Organizational Culture, Organizational Structure and Human Resource Management as Bases for Business Process Orientation and their Impacts on Organizational Performance

Nathália De Melo Santos,Marcos Paulo Valadares De Oliveira,Marcelo Bronzo,Paulo Tarso Vilela De Resende

doi:10.15728/bbr.2014.11.3.5

Nathália De Melo Santos, Marcos Paulo Valadares De Oliveira + Show 2 more

Open Access

https://doi.org/10.15728/bbr.2014.11.3.5

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Journal: Brazilian Business Review	Publication Date: Jul 30, 2014
Citations: 14	License type: cc-by

Abstract

This article presents the main findings of a survey conducted with the aim of describing the interplay of the variables organizational structure, organizational culture and human resource management — considering the assumptions of the business process orientation (BPO) approach— and of identifying the relationship between these constructs and organizational performance, based on the four critical dimensions of the balanced scorecard technique: financial, customer/market, processes/capabilities and learning/growth. We used data from a sample of 368 medium and large Brazilian companies. By means of structural equations modeling we analyzed the associations between the constructs of the proposed nomothetic model. The results point to the existence of positive and statistically significant associations between the constructs investigated, except for the relationship between organizational structure and organizational performance. The results, including with respect to the relatively weak association between elements of organizational structure and performance, suggest that BPO initiatives can have a strong effect on organizational performance, adding to discussions of the theme.

Highlights

Global competition and the increased expectations of customers require companies to attain superior levels of efficiency and quality, as well as flexibility, to keep abreast of the changes that are occurring in the business world
To assess the measurement models that define the relation between the constructs and the manifest variables, we defined the constructs Organizational Structure (OS), Human resource managements (HRM) and Organizational Culture (OC) as reflexive, while we considered the other constructs, related to organizational performance – Financial Performance (FP), customer and market performance (CMP), Processes and Capabilities Performance (PCP) and leaning and growth performance (LGP) – to be formative
Various procedures have been applied to check the dimensionality of a scale, among them exploratory factor analysis (EFA) (NETEMEYER; BEARDEN; SHARMA, 2003)

Summary

Introduction

Global competition and the increased expectations of customers require companies to attain superior levels of efficiency and quality, as well as flexibility, to keep abreast of the changes that are occurring in the business world This requires simplification of operations and integration of business practices (SIDOROVA; ISIK, 2010; WILLAERT et al, 2007; BITITCI et al, 1999; LOVE et al, 1998). Projects for processes should cover social and technical aspects, so as to consider interdependent elements of the organization that support their implementation, namely: organizational activities, structure, people (culture/behavior) and technology (LOVE et al, 1998) Congruence of these dimensions is an important condition for the effectiveness of business processes. Among many studies of the theme, Davenport (1993) and Hammer (1996) stress this perspective by identifying that a substantial portion of innovations in processes come from a combination between information technology and changes in organizational and human resources – the structure and policies on human resources

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