Organizational Culture As A Predictor Of Organizational Outcomes

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Organizational Culture As A Predictor Of Organizational Outcomes


Abstract


The study critically investigated the relationship between organizational culture and organizational outcomes. To achieve the objective of the study, descriptive research technique was adopted. A total number of one hundred and (105) copies of questionnaire were administered to respondents drawn from Guaranty Trust Bank Nigeria PLC, while ninety nine (99) copies where properly filled and returned for the analysis. Data analysis was undertaken at five percent 0.05 (5%) level of significance. Frequency count, simple percentage and inferential statistics of Spearman’s Rank Correlations test was used with the aid of the Statistical Package for Social Sciences (SPSS 20.0) for the data analysis in order to determine the relationship between the dependent and independent variables in each stated hypothesis. Two (2) hypotheses were tested and the entire alternative hypotheses were accepted; as the result showed that organizational culture is positively related to organizational outcomes. The study recommended that organizations with strong cultures should give room for little flexibility in order to accommodate changes that may occur to meet up with environmental changes and technological advancements.


Chapter One


Introduction

1.1 Background to the Study:

The role of organizational culture in defining organizational outcomes is all touching, and as such cannot be overemphasized. There has been growing concerns over the ways many organizations have chosen to do business in the recent past. The organization culture as a leadership concept has been identified as one of the many components that leaders can use to grow a dynamic organization.

Now, it is interesting to know that organizational culture doesn’t come from the sky. Leadership in organizations starts the culture formation process by imposing their assumptions and expectations on their followers. In corollary with this Schein (2004) states that As organizations stabilizes because of success in accomplishing its primary tasks, the leader’s assumptions become shared and embedding those assumptions can then be thought of more as a process of socializing new members. Organizational leaders achieve success by being consistent, in sending clear signals about their priorities, values and beliefs. Once culture is established and accepted, they become a strong leadership tool to communicate the leader’s beliefs and values to organizational members, and especially new comers.

Recent literature proved that management of human resource in company has become an increasingly important for firm performance and business vision achievement. Employees are considered as valuable assets to an organization, which require effective management of these employees in the organisations (Yilmaz, 2008).

The concept of Organizational Culture has been described as patterns of shared values and beliefs over time which produces behavioral norms that are adopted in solving problems (Owens 1987; Schein, 1990). Organizational Culture is manifested in beliefs and assumptions, values, attitudes and behaviors of its members since it shapes organizational procedures, unifies organizational capabilities into a cohesive whole, provides solutions to the problems faced by the organization, and, thereby, hindering or facilitating the organization’s achievement of its goals (Yilmaz, 2008).

Therefore, the undertaking of the research work will assess whether Organizational Culture as a Predictor of Organizational Outcomes with a special reference to GTBank Nig. PLC.


1.2 Statement of Problem:

Maintaining an organizational culture could be challenging considering the diverse socio-cultural background of the workers that constitute an organization workforce in Nigeria. Their differences can interfere with the maintenance of corporate culture and values, when such values conflict with their personal values. This study will therefore attempt to investigate the relationship between organizational culture and employee’s performance.

A lot of research in organizational management has focused on developed countries; 95 percent and whereas only 5 percent of the studies testing organizational theories are found to be done in developing countries (Farashahi et al., 2005) inspite of the highly dynamic environment. A number of scholars have questioned the applicability of western management practices in developing countries and since long time it has also been recognized that culture is a main source of difference in performance management practices (Daniels et al., 2004; Piercy et al., 2004). Many researchers (e.g., Denison, Haaland, & Goelzer in Yilmaz, 2008) have called to investigate the phenomenon of organizational culture in different cultural context particularly in nonwestern nations with Nigeria inclusive. Hence, the need to investigate the effect of organizational culture on the Nigerian business front is timely and should be considered as filling the gap on literature and studies that address this pertinent issue or relationship.


1.3 Objectives of the Study:

The major objective of this study is to determine whether organizational culture is a predictor of organizational outcomes.

While other specific objectives are as follow :

  1. To examine the impact of organisational culture on business performance.
  2. To investigate the effect of corporate value on firms’ profitability.
  3. To assess the relationship between corporate culture and employees’ productivity.
  4. Examine the contribution of corporate philosophy on market share.

1.4 Research Questions:

In other to achieve the objectives of this research study, the study will attempt to provide answers to the following research questions.

  1. What is the effect of organisational culture on employees’ performance?
  2. To what extent does corporate culture affect profitability?
  3. What are the effects of corporate value on employees’ productivity?
  4. Does organisational philosophy have any effect on sales?

1.5 Research Hypotheses:

In the course of the study the following hypotheses will be tested at 0.05 level of significance. The alternative hypotheses are represented by “H1” while the null hypotheses by “Ho”.

Hypotheses one:
  • Ho: There is no significant relationship between organizational culture and employees’ performance.
  • H1: There is a significant relationship between organizational culture and employees’ performance.
Hypotheses two:
  • Ho: The existence of a strong corporate value has no significant effect on business profitability.
  • H1: The existence of a strong corporate value has significant effect on business profitability.
Hypotheses three:
  • Ho: Corporate philosophy does not influence employees’ productivity.
  • H1: Corporate philosophy influences employees’ productivity.

1.6 Significance and Contribution to the Study

The Nigerian banking industry is one that has witnessed tremendous growth in the last two decades. Due to new regulations from the Central Bank, the industry in the last five year witnessed various mergers and acquisitions, and some experienced down-right collapse of some banks. Whilst some banks were said to have remained unshaken despite the recession which hit the whole world badly, others were hit badly. GtBank established in 1989 is one of the banks that have remained strong in the face of the mandatory financial capitalization which occurred in Nigeria in 2000 and the recession in late 2008. There have been various opinions by practitioners as to the factors responsible for these successful banks maintaining their position in the industry. A factor opined by some is that the organizational culture built by the owners of these firms from inception and is still being passed down the old employees to green horns. This culture comprising expected behavioural norms and rituals enabled the firms to running smoothly, contributing immensely to the effectiveness of these organizations. This study intends to make a contribution to existing literature on the impact of organizational culture on the employee satisfaction in the Nigerian context.


Chapter Five


Summary, Conclusion and Recommendation

5.1 Introduction

It is important to reiterate that the objective of this study was to examine organizational culture as a predictor of organizational outcome. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in examining organizational culture as a predictor of organizational outcome.


5.2 Summary

This study was undertaken to examine organizational culture as a predictor of organizational outcome. The study opened with chapter one where the statement of the problem was clearly defined. The study objectives and research hypotheses were defined and formulated respectively. The study reviewed related and relevant literatures. The chapter two gave the conceptual framework, empirical and theoretical studies. The third chapter described the methodology employed by the researcher in collecting both the primary and the secondary data. The research method employed here is the descriptive survey method. The study analyzed and presented the data collected in tables and tested the hypotheses using the t-test statistical tool. While the fifth chapter gives the study summary and conclusion.


5.3 Conclusion

There is a growing body of evidence, especially in the for-profit sector, that organizational culture predicts customer satisfaction and sales. For example, Gallup has been analyzing the relationship between culture and performance for more than two decades. In its most recent engagement report, it found that, “Highly engaged business units achieve a 10% increase in customer metrics and a 20% increase in sales.” Gallup’s research demonstrates that an engaged culture improves performance, not the other way around. So, does this same correlation apply to the social sector, which defines success not by sales, but rather how organizations are achieving positive outcomes for the individuals and communities they serve? Recent research conducted by Measurement Resources Company and The Rucks Group, provides evidence that organizational culture may be more important than the sector realizes for achieving positive social outcomes. In 2017, these researchers partnered with Ohio Department of Health to conduct a longitudinal study to uncover the factors that most predicted family engagement in Ohio’s Maternal, Infant and Early Childhood Home Visiting Program. The factors that both reflected the culture of the home visitors’ organization and had the highest direct impact on the program’s outcomes (satisfaction and retention of families participating in the program), could be directly tied back to the investment in employees’ professional development, and their satisfaction with their jobs and supervisors. The employees who received ample training from their agencies expressed that they felt more confident and adequately equipped to deliver the support the families needed. Child engagement during home visits also increased when families indicated a higher perceived program fit (24% increase), and when the employees demonstrated higher cultural competency (14% increase).


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Frequently Asked Questions


Does organizational culture influence other organizational influences?

Organizational culture conveys shared beliefs about how employees should behave. HPWPs develop human resources by incentivizing employees to develop their knowledge, skills, and abilities. Our first objective was to determine whether organizational culture interrelated with these other organizational influences in predictable and thematic ways.

What are the organizational influences on behavior?

Research indicates that employees’ behavior is influenced by multiple organizational influences: strategy, structure, leadership, culture, and high performance work practices (HPWPs). Each of these organizational influences has a different purpose. Strategy directs employees’ efforts to specific goals.

How do policies and procedures affect organizational culture?

Overall, cultures that set up policies and procedures to achieve consistency and uniformity (in employee behaviors and/or outcomes) are more likely to have a rigid flow of information and focus less on developing employees’ abilities and competencies.

What are the attributes of organizational culture?

Organizational culture includes an organization’s expectations, experiences, philosophy, as well as the values that guide member behavior, and is expressed in member self-image, inner workings, interactions with the outside world, and future expectations. Culture is based on shared attitudes, beliefs, customs, and written and unwritten rules …

How does organizational culture impact employees?

…organizational culture affects employee’s productivity, performance, commitment, self-confidence, and ethical behavior. While there has been a lot of research on the impact of organizational culture on performance, there has been little research on the effects of culture on employee behavior and attitude.

What are the factors affecting organizational behavior?

Factors Affecting 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 four organizational influences on stress?

Four organization influences on stress can be identified: (1) occupational differences, (2) role ambiguity, (3) role conflict, and (4) role overload or underutilization.

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 is the relationship between individual employees and organizational behavior?

The interactions between individual employees is, in fact, one of the main areas of study within the field of organizational behavior. Various personal characteristics that may influence organizational behavior include the education level of employees, their backgrounds, abilities and beliefs. 

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