The Impact of Organizational Culture on Organizational Performance
Chapter One
Objective of the Study
The main objective of this study is to find out the impact of organizational culture on organizational performance, specifically, the study intends to:
- Analyze the impact of organizational culture on the performance of organizations in Nigeria
- Find out the extent to which organizational culture affects customer service
- Examine the extents to which organizational culture affect internal business procedures
CHAPTER TWO
REVIEW OF LITERATURE
INTRODUCTION
Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.
CONCEPTUAL FRAMEWORK
The Concept of Culture
Culture is arrangement of different attributes that express an organization and differentiate the firm from other one (Forehand and von Gilmer, 1964). According to Hofstede (1980), culture is the collective thinking of minds which create a difference between the members of one group from another. As per Schein (1990), defines culture is set of different values and behaviors that may considered to guide to success. According to the Kotter and Heskett (1992), culture means fairly established set of beliefs, behaviors and values of society contain generally. In simple words we can understand that culture is gained knowledge, explanations, values, beliefs, communication and behaviors of large group of people, at the same time and same place.
Concept Of Organizational Culture
There is no single definition for organizational culture. The topic has been studied from a variety of perspectives, ranging from disciplines such as anthropology and sociology, to the applied discipline of organizational behavior, management sciences to organizational commitment. In the course of this research, we are going to look at some definitions given by some authors from the applied sciences discipline. Moorhead and Griffin (1995), authors of books on organizational culture, feel compelled to develop their own definitions of culture. These may vary from the very broad definitions to the highly specific. Most definitions refer to some sort of values, beliefs, and attitudes that are held by individuals and the organization. Schein (1999, p.200) defines culture as a pattern of shared basic assumptions that the group learned as it solved problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. In the last decade, it has been used by some organizational researchers and managers to indicate the climate and practices that organizations develop around their handling of people or to refer to the espoused values and credo of an organization. Mullins (1999) defines organizational culture as the collection of traditions, values, beliefs, policies, and attitudes that constitute a pervasive context for everything one does and thinks in an organization. Collins and Porras (2000) state that organizational culture refers to a system of shared meaning held by members that distinguish one organization from other organizations. They believe that these shared meanings are a set of key characteristics, and that the organization values and the essence of an organization’s culture can be captured in seven primary characteristics. These characteristics are:
Innovation and risk –
taking: This has to do with the degree to which employees are encouraged to be innovative and take risks;
Attention to detail:
The degree to which employees are expected to exhibit precision analysis and attention to detail;
Outcome orientation:
The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes;
People orientation:
The degree to which management decisions takes into consideration the effect of outcomes on people within the organization;
Team orientation:
The degree to which work activities are organized around teams rather than individuals;
Aggressiveness:
The degree to which people are aggressive and competitive rather than easygoing;
Stability:
The degree to which organizational activities emphasize maintaining the status quo in contrast to growth.
Each of these characteristics exists on a continuum from low to high. Appraising the organization on these seven characteristics gives a composite picture of the organizations culture.
An Overview Of Organizational Culture
Organizational culture has assumed importance since the 21st century, because of its impact on employee performance and job satisfaction. It is imperative on every organization to understand its own dynamic culture so that mangers can capitalize on the insights generated by the cultural perspective to wield greater control over their organizations. The culture of an organization has an important on its performance. Organizational culture can be described as a thought or scheme in the field of management and organizational studies which depicts and describes the psychology, behaviours, experiences, beliefs and values of an organization. These morals, values, ethics and ideals could be personal as well as cultural (Harrison & Stokes, 1992, p.23). Organizational culture has the potential to affect a range of organizationally and individually desired outcomes. According to Ritchie (2000), organizational culture affects such outcomes as productivity, performance, commitment, self confidence, satisfaction and ethical behavior. Similarly, more recent writers have stated that organizational culture impacts on any organization, its employee performance and job satisfaction and ultimately its financial performance. Furthermore, it has also been noted that organizational culture helps management to find out the suitable strategies and policies which can drive employees to contribute themselves and lead to organizational performance. With the ever changing technology and fast paced business arena, organizations today are grappling to find new and innovative ways of improving performance with the minimal addition of cost. Many organizations have now turned to explore the sociological aspect of the business in order to improve profitability. Culture is one aspect that is not tangible, yet it plays a very important role to the success of any organization.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.
This study was carried out on the impact of organizational culture on organization performance using four(4) selected Banks in Asaba, Delta State as a case study. Staff of the selected banks form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of thirty-six (36) questionnaires were administered to respondents of which only thirty (30) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 30 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
SUMMARY
In this study, our focus was the impact of organizational culture on organizational performance using four selected banks in Asaba as a case study. The study was specifically set to analyze the impact of organizational culture on performance of organizations in Nigeria, find out the extent to which organizational culture affects customer service and examine the extents to which organizational culture affect internal business procedures. A total of 30 responses were validated from the enrolled participants where all respondent are drawn from staff of the selected banks in Asaba
CONCLUSION
Result shows that organizational culture has a profound impact on the performance of organizations in Nigeria, particularly in the selected banks in Asaba,influencing employee productivity, talent management, innovation, and operational efficiency. The result indicates that organizational culture significantly affects customer service by shaping employee behaviours, service quality, and problem-solving capabilities. It is also revealed from the result that the extent organizational culture affect internal business procedures is extensively high. Moreover, organizational culture plays a crucial role in shaping internal business procedures, promoting efficiency, compliance, collaboration, and continuous improvement. Nevertheless, for these organizations, investing in and nurturing a strong, positive organizational culture can lead to substantial improvements in overall performance and competitive advantage.
RECOMMENDATION
Based on the responses obtained, the researcher proffers the following recommendations:
- Organizations should clearly define the core values that underpin the organizational culture. Communicate these values consistently across all levels of the organization to align behaviors and decisions.
- Organizational culture should provide ongoing training and development opportunities that reinforce the desired organizational culture. This includes leadership development, cultural sensitivity training, and skill enhancement programs.
- Organizations should implement recognition and reward systems that reinforce behaviors aligned with the organizational culture. This could include formal recognition programs, performance bonuses, and opportunities for career advancement.
- Top leadership should demonstrate a clear commitment to fostering a positive organizational culture. They should lead by example, embodying the values and behaviors that reflect the desired culture.
REFERENCES
- Academy of Management Review, 13(4): 546-558.
- Alhabri, M. A., et al. (2013). Impact of organizational culture on employee performance. International Review of Management and Business Research, 2(1), 168-172.
- Ansoff, H. I. (1987). Corporate strategy. McGraw Hill.
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- Barney, J., 1991. Firm Resources and Sustained Competitive Advantage. Journal of Management, 1(17):99-120.
- Berg, P. T., & Wilderom, C. P. M. (2012). The influence of organizational culture on corporate performance: Empirical evidence from a multi-industry study. Journal of Business Research, 65(7), 978-985. doi
- Berg, P. T., & Wilderom, C. P. M. (2012). The influence of organizational culture on corporate performance: Empirical evidence from a multi-industry study. Journal of Business Research, 65(7), 978-985.
- Between Job Satisfaction and Turnover Intention. European Journal of Social Sciences , 30 (1): 125-135.
- Cameron, R.K and R. Quinn, 2006. Diagnosing and changing organizational culture: Based on thecompeting values framework. Hoboken, NJ: Jossey-Bass.
- Cameron, S. K., Quinn, E. R. (2006). Diagnosing and changing organizational culture; Based on competing values framework, revised edition, The Jossey-Bass A Wiley Imprint, San Francisco
