Explain How Organizational Culture Can Impact an Organization's Financial Performance

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The Answer is Some organizational cultures have the potential to inspire aggressive and calculated managerial action, whereas other cultures do little more than encourage managers to be mere caretakers. Cultures build group cohesiveness and when members of the group insist on high levels of performance, each individual is encouraged to do his or her best. Unfortunately, cohesive cultures can discourage change. When organizations become too committed to "how we do things around here" and "what we believe in," it may be difficult, at least in the short run, to change the culture. Opportunities can be missed and competitive advantages can be lost simply because the culture is so strong that it will not tolerate new ideas and directions. However, organizational cultures, when they encourage mission-critical factors such as patient- centered care, can be positive contributors to the overall success of an organization. Pay for performance initiatives may be a powerful force in helping to shape health care organizational cultures over the next several years.

Explain How Organizational Culture Can Impact an Organization's Financial Performance

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