IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE

Impact of Organizational Culture on Employee Performance

ABSTRACT

Culture may have a big influence on the performance of all organizations worldwide. This is a practice that cannot just be assumed as it has both positive and negative effects as far as performance is concerned. This study is based on the impact of organizational culture on employee’s performance. The study adopts the following objectives; to determine the effects of competitive, entrepreneurial, bureaucratic and consensual cultures on employee’s performance. The descriptive survey research design was adopted and a sample size of 133 (one hundred and thirty three) was gotten using Taro Yamani formula out of the population of a total of (200) staff.

133 questionnaires were administered to the respondents and I120 was returned, which was used for the data. Four research questions was used for the study. The data for the study was gathered with a five point likert scale questionnaire. Analyses were made through the latest version of statistical package for social sciences (SPSS} a well-known software for the statistically data analysis, so that effective conclusion can be drawn. From the study, it was indicated that competitive culture, entrepreneurial culture, bureaucratic culture and consensual culture has significance effects on employee’s performance. Hence, it was recommended among others that Organization should provide a flexible culture to enhance good working environment to employees in which they will work easily and independently without feeling any burden. Thus, suggestions for further studies were made.

TABLE OF CONTENTS

Title page        –           –           –           –           –           –           –           –           –          

Declaration      –           –           –           –           –           –           –           –           –          

Certification    –           –           –           –           –           –           –           –           –          

Dedication      –           –           –           –           –           –           –           –           –          

Acknowledgment       –           –           –           –           –           –           –           –          

Abstract          –           –           –           –           –           –           –           –           –          

Table of Content         –           –           –           –           –           –           –           –          

CHAPTER ONE – INTRODUCTION

1.1       Background of the Study       –           –           –           –           –           –          

1.2       Statement of the Problem       –           –           –           –           –           –          

1.3       Objective of the Study           –           –           –           –           –           –          

1.4        Research Question     –           –           –           –           –           –           –          

1.5        Research Hypothesis  –           –           –           –           –           –           –          

1.6        Scope of the Study    –           –           –           –           –           –           –          

1.7        Limitation of the Study         –           –           –           –           –           –          

1.8       Significance of the Study       –           –           –           –           –           –          

1.9       Definition of Terms    –           –           –           –           –           –           –         

 CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.0       Introduction    –           –           –           –           –           –           –           –          

2.1       History of Peacock Paint Nigeria Limited.     –           –           –           –          

2.2       The Concept of Organizational Culture          –           –           –           –          

2.2.1    Effects of Organizational Culture and Performance  –           –           –          

2.3       Empirical Review        –           –           –           –           –           –           –          

CHAPTER THREE – RESEARCH METHODOLOGY

3.0        Introduction   –           –           –           –           –           –           –           –          

3.1       Research Design         –           –           –           –           –           –           –          

3.2       Area of the Study       –           –           –           –           –           –           –          

3.3       Population of the Study          –           –           –           –           –           –          

3.4       Sample Size and Sample Technique   –           –           –           –           –          

3.5       Source of Data            –           –           –           –           –           –           –          

3.5.1    Primary Sources:         –           –           –           –           –           –           –          

3.5.2   Secondary Source       –           –           –           –           –           –           –          

3.6      Research Instrument   –           –           –           –           –           –           –          

3.7      Validation of Instrument        –           –           –           –           –           –          

3.8       Reliability of the Instrument Used     –           –           –           –           –          

3.9       Method of Data Analysis       –           –           –           –           –           –         

CHAPTER FOUR – DATA PRESENTATION, ANALYSIS AND INTERPRETATION

4.0      Introduction     –           –           –           –           –           –           –           –               

4.1       Presentation of Data   –           –           –           –           –           –           –          

4.2       Analysis of Data         –           –           –           –           –           –           –          

4.3       Test of Hypotheses     –           –           –           –           –           –           –          

4.4       Discussion of the Findings     –           –           –           –           –           –          

CHAPTER FIVE – SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.0       Introduction   –           –           –           –           –           –           –              

5.1       Summary of Findings –           –           –           –           –           –                   

5.2       Conclusion      –           –           –           –           –           –           –                     

5.3       Recommendations      –           –           –           –           –           –                 

5.4       Suggestion for Further Studies           –           –           –           –                     

References      –           –           –           –           –           –           –           –          

Appendix        –           –           –           –           –           –           –           –          

Impact of Organizational Culture on Employee Performance

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Organizations are a constituent of people with different ideological orientations, values, opinions, and attitudes coming together cooperatively to achieve a goal. It therefore implies that the belief system, goals, objectives, philosophies are all part of the corporate culture of any organization, which are learned by every member of the organization (Bulach, 2012). Every organization is influenced by the existing culture which varies from organization to organization (Chegini, 2010). Thus, organizational culture is one of the essential tools in understanding the behavior of people in such an organization. It is a persuasive force that controls an employee’s work life; the thread that binds the entire organization together.

According to Cambridge dictionary, culture can be defined as the way of life, especially the general customs and beliefs, of a particular group of people at a particular time. Thus, organizational culture is described by Needle (2004) as the behavior or interaction of humans within an organization. In the other hand organizational performance involves engaging in recurring activities aimed at establishing organizational goals, monitoring progress toward the goals, and making adjustments to achieve those goals more effectively and efficiently (Omoregbe and Umemezia, 2017). It also means having the different parts of an organization work together to achieve great results which are measured in terms of the value being delivered (Hopkins, 2004).

There are many researches that have linked culture in the organization with many different organizational behaviors. This has been recognized that there is a correlation between culture of organization & employee job performance (Sheridan, 1992), decision making (Gamble & Gibson, 1999) and productivity (Kopelman, Brief and Guzzo, 1990). Luthans (1998) stated that organizational culture has often time presented within the organization, and it was not given importance needed in an organization.

The culture of organization is highlighted to bring out every important component of the organization. It is very necessary for an organization to establish an organizational culture to maintain its position in market. The organizational culture has to be developed to provide support to an organization and bring continuous improvement.

The culture of an organization is very important for the progress of an organization because it impacts on employee commitment and their retention as well. If the culture of an organization is flexible it will provide such Working environment to employees in which they may work easily and independently without feeling any burden (Aluko, 2013). Every organization wants employee commitment because it is very important for an organizational effectiveness (Curtis, 2001). If the employees understand the organizational culture properly there may be improvement in their performance. The reason is that the employee’s performance is the base of an organization.

Organizational outcomes and success is derived by the individual contribution in the organization at all levels (Dave, 2011). If every individual performs according to the expected standards then organizational performance will be enhanced. It is for this reason that job performance is considered an extremely important criterion that translates into organizational outcomes and success; making it the backbone of every organization (Salihu, Rayyan and Umar, 2016).

However, Organizational outcomes and success is derived by the individual contribution in the organization at all levels. If every individual performs according to the expected standards then organizational performance will be enhanced. This therefore explains the reason why a good amount of time and resources have been invested in carrying out research in this field (Omondi, 2014). Conversely, Organizational outcomes and success is derived by the individual contribution in the organization at all levels. If every individual performs according to the expected standards then organizational performance will be enhanced but if they don’t perform as directed and according to expected standard it will retard the organization’s success (Dyer, 2007).

Organizational culture comprises the unwritten customs, behaviors and beliefs that determine the “rules of the game” for decision-making, structure and power. It’s based on the shared history and traditions of the organization combined current leadership values. In effect, culture dictates the way we do business here and the organizational survival tactics that facilitate assimilation and personal success (Dave and Urich, 2011).

With a strong organizational culture, employees do things because they believe it’s the right thing to do and feel they’ll be rewarded for their actions. However, if the leadership team lacks integrity or stop diversity, powerful cultures can change into cults, cliques castes and insider clubs. Organizational culture can be treated as a series of distinctive characteristics of a specific organization. Some modern definitions of organizational culture are dynamic, directed at creativity, innovations and entrepreneurship. Therefore, this study will focus on the effect of organizational culture on employee performance.

Impact of Organizational Culture on Employee Performance

1.2       Statement of the Problem

Since employees are seen as the greatest and most valuable assets that implement and complement other factors of production in an organization, increased competition, globalization, alliances and major work force department have created a greater need for organizational culture. Managing organizational culture is emerging as one of the key managerial challenges in the 21st century. Nevertheless, organizational culture affects the performance and productivity of organizations in a tremendous way such as poor corporate governance and poor corporate culture are  responsible for the problems faced by good organizations in Nigeria.

In several instances, it has been shown that most employees in the organizations do not have the knowledge of its vision, mission and strategic goals. Many of the companies might have a bureaucratic culture that do not promote entrepreneurial and risk-taking initiatives and no clear communication between management and employees. Therefore, in the bid to proffer solution to the above problems, the study to access the effect of organizational culture on employee performance.

1.3       Objective of the Study

The general purpose of this study is to assess the impact of organizational culture on employee performance. Specifically, the study sought to

1. Determine the effects of competitive culture on employee performance.
2. Determine the effects of entrepreneurial culture on employee performance.
3. Determine the effects of bureaucratic culture on employee performance.
4. Determine the effects of consensual culture on employee performance.

1.4          Research Questions

The following research questions are raised to aid the study.

1. To what extent does competitive culture affects employee performance?
2. Is there any significance effect between entrepreneurial culture and employee performance?
3. To what extent does bureaucratic culture affects employee performance?
4. What is the significance effect between consensual culture and employee performance?

Impact of Organizational Culture on Employee Performance

1.5           Research of Hypotheses

This research is undertaken on the basis of the following hypothesis.

1. There is no significant effect of competitive culture on employee performance.
2. There is no significant effect of entrepreneurial culture on employee performance.
3. There is no significant effect of bureaucratic culture on employee performance.
4. There is no significant effect of consensual culture on employee performance.

1.6         Scope of the study

The study covers all business organizations in Akwa Ibom State. Therefore this study seeks of empirically investigate on the effects of organizational considering competitive, entrepreneurial, bureaucratic and consensual cultures on employee performance using Spread Sheet Package to analysis the primary data obtained from the business organization.

1.7         Limitation of the study

In the course of this research work, a lot of problems are bound to be encountered among which includes the following:

1. Secrecy: Most respondent were indifference on their part to provide credible answers to the research questions.
2. Human errors and biasness: This is because some data’s were obtained through discussions and interviews therefore there is the possibility of human error of omitting some vital information. Respondent may also exaggerate important information in order to give their organization a positive credit for fear of what seems an invasion into the organization’s privacy.
3. Time factor: The time given within which the work has to be completed is definitely inadequate considering the tedious work involved ranging from getting the raw data, computation to conclusion.

1.8       Significance of the Study

There is no controversy that researches have been conducted on organizational culture, however, in order to generalize the findings of the existing studies, this study therefore placed much emphasis on the effects of competitive, entrepreneurial, bureaucratic and consensual cultures on employee performance. Hence, this study will be helpful to future researchers in gaining secondary information and can serve as literature review for potential references. It will also serve as a centerpiece idea to other students willing to pursue research in a similar field.

The analysis of this research study will provide important details pertaining to the culture of firms in the production companies. The details gained will provide firms in this sector with requisite knowledge that will enable them identify culturally related strengths, leverage their company’s overall strength as well as address cultural weakness that hamper success.

Moreover, the study will be of immense benefit to the company understudy in that the management will utilize the result of the findings of the study to re-engineer and restructure the organization’s culture in order to improve their employee job performance and by extension organizational performance. Information provided by the study can also be used to formulate a strategy for the organization. And, for the employees of the organization under study, this research will enable them to gain a better understanding of their role in shaping the organization’s culture and how this influences their performance and by extension the overall performance of the organization.

 1.9     Definition of Terms

Organizational culture: This is a system of shared values, beliefs, norms which governs the way people behave in an organization. This strong values has a strong Influence on the people in the organization and dictate how they dress, act and perform their jobs.

Employee: An individual who works part time of full time under a contract of  employment, whether oral or written, express or implied, and has recognized rights and duties. it can also be a person who is below the executive level who is hired by another to perform a service especially for wages or salary and is under others control.

Performance: The accomplishment of a given task measured against a preset known standard of accuracy, completeness, cost, and speed. In a contract, performance is deemed to be the fulfillment of an obligation, in a manner that releases the performance from all liabilities under the contact.

Competítive Culture: A competitive culture: an organizational culture which promotes separation into competitive “units,” which then builds resentment between “losers” and “winners.” It also leads to fear or shame of future poor performance, and blame when individuals feel they must justify their “loss” or lack of performance.

Bureaucratic Culture: A hierarchical and formal organization that has several levels where tasks, authority and responsibilities are delegated between departments, offices or people. This structure is held together by a central or main administration, and it has led to the development of modern civilization.

Entrepreneurial Culture: An environment where someone is motivated to innovate, create and take risks. In a business, an entrepreneurial culture means that employees are encouraged to brainstorm new ideas or products. When work time is dedicated to these activities, it is called entrepreneurship.

Consensual Culture: An entrepreneurial culture which has the potential to shape employee attitudes and work behaviours towards the attainment of business efficiency and sustainability, this study examined the relationship between organisational culture and Human Resource (HR) development policy.

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I am Prince Stephen. The admin of nairaschool.com.ng. I’m a passionate writer, editor and an experienced educational blogger who writes articles on education, educational research and school news. I based in Afaha Nsit, Akwa Ibom State, Nigeria.