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Evaluating culture metrics as predictors of corporate performance

Peres-Hernandes-Sanches Juliana

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Summary

A culture comprises a number of features that include “a pattern of basic assumptions” that the group members adopt in order to cope with the internal and external organizational challenges.The “Organizational Culture”, also noted as “Corporate Culture”, has been extensively researched in the modern literature, in order to examine a wide range of aspects, like teaming behaviors, accountability, ownership, leadership, and the emerging habits, beliefs, and norms cultivated by group dynamics. In today’s world all of these traits eventually come into shaping a distinct, autonomous, legally recognized entity "born out of statute", the corporation which is manifested as a group of people, processes and tools aligned under a common expression of vision and strategy.From a utilitarian standpoint of view, such an organized expression needs to be measured and controlled by practices that can increase both the employee’s sentiment and the financial performance of the group (i.e., the corporation). The establishment of such processes can be primarily facilitated through the institutionalization of the main areas of contribution.When considering the combination of financial and non-financial identifiers in order to drive definitive statements about corporate performance, it seems that employees are especially affected by their business leaders, the expectations around career opportunities, the actual compensation and various perks and benefits. The hypothesis for undertaking the current work lays on the anticipation for the immersion of interesting results when considering metrics like the employee “happiness” and/or “leader appreciation” to satisfactorily predict a company’s future performance.

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