The Relationship Between Corporate Culture and Work Performance


Studies have shown that corporate culture has been strongly linked to company performance. In this article, we see how these two are exactly related. A positive corporate culture that engages and motivates employees will boost a company’s performance. On the other hand, performance alone does not create positive corporate culture.

Corporate culture can vary from one company to the next but it refers to the values, behaviors and beliefs that determine how managers and employees interact and handle situations.

In one particular study, companies that were rated highly by their employee saw higher profits at the end of the year. The payoff of a positive culture in the workplace does not happen immediately but the influence does carry on throughout the years. In another study, companies that are well off financially and score low on employee surveys, eventually become less profitable.

Experts in organizational change say it can be hard to do an overhaul on large corporations with multiple work places and a complex office dynamic.  A company’s culture can also vary across different departments. Even so, David Grossman, a Chicago-based leadership consultant explains it is important to strive for a better company culture because it provides the business a competitive edge.

In my experience when management and employees  interact with shared values and create a positive culture, the bottom line will more likely be positive and the company will have greater staying power in its marketplace.

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