1.1 BACKGROUND TO THE STUDY
culture refers to a system of shared assumptions, values, and beliefs that show
people what is appropriate and inappropriate behavior. These values have a
strong influence on employee behavior as well as organizational performance. In
fact, the term organizational culture was made popular in the 1980s when Peters
and Waterman’s best-selling book In Search of Excellence made the argument that
company success could be attributed to an organizational culture that was
decisive, customer-oriented, empowering, and people-oriented. Since then,
organizational culture has become the subject of numerous research studies,
books, and articles. Organizational culture is still a relatively new concept
(Daft, 2003). In contrast to a topic such as leadership, which has a history
spanning several centuries, organizational culture is a young but fast-growing
area within management.
is largely invisible to individuals just as the sea is invisible to the fish
swimming in it. Even though it affects all employee behaviors, thinking, and
behavioral patterns, individuals tend to become more aware of their
organization’s culture when they have the opportunity to compare it to other
organizations (Amah, 2009). The organizing function involves creating and
implementing organizational design decisions. The culture of the organization
is closely linked to organizational design. For instance, a culture that
empowers employees to make decisions could prove extremely resistant to a
centralized organizational design, hampering the manager’s ability to enact
such a design. However, a culture that supports the organizational structure
(and vice versa) can be very powerful (Daft, 2003).
organization’s culture may be one of its strongest assets or its biggest
liability. In fact, it has been argued that organizations that have a rare and
hard-to-imitate culture enjoy a competitive advantage. In a survey conducted by
the management consulting firm Bain & Company in 2007, worldwide business
leaders identified corporate culture to be as important as corporate strategy
for business success. This comes as no surprise to leaders of successful
businesses, who are quick to attribute their company’s success to their
organization’s culture (Garvin, 1998).
or shared values within the organization, may be related to increased employee performance.
Researchers found a relationship between organizational cultures and employee
performance, with respect to success indicators such as revenues, sales volume,
market share, and stock prices leading to realization of the organizations goal.
At the same time, it is important to have a culture that fits with the demands
of the company’s environment. To the extent that shared values are proper for
the company in question, employee performance may benefit from culture. For
example, if a company is in the high-tech industry, having a culture that
encourages innovativeness and adaptability will support its performance (Amah,
2009). However, if a company in the same industry has a culture characterized
by stability, a high respect for tradition, and a strong preference for
upholding rules and procedures, the company may suffer because of its culture.
In other words, just as having the right culture may be a competitive advantage
for an organization, having the wrong culture may lead to performance
difficulties, may be responsible for organizational failure, and may act as a
barrier preventing the company from changing and taking risks (Caves and Porter, 1977).
addition to having implications for employee performance, organizational
culture is an effective control mechanism dictating employee behavior. Culture
is a more powerful way of controlling and managing employee behaviors than
organizational rules and regulations. For example, when a company is trying to
improve the quality of its customer service, rules may not be helpful,
particularly when the problems customers present are unique. Instead, creating
a culture of customer service may achieve better results by encouraging
employees to think like customers, knowing that the company priorities in this
case are clear. Therefore, the ability to understand and influence
organizational culture is an important item for managers to have in their tool
kit when they are carrying out their controlling function as well as their
organizing function to enhance employee performance and promote the realization
of the organizational goals.
1.2 STATEMENT OF THE PROBLEM
Several researches on how to optimize employee
performance with a view to realize organizational goal have taken place in the
past two decades. It has been argued that strategic group membership and
associated collective behaviours are the primary sources of durable differences
in firm profitability and effective employee performance (Caves and Porter,
1977). This implies that the collective behaviour of organization members which
culture helps to control is important to its effectiveness. In relation to this
argument, Glasister and Buckley (1998) identified organizational culture as one
of the factors responsible for organizational effectiveness and employee
performance. A strong organizational culture (that is, one in which everyone
understands and believe in the firm’s goal, priorities and practices) that
encourages the participation and improvement of all organization’ members has
been identified to be one of its most important assets (Denison, 1985). However,
the researcher seeks to analyze the impact of organizational culture on
1.3 OBJECTIVES OF THE STUDY
The general objective of this study is
to analyze the effect of organizational culture on employee performance and the
following are the specific objectives:
examine the effect of organizational culture on the employee performance.
identify the type of organizational culture capable of enhancing employee
performance in an organization.
identify factors hindering the employee performance in an organization.
1.4 RESEARCH QUESTIONS
are the effects of organizational culture on the employee performance?
are the types of organizational culture capable of enhancing employee
performance in an organization?
are the factors hindering the employee performance in an organization?
There is no significant relationship between the organizational culture and employee
performance in an organization
There is significant relationship between the organizational culture and
employee performance in an organization
1.6 SIGNIFICANCE OF THE STUDY
study on the effect of organizational culture on employee performance towards
the attainment of organizational goals is significant in the following ways:
will enlighten managers and other stakeholders in Nigeria on the need for
better organizational culture as the result from this study will guide them in
selecting and adopting better organizational culture in the organization for
better employee performance.
research will be a contribution to the body of literature in the area of the
effect of organizational culture on the performance of quantity surveying firms
in Nigeria, thereby constituting the empirical literature for future research
in the subject area.
1.7 SCOPE/LIMITATIONS OF THE STUDY
This study on the
effect of organizational culture on the employee performance in organizations
in Nigeria will cover all the corporate organization in Nigeria by carefully
examining their organizational culture and its effect on employee performance
with a view to attain the organizational goal. The study will also cover an
overview of factors militating against employee performance.
LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the
researcher in sourcing for the relevant materials, literature or information
and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will
simultaneously engage in this study with other academic work. This consequently
will cut down on the time devoted for the research work.
1.8 DEFINITION OF TERMS
the arts and other manifestations of human intellectual achievement regarded
The accomplishment of a given task measured against preset known standards of
accuracy, completeness, cost, and speed. In a contract, performance is deemed
to be the fulfillment of an obligation, in a manner that releases the performer
from all liabilities under the contract.
A social unit of people that is structured and managed to meet a need or to
pursue collective goals. All organizations have a management structure that
determines relationships between the different activities and the members, and
subdivides and assigns roles, responsibilities, and authority to carry out
different tasks. Organizations are open systems--they affect and are affected
by their environment.
Amah, E (2009) Corporate Culture and
Organizational Effectiveness. A Study of the Nigerian Banking Industry. An
Unpublished PhD Thesis of the Faculty of Management Sciences, University of
Port Harcourt, Nigeria.
Caves, R. E and Porter, M. E (1977) From
Entry Business: Conjectural Decisions and Contrived Deterrence to New
Competition. Quarterly Journal of Economics
Daft,R.L(2003) OrganizationTheory and Design,Southwestern
College Publishing, Cincinnati, Ohio.
Denison,D.R(1985) Corporate Culture and
Organizational Effectiveness: A Behavioural Approach to Financial Performance.
Garvin, D.A (1998) Managing Quality. New York Free
Glaister, K. W and Buckley, P. J (1998)
Measures of Performance in UK International Alliance. Organization Studies Vol 19 no 1 p 89-118 Sage Publications.