Abstract:

Along with increasing complexity of activities, organizational culture has gained a special importance in management theory and practice. Organizational culture, as the personality of an organization, offers stability and trust in the inter-human relations, and at the same time creates the premises for achieving the organizational objectives. The purpose of this paper is to demonstrate how effective the culture is at the level of organizations, both in terms of the manifestation modalities and in its impact on the performance. The theoretical work is mainly based on the success of a stable culture of an organization. This paper contributes to a better understanding of the significance of organizational culture, both in the academic and in the business environment. The main results showed the need for culture in order to achieve and maintain the organizational performance, under the conditions of the current economic framework, but also under the conditions of the performing organizational changes. Thus, an initiative to transition organizational management to a performance-based perspective can become an asset for companies wishing to have a competitive advantage in front of market competitors. These dynamic processes of creating and managing culture are the essence of leadership and lead to the awareness that both leadership and culture are "two sides of the same coin".