Organizational Performance: Study on Jordanian Insurance Sector
DOI:
https://doi.org/10.11113/sh.v2n2.425Keywords:
Insurance, organizational culture, performance, JordanAbstract
Organizational culture is an important part to be considered by dynamic organizations in order to develop some competitive advantage to ensure enhanced organizational performance. This study aims to close the gap between understanding the role of organizational culture and the effect on organizational performance among the employees in insurance companies. The objective of this study is to examine the relationship between the dimensions of organizational culture and organizational performance among insurance companies operating in the Jordanian market. A sample of 240 respondents that were selected randomly from insurance companies participated in this study. Data were collected by survey questionnaire. Both descriptive and influential statistic namely frequency, mean, and multiple regression were used to analyze the data. The result shows that there is limited significant relationship between organizational expectations, encourage development, behavioral styles, and stability and communication and organizational performance. The results also showed that a significant relationship exists between policies and procedures and organizational performance. This study explored the results of the effect of organizational culture dimensions on organizational performance and to assess which organizational culture dimensions have a larger marginal impact on organizational performance. This study improved the managers' understanding on a way to improve organizational culture dimensions that have a vital impact on overall performance.
References
Alamiyan, M. (2002). Organizational Behavior in Business Organizations (in Arabic). Amman: Dar Wael for publication.
Anne, A., and Maaja, V. (2007). Relationships between Organizational Culture and Performance in Estonian Schools with Regard to Their Size and Location. Baltic Journal of Economics, 7(1), 3–17.
Balthazard, A. P. Cooke, A. R. and Potter, E. R. (2006). Dysfunctional Culture, Dysfunctional Organization: Capturing the Behavioral Norms that Form Organizational Culture and Drive Performance. Journal of Managerial Psychology, 21(8), 709–732.
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 1(17), 99–120.
Cascio, W. F. (2006). Managing Human Resources: Productivity, Quality of Life, Profits. McGraw-Hill Irwin.
Child, J. (1974). What Determines Organization Performance? The Universals vs. the it-all-depends. Organizational Dynamics, 3(1): 2–18.
Chow, C. W., Harrison, G. L., Mckinnon, J. L., and Wu, A. (2001). Organizational Culture: Association with Affective Commitment, Job Satisfaction, Propensity to Remain and Information Sharing in a Chinese Cultural Context. San Diego University CIBER Working Paper Series, Publication, 1(11), 1–28.
Daft, R. L. (2000). Organization Theory and Design. 7th Ed. South-Western College Publishing. Thomson Learning. U.S.A.
Denison, D. R., and Mishra, A. K. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6(2), 204–223.
DeWaal, A. (2002). The Power of World-class Performance Management: Use It! Measuring Business Excellence, 6(3), 9–19.
Farashahi, M., Hafso, T. and Molz, R. (2005). Institutionalized Norms of Conducting Research and Social Realities: A Research Synthesis of Empirical Works from 1983 to 2002. International Journal of Management Review, 7(1), 1–24.
Flapper, S. D., Fortuin, L. and Stoop, P. M. (1996). Towards Consistent Performance Management Systems. International Journal of Operations and Production Management, 6(7), 27–36.
Forehand, G. A., and Von Haller, G. (1964). Environmental Variation in Studies of Organizational Behavior. Psychological Bulletin, 62(6), 361–382.
Gary, C. (2009). Performance Management - Integrating Strategy Execution, Methodologies, Risk, and Analytics. John Wiley & Sons, Inc.
Ginevicius, R., and Vaitkunaite, V. (2006). Analysis of Organizational Culture Dimensions Impacting Performance. Journal of Business Economics and Management, 7(4), 201–211.
Handy, C. B. (1993). Understanding Organizations. New York: Oxford University Press.
Heffernan, M. M., and Flood, P. C. (2000). An Exploration of the Relationship between Managerial Competencies Organizational, Characteristic and Performance in an Irish Organization. Journal of European Industrial Training, University Press. 128–136.
Horwitz, F. M., Anderssen, K., Bezuidenhout, A., Cohen, S., Kirsten, F., Mosoeunyane, K., and Van Heerden, A. (2002). Due Diligence Neglected: Managing Human Resources and Organizational Culture in Mergers and Acquisitions. ŃSA Journal of Business Management, (33), 1–10.
Kandula, S. R. (2006). Performance Management. New Delhi: Prentice Hall of India private limited.
Kangis, P. Williams, D., and Gordon, S. (2000). Organizational Climate and Corporate Performance: An Empirical Investigation. Management Decision, 38(8), 531–540.
Khan, A. (2005). Matching People with Organizational Culture. Business Management Group. Newport
Kilic, C., and Dursun, T. (2010). The Effect of Organizational Culture on Customer Orientation. Journal of American Academy of Business, 15(2), 1–7.
Kotter, J. P. (2008). Corporate Culture and Performance. Simon and Schuster.
Kotter, P., and Heskett, L. (1992). Corporate Culture and Performance. New York: Free Press.
Larsson, R., and Finkelstein, S. (1999). Integrating Strategic, Organizational, and Human Resource Perspectives on Mergers and Acquisitions: A Case Survey of Synergy Realization. Organization Science: A Journal of the Institute of Management Sciences, 10(1), 1–26.
Lee, S. K. J., and Yu, K. (2004). Corporate Culture and Organizational Performance. Journal of Managerial Psychology, 19(4), 340–359.
Levine, S. (2006). High Performance Organizations: Creating a Culture of Agreement. Handbook of Business Strategy, 7(1), 375–380.
Mallak, A. L. Lyth, M. D. Olson, D. S. Ulshafer, M. S. and Sardone, J. F. (2003). Culture, the Built Environment and Healthcare Organizational Performance. Managing Service Quality, 13(1): 27–38.
Marcoulides, G. A., and Heck, R. H. (1993). Organizational Culture and Performance: Proposing and Testing a Model. Organization Science, 4(2), 209–225.
Muafi, M. (2009). The Effects of Alignment Competitive Strategy, Culture, and Role Behavior on Organizational Performance in Service Firms. International Journal of Organizational Innovation, 2(1), 106–134.
Murugan, M. (2010). A Study on Organizational Culture and Its Impact on the Performance of IT Employees in Chennai. Institute of Chartered Financial Analysts of India (Hyderabad). The ICFAI Journal of Management Research, 8(5), 7–16.
Muya, J. N. and Wesonga J. N. (2012). The Impact of Organizational Culture on Performance of Educational Institutions, International Journal of Business and Social Science, 3(8), 211–217.
Nahavandi, A., and Malekzadeh, A. R. (1993). Organizational Culture in the Management of Mergers. Westport, Connecticut, London: Quorum Books. 175.
Nahm, A. Y. Vonderembse, M., and Koufteros, X. A. (2004). The Impact of Organizational Culture on Time-Based Manufacturing and Performance. Decision Sciences, 35(4), 579–607.
Okashah, A. (2008). The Impact of Oorganizational Culture at the Level of Functionality: An Empirical Study on Telecommunication Company “Paltel†in Palestine (in Arabic), (Thesis style), the Islamic University-Ghaza.
Olie, R. (1994). Shades of Culture and Institutions in International Mergers, (Periodical style). Organization Studies, 15(3), 381–405.
Onken, M. (1999). Temporal Elements of Organizational Culture and Impact on Firm Performance. Journal of Managerial Psychology, 14, 231–243.
Patterson, M. G., West, M. A., Lawthom, R., & Nickell, S. (1997). Impact of People Management Practices on Business Performance. London: Institute of Personnel and Development. The Cromwell Press. vii-viii.
Pettigrew, A. (1979). Studying Organizational Culture. Administrative Science Quarterly, 24, 570–581.
Rashid, A. Z. Sambasivan, M. and Johari, J. (2003). The Influence of Corporate Culture and Organizational Commitment on Performance. Journal of Management Development, 22(8), 708–728.
Reddy, A. (2011). Cultural Dimensions & Impact on Performance Management. International Journal of Multidisciplinary Research, 1(6), 300–311.
Ricardo, R. (2001). Corporate Performance Management: How to Build a Better Organization through Measurement Driven Strategies Alignment. Butterworth Heinemann.
Robbins, S. P. and Sanghi, S. (2007). Organizational Behavior. New Delhi: Pearson Education.
Rousseau, D. (2004). Psychological Contracts in the Workplace: Understanding the Ties that Motivate. The Academy of Management Executive, 18(1), 120–127.
Rousseau, D. (1991). Quantitative Assessment of Organizational Culture. Group and Organizations Studies, 15(4), 448–460.
Sarros, J. Gray, J. Densten, I., and Cooper, B. (2005). The Organizational Culture Profile Revisited and Revised: An Australian Perspective. Australian Journal of Management, 30(1), 159–182.
Schein, E. H. (1992). Organizational Culture and Leadership. 2nd Ed. San Francisco: Jossey-Bass Publishers. 418.
Schein, E. H. (1990). Organizational Culture. American Psychologist, 43(2), 109–119.
Sekaran, U. (2003). Research Methods for Business. 4th ed. Hoboken, NJ: John Wiley & Sons.
Shakil M. Ahmad (2012). Impact of Organizational Culture on Performance Management Practices in Pakistan. Business Intelligence Journal, 5(1), 50–55.
Spivak, V. A. (2001). Organizational Culture: Theory and Practice, (in Russian), Sankt- Peterburg: Piter. 332.
Stannack, P. (1996). Perspective on Employees Performance. Management Research News, 19(4/5), 38–40.
Stephen, P. R. (2009). Organizational Behavior. 8th ed. Pearson Education South Africa. 602–603.
Tichy, N. M. (1982). Managing Change Strategically: The Technical, Political, and Cultural Keys. Organizational Dynamics (autumn), 59–80.
Titiev, M. (1959). Introduction to Cultural Anthropology. New York: Henry Holt & Company.
Vayanos, P., Hamilton, B. A., and Hammoud, M. (2007). Promoting the Growth and Competitiveness of the Insurance Sector in the Arab World.
Van der Post, W. Z., de Coning, T. J. and Smit, E. M. (1997). An Instrument to Measure Organizational Culture. South African Journal of Business Management, 28(4), 147–168.
Veiga, J. Lubatkin, M. Calori, R. and Very, P. (2000). Measuring Organizational Culture Clashes: A Two-nation Post-hoc Analysis of a Cultural Compatibility Index. Human Relations, 53(4), 539–557.
Walter, A. (1999). Relationship Promoters: Driving Forces for Successful Customer Relationships. Industrial Marketing Management, 28(5), 537–551.
Williams, R. S. (2002). Managing Employee Performance: Design and Implementation in Organizations. London: Thomson Learning.
