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THE ROLE OF ORGANISATION CULTURE ON EMPLOYEE JOB PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1    Background to the Study

The term culture refers to a relatively stable set of beliefs, values and behaviors commonly held by a society, being derived from social anthropology as a framework for understanding "primitive" societies (Kotter and Heskett, 1992). The term organizational culture was used for the first time in the academic literature by Pettigrew in 1979 in the journal "Administrative Science Quarterly". Organizational culture was used to explain the economic successes of Japanese firms over American firms by motivating workers who were committed to a common set of core values, beliefs and assumptions (Denison, 1984). One of the most important reasons that explain the interest in organizational culture is the assumption that certain organizational cultures lead to an increase in organizational financial performance.

According to Peters and Waterman (1982) successful organizations possess certain cultural traits of excellence. Ouchi (1981) showed a positive relationship between organizational culture and productivity. The literature on organizational culture is rich and diverse. Much of its richness is founded on the claim that culture is linked to organizational performance. Even though there' are some theorists that questioned the culture-performance link, sufficient evidence exists to suggest that organizational culture is associated with organizational performance (Ogbonna and Harris, 2000). For this reason, this study will examine, based on existent empirical research, the link between culture and performance. Organizational culture permeates organizational life in such a way as to influence every aspect of the organization (Scaffold, 1988).

Organizational culture has been defined as the "normative glue" that holds an organization together (Tichy, 1982, p. 63). Forehand and von Gilmer (1964) suggest that culture is the set of characteristics that describe an organization and distinguish it from others. Schein (1990), in a more comprehensive fashion, defines culture as values and behaviors that are believed to lead to success 'and are thus taught to new members. Central to the culture definition is the idea that culture must be leamed and shared (Titiev, 1959). As individuals enter and become participating members of an organization, they are exposed to beliefs and values that begin the Initial development of cultural internalization. To understand the culture of an organization and its development, it is important to analyses its 'birth' and history. For example: if an organization is born out of. Protest against the existing system, the fighting mood can be very strong. However useful that may have been in the beginning, such a fighting mood can become a hindrance, if the organization sticks to it, without an actual reason. This requires an attempt to understand the organization within its history and contexts. The traumas that influence the way they deal with external influences or change. Understanding is more useful than getting angry. (Michael, 2000).

Organizational culture refers to what we call the personality of an organization; if the structure of the organization is the body; the bone Structure, the feeding structure of blood vessels and the communication channels of nervous system, then the personality .or soul is the way people deal with one another, the values and beliefs that exist within the organization. Restructuring an organization, in order to achieve a certain goal, often fails or gets stuck because the personality does not change. That is why we focus on the culture of the organization when dealing with change. Organizational culture is not the result of just a decision, but the outcome of a lasting process, in which the attitude, beliefs and behaviour of people are gradually shaped. Organizational culture, even if not objectively effective, is always a logical adaptation to a changed environment. Organizational culture may be compared to coping mechanisms: once effective in one specific situation, but internalized, unconscious familiar, and hardly noticeable for the owner.

1.2    Statement of the Problems

Organizational culture is a problem when the way in which the organization usually operates puts obstacles in the way towards achievement. The same problem is applicable to many companies in Nigeria irrespective of whether big or small. More specifically, the following problems can limit workers performance; the .goals of the organization demand an external orientation of the members, but the organizational culture is characterized by internal orientation. Therefore, the gap between the external and internal orientations may constitute a hindrance to workers performance in necessary steps are not taken.

Transparency' is needed to be accountable and' to function democratically, but the tradition to involve family members and to favour them, may makes transparency cloudy ~ The not-outspoken rule not to intervene in each other's work (the non-intervention principle) may hinder the ideal working method of sharing ideas, innovations, solutions and problems. Because of the one-sided fixation on ideology, satisfaction of personal needs may be considered as' forbidden therefore, organization culture is seen as a treat by worker rather than business ideology.

1.3    Objectives of, the Study

The primary objective pf the study is to examine the role of

Organizational culture on Employee Job Performance. However, the specific objectives of the study are;

i.  To examine the relationship between organizational culture and workers performance

ii. To examine the effect of both external .and internal orientations on organization culture.

iii. To discover how the goals of an organization influences both the internal and external orientations of the organization.

iv. To highlight the challenges of organization culture in Nigeria companies.

1.4    Research Questions

In the light of the above objectives, the following are the research Questions for the study;

i. What is the relationship between organizational culture and workers performance?

ii. What are the effects of both external and internal orientations on organization culture?

iii. In what way does organization goals influences both the Internal and external orientations of the organization?

iv. To highlight the challenges of organization culture in Nigeria Companies?

1.5    Research Hypotheses

Stated below are the research hypothesis for the study;

(1) Ho: Organization culture do not have significant relationship with  Workers performance

Hi:Organization culture has significant relationship with workers Performance

(2) Ho: Organization goals does not have significant affect organization culture in Nigeria

Hi: Organization goals have significant effect on organization culture

1.6   Scope of the Study

The. Study covers organizational culture in the manufacturing. Represented by corporate symbol, internal orientation of the staff and the influence 'of the corporate. Goals on the norms and values of the organization. Specifically, the scope cover workers of Dangote Agro Sack Ltd.

1.7   Significance of the Study

It has been suggested that organizational culture affects such outcomes as productivity, performance, commitment, self-confidence, and ethical behavior (Deal &Kennedy, 1982; Denison, 1984; Ouchi, 1981; Posner, Kouzes, & Schmidt, 1985; Pritchard & Karasick, 1973; Sathe, 1985). However, little has been done to develop theory that attempts to explain the process through which individuals are affected by the organization's culture. Instead, a large portion of the research has concentrated on the "strong vs. weak" culture dichotomy (Deal &Kennedy, 1982), suggesting that culture manifests varying degrees of influence over the members of an organization. While there have been attempts to examine culture's influence over the cognitive process through which individuals interpret their environment (Denison, 1990; Harris, .1989), further work in this area is needed. However, research into the transmission ·of cultural values and norms remains as a neglected area in the study of organizational culture (Shroff &.'Kozlowski, 1992). It is the object of this research to present a model of organizational culture that examines the effect on the cognitive Process is and helps explain the influence that organizations may have in creating and maintaining a distinct and recognizable culture.

1.8   Definition or Terms.

The following are the definition of terminologies used in the course of this study;

Organizational culture: is the set of characteristics that describe an organization and distinguish it from, others.

Organizational Value: Organizational values define the acceptable standards that govern the behaviour of individuals within the organization. Without such values, individuals will pursue behaviours that are in line with their own individual value systems, which may lead to behaviours that the organization doesn't wish to encourage.

Personal Value: Personal values are the beliefs, values, and philosophies that someone holds about life, its purpose, and our own purpose own purpose.

Value: Important and enduring beliefs or ideals shared by the members of a culture about what is good or desirable and what is not.

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