10 Jan 2023

61

The Culture of Performance: How to Create and Sustain a High-Performance Organization

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Academic level: Ph.D.

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Growth is one of the key objectives that guide the operations of nearly all firms. These firms endeavor to increase their profitability in their quest for growth. However, for many companies, growth remains elusive. Disappointing financial performance has become a major problem for firms operating in intensely competitive environments. As part of their efforts to accelerate the growth process, these firms have adopted various measures that range from improving the quality of their products to adopting better customer service approaches. While these measures are usually effective, they do not always yield the desired outcomes. Firms which have failed to find success despite their best efforts need to examine their internal processes and systems. Such issues as an organization’s culture are understood to have tremendous impacts on how organization operates and performs. Whereas toxic cultures hamper growth, cultural philosophies which aim to deliver the best possible level of service fuel high performance. There is existing research which has attempted to establish the connection between the culture of an organization and its performance. While it is true that this research is insightful, large gaps remain. Among the issues that have not been explored fully is the role that the leader plays in establishing a culture which drives performance especially when an organization is implementing a lean philosophy. This research project seeks to fill this gap.

Research Problem 

In conducting studies, researchers are usually driven by the need to find solutions to serious problems. This is the case here. Organizations grapple with grave problems which require urgent solutions. Today, there are thousands of organizations that are unable to accomplish their targets owing to their failures to align their cultures with their mission. In particular, some firms which wish to adopt the lean system have been unable to achieve the growth that the system is designed to deliver. The failure that these firms face can be attributed to leadership incompetence and incapability. As will be revealed in a later section, the skills and knowledge that a leader possesses influence the successful creation of a healthy culture and the performance of the company. This research aims to solve the problem of leadership failure and its negative impact on the adoption of lean systems and the creation of a culture that drives performance.

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Research Question 

The research question guides the research process. It enables the researcher to ensure that the study meets the goals of the research process. In recognition of the importance of the research question, one that captures the essence of this project was developed. The question is as follows: What role does a leader play in the creation of a culture that facilitates the implementation of a lean process and what are the competencies that the leader should possess? By answering this question, the research process will identify the link between leadership and the creation of a culture of performance. Furthermore, the successful completion of the research project will allow for the skills that effective leaders should possess to be determined.

Applicable Theories/Concepts/Variables 

This research is not original since there are other scholars who have examined the impact of leadership on the creation of a culture of performance. The works of these scholars will be built on by borrowing theories and concepts and identifying applicable theories. Among the concepts that apply to the research is the relationship between leadership, culture and organizational performance. Such scholars as Carmeli and Tishler (2004) have examined this concept. They observed that the performance of an organization hinges on leadership effectiveness and the culture that the organization has adopted. Carmeli and Tishler are not alone in recognizing the association between leadership and performance. David Mann (2006) also acknowledged that effective leadership helps to drive performance. According to man, leaders spearheading the implementation of lean processes are charged with such duties as promoting accountability, redefining the organization’s vision and aligning governance structures with the implementation process. Essentially, Mann suggests that lean leadership is an integral component of the successful adoption of a healthy culture which fuels organizational performance. Liden, Wayne, Liao and Meuser (2014) are yet another group of scholars on whose work this research project builds. The importance of servant leadership in creating a culture of service and driving organizational performance is the focus of their article. They note that it is critical for leaders to encourage employees and other stakeholders to sacrifice their own wellbeing in the pursuit of the common good. The insights that Liden and his team share will be applied in the discussion on the role of leadership in challenging employees to support process which help the organization to grow even when their support comes at the expense of their wellbeing.

The research project will be extensive and its scope will go beyond examining the relationship between leadership, culture and performance. Another concept that will be applied in the project concerns the skills, competencies and perspectives that lean leaders need as they push for culture changes with the goal of bolstering organizational performance. Joining forces with Saurin and a team of other scholars, Seidel (2017) penned an article which examines the competencies that define effective lean leaders. According to these researchers, problem solving, value addition to clients, leading by example, placing the interests of the organization above personal wishes and engaging in self-development are some of the competencies that effective lean leaders possess. Seidel and his team add that lean leaders should be able to identify the barriers that could derail the implementation of lean processes. As they do this, they ensure that the implementation occurs smoothly. Thanks to the insights that Seidel and his colleagues offer, the research project will give special focus to the competencies that lean leaders need to develop if they are to be successful in their establishment of healthy cultures that allow their organizations to perform satisfactorily. Balthazard, Cooke and Potter (2006) also explored the behaviors and competencies that enable leaders to steer their organizations toward high performance. They observed that leadership styles which promote self-actualization, collaboration among stakeholders and encourage employees to work tirelessly are behind the growth that organizations experience. Basically, these scholars contend that in order to be effective, leaders should focus on safeguarding the wellbeing of their employees. This insight is particularly critical for lean leaders who tend to be obsessed with streamlining processes to achieve higher efficiency levels at the expense of employee welfare.

The discussion above has identified two concepts that will provide the basic foundation for the research project. In addition to these concepts, the project will also benefit from the concept of the specific techniques and measures that lean leadership leverages to effect cultural change for positive performance. Tseng (2009) addresses some of these measures in her article. She notes that among the roles that leaders play is that they spearhead knowledge conversion. Essentially, Tseng notes that leaders are expected to help their firms to exploit their knowledge on the trends in the industry to achieve improved performance. She adds further that corporate performance hinges significantly on the capacity of the leaders to integrate knowledge and theoretical insights into practice. Establishing a culture which encourages spirituality is another measure that leaders can adopt as they seek to fuel the performance of their organizations (Garcia-Zamor, 2003). A culture of spirituality encourages ethical behavior and inspires employees to strive for quality and to uphold such values as integrity. Lean leaders need to be in the forefront of integrating spirituality into the workplace as they endeavor to push their organizations to new heights of performance. Leading change is another measure that leaders leverage for performance (Skerlavaj et al., 2007). Leaders are expected to engage in constant monitoring of their organizations with the goal of identifying areas that require improvement and implementing change which delivers improved performance. It is particularly important for lean leaders to stay on the lookout for changes which promise to enhance organizational efficiency. Overall, leaders have the mandate of adopting strategies and measures that have been shown to have significant impacts on the level of performance that their organizations report.

Hypotheses 

Hypotheses capture the answers that the researcher hopes to get as they explore the research question. By developing hypotheses, the researchers indicate their initial beliefs and perspectives that they hold regarding the subject that is the focus of their study. The following are the hypotheses that will guide this research project:

HA: There is a direct relationship between organizational culture and the effectiveness of the lean leader who must possess a wide range of competencies, and the performance of their organization.

H1: Culture plays no role in shaping the performance of an organization headed by a lean leader, regardless of the competencies that the leader possesses.

The two hypotheses given above capture two conflicting but possible outcomes. It is expected that after an extensive and thorough review of existing literature, hypothesis HA will be confirmed. This is to say that the researcher believes that lean leaders need to exploit their competencies to create healthy cultures that are required for organizations to experience high performance.

Suitable Method 

The method that a researcher selects needs to match the nature and purpose of the study. For this research project, literature review has been identified as the most appropriate and ideal method. As noted earlier, this project is not original. Various other scholars have conducted studies to determine the link between culture and performance and the role that lean leaders are expected to perform as they move their organizations towards enhanced performance. For instance, Slater, Olson and Finnegan (2011) perfomed a study that led them to establish that cultures which place focus on the development of inspired marketing approaches tend to boost organizational performance. Since there are already studies that examine a similar question, it was felt wise to simply analyze the literature resulting from these studies. In addition to the literature built on studies, the research will also borrow heavily from texts that are regarded as classics and authorities on the question of culture and how it affects organizational performance. The works by such scholars as Ashby (1999), Kotter and Heskett (1992), Hofstede (2001), Paladino and Books (2010), Smith and Peterson (1988), Liker (2004), Stanford (2013), Ashkanasy, Wilderom and Peterson (2011) and Sopow (2007) are among those that will be consulted as part of the literature review. Among other issues, these scholars confirm that culture defines organizational performance and that lean leaders are particularly required to spearhead the adoption of cultures which yield positive performance.

The availability and easy access of literature is yet another reason why literature review has been determined to be the most ideal method. An initial search for literature revealed that there are dozens of articles which are rich with insight regarding the relationship between culture, lean leadership and performance. Furthermore, performing an actual study would be costly in terms of time and financial resources. The researcher would need to engage human participants who may be unable to provide the responses needed for a complete research project which adheres fully to established guidelines. Since it simply involves an examination of existing content, literature review is undeniably the most appropriate method.

General Population 

When conducting studies, researchers seek to provide insights that will benefit a large population. Business leaders constitute the general population that this research will target. The purpose of the research is to outline how culture drives performance and the impact of effective lean leadership. By providing insights on how leaders can promote the performance of their organizations, this research project will help the leaders to become more effective. While the research will mostly benefit business leaders, it can also be of value to individuals who are not necessarily engaged in pursuits intended to deliver profits. For example, not-for-profit organizations can also benefit since they operate in environments where culture determines performance. Government agencies can also derive benefit from the research. Essentially, given the importance of the subject that it examines, this research would prove beneficial to a large population.

Sample Frame 

Databases that host scholarly literature will serve as the sample frame for this research project. There are various databases which hold vast amounts of relevant and credible literature. Given the impracticality of examining each of these databases, it is felt best to focus on Google Scholar, Ebcohost and Springer. In addition to being rich with academic content, these databases are also fairly easy to navigate and provide tools that enhance the literature review process. It is hoped that through a scrutiny of these databases, relevant literature which will help to build the discussion will be obtained.

Required Sample Size 

Literature review is a simple process for conducting literature. However, this method presents such complications as the determination of the appropriate sample size. When conducting actual research using such methods as surveys and clinical trials, researchers enjoy the benefit of guidelines which define the proper sample size. For those conducing literature reviews, it is left to their judgment to determine the sample size that they find to be appropriate. The sample used for this project’s literature review will be comprised of at least 50 academic texts. Journal articles and books will form the bulk of the literature. 50 is a proper size since it allows for a comprehensive and diverse understanding of the research project to be understood. Among the 50 texts will be articles and books that explore a wide range of issues related to culture and organizational performance.

Research Procedures 

The procedure that will be employed for the research project will be elaborate. A cursory examination of available literature will form the initial part of the research procedure. At this stage, searches for literature on culture and organizational performance will be conducted. The searches are expected to yield a large number of relevant articles. Next, the process will proceed to conduct a further search using refined and more specific search terms. Eliminating articles that do not offer much value will be the purpose of this step. With improved literature obtained, the next step of the process will involve a deep examination of each of the texts. During the examination, focus will be given to the common themes that feature in the texts. As described in the section below, the analysis will seek to establish thematic patterns. The research process will conclude with a write-up of the observations made and the insights gained from the literature review.

It is true that the research process outlined above omits some standard and important steps that accompany most research initiatives. For example, there is no mention of seeking approval from the relevant research committee or obtaining consent from participants. Since the research will involve a simple literature review, these processes are unnecessary. Furthermore, it is assumed that the researchers behind the literature that will be reviewed had conducted these steps. For example, it must be that the researchers obtained consent from subjects before proceeding with their studies. The researcher is confident that by following the process described above, the research question will be answered fully and the purpose of the project will be accomplished.

Proposed Analysis 

The collection of data only marks the beginning of the research process. Left in its raw form, the raw data is of little value and raises questions about the purpose of the research project. Since the researcher understands the importance of manipulating data to obtain insights, a thorough analysis of the data will be conducted. As indicated above, the analysis will involve an examination of thematic patterns. Essentially, this analysis will seek to establish if scholars believe that in order to achieve impressive performance, lean leaders need to direct the implementation of appropriate cultural environments. It is expected that the analysis will reveal that a majority of the scholars are of the view that effective leadership is required for positive organizational performance and that this performance is dependent on the organization’s culture. One might argue that the analysis process that the research adopts is rather simplistic. While this is true, it needs to be understood that much of the literature that will be reviewed will be of the qualitative type. Therefore, no extra value would be obtained if the analysis is performed using complex mathematical or statistical techniques.

In conclusion, research is one of the processes that drive human progress. As they perform research, scholars expand human knowledge and enable societies to integrate science into their operations. In a bid to add to the existing body of knowledge, a research focusing on culture and organizational performance is to be conducted. Based primarily on existing literature, this research will seek to provide lean leaders with the insights that they need to steer their organizations in the direction of positive growth. The research will employ the literature review method and the analysis adopted will involve determining thematic patterns. Since it will adhere to standard guidelines that govern the research process, this research project will undoubtedly be insightful and credible.

References

Ashby, F. C. (1999). Revitalize your corporate culture: Powerful ways to transform your company into a high-performance organization. Houston, TX: Cashman Dudley.

Ashkanasy, N. M., Wilderom, C. P., & Peterson, M. F. (2011). Handbook of organizational culture and climate. Sage.

Balthazard, P. A., Cooke, R. A., Potter, R. E. (2006). Dysfunctional culture, dysfunctional organization: capturing the behavioral norms that form organizational culture and drive performance. Journal of Managerial Psychology, 21 (8), 709-32.

Carmeli, A., Tishler, A. (2004). The relationship between intangible organizational elements and organizational performance. Strategic Management Journal, 25, 1257-78.

Garcia-Zamor, J. (2003). Workplace spirituality and organizational performance. Public Administration Review, 63 (3), 355-63.

Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, Calif: Sage Publications.

Kotter, J. P., & Heskett, J. L. (1992). Corporate culture and performance. New York; Toronto;: Free Press.

Liden, R., Wayne, S., Liao & Meuser, J. D. (2014). Servant leadership and serving culture: influence on individual and unit performance. Academy of Management Journal, 57 (5), 1434-52.

Liker, J. K. (2004). The Toyota way: 14 management principles from the world's greatest manufacturer. New York: McGraw-Hill.

Mann, D. (2006). The missing link: lean leadership. Frontiers of Health Services Management, 26 (1), 15-26.

Paladino, B., & Books24x7, I. (2011;2010;). Innovative corporate performance management: Five key principles to accelerate results. Hoboken, N.J: Wiley.

Seidel, A., Saurin, T. A., Marodin, G. A., & Ribeiro, J. L. D. (2017). Lean leadership competencies: a multi-method study. Management Decision, 55 (10), 2163-80.

Skerlavaj, M., Stemberger, M. I., Skrinjar, R., & Dimovski, V. (2007). Organizational learning culture- the missing link between business process change and organizational performance. International Journal of Production Economics, 106, 346-67.

Slater, S. F., Olson, E. M., & Finnegan, C. (2011). Business strategy, marketing organizational culture and performance. Mark Lett, 22, 227-42.

Smith, P. B., & Peterson, M. F. (1988). Leadership, organizations and culture: An event management model. London: Sage.

Sopow, E. (2007). The impact of culture and climate on change. Strategic HR Review, 6(2), 20-23. Retrieved from http://eres.regent.edu:2048/login?url=https://search-proquest-com.ezproxy.regent.edu/docview/217177178?accountid=13479

Stanford, N. (2013). Organizational health: An integrated approach to building optimum performance. London; Philadelphia;: Kogan Page.

Tseng, S. (2009). The correlation between organizational culture and knowledge conversion on corporate performance. Journal of Knowledge Management, 14 (2), 269-84.

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StudyBounty. (2023, September 14). The Culture of Performance: How to Create and Sustain a High-Performance Organization.
https://studybounty.com/the-culture-of-performance-how-to-create-and-sustain-a-high-performance-organization-essay

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