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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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