Performance management and Organisational culture

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Abstract

This paper will provide an overview about performance management and organisation’s

culture. Following these definition, the relationship between these factors will also be

examined using Denison and Mishra model to evaluate how the organisational culture and

benchmarks for performances would impact other components of performance management

system.

Introduction

In today dynamic market environment with intense competition by the participation of many

organisations, the performance of an organisation plays a critical role in the survival and

development of such entity. As a result, understanding what could impact the performance

management of an organisation has become the focus of interest not only for scholars but also

managers of different organisations. Among the factors that are deemed to have impact on an

organisation’s operation, organisational culture has been the factor that attracted the attention

of researchers over a period of time. For such Drucker (2013) presented: “Develop your

people. Focus on their strengths. Then make high demand based on a person’s strengths.

Finally, periodically view their performance”. Following the past paper, this essay will

provide brief descriptions about performance management and organisational cultures. After

defining these concepts, the paper will examine the relationship between these two by using

Denison and Mishra model for organisational culture to evaluate how the organisational

culture and benchmarks for performances would impact other components of performance

management system. However, any attempt to further justify the validation of this model, as

well as further study about this relationship using different approach will be excluded from

this paper; therefore there will be no additional empirical research.

Definition of performance management

What is organisational culture?

The relationship between organisational culture and performance

management

Conclusion

In conclusion, the relationship between organisational culture and performance management

is an interesting topic that could still be the focus of scholars in the future. Generally,

performance management could be defined as the process which oversees and controls the

functions within an organisation with attempt to bring the highest result from the

organisational operations. There are different types of performance management system, but

most of them would have performance criteria and standards to which actual practices of

employees will be evaluated and adjusted accordingly to achieve overall goals. The culture of

an organisation comprises of values, norms and behaviours which are accepted and

voluntarily followed by employees; and it also act as guidance for employees to give

appropriate responses when issues arise. From researchers, these factors are interdependent.

However, strong and weak forms of culture have their pros and cons, which according to

Denison and Mishra model must be carefully considered when implementing.

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