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The Impact Of Culture And Organizational Change On The Economic Performance Of Companies

Author

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  • Mirela Sîrbu
  • Doina Rosca

Abstract

During the present time, when the change represents the dominant characteristic of all the social-economical systems, it is necessary the administration of the organizational culture, which should assure the adapting to the permanent modifications from the internal and external environment of the organization. When the organizational change is made in optimal conditions and by a competent leadership, it constitutes an important success factor for enterprises. A powerful culture protects the organization from the environment changes and confers to its values the stability necessary to the long term survival. These organizations can adapt rapidly to the encountered changes, finding in their values the necessary force to resist. The relationship between the culture and the performance of an organization is outlined by the functions of the organizational culture: it enforces the cohesion of the wage-earners collective, improves the external adapting of the organization, increases the personnel’s loyalty, by encouraging the feelings of devotion and fidelity towards the organization. More and more organizations are aware of the “force” of an organizational culture, representing an important strategic instrument in order to direct ant mobilize the men towards mutual goals, a lever which favours or stops the introduction of the new, representing the “key” of the organisational excellence.

Suggested Citation

  • Mirela Sîrbu & Doina Rosca, 2010. "The Impact Of Culture And Organizational Change On The Economic Performance Of Companies," Business&Leadership, Scientific Society of Management from Romania, vol. 3(1), pages 103-110, March.
  • Handle: RePEc:ssm:journl:tome:5:y:2010:i:1(5):p:103-110
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