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Diploma thesis 2020organisational climate · organisational culture · company performance

The Impact of Organisational Culture and Climate on Company Performance

In times of global economic crisis, employees represent the company's greatest asset and simultaneously a source of competitiveness against other organisations.

Polona LukmanEkonomist · supervisor mag. Dušan Vrban · defence november 2020
In brief

The project in five facts.

AuthorPolona Lukman
Supervisormag. Dušan Vrban
Module—Ekonomist
Employer / clientAcademia
Year2020november 2020
About the project

Challenge, approach and results.

In times of global economic crisis, employees represent the company's greatest asset and simultaneously a source of competitiveness against other organisations. Therefore, the key task of managers is to create and maintain a good organisational climate and thereby greater employee satisfaction at work, as a satisfied and motivated worker will achieve better business results. Equally important is ** organisational culture**, which represents the entire system of values, rules, attitudes, norms, employee behaviour and other factors within the organisation.

Problem

In times of global economic crisis, employees represent the company's greatest asset and simultaneously a source of competitiveness against other organisations.

Results

Therefore, the key task of managers is to create and maintain a good organisational climate and thereby greater employee satisfaction at work, as a satisfied and motivated worker will achieve better business results. Equally important is organisational culture, which represents the entire system of values, rules, attitudes, norms, employee behaviour and other factors within the organisation. The main objective of organisational culture and climate is to achieve the desired state within the organisation whilst taking into account past conditions and experiences, considering current available opportunities and building a shared future.

In today's world, due to ever-increasing market competition, the question of organisational culture is becoming increasingly important, therefore organisations will need to recognise and discover the internal factors of their (un)success. ** In the diploma thesis** I wish to demonstrate that organisational culture and climate are ** important components for organisational disposition**, as they integrate into employees, work procedures and processes, as well as the internal and external environment. In fact, the concepts of organisational culture and climate are very different, but when we speak about an organisation, we cannot separate them.

In order to maintain competitive advantage within an organisation, we must always consider culture and climate together, as they are indicators of the disposition within the organisation itself. The disposition itself is reflected in the manner of employee behaviour as well as in the manner of operation of the organisation itself. Companies in times of economic crisis face increasing competition and strive for the survival of companies and employees, who are the most vulnerable group in times of crisis.

Employees are plagued by uncertainty and fear losing their jobs, therefore in such an environment an unfavourable climate can quickly arise, which consequently affects company performance. Precisely from this perspective, it is in the company's interest to motivate its employees for work. Good interpersonal relationships represent a key competitive advantage and the company's greatest asset.

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Diploma thesis

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