THE IMPACT OF CORPORATE CULTURE ON EMPLOYEES PERFORMANCE

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

 CHAPETR ONE

1.0   INTRODUCTION 

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research question

1.5        Research hypotheses

1.6        Significance of the study

1.7        Scope and limitation of the study

1.8       Definition of terms

1.9        organization of the study

CHAPETR TWO

LITERATURE REVIEW

2.1 introduction

2.2 conceptual review

2.3 empirical review

CHAPETR THREE

3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1 Introductions

4.2 Data analysis

CHAPTER FIVE

5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation

Appendix

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Abstract

Most organizations put more efforts on the focus of only intrinsic and extrinsic reward systems but give less concern on the traditional cultural activities. corporate culture has received relatively low levels of empirical investigation among the possible antecedents of employee performance. Although empirical research has been carried out, there has been little evidence to prove the effect of organization culture on employee performance. The study thus examined the impact of corporate culture on employee performance. The researcher adopted a descriptive survey method for the study, 200 staff of selected organizations were randomly selected by the researcher as the population of the study.

 

 

 

 

 

 

 

 

CHAPTER ONE

                                                INTRODUCTION

1.1 Background of the study

It is very necessary for an organization to establish an organizational culture to maintain its position in market. The corporate culture has to be developed to provide support to an organization and bring continuous improvement. The culture of an organization is very important for the progress of an organization because it impacts on employee commitment and their retention as well. If the corporate culture is flexible it will provide such working environment to employees in which they may work easily and independently without feeling any burden. Every organization wants employee commitment because it is very important for an organizational effectiveness. 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, 2000). The success guidance based upon different values and norm that makes culture effective (Schein, 2010). The set of beliefs, behaviours, norms and values helps in making culture most effective (Kotter and Heskett ,1992). The knowledge of culture have been gained through understanding and beliefs on basis of large groups. If the employees understand the organizational culture properly so that there may be improvement in their performance the reason is that the employee‘s performance is the base of an organization. Organizational outcomes and success is derived by the individual contribution in the organization at all levels. If every individual performs according to the expected standards then organizational performance will be enhanced. It is for this reason that job performance is considered an extremely important criterion that translates into organizational outcomes and success; making it the backbone of every organization. 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, 1959) The cognitive systems of human that helps in improving thinking and decision making were based upon organization culture. (Pettigrew 1979) 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 2012). 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. Now a day’s organization culture has generally been interrelated to management. (Kotter and Heskett, 2002).The two essential factors that lead to effective culture management include structural stability and integration of superior standard of organization culture. (Schein, 2015) 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. (Stewart, 2010) The norms of employees impact upon sustainable performance and management of organization culture as it leads to attainment of profitability. Every organization is influenced by the existing culture which varies from organization to organization. Researchers like Ogbor (2003), Schein (2004) and Alvesson (2003) concluded that the productivity of an organization is greatly affected by its culture. When you walk in different companies, one will experience a certain atmosphere, feeling, style personality, a charm, a feel that is unique to it, this as a result influences the way the employees relate to their clients. .Organizations should take keen attention to its culture as pointed out by Denison (1990), “decisions made without awareness of the operative cultural forces may have unanticipated and undesirable consequences.”, the aim is to explore how the corporate culture of an organization affects their productivity of its staff. I will use the terms In Nigeria, most parastatals and government institutions are faced with performance issues, which according to research, are caused by a number of factor including: Unclear vision: where the organization’s mission and vision do not motivate.

1.2 STATEMENT OF THE PROBLEM

In a business environment that is characterized and driven by numbers, corporate culture is often seen as a ‘soft’ or too vague and too difficult to grasp concept simply because it has not been empirically proven to have any effect or contribute to an organizations financial performance. In addition, corporate culture seems to elude precise definition or measurement since it is not financially quotable and has not been considered by many managers and supervisors as well as the top organizational leaders as a factor that need consideration even when dealing with profitability issues and organizational performance at large (Jones, 2007). The management is in most cases concerned with the leading financial indicators, and tends to forget or assume the role that other lagging non-financial indicators like corporate culture have in shaping behaviors believes and value systems that are critical in achieving the needed performance. In this note, organizations have been faced with the challenge of improving their employee performance which has gone down irrevocably, even with up to date employee motivation initiatives. Initiatives to improve employee performance have been left in the hands of human resource managers, who undermine and sometimes perceive corporate culture to have very minimal influence on employee and organizational performance (Cascio, 2006). Poor employee and organizational performance may not be as a result of poor recruitment strategies and selection processes, lack of employee motivating strategies, poor management and leadership or any other employee well-being initiatives, but the failure of employees, supervisors and managers and organizational leaders to understand the profound effect that corporate culture has on employee as well as employee performance. Most organization globally have a sound risk culture effectively supporting the long term goals and in particular the risks vision set by the company. Risk cultures are influenced or influences by various forces. Organizations should have a clear vision for their risk cultures, actively manage and monitor it and take necessary steps should there be deviation from a target state. Insurances companies consider risk culture as as integral part of the holistic risk management framework.

1.3 OBJECTIVE OF THE STUDY

The study has one main objective; which is further broken down into general and specific objective; the general objective is to examine the impact of corporate culture on employee performance, the specific objectives are:

1. i) To examine the impact of corporate culture on employee performance
2. ii) To ascertain if there is any significant relationship between corporate culture and employee productivity

iii) To ascertain if there is any relationship between consistency as an element of corporate culture and employee job effectiveness

1. iv) To proffer suggested solution to the identified problem

1.4 RESEARCH QUESTION

The following research questions were formulated by the researcher to aid the completion of the study;

1. i) Is there any impact of corporate culture on employee performance?
2. ii) Is there any significant relationship between corporate culture and employee productivity?

iii) Is there any relationship between consistency as an element of corporate culture and employee job effectiveness?

 

1.5 RESEARCH HYPOTHESES

The following research hypotheses were formulated by the researcher to aid the completion of the study;

H₀: There is no significant relationship between corporate culture and employee productivity

H₁: There is a significant relationship between corporate culture and employee productivity

1.6 SIGNIFICANCE OF THE STUDY

It is believed that at the completion of the study, the findings will be of great importance to the managers of corporation as the findings of this study will help maintain healthy corporate culture. The study will also be of importance to employees of business organization as the findings of the study will help employee of the organization assimilate and key into the ideology of corporate culture. The study will also be of importance to researchers who intend to embark on a study in a similar topic as the findings of the study will serve as a reference point to further study. The study will also be of importance to academia, student, teachers and the general public as the findings of the study will contribute to knowledge of the subject matter, and also contribute to the pool of existing literature on the subject matter.

1.7 SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the impact of corporate culture on employees performance, but in the course of the study, there were some factors that limited the scope of the study which were out of the researchers control;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
3. c) FINANCE: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover.

1.8 OPERATIONAL DEFINITION OF TERMS

Culture

Culture is an umbrella term which encompasses the social behavior and norms found in human societies, as well as the knowledge, beliefs, arts, laws, customs, capabilities and habits of the individuals in these groups

Corporate culture

Corporate culture refers to the beliefs and behaviors that determine how a company’s employees and management interact and handle outside business transactions. Often, corporate culture is implied, not expressly defined, and develops organically over time from the cumulative traits of the people the company hires

Employee performance

The job related activities expected of a worker and how well those activities were executed. Many business personnel directors assess the employee performance of each staff member on an annual or quarterly basis in order to help them identify suggested areas for improvement.

1.9 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

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