Identity and Economic Performance

Heskett, J. (2010). To what degree does "identity" affect economic performance? Retrieved March 6, 2010 from: http://hbswk.hbs.edu/item/6367.html

This article, written by James Heskett, Baker Foundation Professor, Emeritus, at Harvard Business School, discusses ways an organization’s culture can affect its economic performance. He states that people put forth more effort and produce better results for organizations whose values they identify with. So, it is optimal for firms to clearly formulate those values and make them clear to prospective employees. He states that there is evidence that show a correlation between workforce satisfaction and firm performance and that intrinsic rewards play a larger role in satisfaction than monetary compensation does. This article touches on an interesting subject, though in very brief detail. It shows that it is important for leaders to develop a strong organizational culture and to promulgate it and to find employees that will be a good match to the culture.