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performance of balanced scorecard perspectives financial, customer, internal business, as well as learning and growth?”
2 REVIEW OF LITERATURE AND HYPOTHESIS DEVELOPMENT 2.1 Organizational of Fit Theory
If we take a look back at the development of Fit Theory in the beginning, there has been the organization theory, a theory that explained how exactly an
organization being structurized and how it was constructed in the purpose of increasing the effectivity of organization Robbins, 1994; 6. The next development is
population ecology theory and contigency which later bécame the source of theory of fit, that is the theory on internal relation harmony in an organization Sobirin, 2007;
268. So, Organizational of Fit Theory states that organizational strategy should fit
other factors so that the organization acheive good performance. And then, the organization should be designed in a way that it can achieve long term goals in the
form of organization’s vision and mission in order to give effect to company’s performance. That means with the existence of strategy harmony and external factor
culture, performance can be improved.
2.2 The Definition and Rules of Organization Culture
Kroeber and Kluckhohn in Belkaoui 1989 define culture as explicit and implicit patterns, from behaviours that is attained and spread in various kinds of
symbols, including those that are manifested in the form of artifacts which are the works of a group of people; the important point of culture is traditional ideas for
instance, got and chosen historically and values which is attached in a special way. Cultural system in one side is seen as the product of action, while on the other side as
the element of the following action. Culture is regarded as behaviour that is learned and spread throughout the population subconsciously.
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According to Adaptionist School, corporate culture is the common faith and value that give meaning to the members of an institution and uses the faith and values
as the behaviour guidance in an organization Sobirin, 2007:131. Robbins 2006:721 gives a short definition which says that organization culture is common
meaning system that is embraced by members and differenciate it from other organization. Tika 2005:6-7 states the elements in the definition of corporate culture
consists of value system, business environment, heroes, cultural network, ritual pattern of belief, values and behaviour, management style, management system and
procedur, norms and procedure, and behaviour guidance. Hence, organization culture and corporate culture is related to each other. Corporate culture is a part of
organization culture. The culture of a company has crucial roles to achieve its goals. According to Susanto et al. 2008:37 in order to gain good corporate performance,
there is a need to understand the roles or functions of organization culture in a company, such as: 1 as organization binder, 2 integrator, 3 organization identity,
4 energy to achieve high performance, 5 sign of quality, 6 motivator, 7 guidelines of leadership style, and 8 increase of stakeholder values.
Robbins 2006:725 emphasizes that culture runs several functions in a company. First of all, culture creates differences among organizations. Secondly,
cultures give identity sense to organization’s members. Thirdly, culture helps raising commitment on something bigger than personal interests. Fourthly, culture is social
bond which helps unite the organization by giving the exact standards about what employees should do. The culture in an organization according to Robbins
2006:724 can be strong or weak. The organization that has strong culture means that organization culture will have significant influence to the behaviour of the
organization’s members. This strong culture can bring either positive or negative effect towards organization’s performance. The influence of strong and positive
culture will show high agreement among members about what should be maintained in order to grow loyalty and commitment towards organization. Therefore, the leaders
in a company should pay attention and maintain the organization culture that fits the
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employees and company’s environment so it can be strong culture in supporting company’s development and goals. Hofstede et al. 1990 devide corporate culture
into six culture orientations, as follows: 1 process-oriented vs result-oriented, 2 employee-oriented vs job oriented, 3 pragmatic vs normatif, 4 parochial vs
profesional, 5 open system vs closed sstem, dan loose control vs tight control.
2.3 Organization Culture in The perspective of Balanced Scorecard
