Barney, J. B. (1986). “Organizational Culture: Can It Be a Source of Sustained Competitive Advantage?” Academy of Management Review. Vol. 29, pp. 656-665.

Firms with sustained superior financial performance usually are characterized by a strong set of core cultural values that define the way business is conducted. There are 3 important attributes of culture. First, the culture must be valuable. That is, it must do things and behave in ways that lead to high sales, low costs, high margins, and other financially valuable activities. Second, the culture must be rare. The attributes and characteristics of the superior performance company will not be found in the cultures of other firms. Third, the culture must be imperfectly imitable. Overall, other firms cannot imitate the desired culture. Firms without these attributes cannot expect their cultures to be the source of sustained competitive advantages. Although efforts by less superior firms to change their cultures may lead to new valuable attributes, they will not generate sustained superior performance.

Beer, M. & Nohria, Ni. (2000).  "Cracking the Code of Change."  Harvard Business Review, May-June, pp 133-141.

Until now, change in business has been an either-or proposition: either quickly create economic value for shareholders or patiently develop an open, trusting corporate culture long term.  But now research indicates that combining these "hard" and "soft" approaches can radically transform the way businesses change.

Bierly, III, P. E. & Spender, J. C. (1995). "Culture and High Reliability Organizations: The Case of the Nuclear Submarine," Journal of Management, pp. 639-656.

 Perrow (1984) defined as high risk those organizations that combine complexity and tight coupling with the potential for catastrophic failure. He concluded that accidents are normal for such organizations because their managers face irreconcilable structural paradoxes. Centralization, the method of dealing with the tight coupling, must be combined with delegation, the method of dealing with the complexity. Weick (1987, 1989), researching the complex and tightly coupled systems found in air traffic control and carrier flight-deck operations, saw these problems differently. He argued that strong organizational cultures provide a centralized and focused cognitive system within which delegated and loosely coupled systems can function effectively. High-risk organizations thereby become transformed into high reliability organizations (HRO). Drawing on their personal experiences, the study focuses on one type of HRO, the nuclear submarine. It argues for a multi-level model in which culture interacts with and supports formal structure and thereby produces high reliability.

Denison, D. R. & Mishra, A. (1995). "Toward a Theory of Organizational Culture and Effectiveness," Organization Science, Vol. 6, pp. 203-223.

A model is developed of organizational culture and effectiveness based on 4 traits of organizational cultures; involvement, consistency, adaptability, and mission. These traits are examined through 2 linked studies. In the first, qualitative case studies of 5 firms are used to identify the traits and the nature of their linkage to effectiveness. In the 2nd, a quantitative study provides an exploratory analysis of CEO perceptions of these 4 traits and their relation to subjective and objective measures of effectiveness in a sample of 764 organizations. The results show support for the predictive value of the traits, and help to illustrate the complementarity of qualitative and quantitative methods for studying organizational cultures. Two of the traits, involvement and adaptability, are indicators of flexibility, openness, and responsiveness, and were strong predictors of growth. The other 2 traits, consistency and mission, are indicators of integration, direction, and vision, and were better predictors of profitability. Each of the 4 traits was also a significant predictor of other effectiveness criteria such as quality, employee satisfaction, and overall performance.

Gordon, G. G. & DiTomaso, N. (1992). "Predicting Corporate Performance from Organizational Culture," Journal of Management Studies, Vol. 29 pp. 783-798.

A study investigates the relationships of culture strength and 2 substantive cultural values with corporate performance. Culture strength is measured by the consistency of responses to survey items across people. Items on the survey that relate to either adaptability or stability measure the 2 cultural values. The data, from management surveys of 11 US insurance companies in 1981, were correlated with asset and premium growth rates from 1982 to 1987. The results indicate that both a strong culture regardless of content and a substantive value placed on adaptability are associated with better performance for 2 or 3 subsequent years on both criterion measures. The results support the findings of Denison (1990) that strength of culture is predictive of short-term performance. The present results, however, suggest a more complex contingency model than that proposed by Denison.

Sheriden, J. E. (1992). "Organizational Culture and Employee Retention," Academy of Management Journal, Vol. 35, pp.1036-56.

Organizational culture has emerged as one of the dominant themes in management research during the past decade. An empirical study examined whether particular cultural values help or hinder organizations in retaining their most productive employees. The retention rates of 904 college graduates hired in 6 public accounting firms over a 6-year period were analyzed. Three firms were characterized as having a culture that emphasized the interpersonal relationship values of team orientation and respect for people. Two other companies were characterized as having a culture that emphasized the work task values of detail and stability. Professionals hired in the companies that emphasized the interpersonal relationship values stayed 14 months longer (45 months) than those hired in the firms emphasizing the work task values (31 months). This large difference in voluntary survival rates has important consequences for organizational effectiveness.

Siehl, C. & Martin, J. "Organizational Culture: A Key to Financial Performance?" in B. Schneider, ed., Organizational Climate and Culture (San Francisco: Jossey-Bass, 1990) pp. 241-81.

Reveals how examining climate and culture together can advance understanding of the behavior of individuals within organizations, as well as overall organizational performance in such areas as financial planning, marketing, human resource development, and others.

Weick, K. & Roberts, K. (1993). "Collective Mind in Organizations: Heedful Interrelating on Flight Decks," Administrative Science Quarterly, Vol. 38, 357-81.

In a study, the concept of collective mind is developed to explain organizational performance in situations requiring nearly continuous operational reliability. Collective mind is conceptualized as a pattern of heedful interrelations of actions in a social system. Actors in the system construct their actions (contributions), understanding that the system consists of connected actions by themselves and others (representation), and interrelate their actions within the system (subordination). Ongoing variation in the heed with which individual contributions, representations, and subordinations are interrelated influences comprehension of unfolding events and the incidence of errors. As heedful interrelating and mindful comprehension increase, organizational errors decrease. Flight operations on aircraft carriers exemplify the constructs of the concept, from which implications for organizational theory and practice can be drawn.

Wilkins, A. L. & Ouchi, W. G. (1983). "Efficient Cultures: Exploring the Relationship between Culture and Organizational Performance," Administrative Science Quarterly, Vol. 28, 468-81.

Most organizations are subject to social fragmentation that prevents them from developing distinct local organizational cultures characterized by shared social knowledge. The theory of transaction costs is used to examine the conditions under which local organizational cultures emerge and the conditions under which they are efficient. Local organizational cultures emerge when organizations have a long history and stable membership, when there are no institutional alternatives to local culture, and when organizational members interact throughout the organization. Organizations having local cultures will be efficient when members develop a shared knowledge about collective needs and perceptions of goal congruence among all organizational members.

Bolman, L. G. & Deal, T. E. 2003. Reframing Organizations: Artistry, Choice, and Leadership (3rd Ed.). San Francisco: Jossey-Bass (512 pages).

HD58.7.D46 1990

Denison, D. R. (1990). Corporate Culture and Organizational Effectiveness.  (New York: John Wiley & Sons).

Reveals the complex, interdependent relationship between an organization's corporate culture and its financial effectiveness, through analysis based on interviews, financial data, and case studies of corporations, including Medtronic, People Express Airlines, and Detroit Edison.  Unlike most other organizational theory books, it uses hard data and in-depth case research, as well as anecdotal material, to support the culture and effectiveness model.--This text refers to the paperback edition.

HE9803.S68G58 2003

This book explains how corporate culture develops and how it determines the quality of the corporation's output. It also describes methods for testing and assessing corporate culture and discusses strategies for making changes in the work environment that will bring about increased productivity.

HD58.7.K68 1992

Kotter, J. P. & Heskett, J. L. (Contributor). (1992). Corporate Culture and Performance. (New York: The Free Press).

Draws from research at such firms as Hewlett-Packard, Xerox, ICI, and Nissan to show how the culture--shared beliefs, attitudes, and practices--of a company can influence its performance for better or worse.

HD70.U5O69 2000

O’Reilly, C. A. & Pfeffer, J. (2000). Hidden Value: How Great Companies Achieve Extraordinary Results with Ordinary People. Boston, Mass: Harvard Business School Press (272 pages).

From Publishers Weekly
In today's heated job market, companies must look within to develop and nurture talented employees, say O'Reilly and Pfeffer, both professors at Stanford Business School. They offer a detailed look at several companies -- among them, Cisco, Men's Warehouse and PSS World Medical-- that are profitable in competitive industries and that have successfully retained and promoted their staffs. Following a brief company history, the authors present a straightforward discussion of each company's culture and policies, in some cases including quotations from its executives. Occasionally, the secrets of a company's success are obvious: Southwest Airlines has carefully chosen a niche market; it puts high value on customer service and its employees feel as if their daily work will contribute to the future of the company. Certainly, CEO Herb Kelleher is part of the winning formula, but Southwest's business is run differently than other airlines. Its employees can work at different jobs and financial data about the company's performance as well as its competitors is shared regularly with staffers. Similarly, PSS Medical values its employees and works very hard at both recruiting and training people who will fit in at the company. With its emphasis on detailed anecdotes, this unusually engaging management book proves that concentrating on "soft issues" like employee values can give a company the competitive edge.

HF5386.P576 1998

Pfeffer, J. (1998). The Human Equation: Building Profits by Putting People First. Boston, Mass: Harvard Business School Press (272 pages).

From Library Journal
Pfeffer argues persuasively that organizations typically fail to consider their culture and capabilities, particularly when planning for change. He addresses a number of people issues, such as downsizing, hiring practices, compensation approaches, and alignment of management practice with stated values. Although the author favors a fundamental approach, he shores it up with anecdotal information, logic, and wit, noting, for example, that downsizing does not eliminate costs but could be radically counterproductive (i.e., no expenses, no enterprise). Further, he gives examples of organizations that, while decidedly low-tech, manage to produce profits often associated with high-tech enterprises. Pfeffer further points out how a number of organizations in typically low-margin sectors outperform their competitors through an alignment of values. Indeed, Pfeffer's examples emphasize doing the right thing the right way. This book should be required reading for those planning organizational change.?

Rosen, C. & Carberry, E. (2002). Ownership Management: Building a Culture of Lasting Innovation. Oakland, CA: National Center for Employee Ownership (266 pages).

More than ever before, a company's most important asset is its people. The ideas and information employees can contribute every day distinguish innovative, dynamic, and successful businesses from their more plodding peers. To encourage employees to get more involved, more and more companies ask employees to "think and act like owners," even if they don't share actual ownership. Others do share ownership but still treat people as "just employees." However, research and experience show it is the combination of involvement and ownership that really creates winners. It's not an easy task, however; ownership management requires constant attention every day. This book draws on the National Center for Employee Ownership's over 20 years of experience in this field, and, more importantly, the experience of the leading employee ownership companies. It provides concrete, specific ideas on how to structure plans, share information, get employees involved in decisions, and even have fun.

Schein, E. H. 2004. Organizational Culture and Leadership (3rd Ed.). San Francisco: Jossey-Bass (560 pages). San Francisco: Jossey-Bass (464 pages).

In this third edition of his classic book, Edgar Schein shows how to transform the abstract concept of culture into a practical tool that managers and students can use to understand the dynamics of organizations and change. Organizational pioneer Schein updates his influential understanding of culture--what it is, how it is created, how it evolves, and how it can be changed. Focusing on today's business realities, Schein draws on a wide range of contemporary research to redefine culture, offers new information on the topic of occupational cultures, and demonstrates the crucial role leaders play in successfully applying the principles of culture to achieve organizational goals. He also tackles the complex question of how an existing culture can be changed--one of the toughest challenges of leadership. The result is a vital resource for understanding and practicing organizational effectiveness.

Guest Essay on Organizational Culture and Organization Performance