Perceived Influence Of Organizational Culture On Employees’ Performance

A STUDY OF SELECTED DEPOSIT MONEY BANKS IN ILARO

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Abstract

The study examined the influence of perceived organizational culture on employees’ performance of deposit money banks in Ilaro, Ogun state. The study objectives investigated the effect clan, adhocracy and hierarchy culture on employees’ performance. Survey research design was adopted for the study. Self-administered questionnaire was used to gather data for the study. The population of the study was 140, which was drawn from the employees. Census model was adopted to select the entire population as the sample size because of small number. The data collected were analyzed using descriptive and linear regression with the aid of SPSS. The findings of the study revealed that clan and adhocracy culture has significant relationship with employees’ performance with p-value of 0.001 and 0.000 respectively. However, hierarchy culture with p-value of 0.218 has no significant relationship with employees’ performance. Therefore, the study concluded that, organizational culture has significant effect on employees’ performance. With these findings, the study recommends that; the management of the organization should embrace adhocracy culture in order to promote entrepreneurial skill, creativity, innovativeness and risk-taking so as to improve employees’ performance. The management of the selected banks should promote clan culture in order to encourage employees’ participation in decision making, team work, so as to improve employees’ performance. The management of the selected banks should be selective in the usage of hierarchy culture in order not to discourage employees’ creativity, innovativeness, team work so as to ensure work force performance.

Aims and Objectives

The main objective of this study is to examine the perceived influence of organizational culture on employees’ performance. While the specific objectives are:

  1. To examine the effect of Adhocracy Culture on Employees’ Performance in selected banks
  2. To determine the extent to which Clan Culture has effect on Employees’ Performance in selected banks
  3. To investigate the influence of Hierarchy Culture on Employees’ Performance in selected banks
Research Questions

The following questions are what the study seeks to find answers to:

  1. What is the effect of adhocracy culture on employees’ performance in selected banks?
  2. To what extent does clan culture affect employees’ performance in selected banks?
  3. Does hierarchy culture has influence on employees’ performance in selected banks?
Hypothesis Of The Study

The following null hypotheses statement shall be tested for the study:

H01: adhocracy culture has no significant effect on employees’ performance in selected banks

H02: clan culture has no significant effect employees’ performance in selected banks

H03: hierarchy culture has no significant effect on employees’ performance in selected banks

Chapter One

1.0 INTRODUCTION
1.1 Background Information to the Study
Organizational culture has emerged as a key concept in corporate management and in organizations generally. Despite the drastically changing environment in enterprises and organizations, it has increasingly become an inevitable oddity. Firms are fully aware of what, why, when, where, and how they can best accomplish their aims and objectives due to the high degree of significant competition among organizations and the need to stay ahead of the market. Most people agree that once the goals are clearly stated, it becomes essential to understand the kind of culture that can be accepted and worked with to acknowledge and achieve the organization’s objectives. Recent literatures proved that organizational effectiveness serve as a way of facilitating the significance of culture in inspiring and exploiting the value of its resources (Schein. 2018). Stewart (2017) also added that the way of life of every organization which is instituted through the norms influences all those involved in the organization. These norms become important for organizations who aim to achieve competitive and distinctive advantage.

According to Gallagher and Brown (2020), an organization’s culture affects what it does, how it runs, what it focuses on, and how it treats the expectations of its customers, employees, and shareholders. Every organization’s culture is made up of its language, stories, signs (symbols), rituals, and rites, which frequently duplicate and replicate its practices, beliefs, norms, morals, ethics, and values (Daft, 2016). According to the Webster’s dictionary, culture is defined as the rules, customs, talents, arts, and values that are established to regulate and guard a particular people’s attitude and behavior. According to this concept, no organization or community can truly succeed without determining which culture would be the most beneficial, acceptable, and liked by all parties. Detert, Schroeder and Mauriel (2020) pointed that culture is a way of life which is indispensable for the success of every organization and also in promoting the value of human resources. Frambach and Schilewaert (2018) argued that though the right culture is a prerequisite to the success of every organization, but not always the means to an end. Chien (2016) sees organizational culture as one of the prominent factors in determining organizational innovativeness and performance. Stewart (2017) added that in explaining organizational culture, the concept of beliefs and attitudes of the people should be inevitably considered since it is this same people that put up the culture. For instance, if the belief of the organization is to reward high performers, this will in turn reflect and influence the performance and effectiveness of the organization. It becomes imperative to note that as the level of rivalry and struggle is increasing rapidly, changes tend to take place in aspect of the organization’s culture (Cameron, 2019).

Employee performance would be considered as backbone of the organization when it leads to its development effectively. The loyalty of an employee relies upon knowledge and awareness of culture that improves behavior of organization (Brooks, 2016). The awareness of quality culture helps in improving organizational and employee development. It is the responsibility of the management to introduce the organizational culture to its employees that will assist the employees to get familiar with the systems of the organization. Management must try to always keep learning environment in the organization. Proper understanding of organizational culture should lead towards improvement of employees’ performance. Employees’ performance is calculated against the performance standard by the organization. Performance is a main multidimensional build aimed to get results and has a strong link to planned objectives of an organization (Mwita, 2020). The work of employee is made up by his achievement of mission of organization that shows the limits of performance (Cascio, 2016). Therefore, understanding the correlation between organizational culture and employee’s task performance is a crucial research subject because various studies have asserted that an individual’s work performance is an important tool toward the success of organizations. A well-established organizational culture serves as a useful tool to execute innovative ideas, influence employee’s behaviors, and maximize performance. When an individual’s values and organizational practices are well integrated, it will greatly affect the degree of individual and organizational productivity.

Just like individuals, organizations have culture too. Organizational culture constitutes the values and conducts that enhance the social and psychological environment within which an organization operates. Therefore, organizational culture should not just be seen as a sensitive aspect of an organization but rather as a driving force for achieving managerial effectiveness (Gallagher & Brown, 2020). Therefore, it is very fundamental for an organization to establish an organizational culture to keep up with its position in the market. The organizational culture must be crafted in a way that it offer help and bring constant improvements to the organization. Establishing culture for an organization is vital for its growth and development, it also has impacts on employees’ dedication to work and their retention. A flexible culture will make working environment more convenient for employees to work more easily and independently without feeling any burden.

Chapter Two

2.0 LITERATURE REVIEW
2.1 Introduction

The chapter presents a review of related literature that supports the current research on the Perceived Influence Of Organizational Culture On Employees’ Performance, systematically identifying documents with relevant analyzed information to help the researcher understand existing knowledge, identify gaps, and outline research strategies, procedures, instruments, and their outcomes

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