Leadership's influence on organizational culture and firm performance

¶ … Organizational Culture on Firm Performance

The leadership an organization plays a critical role in determining its culture that influences its performance. The culture refers to the norms and practices that employees are used to and how they influence each other in making decisions. In this article, the authors have shown that culture is dynamic and unique to the specific entity in question. Ideally, it determines how people are going to be treated or how the clients will be served. It is also evident that company leaders influence organization's social interactions among the subordinates and the development of desired behaviors.

Effect on firm performance

The performance of a firm is directly responsive to the culture of the people serving as employees. The closer this is to bringing harmony to the workers, the better it is for the success of the company. Cultures that encourage the employees to work towards attaining good results and meeting deadlines on time are good and can be counted on for the success of the company. Most of the challenges faced by a company are all related to making sure there is harmony to the employees. The basic determinants of success to the company are those that touch on motivating them to work and eliminating the chances of failure at work (O'Reilly III, Caldwell, Chatman, & Doerr, 2014). In many cases, people take charge of their lifelong interactions at work to be influenced by their interests and abilities. The best performing companies have a tendency to be encouraging employees to develop an interest in each other. This is done through socialization events such as team buildings and group performance as a way of developing concerns important to the entire organization.

This article also gives an account of how the relationships among the employees lead to the success of the company. The major issues that have been highlighted by the document are on matters of motivation and cooperation that comes from working in unity. This means that a culture of a corporation is needed to help the individuals attain their best level of interactions and ability to lead a better working life. However, cultures change and a responsive action in tandem with the needs of the organization is essential. Some of the important factors needed by the management involve the creation of better terms of trade for all and the utilization of control measures in the interactions.

The roles played by the CEO in the cultural development of the organization are crucial. The person in charge of the organization has a direct influence on how the rest of the employees will behave. They are best guided by the kind of habits and mannerisms set by the leader of the organization. One important trait that influences the way in which the CEO has a way with the junior employees is in his or her openness to experience. The article points out that the manner in which the people in charge of organizations can link their ambitions to the ends and means of their interactions.