EFFECTS OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE AND PRODUCTIVITY
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EFFECTS OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE AND PRODUCTIVITY
Chapter One:
Background to the Study.
1.1 Introduction
Every organisation is influenced by its culture, and all organisations have one. Several academics, including Ogbor (2003), Schein (2004), and Alvesson (2003), have demonstrated that an organization’s performance should be interpreted in light of its culture.
Walking inside the lobby of the Grand Hotel, Favourites Fast-Food Restaurant, or Zenith Bank in Asaba will provide a unique ambiance, mood, and style.
These businesses, whether they are banks, hotels, or restaurants, have a distinct personality, charm, and atmosphere. They have a cultural anchor that shapes how customers respond and how staff interact with them.
At Zenith Bank, for example, with over 250 branches and business offices across the country, a visitor will notice a business focus in the way tellers interact with customers; there is an attitude among the tellers that exudes passion, energy, enthusiasm, and creativity in its environment.
The environment at Grand Hotel is not only alluring, but it also gives customers the impression that they are in an oasis. The founders or management of these successful organisations instilled these cultural principles in their enterprises, which have become engrained in the way business is conducted.
Whether the conversation is about a bank or a hotel that emanates passion or nice customer service, culture is an aspect of organisational life that determines employee behaviour, attitudes, and overall effectiveness.
Organisational culture demands special consideration because, as Denison (1990) correctly points out, “decisions made without awareness of the operative cultural forces may have unanticipated and undesirable consequences.”
The goal of this project is to investigate how the organisational culture of four banks in Asaba influences their production. In this project, I shall use the terms “organisational culture” and “corporate culture” interchangeably because they both refer to the same issue.
According to Alvesson (1990), “organisational culture” is a word used mostly in scholarly research and organisational discourses, whereas “corporate culture” is practitioner-oriented.
According to Ogbor (2012), many organisations in Nigeria, particularly those in the public sector, face productivity challenges. The researcher cites various causes for this, including:
Fuzzy vision occurs when the corporate vision and mission fail to excite people; there is a lack of strategic alignment; and individuals are unsure of where the organisation is going and what it hopes to achieve in the future.
Lack of leadership abilities occurs when members of an organisation are fearful of change. A problem culture in this regard may be distinguished by the following features: fear of change,
leaders lack entrepreneurial spirit, management’s leadership style is either too directive or too hands-off, managers do not lead, they simply administrate and micromanage, and there is a weak or no leadership development plan.
Discouraging culture occurs when there are no common values, a lack of trust, a blame culture, a focus on problems rather than opportunities, individuals do not enjoy working, diversity is not acknowledged, failures are not accepted, and people lose faith in their leaders and institutions.
High bureaucracy: A bureaucratic culture can stifle creativity and growth in an organisation. Bureaucratic organisational structures have the following characteristics: too many management layers, high boundaries between management layers,
hierarchical coordination of decisions and actions, slow decision-making processes, too close monitoring of things and subordinates, rigid operating procedures and policies, and too many tools and documents that discourage creative thinking and innovative approaches to strategic actions and marketing initiatives.
Lack of initiative occurs when the organization’s culture does not encourage entrepreneurial and risk-taking efforts. Employees in this type of culture are undermotivated and discouraged;
they do not believe their contributions make a difference; management fails to properly engage the organisation; workers operate defensively rather than creatively; they do their job and nothing more.
Poor vertical communication: A negative culture is demonstrated by inadequate vertical communication and management isolating themselves from the rest of the staff in terms of accessibility. they in such a culture have no idea what the big picture is and don’t believe their contributions are relevant;
there is too much ambiguity; they don’t know what top management are thinking and planning. The result of such an organization’s communication system is that management is out of touch with current market realities and customer expectations.
Poor cross-functional collaboration: A functional attitude, a lack of cross-functional goals and a spirit of collaboration, functional, no enterprise-wide business process management, no cross-functional management committees, and a lack of or powerless cross-functional teams are all indicators of a poor culture.
Poor teamwork: Another sign of a dysfunctional culture is a lack of organisational commitment to team culture, a lack of shared and worthy goals, poor team leaders, tolerance for team members who do not want to play as part of a team, teams that are too large, and a lack of shared incentives.
Poor Idea and Knowledge Management: Finally, a problem in the organization’s culture may manifest itself when cross-pollination of ideas is not facilitated; when there are no strategies for managing knowledge in the organisation; when management’s “know-it-all” attitude prevails; and when there is an attitude of “not invented here” syndrome.
As previously said, the goal of this study is to investigate the impact of organisational culture on the performance of chosen banks in Asaba.
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