ORGANIZATIONAL CULTURE AS A PREDICTOR OF ORGANIZATIONAL OUTCOMES [CODE: BUS009]

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 organisational culture and    employees’ performance.

H1:     There is a significant relationship between organisational culture and      employees’ performance.

 Hypotheses two:

Ho:    The existence of a strong corporate value have no significant effect on       business profitability.

H1:     The existence of a strong corporate value have significant effect on   business profitability.

Hypotheses three:

Ho:    Corporate philosophy does not influence employees’ productivity.

H:     Corporate philosophy influences employees’ productivity.

1.6   SIGNIFICANCE OF THE STUDY