Journal of Socialomics

Exploring the Dynamics of Organisational Culture and its Impact on Employee Behaviour and Performance

Duncan Borg Ellul^* Department of Business and Management, Malta Leadership Institute, Europe, Malta
^*Correspondence: Duncan Borg Ellul, Department of Business and Management, Malta Leadership Institute, Europe, Malta, Email:

Received: 30-Oct-2023, Manuscript No. JSC-23-23658; Editor assigned: 01-Nov-2023, Pre QC No. JSC-23-23658 (PQ); Reviewed: 15-Nov-2023, QC No. JSC-23-23658; Revised: 22-Nov-2023, Manuscript No. JSC-23-23658 (R); Published: 29-Nov-2023, DOI: 10.35248/2167-0358.23.12.210

Introduction

This study aims to comprehensively understand the relationship between organisational culture and employee behaviour and performance. The central research question propelling this investigation is: How does organisational culture influence employee behaviour and performance, and what are the underlying mechanisms and contextual factors govern this association? By examining existing literature and integrating interdisciplinary perspectives, the study explores how organisational culture shapes employee outcomes, including behaviour, engagement, and performance. It emphasises the importance of positive cultures characterised by trust, collaboration, and innovation while highlighting the detrimental effects of toxic or rigid cultures. Aligning organisational culture with strategic objectives and cultivating compassionate and inclusive cultures are critical for enhancing employee motivation and adaptability. The influence of national cultures and contextual factors on organisational culture is also acknowledged. The study utilizes theoretical frameworks to provide valuable insights into the correlation between organisational culture and employee behaviour and performance, considering the functional aspects of culture and power dynamics. Overall, the findings from this research have the potential to guide organisations in effectively managing and aligning their culture with desired employee outcomes, leading to enhanced organisational success and employee well-being.

Literature Review

Defining organisational culture

Organisational culture is defined as shared perceptions of organisational work practices within organisational units that may differ from other organisational units. The central aspect of this definition is organisational work practices, which are particular ways of conducting organisational functions that have evolved over time. These practices reflect the shared knowledge and competence of the organisation [1]. According to Edwards et al., Organisational culture can be described using traditional views of culture drawn from the anthropology and cultural psychology literature [2]. Denison’s seminal work 1996 laid the foundation for applying quantitative survey methodologies in organisational culture research, highlighting the importance of measurement and empirical analysis. However, subsequent studies have raised concerns about the compatibility of these methods with the subjective and complex nature of organisational culture in scholarly investigations. For instance, Cameron and Quinn employed the Competing Values Framework (CVF), which recognised the multidimensional nature of culture and provided valuable insights into the dynamics of cultural transformation [3]. These authors emphasised the importance of considering multiple dimensions of culture, such as clan, adhocracy, market, and hierarchy, to understand organisational culture comprehensively. Al Shehri et al., ventured into the captivating realm of organisational culture and its profound impact on attitudes towards change [4]. They used a qualitative approach to unveil insights into how culture shapes responses to transformative organisational shifts, emphasising the importance of context and individual experiences. Lee et al., embarked on an intellectual odyssey, exploring the connection between corporate culture and organisational performance [5]. Their qualitative approach aimed to unravel culture’s intricate and multidimensional nature and its influence on various outcomes.

Ernest Chang et al., delved into the potent sway of organisational culture on implementing information security management, examining the nuanced aspects of cultural norms and their impact on security measures [6]. These scholars also used qualitative methods to unravel the intricate web of culture’s influence. Livari et al., combined qualitative and quantitative elements to scrutinize the influence of culture on adopting agile methods, recognising the need to capture both subjective experiences and measurable data [7]. Similar Livari et al. and Sanz-Valle et al. intertwined quantitative and qualitative analyses to explore the complex interplay between organisational learning, technical innovation, and culture [7,8]. These researchers recognised culture’s multidimensional and context- specific nature and used mixed methods to capture its nuances. In light of these scholars, we learn that while Denison’s work focused on quantitatively quantifying culture, other scholars embraced qualitative and mixed-methods approaches, acknowledging culture’s multidimensional and context-specific essence. In addition to these empirical studies, theoretical perspectives provide valuable insights into organisational culture’s underlying mechanisms and dynamics. Theoretical frameworks offer conceptual lenses through which researchers can analyse and comprehend the intricate nature of organisational culture. These frameworks help shed light on the complexities and interconnections within organisational culture, as we will explore in the following section, providing a deeper understanding of its influence on employee behavior and performance.

Theoretical perspectives on organisational culture

The study of organisational culture faces challenges, including the lack of consensus on its definition and operationalization in research. The imperceptible nature of culture and its subjective assessment further pose measurement difficulties. However, researchers have developed frameworks and approaches to address these challenges and better understand the complex relationship between culture, behaviour, and performance. These frameworks analyse different dimensions of culture and explore how they interact and shape employee attitudes and actions. They also examine the influence of culture on behaviour and performance through socialisation processes, leadership styles, and organisational practices. Embracing these frameworks can lead to a more comprehensive understanding of the impact of organisational culture on employee outcomes. The Figure 1 below represents the theoretical framework model for this research paper. Frameworks such as the Competing Values Framework, Cultural Web, and Dimensions of Cultures provide valuable tools for understanding and assessing organisational culture. These frameworks offer a comprehensive view of the elements that shape culture within an organisation (Figure 1).

Figure 1: Theoretical framework model.

The Competing Values Framework categorises organisational cultures into four quadrants, helping identify dominant cultures and areas for improvement. The Cultural Web framework examines symbols, rituals, stories, power structures, organisational structures, and control systems to understand the underlying values and behaviours that define culture. Symbols, rituals, stories, power structures, and control systems shape culture. Power structures affect relationships and decision-making, and control systems regulate behaviour. Effectively managing these elements enables organisations to align their culture with strategic objectives, fostering enhanced employee engagement, improved performance, and the ability to address cultural challenges. These frameworks serve as valuable guides for promoting a culture that aligns with and supports the organisation’s overarching goals. In the following sections, we will explore these tools in more detail to better understand their significance.

The competing values framework model

The Competing Values Framework is a model developed by Robert E. Quinn and John Rohrbaugh to understand and evaluate different dimensions of organisational culture [9]. Initially, the CVF focused on two dimensions: Flexibility versus control, internal focus, and integration versus external focus and differentiation [10]. However, subsequent research identified four distinct cultural types within the framework: Clan, adhocracy, market, and hierarchy [11]. The CVF has provided valuable insights into how culture influences employee behaviour and performance [12]. Although the original conception of the CVF suggested competing values, further research has shown that the cultural types can coexist and complement each other. This understanding highlights the dynamic nature of culture and its potential to positively impact employee behaviour and performance, as evidenced by studies on ambidextrous organisations [13].

The widespread adoption of the CVF demonstrates its considerable influence. Many organisations worldwide have utilised the framework to assess and understand their organisational culture [11]. Researchers have also expanded the application of the CVF beyond measuring organisational effectiveness to assess organisational culture [11,14,15]. This has yielded valuable insights into cultural types and the tensions between different orientations, enhancing our understanding of the dynamic nature of culture. The subsequent section will delve into the Cultural Web, providing a holistic perspective on organisational culture and its impact on employee behaviour and performance.

The cultural web

The reviewed studies, as outlined here under, highlight the growing recognition of cultural factors in the development and usability of web interfaces. These studies highlight diverse perspectives and focal points, illustrating the multifaceted nature of cultural considerations in this context.

Juric et al. and Handscombe approach the topic from different angles but acknowledge cultural factors’ relevance in web design. Juric et al. take a broader perspective, identifying general issues and culturally specific design elements [16,17]. Handscombe, on the other hand, provides a specific context by reviewing a government initiative and emphasising the need for effective communication strategies to facilitate cultural change. Garzotto et al., prioritise content quality and access in cultural web applications, recognising the significance of providing culturally relevant and accessible information [18]. Davoli et al., on the other hand, present a quantitative methodology for evaluating websites and emphasise developing cross-cultural websites, highlighting the need for systematic approaches to account for cultural differences [19].

Mossop et al. and Alexander et al. contribute to understanding cross-cultural web design from distinct perspectives [20,21]. Mossop et al., adopt a cultural web model originally used in a business context to identify elements of the hidden curriculum, demonstrating the potential of cultural frameworks in enhancing organisational culture through web design [20]. Alexander et al., in contrast, endeavour to forge guidelines for cross-cultural web design, acknowledging the imperative to customise user interfaces to converse with diverse cultural clusters deftly. Although the precise contributions of Rau et al. and Cooper et al. to cross- cultural web design are not explicitly laid out in the literature, one can deduce that they propel the comprehension of how cultural factors dynamically shape usability and communication in web design [22,23]. Overall, the reviewed studies underscore the significance of cultural factors in the development and usability of web interfaces. These studies encompass a range of focuses, including identifying design elements, evaluating content quality, utilising cultural frameworks, and developing guidelines for effective communication. Through an exploration of cultural dynamics, these studies enhance our understanding of the relationship between culture and web design. They highlight the importance of customising websites to engage diverse user groups effectively. This emphasises the need to tailor web design strategies to successfully captivate a wide range of users. In the upcoming section, we will delve into the realms of culture. Grasping the myriad dimensions of culture is pivotal for fathoming the intricacies and disparities within diverse organisational frameworks.

Dimensions of culture

Diverse researchers and scholars have proposed different frameworks to comprehend cultural dimensions. Harris et al. and Erdogan et al. investigated the impact of individual congruence with organisational culture on employee behaviour and performance [24,25]. Harris and Mossholder focused on organisations undergoing cultural transformation, emphasising aligning employees’ values and beliefs with the evolving culture [24]. Erdogan et al. on the other hand, explored how organisational culture moderates the relationship between justice perceptions and leader-member exchange [25]. Moemeka introduced the dimension of communalism, differentiating it from collectivism and individualism, and explored its unique characteristics [26]. This distinction is critical for understanding the impact of culture on employee behaviour and performance, as communalism emphasises cooperation and shared goals. Gorodnichenko et al., focused on the individualism-collectivism dimension, providing empirical evidence of its relationship with economic growth, and highlighting the broader implications of this cultural dimension for organisational behaviour and performance [27].

Hofstede et al. and Ruighaver et al. contributed to exploring cultural dimensions from diverse perspectives [28,29]. Hofstede and McCrae emphasised the potential of personality trait taxonomies and cultural values in understanding the influence of culture on individual behaviour within organisations. Ruighaver et al. presented a comprehensive framework of eight dimensions of culture, offering a more nuanced understanding of cultural dynamics and their implications for employee behaviour and performance [28]. Triandis further add’s to this understanding by stating, “The dimensions of culture, such as individualism vs. collectivism and power distance, shape how individuals perceive and interact within their social and organisational contexts” [30]. This quote highlights the significance of cultural dimensions in shaping individual perceptions and interactions within their social and organisational environments.

Kunzmann investigated the cultural dimension of urban and regional development, specifically examining how culture shapes employee behaviour and performance within the framework of cities and regions [31]. Bailey et al., noted connections between national culture and individuals’ perceptions of health-related quality of life, shedding light on cultural factors that influence employee wellbeing and performance [32]. These studies offer valuable insights into the dynamics of organisational culture, including the importance of individual congruence, cultural dimensions, justice perceptions, interpersonal relationships, and broader cultural implications. The subsequent section will explore approaches and tools developed to assess and diagnose organisational culture effectively.

Assessing and diagnosing organisational culture

Research on organisational culture has shown its significant impact on various facets of organisational performance. Researchers such as Lukovac et al., and Syahwani have investigated the influence of organisational culture on transportation processes and organisational innovation, respectively [33,34]. These studies contribute to understanding how culture shapes specific organisational processes and outcomes. Furthermore, Popa et al. and Wu et al. have highlighted the interconnectedness of culture, strategy, and innovation [35,36]. They emphasise the importance of aligning these elements for organisational success, underscoring the need for a harmonious culture that supports strategic goals and fosters innovation. Fosso Wamba et al. and Tereshchuk have provided practical perspectives on managing organisational culture, offering quantitative approaches and conceptual models for evaluating and integrating culture into decision-making and organisational management [37,38].

In addition to these broad studies, there have been investigations into culture within specific contexts. For example, Misoska et al., focused on culture within family firms, while Zanon et al., examined its impact on supply chain performance [39,40]. These studies provide context-specific insights into the influence of culture on organisational outcomes, highlighting the importance of considering unique organisational characteristics. Furthermore, Marjanis et al., investigated the interdependence between organisational structure, design, and culture, while Tepliuk et al., explored the role of culture in cross- sector collaborations [41,42]. These studies contribute to a deeper understanding of culture’s interaction with other organisational factors. These studies employ diverse assessment methods, examine different dimensions and contexts of organisational culture, and explore its influence on specific outcomes and performance measures. They provide valuable insights for future research and offer practical implications for organisations aiming to manage and leverage their culture effectively. In the following section, we will delve into the impact of organisational culture on employee outcomes, exploring how culture shapes employees’ satisfaction, commitment, motivation, and achievements. This exploration will shed light on the pivotal role of culture in creating a positive work environment that unleashes employees’ full potential and drives organisational success.

The relationship between organisational culture and employee outcomes

Countless studies have investigated the intricate relationship between organisational culture and employee outcomes, including employee engagement, job satisfaction, performance, dedication, wellbeing, and motivation. Research conducted by Fidyah and Rana et al., have revealed a noteworthy influence of organisational culture on these outcomes [43,44]. Other studies, such as those by Di Miceli da Silveira and George et al., have employed text analysis and qualitative approaches to examine the connection between organisational culture, financial performance, and employee wellbeing [45,46]. The findings of these studies highlight the importance of organisational culture in shaping employee behaviour and performance. Employee branding, engagement, perceived justice, and organisational commitment are all factors that contribute to positive outcomes. The studies also emphasise the contextual factors influencing employee behaviour and performance within organisational cultures, such as industry- specific challenges and cultural norms. Here are some key findings related to specific employee outcomes and their relationship with organisational culture.

Employee satisfaction: Studies by Ambroz et al. and Haslam et al. and Zeffane et al. have explored the relationship between organisational culture, job satisfaction, and employee dedication. These studies highlight the importance of fostering a positive culture to enhance employee satisfaction and dedication [47-49].

Employee dedication: Researchers like Becker et al. and Gould-Williams et al. have examined the connection between dedication and performance [50,51]. Communication satisfaction, socialisation, perceived support, and affective commitment have been found to influence employee behaviour and performance within an organisational culture.

Employee motivation: Numerous studies Hsu and Kuvaas and Mafini and Manolopoulos have investigated the impact of organisational culture on employee motivation and performance [52-55]. These studies emphasise the importance of understanding how organisational culture fuels employee motivation and creates a work environment that fosters high drive levels.

Employee performance: Studies by Budhwar et al. and Kaur and Kuo et al. and Leszczynska et al. and O’Donnell and Roscoe et al. highlight the positive impact of HRM practices, such as training, performance appraisal, and rewards, on employee performance [56-61]. Additionally, these studies emphasise the significance of safety leadership and safety culture in improving employee performance. A green organisational culture has also been found to motivate employees and enhance their performance.

Overall, these findings underscore the importance of organisational culture in shaping employee performance and highlight the potential for organisations to optimise performance through effective cultural practices. The diagram below illustrates the interconnectedness between organisational culture, employee satisfaction, dedication, motivation, and performance. A positive culture fosters satisfaction and dedication, influenced by communication, support, and commitment. Organisational culture significantly impacts motivation and performance, with a positive work environment enhancing both. HRM practices, safety leadership, and a green culture contribute to improved performance. Understanding these relationships is key to shaping behaviour and driving employee performance (Figure 2).

Figure 2: The influence of organisational culture on employee performance.

The following section explores the various leadership styles and their impact on organisational culture. Additionally, it considers leaders as cultural carriers, focusing on their role in transmitting and embodying organisational values and norms.

The role of leadership in shaping and managing organisational culture

Scholars in various industries and contexts have extensively explored the interplay between leadership and organisational culture. These studies highlight the importance of aligning leadership methodologies with organisational culture and contextual elements to achieve optimal outcomes. Foundational research by Shiu et al. and Densten et al. has established an understanding of how organisational culture impacts employee outcomes and how leadership styles shape culture [62,63]. Berraies et al., emphasise aligning leadership practices with organisational culture, particularly in knowledge-intensive firms. In the healthcare sector, studies highlight the pivotal role of leadership in supporting healthcare professionals and influencing job-related outcomes [64].

Research conducted in specific domains, such as food safety management systems, nursing and the hospitality industry provides insights into the unique dynamics of organisational culture and leadership styles in these contexts [65]. These studies also explore the impact of leadership styles on work engagement, innovative behaviour, and performance across various sectors. They underscore the significance of effective leadership in shaping a positive work environment, fostering employee engagement, and driving organisational outcomes. Furthermore, these studies offer valuable insights into how organisational culture influences ethical behaviour, leadership practices, knowledge management, job satisfaction, and other organisational outcomes. Organisations can leverage these findings to optimise employee conduct and performance by aligning their culture, leadership practices, and strategic goals. In the subsequent section, we will delve into aligning organisational culture with strategic objectives and goals. This alignment enables organisations to create a cohesive, purpose- driven work environment that enhances employee motivation, commitment, and performance. As Roscoe et al., state, “We suggest the key enablers of green organisational culture include leadership emphasis, message credibility, peer involvement, and employee empowerment” [61]. This highlights the importance of specific factors in fostering a green organisational culture, which aligns with the broader understanding of aligning leadership methodologies and organisational culture to achieve optimal outcomes.

Aligning culture with organisational goals

Early investigations primarily examined the correlation between organisational culture and performance outcomes. For instance, Tosi et al., conducted pioneering research, laying the groundwork for subsequent inquiries into the connection between culture and organisational effectiveness, encompassing financial performance and overall organisational efficacy [63,66,67]. Recognising the significance of studying culture within specific industry contexts, scholars have explored the intricacies of organisational culture and its influence on employee conduct and performance across various sectors. Coffey delved into the construction industry, while Saame et al. and Mash et al. concentrated on the healthcare sector, illuminating the distinctive facets of organisational culture within these domains [68-70]. An important theme in the literature has been aligning organisational culture with strategic objectives. For instance, Martins et al. examined the perception of organisational values and underscored the necessity of aligning culture with organisational goals [71]. This perspective urges organisations to leverage existing cultural elements to facilitate desired transformations, such as fostering environmental responsibility. While studies have provided insights into the influence of culture on employee behaviour and performance, relatively less attention has been given to the strategies and methodologies for managing culture. Scholars such as Uzonna have underscored the need for organisations to define specific objectives and identify cultural elements that facilitate or impede desired changes [72]. This targeted approach enables organisations to make focused efforts towards achieving desired outcomes. Further research may be required to delve deeper into the strategies and methodologies for managing and aligning culture with organisational goals, providing practical guidance for organisations seeking to enhance their performance through cultural interventions.

The Table 1 beneath enumerates several pivotal works that were previously examined, which have remarkably enriched our comprehension of diverse facets of organisational culture. They bestow invaluable revelations, quantitative methodologies, and pragmatic viewpoints on appraising and diagnosing organisational culture, delving into the correlation between culture and employee outcomes, scrutinising the influence of leadership in moulding and administering culture, and harmonising culture with organisational objectives. These investigations furnish an all-encompassing panorama of the contemporary research terrain in organisational culture and its repercussions on various aspects of organisations and their workforce. The interplay between organisational culture and climate is explored in the following section. This investigation aims to understand how these constructs interact to cultivate a positive and supportive work climate that aligns with the overarching culture, thereby enhancing employee behaviour and performance (Table 1).

Table 1: Summary of works on the compilation of assessment and evaluation of organisational culture.

The interplay between organisational culture, climate, and national cultures

Early investigations primarily focused on organisational climate Litwin et al., while subsequent research delineated it from organisational culture [73-75]. Organisational climate refers to shared perceptions of the work environment Schneider et al. accentuating climate strength and consensus among group members [76,77]. The interplay between organisational culture and climate is intricate, as broader cultural norms shape the specific climate within an organisation [78]. Extensive research has explored the influence of culture and climate on diverse outcomes, including employee empowerment, knowledge sharing, sustainable practices, and environmental outcomes [79-82]. Specific organisational contexts, such as healthcare and mediating factors like green psychological climate and personal creative identity are also considered in these studies [83,84]. The relationship between organisational culture and performance has been investigated across various domains. It influences project outcomes in large international projects sales performance through negotiating styles, and overall organisational effectiveness [85-87]. Effective management plays a pivotal role in aligning culture with organisational objectives while national culture influences performance measurement systems and new product performance [72,88,89]. Furthermore, the impact of organisational culture has been examined in specific contexts such as corporate mergers age stereotypes, nursing and organisational transformation [91-93]. These studies unveil the multifaceted relationship between culture and performance and emphasise the need for effective management strategies.

The body of research provides a comprehensive understanding of the interplay between organisational culture, climate, and national cultures and their implications for employee behaviour and performance. Organisations can leverage these findings to shape their culture, align it with organisational objectives, and ultimately enhance overall performance. The subsequent section discusses the design, methodology, and research approach employed in the study. This section is critical in establishing the validity and reliability of the study’s findings and conclusions.

Methodology

The researcher employed a systematic literature review approach to explore the interplay between organisational culture, employee behaviour, and performance. The study utilised a robust theoretical foundation from various disciplines to enhance the analysis and understanding of this complex relationship. The literature review process involved a well-defined search strategy and clear objectives. Specific inclusion criteria were used to select relevant academic articles and scholarly sources, including publications on the relationship between organisational culture and employee behaviour/performance, rigorous research methods, and peer- reviewed sources. Exclusion criteria were applied to exclude articles that did not meet the defined criteria. The objectives of the literature review were to identify and review scholarly articles, synthesis findings, and identify gaps for further research. This process ensured the selection of reliable sources to inform the study.

It is worth noting that the study could have further enhanced its findings by employing a mixed-methods approach. This would have involved integrating qualitative methods, such as interviews and observations, to capture subjective experiences and perceptions of employees regarding organisational culture, behaviour, and performance. Additionally, quantitative methods could have been used to analyse numerical data and examine relationships and patterns between variables related to organisational culture and employee outcomes. By combining qualitative and quantitative approaches, the study could have provided a more comprehensive and holistic understanding of the topic. Throughout the research process, the study maintained adherence to best practices and rigorous research standards. This included data quality and reliability considerations, knowledge of biases, and transparent reporting. The study aimed to contribute valuable insights, address gaps and controversies in the existing literature, and contribute knowledge on organisational culture and its impact on employee behaviour and performance.

Results and Discussion

Impact of organizational culture on employee behaviour and performance

Research consistently shows that positive cultures characterised by trust, collaboration, and innovation, significantly impact employee engagement, job satisfaction, and performance [44]. In such cultures, employees feel a sense of belonging and are motivated to contribute effectively towards organisational goals. When personal values align with organisational values, job satisfaction is enhanced, increasing loyalty and commitment. Open communication, knowledge sharing, and teamwork are fostered in positive cultures, promoting creativity and critical thinking skills among employees, and ultimately contributing to overall organisational performance [62]. On the other hand, negative organisational cultures characterised by toxicity, fear, or rigid hierarchies harm employee behaviour and performance [94,95]. In such cultures, employees experience prominent levels of stress, mistrust, and dissatisfaction, leading to disengagement and reduced motivation. Fear-based cultures, where employees fear expressing their opinions or taking risks due to potential repercussions, stifle innovation and creativity. Additionally, hierarchies that limit employee participation and growth opportunities can hinder autonomy and job satisfaction [96]. It is important to note that the relationship between organisational culture and employee outcomes is complex and can be influenced by numerous factors, including leadership styles, organisational structure, and industry-specific norms [44]. These factors interact with culture to shape employee behaviour and organisational performance. Leadership styles, organisational structure, and industry-specific norms also contribute to the dynamics of this relationship.

Alignment with strategic goals is critical

When an organisation ensures its cultural elements are in harmony with its strategic direction, it can cultivate a culture that supports and reinforces its strategic objectives [35,36]. Aligning culture with strategy creates a shared understanding among employees regarding the organisation’s mission, values, and goals [71]. This shared understanding fosters a sense of purpose and guidance, empowering employees to identify with and actively contribute to the organisation’s objectives. As a result, employees experience increased motivation and engagement, recognising the direct link between their efforts and achieving strategic goals [35].

Moreover, an aligned culture enhances an organisation’s ability to adapt to change and exhibit agility [36]. When employees grasp the organisation’s strategic direction and how their behaviour aligns with it, they are more likely to embrace change initiatives and demonstrate adaptability in response to new circumstances. A culture that aligns with strategic goals nurtures an environment conducive to innovation, encouraging employees to think creatively and explore novel approaches to achieving strategic objectives.

This flexibility and responsiveness to change can confer a competitive advantage, particularly in dynamic and evolving business environments. However, it is important to acknowledge that aligning organisational culture with strategic goals presents challenges [71]. It requires leadership commitment, effective communication, and deliberate efforts to shape and reinforce cultural elements that align with the desired strategic direction. Leaders play a pivotal role in articulating strategic goals, communicating the importance of culture, and exemplifying the desired behaviours. They must actively foster and embed the desired culture throughout the organisation, ensuring its integration into its identity [36].

Interplay between organisational culture and climate

Organisational culture encompasses shared values and beliefs that shape employee behaviour, while organisational climate refers to employees’ subjective perceptions and experiences of the organisational culture. Positive cultural components, such as transparency, equity, and support, contribute to a positive climate characterised by trust, psychological safety, and employee wellbeing [57]. Understanding and effectively managing the dynamics between culture and climate is critical for establishing a work environment that enhances employee engagement and performance [97]. Empirical evidence demonstrates that a positive organisational climate is associated with increased job satisfaction and improved performance. Employees who perceive their organisational climate as supportive and positive are likelier to engage in proactive and collaborative behaviours, leading to favourable outcomes [62]. A positive organisational climate nurtures psychological safety, enabling employees to comfortably express their opinions, take risks, and contribute ideas [96]. Collaboration, knowledge sharing, and open communication are encouraged in such an environment, facilitating teamwork and fostering innovation [97]. Employees who perceive their workplace climate as supportive and positive are motivated to actively participate and contribute meaningfully to the organisation’s objectives. Furthermore, a positive organisational climate enhances job satisfaction by addressing employees’ psychological needs for autonomy, competence, and connection. When employees feel embraced, valued, and supported in their work environment, their overall wellbeing and job satisfaction increase [97]. As a result, their enthusiasm, dedication, and performance receive a positive boost [96].

In summary, organisational culture and climate interplay are critical for creating a work environment that fosters employee engagement and performance. Positive cultural elements form the foundation, while a positive climate reflects employees’ perceptions and experiences of the culture. A positive organisational climate significantly impacts job satisfaction and performance, encouraging employees to engage in proactive and collaborative behaviours. The role of leaders and managers in cultivating such a climate is critical, as they have the power to promote a supportive and inclusive culture. This can be achieved through leadership practices that promote open communication, provide support and resources, and encourage employee collaboration. By creating an environment where employees feel valued and empowered, leaders can contribute to a positive organisational climate that increases job satisfaction and improves performance among individuals and teams.

Role of national cultures and contextual factors

Organisational culture is not an isolated phenomenon but is shaped and moulded by broader societal and environmental contexts. The scholarly literature extensively acknowledges the significant influence of national cultures and contextual factors on organisational culture [88,89,91]. National cultures significantly impact organisational culture, encompassing dimensions such as individualism versus collectivism, power distance, and uncertainty avoidance. These cultural dimensions affect communication styles, decision-making processes, and attitudes toward authority within organisations [28]. Organisations operating in diverse countries or regions must recognise and manage cultural differences to effectively adapt their culture to local contexts.

Industry norms and local practices also interact with organisational culture. Different industries may have distinct cultural norms and values influencing organisational operations and employee behaviours [88]. Organisations must be capable of adapting to these industry-specific cultural dynamics to thrive in their respective sectors. Regulatory frameworks and legal environments can significantly impact the manifestation and effectiveness of organisational culture. Compliance requirements, labour laws, and local regulations shape an organisation’s acceptable practices and behaviours [29]. Organisations must navigate these contextual factors and ensure their culture aligns with legal and regulatory requirements. Contextual factors such as market conditions, organisational size, and industry dynamics can also influence organisational culture. For example, a rapidly changing market may require a culture that promotes innovation and adaptability, while a more stable market may prioritise consistency and efficiency [91]. Organisational size can challenge maintaining a cohesive culture across different departments or locations. Understanding and adapting to these influences are critical for organisations to effectively shape their culture and align it with the needs and expectations of their employees. Organisations that recognise and address the impact of national cultures and contextual factors on organisational culture are better positioned to create a culture that supports their strategic goals and fosters employee engagement and performance.

Theoretical frameworks illuminate underlying mechanisms

Theoretical frameworks provide conceptual lenses for the correlation between organisational culture and employee behaviour and performance. The functionalist perspective accentuates the functions of culture in guiding employee behaviours and fostering cohesion [21]. The interpretive perspective centres on subjective interpretations of cultural elements [32]. The critical perspective scrutinises power dynamics and social inequalities inherent in culture [23]. Aligning culture with strategic goals augments employee engagement, productivity, and creativity [21]. Managing the interplay between culture and climate, characterised by trust and wellbeing, enhances job satisfaction and performance [13]. Considering national and contextual influences, such as cultural disparities and market conditions, aids organisations in adapting their culture [31,20].

Employing the theoretical perspectives of the Competing Values Framework allows organisations to gain insight into the underlying mechanisms of culture’s impact on employee outcomes. With this understanding, targeted interventions can be implemented to shape and improve organisational culture [98]. Organisations can effectively promote employee engagement, satisfaction, and performance by formulating strategies to cultivate a positive culture. The Table 2 below provides an overview of the strengths and weaknesses of the findings. It helps readers understand the reliability and limitations of the research [99-102]. The Table 2 represents a comprehensive summary of the strengths and weaknesses of the findings on the relationship between organisational culture and employee behaviour and performance. It highlights each topic’s valuable insights and contributions while identifying areas requiring further exploration or improvement. The strengths emphasise the importance of aligning culture with strategic goals, recognising the influence of national cultures and contextual factors, and providing theoretical frameworks for analysis [103-105]. However, the weaknesses point out limitations such as the variation in the impact of culture depending on organisational context, the lack of specific strategies for managing culture and improving performance, and limited exploration of certain aspects like the mechanisms through which culture influences climate and strategies for managing cultural differences. The Table 2 provides a concise overview to guide future research and help organisations effectively understand and manage their organizational culture (Table 2).

Table 2: Strengths and weaknesses of findings.

Limitations

The research findings about the interplay between organisational culture and employee behaviour bear considerable significance within the academic realm. A positive organisational culture is shown to have the potential to augment employee motivation, job satisfaction, and commitment, thereby engendering enhanced performance outcomes. Conversely, a detrimental or toxic culture can engender adverse attitudes and behaviours among employees, leading to diminished performance and heightened turnover rates. The aforementioned research underscores the multifaceted mechanisms through which organizational culture influences employee behavior. For instance, cultures that accord primacy to innovation and risk-taking tend to foster a conductive environment that nurtures creativity and proactive work, ultimately propelling higher performance levels. Likewise, cultures that actively promote teamwork and collaboration are inclined to cultivate an ethos of cooperation and heightened employee productivity.

However, when delving into the intricate relationship between organisational culture and employee behaviour, it becomes major factor in contextual elements such as industry type, organisational dimensions, and national cultural influences. Diverse industries and nations necessitate distinct cultural values and norms that distinctly shape the attitudes and behaviours of employees. Nevertheless, it is imperative to acknowledge certain limitations inherent in extant research, including the reliance on self-report measures, employment of cross-sectional designs with constrained capacity for causal inferences, and the potential for common method bias.

To advance our scholarly comprehension of the nexus between organisational culture, employee behaviour, and performance, forthcoming research endeavours should strive to undertake a comparative analysis of the specific research papers cited herein vis-à- vis the existing body of literature. Rigorous empirical investigations deploying diverse methodologies and longitudinal designs are indispensable in comprehensively unraveling the intricate dynamics at play. This entails probing into the role of leadership in shaping organisational culture and its ramifications for employee behaviour, scrutinising the influence of cultural factors on the relationship between culture and performance outcomes, and meticulously elucidating the precise mechanisms through which distinct cultural dimensions impinge upon employee outcomes. Through the pursuit of such scholarly inquiries, invaluable insights can be gleaned, thereby elucidating organisational practices, and augmenting our comprehension of the intricate ways in which culture impinges upon employee behaviours and performance. The present paper ardently underscores the pressing need for further empirical exploration into the domains of leadership, cultural factors, and the specific mechanisms underpinning the effects of culture. Advancing knowledge in these realms will conduce to a profound understanding of the impact of organisational culture on employee behaviour and performance.

Practical implications

The research findings regarding the influence of organisational culture on employee behaviour and performance have important practical implications for organisations. These implications encompass various aspects, such as aligning the organisational culture with strategic objectives, recognising the leadership’s pivotal role in shaping culture, involving employees in the development of culture, providing training to enhance cultural awareness, integrating culture into performance management processes, considering cultural fit during recruitment, continually assessing and adapting culture, and tailoring interventions according to the organisation’s specific context and goals.

By implementing these implications, organisations can cultivate a positive and supportive culture that effectively enhances employee engagement, satisfaction, and performance. This, in turn, can yield improved productivity and enhance the organisation’s competitiveness. The research findings also have economic and commercial implications, as effective organisational culture management can contribute to the organisation’s overall success and attract talented employees. From an educational perspective, the research findings possess the potential to serve as an instructive tool for enlightening students and professionals about the considerable significance of organisational culture and its profound ramifications on employee behaviour and performance. These findings offer invaluable insights that can be leveraged to shape curriculum development and the meticulous design of training programs in disciplines such as management, human resource management, and organisational behaviour.

Social implications

Organisational culture carries significant social implications that affect employee behaviour and performance. These implications include:

Employee wellbeing: A positive organisational culture cultivates a supportive and inclusive environment, leading to higher job satisfaction and improved employee mental and emotional health.

Collaboration and teamwork: A robust organisational culture that emphasises collaboration and teamwork nurture a sense of collective effort, enabling effective collaboration, knowledge sharing, and increased creativity and productivity.

Employee retention and loyalty: A positive culture fosters a sense of affinity and interconnectedness, leading to higher employee retention and loyalty, reducing turnover costs, and promoting organisational stability.

Organisational reputation: Organisational culture shapes a company’s external perception and reputation. A positive culture reflecting ethics, diversity, and social responsibility enhances trust, customer loyalty, and brand image. The ontological underpinnings of workplace diversity and inclusion are intricately entwined with the multifaceted influences exerted by the organisational culture, whereby the latter assumes a paramount role in engendering an alluring milieu that attracts and retains a heterogeneous workforce replete with variegated perspectives and experiential backgrounds. Such an assemblage, characterised by its diverse composition, serves as a fertile breeding ground, fostering an ecosystem teeming with the seeds of creativity, germinating innovation, and nurturing the germination of cogent decision-making paradigms.

Employee empowerment and growth: A supportive organisational culture empowers employees by providing growth opportunities, autonomy, and the freedom to contribute ideas. This increases job satisfaction, career advancement, and personal impact.

Social responsibility: Organisational culture shapes an organisation’s commitment to social responsibility, driving engagement in ethical practices, sustainability, and community involvement. This contributes to society and enhances corporate reputation.

Fostering positive cultures within organisations profoundly influences the fabric of life and societal prosperity. Organisations prioritising employee wellbeing, collaboration, diversity, and social responsibility create environments promoting employee satisfaction and productivity. Additionally, these organisations have cascading effects on their communities, fostering social cohesion and sustainable progress. Therefore, organisations must prioritise and invest in creating productive work ecosystems that positively impact employees and society.

Findings and analysis

The findings and analysis section covers five key areas: (i) the impact of organisational culture on employee behaviour and performance, (ii) the importance of aligning culture with strategic goals, (iii) the interplay between organisational culture and climate, (iv) the role of national cultures and contextual factors, and (v) the use of theoretical frameworks to understand underlying mechanisms. These findings have answered the research question and provide valuable insights into the complex relationship between organisational culture and employee outcomes, enhancing our understanding of how culture shapes organizational behavior and performance.

Conclusion

In conclusion, aligning organisational culture with strategic goals is essential for organisations to pursue their objectives effectively. A culture that supports and reinforces strategic goals creates a sense of purpose, direction, and motivation among employees. Additionally, it enhances organisational agility and adaptability to change, enabling the organisation to successfully navigate complex and dynamic business environments. Leaders play a critical role in fostering and perpetuating this alignment by cultivating a culture that facilitates the achievement of strategic objectives.

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