is revised and this is not possible unless the managers and top management of the Airline industry of Pakistan take initiative and learn the ability to translate this connection into value-driven performance.