The Effects Of Organizational Culture On Employee Performance And Productivity

The Effects Of Organizational Culture On Employee Performance And Productivity

Abstract

The impact of organizational culture on worker performance and business production is investigated in this study. Five theories were developed and put to the test. The literature study looks at the definition of organizational culture, theoretical ideas underlying organizational culture, functions of organizational culture, elements of organizational culture, evaluating an organization’s culture, and strategies for modifying an organization’s culture. For this investigation, a sample of four banks was used. The primary method of data collection in this study is through the use of questionnaires. Findings show that (i) a high percentage of employees adhere to organizational culture, (ii) rigid operational procedures and policies can impair employee performance and productivity, (iii) poor communication is a factor that can hinder employee performance and productivity, (iv) there is a significant correlation between “entrepreneurial risk-taking initiative and organizational performance, and (v) there is a significant correlation between shared values among the group. The report makes several recommendations, including that banks have clear vision and mission statements and convey them to their staff, that solid leadership abilities are necessary to manage the organization’s culture, that there must be common values and trust, and that employees should have opportunity to advance and develop. Finally, it is advised that firms eliminate bureaucratic procedures in order to promote initiative, creativity, and an entrepreneurial culture.

Background to the study in Chapter One

Introduction (1.1)

Every organization has a culture, and every organization is impacted by that culture. Researchers like Ogbor (2003), Schein (2004), and Alvesson (2003) have demonstrated that an organization’s performance should be understood in the context of its culture. Each of the Asaba establishments’ lobby areas—the Grand Hotel, Favorites Fast-Food Restaurant, and Zenith Bank—has a distinct ambiance, emotion, and aesthetic. These businesses, whether they are a bank, a hotel, or a restaurant, all have a distinct personality, allure, and atmosphere. They have a cultural anchor that affects how clients react and how staff members deal with them.

One can observe a certain level of business focus in the way tellers handle customers at Zenith Bank, for instance, where there are over 250 branches and business offices nationwide. The tellers also exhibit an attitude that inspires passion, vigor, and creativity in the workplace. Customers at Grand Hotel get a sense of being in an oasis in addition to a captivating atmosphere. These cultural values have been ingrained in the businesses and the ways in which business is conducted by the founders or management of these successful corporations.

The culture of a business affects the behavior, attitudes, and general effectiveness of employees, whether the topic of discussion is a bank or a hotel that has a welcoming customer service culture. It is important to pay close attention to an organization’s culture because, as Denison (1990) correctly notes, “decisions made without awareness of the operative cultural forces may have unanticipated and undesirable consequences.”

The purpose of this project is to investigate how four banks in Asaba’s organizational cultures impact their level of productivity. I’ll refer to “organizational culture” and “corporate culture” interchangeably in this project because they both pertain to the same thing. According to Alvesson (1990), “corporate culture” is practitioner-oriented, whereas “organizational culture” is a phrase that is usually used in scholarly research and organizational discourses.

According to Ogbor (2012), productivity issues afflict numerous businesses in Nigeria, particularly in the public sector. The researcher cites a number of explanations for this, including:

Uncertainty about the organization’s future direction and goals is referred to as having a fuzzy vision. This occurs when the corporate vision and mission fail to motivate employees.

When team members resist change, that’s a sign of poor leadership. In this regard, the following characteristics may be used to define a problem culture: Fear of change, a lack of entrepreneurial spirit in leaders, a hands-off or overly dictatorial management style, managers who only administer and micromanage instead of leading, and a weak or nonexistent leadership development program;

When there are no shared values, a lack of trust, a blaming culture, a focus on opportunities rather than problems, individuals don’t enjoy their jobs, diversity is not acknowledged, mistakes are not accepted, and people lose faith in their systems and leaders, a culture is considered to be discouraging.

High bureaucracy: A bureaucratic culture has the power to stifle innovation and expansion inside a company. These characteristics of bureaucratic organizational structures include: an excessive number of management layers, high boundaries between management layers, hierarchical coordination of decisions and actions, a slow decision-making process, an excessive amount of close monitoring of things and subordinates, rigid operating procedures and policies, and an excessive amount of tools and documents that discourage original thought and an innovative approach to strategic actions and marketing initiatives.

Lack of initiative: when an organization’s culture discourages taking risks and being entrepreneurial. Employees that work in such a culture lack motivation and encouragement, don’t feel that their efforts matter, and work in a defensive rather than creative manner, completing their tasks without going above and beyond.

Ineffective vertical communicationPoor vertical communication and management that isolates themselves from the rest of the workforce in terms of accessibility are signs of a bad culture. People in such a culture lack perspective and believe their contributions are unimportant; there is also a great deal of uncertainty and little knowledge of senior management’ plans or thoughts. Management loses touch with current market conditions and client expectations as a result of such an organization’s communication system.

inadequate cross-functional cooperationFunctional attitude, a lack of cross-functional goals and collaboration spirit, a lack of enterprise-wide business process management, a lack of cross-functional management committees, and a lack of or weak cross-functional teams may be indicators of a poor culture.

Poor teamwork: Lack of organizational support for team culture, a lack of worthwhile shared goals, ineffective team leaders, tolerance of team members who do not want to participate in team activities, overly big teams, and a lack of shared rewards are all signs of a dysfunctional culture.

Finally, a problem in the culture of the organization may appear when cross-pollination of ideas is not encouraged, when there are no knowledge management strategies in place, when management has a “know-it-all” mentality, and when there is a mentality of the “not invented here” syndrome.

As was already said, the goal of this study is to investigate how organizational culture affects the performance of a few Asaba-based banks.

Statement of the problem: 1.2

Organizational culture has a significant impact on the effectiveness and productivity of organizations. Sanusi Lamido Sanusi, Governor of the Central Bank of Nigeria, said in 2010 that the issues Nigerian banks experienced in the post-consolidation era were caused by bad corporate governance and poor corporate culture. It has been demonstrated in multiple occasions that the majority of employees in businesses (banks) are unaware of their strategic aims and vision.

According to studies, the majority of Nigerian bank executives lack the expertise required for their institutions to effectively compete, and the staff do not uphold the ideals outlined in the organization’s mission statement. Second, a lot of banks have bureaucratic cultures that discourage risk-taking and entrepreneurial endeavors. Thirdly, management and employees do not communicate well. Fourth, the banks have weak cross-functional cooperation and teamwork.

1.3.1 PURPOSE OF THE STUDY

The overarching goal of this research is to comprehend how an organization’s culture influences its performance. This is accomplished by looking at the corporate cultures of a few chosen Asaba banks. The study specifically seeks to accomplish the following five goals:

to determine whether an organization’s performance and productivity are in any way related to its common vision, purpose, and strategic goals.

to determine whether there is a connection between an organization’s culture, its leaders’ abilities, and its performance, productivity, and competitiveness.

to determine the degree to which members of the

to determine if there is a connection between organizational performance and productivity and entrepreneurial and risk-taking efforts (entrepreneurial culture).

to determine whether there is a connection between effective teamwork, cross-functional collaboration, and open communication, and organizational success.