Organizational culture and perceived effectiveness: a case study of an insurance company

  • Milica Slijepcevic Metropolitan University Belgrade
  • Jelena Krstic Economics Institute


Research question: This paper studies the relation between organizational culture and perceived organizational effectiveness of an insurance company in a developing country with an emerging economy.Motivation: The main objective of the research is to determine whether there is a correlation between organizational culture and climate as a narrower concept, on the one hand and perceived organizational effectiveness on the other hand. Some authors noted a correlation between these organizational aspects. For example, Yan (2016) empirically confirmed that organizational culture positively and significantly correlates with organizational effectiveness. The relationship between organizational culture and organizational effectiveness was also examined by Cox and Trotter (2016), Chen (2017) and Deem, De Lotell and Kelly (2015). Idea: Starting from the findings of other authors that organizational culture indeed affects effectiveness, the authors of this paper wanted to examine whether this relation existed in  a state-owned insurance company in an emerging economy and if so, how to use this  to improve employees’ performance and overall business results. Data: They conducted the research in June 2017 on the sample of employees of Dunav Insurance Company and obtained six hundred and sixty six valid questionnaires. Tools: The questionnaires consisted of five general questions about demographic variables and twenty-nine closed-ended questions related to the topic. The researchers assessed the correlation between variables by Spearman Rho Coefficient and Chi-Square significance. Findings: The results showed the relationship between a number of aspects of organizational culture and climate on one hand and perceived organizational effectiveness on the other hand. Research results showed that the evaluation of effective utilization of working hours and professional capabilities is largely connected with the aspects of organizational climate that reflect poor working conditions and unethical attitude of employees. However, the evaluation of effective utilization of professional capabilities also relates to the perception of predominant aspects of an organizational climate that inspire positive internal relations. Contribution: The results presented in the paper can be used as the basis for organizational and managerial decision-making to improve work processes in the observed organization.

Author Biographies

Milica Slijepcevic, Metropolitan University Belgrade

Milica Slijepcevic, Ph.D, has worked for the last 12 years with "Dunav Osiguranje" Insurance Company, where she does a series of responsible jobs - from project manager, PR manager to other management positions. She gained more than 20 years of valuable managerial experience in marketing, communications, public relations and management in both profit and non-profit sectors, and has achieved remarkable results. She is the founder and president of the NGO Center for Communication Flou, NGO dedicated to improving communication in all segments, from strategic to operational levels of business. Milica Slijepčević, PhD, is an Assistant Professor in the Department for Business and Marketing at the Faculty of Management, the Metropolitan University of Belgrade, and in the Department for Fashion Design at the Faculty of Digital Arts, the Metropolitan University of Belgrade.

Jelena Krstic, Economics Institute

Jelena Krstic holds a Ph.D. in organizational sciences and works as a research associate and the member of Scientific Board at the Economics Institute in Belgrade, Serbia. Her research interests are related to scientific fields of marketing communications, public relations and consumer behaviour. She has participated in various research projects in different economic fields. She has so far published one monograph and more than 40 papers in international and national journals and conference proceedings.

How to Cite
Slijepcevic, M., & Krstic, J. (2020). Organizational culture and perceived effectiveness: a case study of an insurance company. Management:Journal Of Sustainable Business And Management Solutions In Emerging Economies, 25(2), 29-40. doi:10.7595/management.fon.2019.0019