THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEES PERFORMANCE

CHAPTER ONE INTRODUCTION

1.1   Background of the Study

This study shall be structured into five chapters. Chapter one carries the introduction, background of the study, problem statement, research objectives, research questions, research hypothesis, the significance of the study, and organization of work. Chapter two covers the literature review comprising the conceptual review, theoretical review and empirical review. Chapter three will deal with the methodology of the study. Chapter four carries the analysis and interpretation of the result. Chapter five comprises of discussion, conclusion and recommendations.

Robbins & Coulter, (2005), described organizational culture as the shared values, beliefs, or perceptions held by employees within an organization or organizational unit. Because organizational culture reflects the values, beliefs and behavioral norms that are used by employees in an organization to give meaning to the situations that they encounter, it can influence the attitudes and behavior of the staff (Scott-Findlay & Estabrooks, 2006).

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, and philosophies are all part of the corporate culture of any organization, which are learnt by every member of the organization. Organizational culture is one of the essential tools in understanding the behavior of people in organizations. Organizational culture is a persuasive force that controls an employee’s work life – the thread that binds the entire organization together. On 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).

An organization must establish an organizational culture to maintain its position in the 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 the organization because it affects employee commitment and retention as well. If the culture of an organization is flexible, it will provide a working environment to employees in which they may work easily and independently without feeling any burden.

The pervasiveness of an organizational culture requires that management recognize its underpinning dimensions and its impact on employee-related variables, such as job satisfaction (Lund, 2003), organizational commitment (Casida & Pinto-Zipp, 2008), and performance (Denison, Haaland, & Goelzer, 2004).

Every organization wants employee commitment because it is very important for organizational effectiveness. If the employees understand the organizational culture properly that there may be an improvement in their performance the reason is that the employee‘s performance is the base of an organization. Organizational outcomes and success is derived from individual contribution to the organization at all levels. 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, & Umar, 2016).

However, Organizational outcomes and success is derived from individual contribution to 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 good amounts of time and resources have been invested in carrying out research in this field (Omondi, 2014). Conversely, Organizational outcomes and success is derived from the individual contribution to the organization at all levels. If every individual performs according to the expected standards then organizational performance will be enhanced but if they do not

perform as directed and according to expected standards it will retard the organization’s success.

Organizational culture comprises the unwritten customs, behaviors, and beliefs that determine the “rules of the game” for decision-making, structure, and power. It is based on the shared history and traditions of the organization combined with 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 Ulrich, 2011).

With a strong organizational culture, employees do things because they believe it is the right thing to do and feel they will be rewarded for their actions. However, if the leadership team lacks integrity or stops 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 and directed at creativity, innovation, and entrepreneurship.

1.2   Problem Statement