ORGANIZATIONAL CULTURE AND PERFORMANCE

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ORGANIZATIONAL CULTURE AND PERFORMANCE

TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgment v

Abstract vi

CHAPTER ONE: INTRODUCTION

1.1 Background of the study 1

1.2 Statement of the problem 2

1.3 Purpose of the study 3

1.4 Research questions 4

1.5 Research hypotheses 4

1.6 Statement of the study 5

1.7 Scope of the study 6

1.8 Limitation of the study 6

1.9 Definition of terms 7

1.10 Organization of the study 9

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction 11

2.2 concept definition of organization culture 11

2.3 approach to culture 15

2.4 roles and functions of organizational culture 26

2.5 model of organizational culture 30

2.6 employee performance 31

2.7 theory of performance 33

2.8 organizational culture and employee performance 34

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction 37

3.2 Research design 37

3.3 Sample population 37

3.4 Sampling size 37

3.5 Sampling procedure 38

3.6 Sources of data collection 39

3.7 Data analysis techniques 40

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Introduction 41

4.2 data analysis 41

4.2.1 organizational culture is capable of shaping the behaviour

of organizational members 42

4.2.2 organizational culture can enhance commitment, team spirit

and dedication to assigned duties 43

4.3.2 organizational culture has an impact on employee performance 44

4.2.4 employee performance can enhance organizations

Productivity 45

4.2.5 employee performance can be sharpened by the culture of the organization 46

4.2.6 organizational culture been passed on to new employee through socialization 47

4.3 test of hypotheses 48

4.4 discussion of findings 53

CHAPTER FIVE: CONCLUSION AND RECOMMENDATION

5.1 Introduction 54

5.2 Summary 56

5.3 Conclusion 57

5.4 Recommendation 57

5.5 Suggestion for further research 59

Bibliography

Appendices

Questionnaire

Spearman’s Rank Table

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Several scholars of organizational behaviour have made it clear that organizational culture do have an impact on employee’s performance. Incidentally, the impact of organizational culture on employee’s performance is the main thrust (topic) of our study.

According to Nelson and Quick (1997:512) organizational culture has its roots in cultural anthropology. They further stated that, as there are cultures in large human society, so are there cultures within the business organization.

These cultures seem to be similar to societal cultures: they are shared, communicated through symbols and passed from generation to generation of employees. By implication organizational culture is the blue-print upon which the activities of both employers and employees of the organizations are based.

According to Schein (1998:605) organizational culture is a pattern of basic assumptions that are considered valid and are taught to new members as the way to perceive, think and feel in the organization.

Similarly, Urieto (1996:153) defined organizational culture as maintained attitudes, beliefs and shared values that are the basses for an organizations activities and actions.

Kreitner and Kinicki (2004:476) view organizational culture as a set of shared, taken for granted implicit assumptions that a group holds which determines how it perceive, thinks about and reacts to its various environments. In the same vein, Griffin (1996:528) views organizational culture as the set of values that helps members of an organization understand what the organization stands for, how it does things and what it consider important.

He also describes organizational culture as a dynamic concept that is difficult to measure or observe objectively. Griffin went further to state that organizational culture influences the type of organizational structure adopted by an organization as well as a host of practices, policies, and procedures implemented in trying to achieve organizational goals and he also observed that organizational culture helps in socializing new employees and shaping their behaviour within the organization for optimum performance. This is achieved through training and indoctrination, which make the employees perform activities in the way and manner they are stipulated by the organization.

It is very clear that once employees are able to imbibe the culture of an organization, there is the tendency that their performance will be enhanced because organizational culture can enhance commitment, team spirit and dedication which in turn brings about effective and efficient performance.

1.2 STATEMENT OF THE PROBLEM

Organizational culture provides a sense of identity to members and increases their commitment to the organization. When members internalize the values of the organization, they find their work intrinsically rewarding and identify with their fellow workers.

Organizational culture is also a sense making device for members. It provides a way for employees to interpret the meaning of organizational events and design the way and manner of handling these events for the success and growth of the organization.

Organizational culture equally reinforces the values of the organization. An organization might undertake a cultural change in order to achieve total quality as the number one value. Organizational culture serves as a control mechanism for shaping the people’s behaviour.

However, the impact of organizational culture on employees’ performance is hotly debated by organizational behaviourists and researchers. It seems that managers attest strongly to the positive impact of organizational culture on employee’s performance, but it appears difficult and problematic to qualify the degree or level of this impact. Besides, human nature is dynamic and therefore it becomes pretty difficult to determine human behaviour. The study is therefore designed to examine the impact of organizational culture on employee performance considering the dynamic nature of human beings and how this can make them perform optimally.

1.3 PURPOSE OF THE STUDY

The purpose of the study includes the following:

1. To show if organizational culture is capable of shaping the behaviour of organizational members.

2. To show how organizational culture enhances commitment, team spirit and dedication to assigned duties.

3. To show how to enhance good culture in the organizations.

4. To show to manipulate culture to enhance productivity.

5. To show the role of organizational culture on the performance of employees.

1.4 RESEARCH QUESTIONS

The following research questions are designed to generate data for the study:

1. Is organizational culture capable of shaping the behaviour of organizational members?

2. Does organizational culture enhance commitment, team spirit, and dedication to assigned duties?

3. Can employee performance enhance organizations productivity?

4. Can employee performance be sharpened by the culture of the organization?

5. Does organizational culture have an impact on employees’ performance?

6. Can organizational culture be passed onto new employees through socialization?

1.5 RESEARCH HYPOTHESES

In order to achieve the target of the study, the following two (2) null hypotheses were formulated:

H₀₁: There is no significant relationship between organizational culture and behaviour of organizational members.

H₀₂: There is no significant relationship between organizational culture and employees’ performance.

1.6 STATEMENT OF THE STUDY

Every study must have an impact to make on certain people, and this one is not an exception. The study will educate employers of laobur on the necessity of designing the kind of organizational culture that will appreciate the fact that employees are from different cultural backgrounds.

The study will as well acquaint employees with the actual essence of organizational culture and how it can shape their behaviour and facilitating collective commitment amongst then (employees). On the part of the stakeholders the study will educate them on the need to adhere to organizational culture by playing the game according to the rule, which means they should not do things in their own way, rather than respecting the do’s and don’ts of the organizational culture.

Concerning agencies and government the study will educate them on the need to respect and appreciate an organization’s culture instead of trying to force uncultured laws on the organization which might bring rivalry between the organization and government and this will have a negative effect on the economy.

The study will also be beneficial to management students especially those taking organizational behaviour course in the universities and other higher institutions for their term papers and research work.

Finally, personnel management practioneers and business management consultants will have a lot to benefit from this study.

1.7 SCOPE OF THE STUDY

The scope of the study will cover only five (5) organizations in Port Harcourt which include the following.

1. Nigeria Agip Oil Company

2. Nigeria Engineering Works

3. Chevron

4. Elf

5. Nigeria Ports Authority.

1.8 LIMITATION OF THE STUDY

The study faced certain limitations. The limitations were: scarcity of relevant materials because the scope of the study was not widened, the researcher had not enough funds that would have enabled her travel outside Port Harcourt to source for the completion of the study was limited and this affect the scope of the study.

1.9 DEFINITION OF TERMS

Certain reoccurring terms have been defined operationally in the work as follows.

Organizational Culture

This has to do with shared values and beliefs that underlie the organizations identity.

Adaptive Perspective

The assumption that an adaptive culture enhances an organization’s financial performance.

Fit Perspective

This assumes that the strength of organizational culture is related to an organization’s financial performance.

Values

This has to do with enduring belief in a mode of conduct or end-state.

Espoused Values

The stated values and norms that are preferred by an organization.

Enacted Values

The values and norms being exhibited by employees of organization.

Normative Belief

Thoughts and beliefs about expected behaviour and modes of conduct of members of an organization.

1.10 ORGANIZATION OF THE STUDY

The study is divided into five (5) different chapters. Chapter one which is the introduction has the following sections; background of the study, statement of the problem, purpose of the study, research questions, research hypotheses, significance of the study, scope of the study, limitation of the study, definition of terms and organization of the study. Chapter two borders on literature review.

Chapter three is research methodology and it borders on the following: research design, research population, sample size, and sampling procedure, sources of data collection and data analysis techniques.

Chapter four deals with data presentation and analysis. Chapter five has to do with summary, conclusion and recommendation.

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