THE EFFECTS OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE AND PRODUCTIVITY
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- NGN 3000
ABSTRACT
This study examines the effect of organizational culture on employee performance and organizational productivity. Five hypotheses were formulated and tested. The literature review examines the meaning of organizational culture, theoretical concepts in organizational culture, the functions of organizational culture, components of organizational culture, assessing the culture of an organization and the methods for changing the culture of an organization. Four banks were taken as the sample for this study. The method of data collection used in this study is mainly through the questionnaire method. Findings indicate (i) a high percentage of employees who comply to the culture of the organizations, (ii) that rigid operational procedures and policies can inhabit employee performance and productivity, (iii) lack of good communication is a factor that can prevent employee performance and productivity, (iv) a strong relationship between “entrepreneurial risk-taking initiative and organizational performance, and (v) a strong relationship between shared values among the employees of the banks and the performance of the banks. The study recommends that banks should have a clear vision and mission statements and communicate these to their employees; good leadership skills are essential to manage the organization’s culture; there must be shared values and trust; and opportunities for employees to progress and develop. Finally, it is recommended that organizations should encourage initiative, creativity and entrepreneurial culture by doing away with bureaucratic practices.
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