The Process of Socialization in Relation to Organizational Performance

Organizational culture has been considered one of the variables which significantly affects both individual and organizational performance. Organizational culture determines the direction and intensity of individual behaviour and thus encourages employees to strive to fulfil organizational goals. Considering the range of problems in organizational culture and the great number of components of organizational culture, we have focused on the process of the socialization of key organizational values and their relation to organizational performance, as key organizational values cannot be passed down without an effective process of socialization. Particularly, we study the process of socialization in the Czech Republic (as a representative of a post-transformational country) where socialization was not inherent in organizational processes before 1990. The main research question is whether there is a significant influence of the process of socialization on organizational performance. Based on a sample of 178 organizations (the sample covered organizations of all sizes and from all sectors of the economy), a quantitative survey was carried out in order to analyse the relation between the process of socialization and organizational performance. A questionnaire was distributed to representatives of organizations that are doing business in the Czech Republic and the degree of the socialization process was evaluated. The organizational performance was assessed using Return on Assets (ROA) indicator. The data were analysed using standard statistical methods. The results indicate that the prevalence of the socialization process (associated with the integration of key organizational values) not only preserves but also enhances sharing and development of key components of organizational culture and thus creates strong organizational culture. Moreover, strong organizational culture is related to higher organizational performance.