Abstract
This chapter introduces the framework and causal model of organizational culture, organizational climate, knowledge management, and job performance related to business process orientation. It argues that dimensions of organizational culture, organizational climate, and knowledge management have mediated positive effect on job performance. Knowledge management positively mediates the relationships between organizational culture and job performance and between organizational climate and job performance. Organizational culture is positively related to organizational climate. Furthermore, the author hopes that understanding the theoretical constructs of organizational culture, organizational climate, knowledge management, and job performance through the use of the framework and causal model will not only inform researchers of a better design for studying organizational culture, organizational climate, knowledge management, and job performance, but also assist in the understanding of intricate relationships between different factors.
TopBackground
Organizational effectiveness (e.g., job performance and productivity) depends on business processes designed from a stakeholder perspective (Siemieniuch & Sinclair, 2002). Consequently, improvement of the process design is the key to improve business performance (Hammer, 2007a). Business process orientation is defined as a process oriented thinking and management of organization emphasizing process outputs and customer satisfaction (Hinterhuber, 1995; McCormack, 2007). The concept of business process orientation involves seven components (i.e., design and documentation of business processes, management commitment toward process orientation, process ownership, process performance measurement, corporate culture in line with the process approach, application of continuous process improvement methodologies, and process-oriented organizational structure) (Kohlbacher & Gruenwald, 2011). Business process orientation introduces transparency in the organization (Kohlbacher, 2009). Furthermore, the more business process oriented an organization is, the better it performs both from an overall perspective as well as from the perspective of the employees (McCormack, Johnson, & Walker, 2003).
Key Terms in this Chapter
Productivity: A measure of the efficiency of a person, machine, factory, and system in converting inputs into useful outputs.
Business Process Orientation: A business approach in which whatever an organization makes related to business activities performed together to produce a defined set of results.
Framework: The broad overview, outline, or skeleton of interlinked items which supports a particular approach to a specific objective of the study.
Organizational Culture: The values and behaviors that contribute to the unique social and psychological environment of an organization.
Knowledge Management: The strategies and processes designed to identify, capture, structure, value, leverage, and share an organization’s intellectual assets to enhance its performance and competitiveness.
Quality of Performance: A numerical measurement of the performance of an organization or process assessed through measurement of physical products and statistical sampling of the output of processes.
Job Performance: The work-related activities expected of an employee and how well those activities are executed.
Organizational Climate: The properties of the business environment in a workplace observed by employee that strongly influence their actions and job performance.