Full Project – IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE’S PERFORMANCE IN UNITY BANK PLC
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 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 impactively 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 impactively. 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 impact 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 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 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 in the Nigerian banking sector.
1.3 Objectives of the Study
The broad objective of this research is to determine the impact of organizational culture on employee’s performance. The specific objectives are to:
- evaluate the impact of power distance on employees’ performance.
- determine the extent to which masculinity/feminity affect employees’ performance.
- ascertain the relationship between individualism/collectivism and employees’ performance.
- determine the impact of uncertainty avoidance on employees’ performance.
1.4 Research Questions
These research questions were answered;
- What is the impact of power distance on employees’ performance?
- To what extent does masculinity/feminity affect employees’ performance?
- What is the relationship between individualism/collectivism and employees’ performance?
- What is the combine impact of uncertainty avoidance on employees’ performance?
Ho1: There is no significant relationship between power distance and employees’ performance.
H1: There is significant relationship between power distance and employees’ performance.
Ho2: Masculinity/feminity has no relationship with employees’ performance.
H2: Masculinity/feminity has relationship with employees’ performance.
Ho3: Individualism/collectivism does not have relationship with employees’ performance.
H3: Individualism/collectivism does have relationship with employees’ performance
Ho4: Uncertainty avoidance does not influence employees’ performance.
H4: Uncertainty avoidance does influence employees’ performance.
1.6 Significance of the Study
The finding of this study on the impact 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 impact 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.
Adegbite, M. A. (2018). Culture and small scale family owned business performance: A study of selected family-owned businesses in Lagos State. Master of Science (M.Sc) dissertation submitted to the department of Business Administration, OlabisiOnabanjo University, Ago-Iwoye, Ogun State.
Arditi, D., Nayak, S., &Damci, A.(2017).Impact of organizational culture on delay in construction.International Journal of Project Management, 35, 136–147; http://dx.doi.org/10.1016/j.ijproman.2016.10.018
Dasgupta S., & Gupta B, (2019). Espoused cultural values as antecedents of internet technology adoption in an emerging economy.Information and amp;Management, 1-56
Hussein, N., Omar, S., Noordin, F., &Ishak, N. A. (2016).Learning organization culture, organizational performance and organizational innovativeness in a public institution of higher education in Malaysia: A preliminary study.Procedia Economics and Finance, 37, 512 – 519.
Laike, S. (2017).The impact of organizational culture on performance management practices: The case of Economic Commission for Africa (Master of Arts in Human Resources Management, Addis Ababa University, Addis Ababa, Ethiopia). Retrieved fromhttps// etd.aau.edu.e
Moseley, C. (2019, March 5). Seven reasons why organizational culture is important.Retrieved from https//jostleblog.com
Paschal, A. O., &Nizam, I. (2016). Impacts of organisational culture on employees’ performance: Case of Singapore Telecommunication. International Journal of Accounting & Business Management, 4(1), 1-9;
Shahzadi, I., Javed, A., Pirzada, S.S., Nasreen, S. &Khanam, F. (2014).Impact of employee motivation on employee performance.European Journal of Business and Management, 6(23), 159-166.
Uddin, M. J., Luva, R. H., &Hossian, S. M. (2013).Impact of organizational culture on employee performance and productivity: A case study of telecommunication sector in Bangladesh. International Journal of Business and Management, 8(2), 1-16.
Wambugu, L. W.(2014). Impacts of organizational culture on employee performance : Case study of Wartsila – Kipevu Ii Power Plant. European Journal of Business and Management, 6(32),
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Full Project – IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE’S PERFORMANCE IN UNITY BANK PLC