Culture-Capability-Performance Link

Culture-Capability-Performance Link

RESPOND TO HAYLEY AND JEN POST

Hayley post

I do agree with the statement. Companies that focus on their organizational capabilities have a higher chance of being more adaptable for customer satisfaction, employee engagement, and innovation. If a company only focuses on performance, it tends to neglect what its employees or customers think, which in the long run will hurt their performance.  Organizational culture can affect capability and performance. If it’s negative, the employees are less likely to adapt to changes in the process, and if it’s positive, then they can adapt more easily as they feel like a team, not just an employee. If the company works as a team, it makes everything easier. Company A seems to focus primarily on the following: customers and performance. The Chief Operating Officer also comments on keeping customers happy with the added costs of more baggage handlers, but not putting money into technology. Company B has a new president who focuses on empowering employees and innovations.

JEN POST

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APA

Culture-Capability-Performance Link

I completely agree with the statement, “the best-performing companies worry less about performance and more about their organizational capabilities,” (Bititci, 2015). To be able to accomplish work and meet your goals it is all about if you are capable of doing it. The performance refers to the action of trying to complete these goals. A company can’t perform well if they don’t have certain resources, skills or knowledge.

Organizational culture affects capability and performance immensely. Some capabilities mentioned by Smallwood and Ulrich are shared mind-set, collaboration, leadership, innovation, and efficiency. These all relate back to an organization’s culture. A company succeeds when their employees are working and doing their best. A positive and supportive culture is how employees stay motivated to give their best. If the employees aren’t performing, then the company can’t perform.

Company A’s culture seems to be very positive and strong. The HR Director mentioned every employee, even down to the cleaning crews, are a part of a strong workforce. The employees left for more attractive pay, not because they weren’t happy with the environment. Their capabilities are there. They mentioned good numbers when it comes to customer loyalty even with their prices not being the lowest. Some of the leaders did mention how they don’t have the best systems in play. They have twice as many processing workers because they don’t have the newest technology. I think Company A could afford to have more than they have now. They seem to be lax and comfortable where they are right now.

Company B is a completely different story. They seem stuck. What worked for them in recent years isn’t working now. The leadership, other than the new President, seem to not be making new plans. The new IT manager did mention how he pushed the Company into a new relationship with a software company. Some others in the company are not happy with the cost of this. They seem like they want to make a lot of changes but don’t have the financials to make them. The employees have taken pay reduction and don’t want to take another. If they had the money for training and changing, then they would be more successful.

As read above, culture has a lot of effect on performance and capabilities. If you have the support, then change can happen. Company A has the supportive culture which allows them to change however they want. Company B doesn’t have the support they need. They could be much more willing to take risks if their team was behind them.

Smallwood, N., & Ulrich, D. (2004, June 1). Capitalizing on capabilities. Harvard Business Review. https://hbr.org/2004/06/capitalizing-on-capabilities

• Do you agree or disagree with your peers’ initial posts about the relationships between organizational culture, capabilities, and performance? Explain.
• What is different about their perspectives, and how do you think it will affect the overall performance evaluation of these companies?