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Organizational Culture'S Role In Performance Enhancement: An Investigation Focused On The Banking Industry

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  • Simona Catalina STEFAN
  • Ion POPA
  • Robert Eduard KRUGER

Abstract

The key role of Organizational Culture to institutional success is widely recognized, yet the very specific mechanisms by which certain cultural typologies influence performance are not entirely understood, especially in the tightly regulated and hierarchical environment of the banking sector. This research proposes to close this gap by exploring the impact of popular cultural typologies mentioned in Handy’s investigation (Role, Power, Task and Person Culture) on different dimensions of operational performance such as clarity of objectives, organizational vision and conformity to tasks and responsibilities. This study will explore the mechanisms through which organizational culture serves as a driving force for performance, and to a significant extent, the way it impacts the communication processes within the management system. Utilizing quantitative survey, evidence collected from bank employees, this paper aims to establish connections between cultural typologies and operational efficiency by using Partial Least Squares Structural Equation Modeling (PLS-SEM) and the Importance-Performance Map Analysis (IPMA). Several hypotheses have been formulated not only to check the strength of such cause-and-effect relations but, more importantly, to prioritize those specific characteristics within organizational culture typologies where managerial efforts will have the highest influence towards productivity improvement. The results provide solid theoretical and practical guidance for actual and future managers regarding the strategic development of organizational culture in order to increase employee productivity.

Suggested Citation

  • Simona Catalina STEFAN & Ion POPA & Robert Eduard KRUGER, 2025. "Organizational Culture'S Role In Performance Enhancement: An Investigation Focused On The Banking Industry," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 19(1), pages 389-404, October.
    • Handle: RePEc:rom:mancon:v:19:y:2025:i:1:p:389-404
    DOI: 10.24818/IMC/2025/04.04
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    References listed on IDEAS

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    1. Jennifer Kunz & Mathias Heitz, 2021. "Banks’ risk culture and management control systems: A systematic literature review," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 32(4), pages 439-493, December.
    2. Anjan V. Thakor, 2016. "Corporate culture in banking," Economic Policy Review, Federal Reserve Bank of New York, issue Aug, pages 5-16.
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