Corporate culture and organizational effectiveness in the financial sector

Abstract

This project is divided into two main parts. Firstly, we present a literature review, on the topics of "Corporate Culture" and "Organizational Effectiveness". Following that, we present our research proper. The research presents a quantitative study of 28 organizations, comparing their cultural and behavioural characteristics to their financial performance over time. Such a study is a significant departure from the traditional qualitative approach which is predominantly report-oriented and company-specific. Here, we use concrete numerical data to draw conclusions of wider generality and validity. The results provide compelling evidence that it is quite possible to use cultural and behavioural measures to predict the performance and effectiveness of an organization over time. This is especially so for certain measures of cultural strength - the "Behavioural Outcomes" category, comprising: Group Functioning, Satisfaction and Goal Integration. Due to the exploratory nature of the research, we are cautious about strict statements that state causality. Suggestions are made in this regard to improve upon this research. Nevertheless, this modest attempt to swim against the current by adopting a quantitative approach is, we hope, a useful framework for further academic research and practical application.