Asked by Veronika Khvan on May 27, 2024

verifed

Verified

Briefly discuss the three perspectives or theories about the relationship between organizational culture and performance as asserted by John Kotter and James Heskett.

Organizational Culture

is a system of shared beliefs, values, norms, and practices that influences how members of an organization interact with each other and with stakeholders outside the organization.

James Heskett

An academic known for his contributions to business management, particularly in the areas of organizational culture, service management, and customer satisfaction.

John Kotter

A professor of leadership at Harvard Business School best known for his work on change management and leadership.

  • Understand the different perspectives and theories on the relationship between organizational culture and performance.
verifed

Verified Answer

AV
Agustin VelascoJun 01, 2024
Final Answer :
Answers will vary. John Kotter and James Heskett have reviewed three theories about the relationship between organizational culture and performance and the evidence that either supports or refutes these theories. The three are: the strong-culture perspective, the fit perspective, and the adaptation perspective. The strong-culture perspective states that organizations with strong cultures perform better than other organizations. This type of culture is also highly resistant to change. Strong cultures are thought to facilitate performance for three reasons. First, strong cultures are characterized by goal alignment. Second, they create a high level of motivation because of the values shared by the members. Third, they provide control without the oppressive effects of a bureaucracy.
The fit perspective argues that a culture is good only if it fits an industry or a firm's strategy. For example, a culture that values a traditional hierarchical structure and stability would not work well in the computer manufacturing industry, which demands fast response and a lean, flat organization.
The third theory about culture and performance is the adaptation perspective. Its theme is that only cultures that help organizations adapt to environmental change are associated with excellent performance. An adaptive culture is a culture that encourages confidence and risk taking among employees, has leadership that produces change, and focuses on the changing needs of customers. Please see the section "The Relationship of Culture to Performance" for more information.