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Impact of Subcultures on Financial Performance

Impact of Subcultures on Financial Performance. Does the existence of hierarchical subcultures impact financial performance?. Manager and non-manger perceptions of culture were compared to financial performance.

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Impact of Subcultures on Financial Performance

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  1. Impact of Subcultures on Financial Performance Does the existence of hierarchical subcultures impact financial performance? Manager and non-manger perceptions of culture were compared to financial performance. Financial Performance is best when managers and non-managers have aligned perceptions of organizational culture. Indicators of financial performance included sales growth, market-to-book ratio, ROA, and ROI Perceptions of culture were measured using the Denison Organizational Culture Survey.

  2. Aligned Involvement & Financial Performance Market-to-book ratio will decrease as managers and non-managers diverge on opinions of involvement Manager and non-manager divergence is predictive of less return on assets (ROA) Financial performance most impacted by (mis)alignment of Involvement between managers and non-managers Misalignment of involvement perceptions coincides with negative impacts on return on investment (ROI)

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