Organizational culture and Performance: An examination of relative effects of culture factors in IT industry in India

Abstract

This article explores the relationship between organisational culture and Performance and aims to present a model .We report on a longitudinal case study of software companies in the IT service sector in India especially , Trivandrum, capital of Kerala , where a state headed huge infrastructure for IT has been established. The study examines the effects of major organizational culture traits, involvement, consistency, adaptability, and mission, on measures of performance, using review of literature and hypothesis.. It is hypothesized that each cultural factor will impact positively on overall firm performance and employee performance. Despite the view that a good combination of the four factors results in better organisational performance than an imbalanced combination is subjected to empirical testing. The results indicate that the mission factor is the most important of the four factors in terms of fostering overall organisational performance, sales performance , and market share growth. In addition, an organisation’s capability to develop successful new products is influenced primarily by the adaptability and consistency factors. Employee satisfaction is influenced by the involvement factor.