Organizational culture and effectiveness of enterprise – quantitative research

Abstract

The purpose of this article is to introduce the impact of organizational culture on economic effectiveness on the business using a numerical method of testing. Using example author demonstrates a process creating indicators by which it is possible to measure the level of organizational culture in a numerical scale. On the basis of rules and values reigning in the company were calculated ten indicators: concentration of power, degree of employees’ dependence from managers, friendship with the management, friendship between employees, cooperation, acquisition of practical knowledge, shared traditions, talent and professionalism, and depending on bonuses the results achieved. Moreover, a synthetic index of economic effectiveness was developed for the tested entity, whose components are: a profitability of incomes, a profitability of assets and a profitability of involved equity. This kind of calculation later in this article allow us to analyze the relationship, occurring between organizational culture and economic effectiveness, by statistical methods, such as correlational studies and the creation of a regression model, and to compare these relationships in different time periods.