Full Project – THE EFFECTS OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE AND PRODUCTIVITY

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CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Organizational culture refers to a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior. These values have a strong influence on employee behavior as well as organizational performance. Organisations around are faced with challenges which necessitate developing their capability to sustain and overcome the forces and factors that affect their performance and gaining competitive advantage by the developing a culture of sustainability and success. Culture is a concept with different meaning to different people and embraces almost all factors that influence an individual’s reasoning process andbehaviour, and also influences preferences, decisions and general perspective about the world considering the fact, that most human behaviors are not innate but learned and acquired in an environment over time and it is also combination of tangible and intangible attributes which influence  and shape personality and behaviour over time (Adegbite, 2018).

Dasgupta  and Gupta  (2019) posit that culture comprises values and beliefs of individuals within anentity considered to be the totality of socially transmitted behavior patterns, arts, beliefs, institutions, and all other products of human work and thought characteristic of a community or population and culture is unit of analysis of a nation, organisation, profession, functional area, or a team depending on the unit which can be categorised into; national culture, organisational culture, professional culture, functional culture and team culture.

Kamaamia (2017) states that organisational culture is the shared assumptions, values, and beliefs, that governs how an organization interacts with internal and external environments which strongly influence employees’ performance and productivity when it is aligned to the mission and goals of the organisations which determines managerial actions. Arditi,Nayak and  Damci (2017)posit that culture is a guide of shared fundamental assumptions that was learned by a groupas it solved its problems of exterior adaptation and interior integration, that has worked well enough to be considered suitable, though new members are taught the correct way to perceive, think and feel and relate and it  also super cedes shared strategy, market presence, and technological advantage because it facilitates common interpretation system for organisation members, making clear what is expected such as; creating continuity, binding organisation members together, and energising meaningful development.

Hussein, Omar, Noordin and Ishak (2016) state that organisational cultures grow under different conditions and  history  that creates a unique style and personality that required different approaches to be used when deploying a sustainable  management system. Laike (2017) posits that organizations exist in within a specific culture or socio-cultural environment that influence the way employees think, feel and behave and organisational culture provides powerful machinery for controlling behavior by influencing the world is viewed in order to achieve its goal successfully by designing policies to effectively utilize human resources. Patel (2017) states that culture is  a tool for building brand identity; increase loyalty among employees; attracts and retains talent; and makes advocates out of employees. Moseley  (2019) posit that organisational culture defines organisation’s internal and external identity in respect of its core values;  transformation of employees into advocates (or critics); helps keep the best people; transforms company into a team; and  impacts performance and employee wellbeing.

Gerber (2019) states that employee performance is a key factor that contributes directly to organisation’s performance and with increased competition in the business arena and it is the basis for analysing cost, promotion, salary increment, dismissal and retention. Although the measures of employee performance should be transparent and conform to expectations and standards in the interest of fairness and clarity as enhance the organization policy implementation. Employee performance involve the quality and quantity of productivity,  rate of work attendance, level of relationship with others and helpful nature and timeliness of output (Shahzadi, Javed, Pirzada, Nasreen, & Khanam, 2014).

1.2 Statement of the Problem

It is widely acknowledged in current discussion of organizational performance that managers have to widen an understanding of their cultural settings if their organizations are to perform effectively. Paschal and Nizam (2016) states that organisational culture is responsible for differences in behavior in different organisation. Employee performance, in relation to organisational culture has received little attention and many researchers perceive the relationship between organisational culture and employee performance differently (Kamaamia, 2017). Uddin,  Luva and Hossian (2013) posit that organisational culture adapted to cope  with dynamic changes may not meet the varying demand of employee expectations and satisfactions.

Wambugu (2014) found that an organisational value has significant effect to employee’s job performance. Paschal and Nizam (2016)found that organisational culture such as rites, value and heroes significant impact on employee’s performance and that symbols has very weak  impact on employee’s performance. Laike (2017) found a positive relationship between organisational culture and performance management practice in ECA and that consistency, mission and adaptability have stronger correlation to performance management practice in ECA while involvement have lower relationship with performance management practice. Kamaamia (2017) found that all components of organisational culture including goal oriented measures, work oriented measures, employee oriented measures, open culture system, and professional work culture enhance organisational performance.

Therefore, essence of this study is to determine the impact of organisational culture on employees’ performance and productivity as critical factors that support banking success. Organisational culture was measured using four out of the six Hofstede cultural dimension namely; power distance; individualism/collectivism; masculinity/feminity and uncertainty avoidance while employees’ performance and productivity was measured using; productivity, commitment, loyalty and other parameters. This study was intended to tackle this paucity by empirically examining the impact of organizational culture on employees’ performance and productivity in the Nigerian banking sector.

1.3 Objectives of the Study                             

The broad objective of this research is to determine the effects of organizational culture on employee performance and productivity. The specific objectives are to:

1. evaluate the impact of power distance on employees’ performance and productivity and productivity.

1. determine the extent to which masculinity/feminity affect employees’ performance and productivity and productivity.

iii. ascertain the relationship between individualism/collectivism and employees’ performance and productivity.

1. determine the impact of uncertainty avoidance on employees’ performance and productivity.

1.4 Research Questions

These research questions were answered;

1. What is the impact of power distance on employees’ performance and productivity?

1. To what extent does masculinity/feminity affect employees’ performance and productivity?

iii. What is the relationship between individualism/collectivism and employees’ performance and productivity?

1. What is the combine impact of uncertainty avoidance on employees’ performance and productivity?

1.5 Hypotheses

H_o1: There is no significant relationship between power distance and employees’ performance and productivity.

H₁: There is significant relationship between power distance and employees’ performance and productivity.

H_o2: Masculinity/feminity has no relationship with employees’ performance and productivity.

H₂: Masculinity/feminity has relationship with employees’ performance and productivity.

H_o3: Individualism/collectivism does not have relationship with employees’  performance.

H₃: Individualism/collectivism does  have relationship with employees’  performance

.

H_o4: Uncertainty avoidance does not influence employees’ performance and productivity.

H₄: Uncertainty avoidance does influence employees’ performance and productivity.

1.6 Significance of the Study

The finding of this study on the effect of organizational culture on employee performance is significant in the following ways:

The study will also identify the similarities in the implementation of organisational culture   which will be of immense benefit to managers in the course of planning. The study will be valuable to managers of resources in both private and public organisations since they all operate within the same business environment and it serve as a guide for decision making. This study will also be immense benefit in formulation of rational strategies aimed at enhancing employee’s performance. The study will also be beneficial to the students and researchers conducting research on organisational culture.

1.7 Scope of the Study

The scope of this study shall cover the effect of organisation culture on employee’s performance, however in Unity Bank Plc, Lagos State. The limitations of this study are;  the study would be conducted in one company and one city, also focused on just one sector; secondly is that the sample size may be too small for generalisations considering those study on larger scale with more representative sample and lastly, the use of research instrument questionnaire precisely which makes it impossible to capture psychological aspects of respondents reactions as in qualitative research. Furthermore, this study may likely suffer a setback in terms of finding and generalisation due to financial and time constraints which restrained researches area of coverage.

1.8 Operational Definition of Terms

In order to provide clarifications on some terminologies used in the research work, the following terms were explains below;

Culture: Is the collective deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time and roles.

Organisational Culture: Is the fundamental beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological structure of an organisation.

Performance: The accomplishment of a given task measured against predetermined known standards of precision, completeness.

Employee Performance: Is the work related activities anticipated of a worker and how well those activities were executed.

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Full Project – THE EFFECTS OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE AND PRODUCTIVITY