Impact Of Organisational Culture On Job Satisfaction

Project and Seminar Material for Business Administration and Management BAM

Project and Seminar Material for Business Administration and Management BAM


The study investigated the impact of organizational culture on job satisfaction, a study of Fanmilk Plc., Lagos. The specific objectives of the study were to describe the socio-economic interest of respondents, identify the culture of the organization, assess the impact of organizational culture on the job satisfaction of employees in FANMILK, identify the challenges of organizational culture on employees job satisfaction. The sample size of 150 employees’ drawn from the study population was used for the analysis. Two hypotheses were formulated for the study. Frequency tables and percentages were employed for data presentation and mean, standard deviation and correlations coefficient was employed in testing the various hypotheses, with the aid of statistical package for social sciences (SPSS 17.0). At the end of the study, the researcher found out that, the values of organization should be very good and clear to all employees, innovation should be encouraged to improve employees job satisfaction, employees participation leads to effective utilization of human resources, there should be management prompt response to conflict resolution, fast changing technology is a challenge that must be tackled, acute shortage of man power and obsolescence of product and services is a menace. The study recommended that Policy makers of organizations should create supportive organizational culture in order to raise the job satisfaction level of employees, managers of organizations should facilitate their employees and should be supportive of them and encourage them to take initiatives and calculated risks for the organization, the rules and regulations should be made clear to employees of organization and re-emphasized in training and development programmes.

Chapter One


1.1 Background to the Study

One of the most interesting research areas in organizational behaviour is organizational culture. It covers concepts that would have a profound impact on the lives of employees’ in an organization given the variety of norms, values and way of life of the employees’ (Mansor&Tayib, 2010). Organizational culture is defined as a complex set of values, beliefs, assumptions and symbols that define the way in which an organization conducts its business (Barney, 1986).

Organizational culture is a force that makes people involved in the organization and exerts a strong and pervasive effect on all components of organization (Saeedi, 2010). Organizational culture permeates all aspects of the organization and it can be seen as a driving factor in the dynamic and progressive movement of organizations (Zarei, 1995). According to Robbins (2006), organizational culture is a system that is followed by members that differentiate the organization from others.

Tichy. (1982) opined that organizational culture is the “normative glue that holds an organization together .Organizational culture finds expression through the thoughts, intentions, actions and interpretations of members of the organization (Hallett, 2003). It is also said to be the social glue that binds people together and makes them feel part of the organizations experience. This social glue is increasingly important as a way to attract new staff and retain top performers (Ojo, 2010).

Job satisfaction is the feelings and thoughts of employees’ about their work and place of work. It is all about how to satisfy one’s needs in the working place (Togia, Koustelios&Tsigilis, 2004). Robbins& Judge (2008), defines job satisfaction as the positive feeling about someone’s job, someone with high job satisfaction has positive feeling about the job. Luthans (2006), asserts further that job satisfaction is pleasurable emotional feeling or positive emotions that comes from the work valuation or experience while Nasaradin (2001) stated that job satisfaction may be a pleasurable or positive emotional state resulting from the appraisal of one’s job or job experience.

Business organizations in competitive environment like Nigeria are facing major challenges like fast pace of changing technology, acute shortage of skilled manpower and obsolescence of products and services which are compelling for re-orienting of existing employees in order to survive and compete. Cut-throat competition and a variety of challenges in the post-liberalization, privatization and globalization (LPG) era have initiated major changes in the human resource (HR) practices. Industrial units have started realizing the need to be proactive rather than reactive (Narang& Singh, 2010). Thus, a highly cultured organization is essential for organizations to have satisfied workers and achieve their pre-determined goals.

Many academics and practitioners argue that the performance of an organization is dependent on the degree to which the positive and strong values of the culture are widely shared (Ouchi, 1981; Pascale & Athos, 1981; Deal & Kennedy, 1982; Peters & Waterman, 1982; Denison, 1990; Kotter&Heskett, 1992). An organization’s performance should be greatly enhanced if the culture and values are congruent with the desired belief and values of its employees (Boxx,Odom & Dunn, 1991).

1.2 Statement of Research Problem

Organizational culture is conceived as a building block in organizational design, a sub-system, well-demarcated from other parts of the organization, which includes norms, values, beliefs, and behavioral styles of employees’. Organisational culture should aimed at achieving employees’ commitment, which will improve organizational performance (Thompson, 2002). However, there are some identifiable areas where problems may arise. They include management’s ineptitude to take organizational culture as a major organizational design, deliberately integrating specific cultures that will stand the test of time, documenting organizational culture as a business policy guides and ensure the implementation of positive cultures that will promote the goodwill of the business.

In addressing declining job dissatisfaction in the work place, organizational culture is a critical factor to consider. It would seem that if people feel good about their jobs, their happiness would be reflected in the quality of their work and may have a positive feedback from their customers. When employees’ experience low job satisfaction, it will be very costly to the organization, resulting in labour turnover, grievances and conflicts, slow-down of work and redundancy.

A culture of impunity, recklessness, laziness, poor ethical standards and behaviour, lack of integrity, absenteeism and tardiness, stealing, dishonesty, cheating and other poor symptoms of organizational culture can do no good to the pleasurable feelings that an employee can get from his job. The culture of organizations are social glues that bond employees together, makes them feel as part of the organization that brings out the best in them in terms of efficiency and effectiveness in achieving organizational goal (Fakhar, 2005). Managers should investigate their employees’ level of satisfaction in relation to the organizational culture that is upheld and maintained by the organization.

1.3 Objectives of the Study

The main objective of the study is to investigate the impact of organizational culture on job satisfaction. The specific objectives are to:

  1. Describe the socio-economic interest of respondents.
  2. Identify the culture of the organization.
  3. Assess the impact of organizational culture on the job satisfaction of employees in FANMILK.
  4. Identify the challenges of organizational culture on employees job satisfaction

1.4 Relevant Research Questions

The research questions of the study are:

  1. What are the impact of organizational culture on the job satisfaction of employees in FANMILK?
  2. What are the challenges of organizational culture on employees job satisfaction?

1.5 Research Hypotheses

The research hypotheses of the study are:

  • H01: Organizational culture does not have any effect on employees job satisfaction in FANMILK .
  • H02: Organizational culture does not have any challenges on employees job satisfaction.

1.6 Relevance and Significance of the Study

Organizational culture is a salient and critical area of organizational behaviour. Weak organizational cultures could pose grave danger for modern organizations. Hence, this study is very significant. This study will establish the need for business managers to focus more on values, norms, attitude, rules and rituals of the organization that will promote employees’ job satisfaction.

This study adds to the general body of knowledge on organizational culture and job satisfaction. The findings of the study benefits business managers, organizational behaviourists, human resources practitioners, management scholars and future researcher. The findings of the study will be useful to policy makers and the public at large.

1.7 Scope and Limitations of the Study

The study focus on the impact of organizational culture on job satisfaction. The researcher intends to determine if the adoption of strong organizational culture can impact on job satisfaction. In doing this, Fanmilk Plc serves as the reference and focal point for the study. The study is limited to the food and beverage sub-sector and specifically to Fanmilk Plc without generalizations to other sectors of the economy.

1.8 Definition of Terms


This refers to the manner in which an individual reacts or responds to an object, individual and his/her environment.


These are opinions or convictions and a state of mind which is a mental acceptance of a claim in the truth, actuality, or validity of something.


This is the way and manner in which people behave in a society or organization.


This refers to a code of conduct that guides an individual in his/her dealings with others. It is concerned with what is right and wrong.

Job Satisfaction:

This is a pleasurable emotional feeling or positive emotions come from the work valuation or experience.


These are a group-held beliefs about how members should behave in a given context; understandings that governs behaviour of a group of people.

Organizational Behaviour:

This is the study of what people do in an organization and how it affects the performance of the organization.


This is a dynamic process and managerial activity which is necessary for bringing people together and tying them in the pursuit of common goals.

Organizational culture:

This is the collective beliefs and value system and processes in an organization.


Roles are a set of connected behaviours, rights, obligations, beliefs and norms as conceptualized by people in a social situation.


These are important lasting beliefs or ideals shared by members of a group about what is good or bad and desirable or undesirable.

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