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INFLUENCE OF
PERCEIVED ORGANIZATIONAL CULTURE ON EMPLOYEES PERFORMANCE
ABSTRACT
The
cognitive systems of human that helps in improving thinking and decision making
were based upon organization culture. The multifaceted set of beliefs,
assumptions and values helps in presenting different level of culture by
conducting business at an effective manner. This research work try to assess
the relationship between organizational culture and employee performance. This
study also try determine whether organizational culture influences employee’s
performance on the basis of gender. The study adopts qualitative and
quantitative research design to understand the influence of perceived
organizational culture on employees. Findings show that there is a significant
relationship between organization culture and employee performance. Also the
result of the findings show that there is no significant different in the
influence of organization culture on male and female employee performance.
Organizations are established for specific purpose and objectives, people also
join organizations to satisfy their needs, and in so doing they contribute to
organizational performance to achieve the objectives of the organization.
Therefore, it is paramount that every organization develops a specific culture
that will function effectively because the extent to which employees perform
can be dependent on the culture of the organization as revealed from the case
study. As a result of the findings of the study, the following recommendations
have been made. Cultural studies dealing with organizational performance in
Nigeria remain largely an uncharted course. If proper and adequate combination
of human a material resource of the organization is put in place, the
organization will achieve its objectives. Therefore, the culture of Nestle food
plc Sagamu should ensure that those employees understand the way the
organization is designed to operate and its defined objectives which it is set
to attain.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Culture is
defined as a mixture of values, sets, beliefs, communications and explanation
of behaviour that provides guidance to
people. The main idea of culture comes
from sharing in learning processes that have been based upon systematic
allocation of resources (Titiev, 2009). The cognitive systems of human that
helps in improving thinking and decision making were based upon organization
culture (Pettigrew, 1999). The
multifaceted set of beliefs, assumptions and values helps in presenting
different level of culture by conducting business at an effective manner. The
normative glue based
upon organization culture helps
in holding overall
management effectiveness (Tichy
1999). The concept of effective
organization culture helps in improving
business decisions. The survival of culture in an organization lies upon
national and foreign culture differentiation in culture management. (Schein,
1990) The culture of organization has been affected by attitudes, norms and
beliefs that lead to strong communication between employees.
Organizational
culture propose to employees the way things should be done. Most of the time
people exercise word culture to express the pattern of individual behavior.
Before 1980s inthe study of
organizational behavior, culture
is considered as
a most important
factor. Businesses show interest
in cultural dimensions that was the extreme effect rather than the other
fragments of organizational behavior.
Peter and Waterman's (1992)
supposed that culture
is the key to the success of
organization. In many business journals and in business articles, published
periodically claimed that
culture was fundamental
to the organizational success,
and it was recommended for
the managers, should
deal with his
work by following
their organizational culture,
which help to rise in the growth of organization (Moorhead and Griffin, 1995).
Researchers
have linked a culture in the organization with many different organizational
behaviors. They have
also recognized the
correlation between culture
of organization & employee job
performance (Sheridan, 1992),
decision making (Gamble
& Gibson, 1999)
and productivity (Kopelman, Brief
and Guzzo, 1990).
As per statement
of Luthans (1998), organizational culture
has always presented
within the organization,
but most of
the time businesses paid
less attention towards
it. The culture of organization
comes into view
to permeate every important component of the organization. To understand the association between
employee’s job performance and culture of the organization is
an imperative research
subject because it
is proven by
different studies that individuals work performance is crucial
for success of organization.
Strong
culture will make it easy to communicate openly and participate in efficiently
and effectively in the decision making to explore their ideas and skills. The
different attributes of
culture have been
arranged on basis
of norms and
attitudes which help
in differentiating one firm
from another (Forehand and von Gilmer, 2004). The process of thinking helps in establishing one
member from another
on basis of
cognitive thinking (Hofstede,
1990). The success guidance based
upon different values
and norm that makes
culture effective (Schein,
1990). The set of
beliefs, behaviours, norms
and values helps
in making culture
most effective (Kotter
and Heskett ,1992).
Now a
day’s organization culture
has generally been
interrelated to management.
(Kotter andHeskett,
1992).The two essential
factors that lead
to effective culture
management include structural
stability and integration of
superior standard of
organization culture. (Schein,
1995) Certain
characteristics of organization culture
have been established
in which set
of norms, values
and beliefs helps
in perfect association between
them. (Hodgetts and Luthans, 2003) At different level of organization culture
different background, ethics and racial differences impact upon performance.
The similar organization culture with different
backgrounds has common
set of values
and beliefs to be
effected by organization
systems (Robbins &Sanghi, 2007). The attraction of organization
norms, values and beliefs have strong affect upon performance and sustainability.
The
knowledge of culture has been gained through understanding and beliefs on basis
of large groups.
According to
Cascio (2006) performance is the degree of an achievement to which an
employee's fulfil the organisational mission at workplace. He continues to say
that the job of an employee is build up by degree of achievement of a
particular target or mission that defines boundaries of performance. According
to Ojo (2008) despite the plethora
of studies on
organisational culture in the last
few decades, the
empirical evidences emerging from
various studies about
the effect of
organisational culture on
performance have so
far yielded mixed results that
are inconclusive and contradictory. He further states that researchers concur
on the fact that there is no agreement on the precise nature of the
relationship between organisational culture and performance. Because of these
results the question
of whether organisational culture
affects employee performance
is still worthy of a further
research.
1.2 STATEMENT OF THE PROBLEM
In the past
twenty five years, the concept of
corporate culture has
gained wide acceptance a way to
understand human systems.From an open system perspective, each aspect of corporate culture can be seen as an
important environmental condition affecting the system and subsystem of the
organization. Increased competition, globalization, alliances and major work
force department have created a greater need for organizational culture. Thus,
it has become an important factor for a company’s development.
Managing
corporate culture is
emerging as one of the key managerial challenges of the twenty first
century. Most studies in corporate culture and employee performance have tended
to focus on distinct elements of culture while ignoring its multi
dimensions and that it is concepts that
consist of sever-Š•interconnected variables (Schein, 1992).
Culture is
the common bond that generates a sense of belongingness among the actors in an
organization. Organizational culture offers a shared system of meaning which is
the basis for communications and mutual understanding and if there functions are not
fulfilled satisfactorily way culture may significantly reduce effectiveness of
employees in organizations.
The main
rational for this
research study is therefore
to contribute to the
broader research community
by enhancing knowledge within the field of Industrial and
organizational psychology. Furthermore, this study addresses this topic from
Nigerian work context and viewpoint by focusing on employees in the insurance
industry.
1.2 OBJECTIVES
OF THE STUDY
The
following are the objectives of this study:
i. To assess the relationship
between organizational culture and employee performance.
ii. To determine whether
organizational culture influences employee’s performance on the basis of
gender.
iii. To investigate the influences of
organizational culture on employee performance.
iv. To recommends ways to improve
the influence of organizational culture on employee performance
1.3 RESEARCH
QUESTION
i. Is there arelationship between
organizational culture and employee performance?
ii. Is there a significance difference in
the influence oforganizational culture on male and female employee’s
performance?
iii. Does organizational culture
influencesemployee performance?
1.4 RESEARCH
HYPOTHESES
H01: There
is no influence of organizational culture on employee performance.
H02: There
is no significance influence oforganizational culture on male and female
employee’s performance.
1.5 SCOPE OF
THE STUDY
The essence
of this research work is to primarily study the influence of perceive
organisational culture on employee performance. The research intends to focus
on all employees at Nestle PLC Sagamu.
1.6
SIGNIFICANCE OF THE STUDY
This study
is expected to have an effect on employee of Nestle Sagamu, homes, and the
general public. The outcome of this study is to supplement the existing store
of knowledge on the subject of influence of organizational culture and employee
performance.
The result
of this study may be of immense benefits to the public and private individuals,
stakeholders, government, parents, students, lecturers, university management
and researchers and as well change their believe on the influence of
organizational culture and employee performance.
The findings
of the study will be useful to the Community, Institutions of higher learning
and the Nigerian Government as it is set to bring to fore key influence of
organizational culture and how its greatly affects the performance of employee
of a particular firm. The current study
is useful in
contributing to the
general body of knowledge in this area.
1.7
DEFINITION OF TERMS
Influence:This
is the impact something or someone has on something or someone. This could be
positive or negative. The power to affect, control or manipulate something or
someone.
Organization
Culture:Organizational culture comprises the unwritten customs, behaviors and
beliefs that determine the "rules of the game" for decision-making,
structure and power.
Culture:Culture
can be defined as a collective programming of mind in which distinguishes the
members of one category of people from another.
Employee:An
individual who provides labour to an organization or another person.
Performance:The
term performance refers to how and the manner in which a particular task is
carried out usually judged by its effectiveness. Performance should be
associated with factors such as increasing profitability and obtaining the best
results in all organizational endeavours.
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