I am totally agreed with the statement of Bititci - “The best-
performing companies worry less about performance and more
about their organizational capabilities.” I believe when the
company is giving more focus to the organizational capabilities
and developing competence, it includes everything like
technical expertise in manufacturing, finance, marketing,
motivating people, communicating a vision, managing risks and
others. And, when the company is delivering on the combined
abilities and competencies of its individuals, the organizational
capabilities get to emerge. Here, the company can add more
value by focusing on the talent, speed, accountability, coherent
brand identity and shared mindset, learning,etc. (Capitalizing on
capabilities. Harvard Business Review, 2014). All parts of the
business can bind up together with the organizational
capabilities. This results in growing the business of the
company and directly influences the performance of the
organizational settings. Thus, the best-performing companies
are giving more emphasis on organizational capabilities and less
focus on their performance.
The organizational culture within the company determines the
employee’s engagement at the workplace, how they are performing
at the workplace, and the bottom lines of the company. The
organizational culture must be maintained, developed and nurtured
to improve the performance and the capabilities of the company for
a long-run period. It has been found that the organizational culture
has three ways that directly affect the performance of the
organization, such as business goals are supported, productivity rises,
and performance of the business is improved (How culture impacts
performance. Raine Digital, 2020). According to authors Shahzad,
Luqman, Khan, and Shabbir (2012), the organizational culture has a
huge impact on different organizations performance, processes, and
its employees. They support various dimensions of the work culture.
They say if employees are committed to the organizational values
and norms, then it will result in enhancing the
organizational performance, and the company can easily achieve the
goal and objectives set for the organization (Shahzad et al., 2012).
Thus, organizational learning can only get encouraged through the
participative and active work culture in the organization that can
improve the performance and capabilities of the organization.
Here, Company A and Company B have a significant role in the
growth of their respective business. The companies give focus
on effective strategies, including designing, planning and
delivering the organizational capabilities to the company. I think
the organizational culture and capabilities of company A have
more potential to improve its talent, coherent brand identity
and shared mindset, speed, and accountability. It has given the
focus on the performance of the employees to propel its
business growth. On the other hand, Company B has set up its
vision on collaboration, strategic unity, conducting a capabilities
audit, customer connectivity, leadership, innovation, and
efficiency to enhance the business growth. These two
companies have maintained a great organizational culture that
is engaging more employees in the workplace and showing
more capacities to achieve their goals.
References
Capitalizing on capabilities. Harvard Business Review. (2014, August
1). Retrieved February 17, 2022, from
https://hbr.org/2004/06/capitalizing-on-
capabilities#:~:text=Organizational%20Capabilities%20Explained
%201%20Talent%3A%20We%20are%20good,and%20experiences
%20with%20our%20organization.%20More%20items...%20
How culture impacts performance. Raine Digital. (2020, July 1).
Retrieved February 17, 2022, from
https://rainedigital.com/2020/07/01/how-culture-impacts-
performance/
Shahzad, F., Luqman, R. A., Khan, A. R., & Shabbir, L. (2012). Impact
of organizational culture on organizational performance: An
overview. Interdisciplinary journal of contemporary research in business.
