Influence Of Organizational Environment On Employee Behavior

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Influence Of Organizational Environment On Employee Behavior


Abstract


Most organizations lack policy formulation for effective organizational performance is not usually carried out properly due to lack of appreciation and knowledge of the relevance of policy making and implementation on organizational growth.Descriptive research design was used in carrying out this research work and the regression analysis was used to analyse the data. The specific objectives of the study were:to establish the prevalence of policy formulation as a tool for organizational performance,to determine the challenges facing policy formulation for organizational growth and to assess the effects of policy formulation on organizational performance.


Chapter One


Introduction

1.1 Background to the Study

Every organization aims to survive and grow in a competitive environment. To do so, it must respond and adjust to the social, economic and political environmental changes that occur. The environments of public organizations according to (Bryson, 2004) have become not only increasingly uncertain in recent years but also more tightly interconnected; thus changes anywhere in the system reverberate unpredictably, and often chaotically and dangerously throughout the environment. This increased uncertainty and interconnectedness requires a response from public organizations. First, these organizations must think strategically as never before. Second, they must translate their insights into effective strategies to cope with their changing circumstances and lastly, they must develop the rationale necessary to lay the ground work for the adoption and implementation of their strategies.

For strategic planning to be effective and useful, there must be commitment and involvement across all levels of the organization, overcome inherent problems such as; rivalry among departments, projects, resistance to change, resource requirement, resources allocation and so on. The policy initiatives and directions set up by firm management in the form of mission and vision statements and targets for cost saving, debt/equity ratios embodied as argued by Grant (2003) “a framework of constraints and objectives that bounded and directed strategic choices.” Strategic policy formulation has been embraced by business enterprises, the public and private sectors as an important avenue that can be utilized to lead effective organization performance. Strategic policy formulationis the first phase in strategic management process and sets the basis for the other phases (Policy implementation, evaluation and control). (Steiner, 1979) argues that strategic planning system provides the framework for formulating and implementing strategies. However, it is argued that for strategic planning to translate into results, a facilitative internal environment and culture must be present. Ansoff (1990) notes that environment is constantly changing, and so it makes it imperative for organizations to continuously adapt their activities in order to succeed. Strategic planning introduces changes that sometimes encounter organizational resistance. Thompson and Strickland (1989) add that galvanizing organization-wide commitment to the chosen strategic plan is critical for effective performance.

There is always a need for policy making in the banking sector especially in First Bank of Nigeria due to the change in the administrative head. The integration brings about framing of policies to guide managerial action. Policymaking became the prime responsibility for effective management system.The implementation phase in strategic management process consists of a set of activities by which the top management assures that the strategic choice is communicated and related to both the organization and its people. This is to say that implementation encompasses the activity of developing the organizational structure and climate best suited for the implementation of the chosen or adopted policy.This task is therefore important in the life of any organization wishing to survive and to grow cannot be over-emphasized considering the dynamic nature of the world we are in today. However, for management system to effectively carry out this task of achieving their corporate objectives, the management must aim itself with the tools of strategic policy formulationand implementation to enable it to adjust to the environment changes surrounding them.It is in the light of this that the researcher aimed to investigate onimproving the performance of an organisation through effective policy formulation using the First Bank of Nigeria as a case study.


1.2 Statement of the Problem

The management of most organizations in Nigeria today have been facing the problem of not knowing how to achieve their corporate objectivesas a result of lack of proper strategic policy formulation. This problem which has defile may management approaches is what the researcher is aimed at solving.Many organizations spend most of their time realizing and reacting to ill expected changes and problems instead of anticipating and preparing for them. This is called crisis management. They use up their energy coping with inundated problems with little energy left to anticipate and prepare for the next challenges. This is however causing setbacks for some organizations. This study will therefore investigate on improving the performance of an organisation through effective policy formulation using the First Bank of Nigeria as a case study.


1.3 Research Questions

The following are some of the questions which this study intends to answer:

  1. What is the prevalence of policy making and implementation as a tool for organizational performance?
  2. What are the challenges facing policy formulation for organizational growth?
  3. What are the effects of policy formulation on organizational performance?

1.4 Objectives of the Study

The objective of this study was to investigate on improving the performance of an organisation through effective policy formulation using the First Bank of Nigeria as a case study. The specific objectives are:

  1. To establish the prevalence of policy making and implementation as a tool for organizational performance.
  2. To determine the challenges facing policy formulation for organizational growth.
  3. To assess the effects of policy formulation on organizational performance.

1.5 Research Hypotheses

The research hypotheses to be tested include:

  1. There is no significant relationship between policy formulation and organizational performance
  2. There is no significant correlation between policy formulation and top management subordinates on increase in performance
  3. There is no significant difference between employees commitment and policy formulation

1.6 Significance of the Study

The findings from this study will be of great value to policy makers, stakeholders, board of directors and Human Resource Managers, bankers, etc as it will assess the relevance of policy formulation on organizational performance, clarify the challenges and the ways to meet them. It will act as a useful resource for the banking sector in understanding the need and usefulness of adopting appropriate strategic planning that ensures improved organizational performance. Researchers in related areas will also find the study a useful literature for reference.


1.7 Scope of the Study

This study was limited to the First Bank of Nigeria staff and therefore the questionnaires will be distributed to the employees of the organisation.


1.8 Limitation of the study

The only constraint encountered by the researcher was finance. This limited the researcher to print just one hundred and twenty questionnaires as against the proposed two hundred and fifty questionnaires. The researcher, however, came up with findings that would be worth making reference to in future and also contribute to the existing literature.


1.9 Definitions of Terms

The following terms were used in the course of this study:

Organisational performance:

Policy formulation:

The making of ideas or plans that are used by an organization or government as a basis for making decisions


Chapter Five


Summary, Conclusions and Recommendations:

5.1 Introduction

This chapter summarizes the findings into the influence of organizational environment on employee behavior using first bank of Nigeria with a particular reference to first bank branch in Aba main Park Abia State as case study. The chapter consists of summary of the study, conclusions, and recommendations.


5.2 Summary of the Study

In this study, our focus was to investigate the performance of an organisation through effective policy formulation using the First Bank of Nigeria as a case study. The study specifically was aimed at establishing the prevalence of policy making and implementation as a tool for organizational performance; To determine the challenges facing policy formulation for organizational growth and to assess the effects of policy formulation on organizational performance.

The study adopted the survey research design and randomly enrolled participants in the study. A total of 30 responses were validated from the enrolled participants where all respondent are active staffs of First Bank branch in Aba Main Park.


5.3 Conclusions

Based on the findings of this study, the researcher made the following conclusion.

  1. The prevalence of policy making and implementation as a tool for organizational performance is relatively high.
  2. The challenges faced by organizations in policy formulation for organizational growth include; Organizational Interference, Resources, Poor Enforcement; Lack Of Clear Roles; Employees Attitude among many others.
  3. Policy formulation has a positive effect on organizational performance.
  4. There is a significant relationship between policy formulation and organizational performance.
  5. There is a significant correlation between policy formulation and top management subordinates on increase in performance.
  6. There is a significant difference between employees commitment and policy formulation

5.4 Recommendations

With respect to the findings of this study, the researcher advised that organizations such as the likes of banking institutions prioritize the formulation of policies and in the same manner the top management should navigate their ways around the challenges impedimenting the formulation of policies in the organization, by ensuring adequate availability of requires resources, increasing enforcement, orientating the employees to shape their attitudes etc.


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Frequently Asked Questions


What is the impact of organizational environment on performance?

The organizational environment has a significant impact upon employees’ behaviour which in turn affects their productivity and performance. Work environment means those processes, systems, structures, tools or conditions in the workplace that impact favourably or unfavourably on individual performance.

What are the factors that influence organizational behavior?

There are a variety of factors that can influence organizational behavior, including the company culture, policies, and structure. These aspects can have an impact on employee’s productivity and their commitment to the organization. Organizational culture consists of values and motives that contribute to the environment within an organization.

How does the workplace environment affect the behaviour of employees?

The workplace environment set in place impacts employee behaviour, morale, productivity and performance both positive and negative. And if the circumstances are not good it will be affecting the behaviour of the employees in the form of delay in work completion, frustration, impact on personal growth etc.

What is organisational behavior?

Organizational behavior helps us to develop an understanding of the attitude and performance of employees and the organization as a whole. There are a variety of factors that can influence organizational behavior, including the company culture, policies, and structure.

What are behavioural factors in an organization?

Behavioral factors influence how people act or perform within an organization. Whether you love, hate or are indifferent to your organization hinges on the place’s people, structure, technology and environment. Ultimately, a business might succeed or fail because of organizational factors.

Does your company demonstrate proper organizational behavior?

If you said the former, your company probably demonstrates proper organizational behavior. Behavioral factors influence how people act or perform within an organization. Whether you love, hate or are indifferent to your organization hinges on the place’s people, structure, technology and environment.

What are the 4 forces that affect organizational behavior?

Organizational Behavior is affected by 4 complex sets of key forces. People. Structure. Technology. Environment. There is an interaction of people, structure, and technology and these elements are influenced by the environment. People make up the internal social system of the organization.

What is the concept of organizational behavior?

This essay discusses the concept of organizational behavior and factors affecting organizational behavior. Organizational Behavior (OB) is the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself.

What is the impact of environment factor on organization performance?

Ho: Environment factor has no significant impact on organization performance. Fundamental problem were encountered in the course of this research, the researcher being very unwilling/restive in their response to the question and in most cases determines explanation before giving the answers.

What is the environmental impact of organizational operations?

Environmental impact upon organizational operations is an important and complex issue, not paid due attention to in many organizations. The considerations concerning the relationship between the organization and its environment are an important aspect.

Does a company’s policy affect its organization performance?

The scope of the study covers the impact of environmental factors an organizational performance, there is no significant relationship between the company’s policy as part of internal factor of business environment in relation to its organization performance on ABC transport limited in Imo state.

How does the external environment affect an organization?

The external environment presents opportunities for growth leadership, and market dominance, it also poses the threat of obsolescence for products, technology, and markets. The interaction of the external organizational factors is given in Fig 2

How does the environment you work in affect your behaviour?

The environment that people are required to work in can have a significant impact on their behavioural attitudes at workplace. This can affect performance and employee health and well-being.

What is workplace environment and how does it affect performance?

Workplace environment can be anything which exists around the employees where they work and which affect how they carry out their work. It consists of both external and internal conditions which can influence the working spirit and hence, reflect in their performance at work.

How does the physical environment of the office affect employee behavior?

Better physical environment of office will boosts the employees and ultimately improve their behaviour. The environment that people are required to work in can have a significant impact on their behavioural attitudes at workplace. This can affect performance and employee health and well-being.

How do coworker behaviors affect the work environment?

These behaviors may affect the quantity and quality of work from an employee. Think about the qualities that you value in a coworker and how those behaviors influence your experience in the workplace. Showing up for work is the first step in contributing to the work environment. 

What is organizational behavior, and why is it important?

What is organizational behavior and why is it important? Organizational Behavior is an indigenous learning of techniques which deals with the knowledge gained about individuals, groups and the effect of structure on behavior in order to make organizations work more effectively.

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