The Effects of Organizational Culture on the Efficacy of Performance Management Systems

Nimisha Khatri

Abstract: This study explores how organizational culture impacts performance management within the insurance sector. A structured questionnaire was crafted and distributed to 100 employees at various insurance companies using convenience sampling. Five variables were used to measure organizational culture: adaptive perspective, communal, network, mercenary, and fragmented culture. The findings suggest a connection between performance management and corporate culture. The degree to which different organizational cultures adopt performance management varies, indicating that some cultures are more suited to improving performance. The results demonstrate that performance management and organizational culture are correlated with each other in a favourable manner. More insurance businesses should be included in future studies so that these results can be applied to the entire sector. Additionally, this study could be adapted for other sectors with modifications to the variables measuring organizational culture.

Keywords: Organisation, Organisational Culture, Performance Management