Effect Of Organizational Culture On Employees Performance

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ABSTRACT

This study is based on the effect of organizational culture on employee’s performance. (A study of Hardis and DromedasUmunya, Anambra State). The study adopts the following object; to determine the relationship between training and development on employee’s competency, to examine the relationship between reward and productivity within the organization, to ascertain how recruitment can enhance the market share of the organization. The descriptive survey research design was adopted and a sample size of 133 (one hundred and thirty three) was gotten using Taro Yamani formula out of the population of a total of (200) staff. 133 questionnaires were administered to the respondents and 120 was returned, which was used for the data. Three research questions was used for the study.  The data for the study was gathered with a five point likert scale questionnaire. Analyses were made through the latest version of statistical package for social sciences (SPSS} a well-known software for the statistically data analysis, so that effective conclusion can be drawn. From the study, it was indicated that training and development increases the employee competence. The findings show thatreward has a significant increase on the performance of the organization. Finally it was processed from the study that recruitment can positively enhance the market share of the organization. The study recommends that Organization should provide a flexible culture; these will provide such working environment to employees in which they will work easily and independently without feeling any burden. Company should provide employee with a clear career path and career development opportunities by giving them training, seminars and workshops and this will increase their performance in the organization.

 TABLE OF CONTENTS

 

Title page                                                                                                     i

Approval page                                                                                                     ii

Certification                                                                                                        iii

Dedication                                                                                                           iv

Acknowledgements                                                                                              v

Table of contents                                                                                                 vi

Abstract                                                                                                               ix

CHAPTER ONE: INTRODUCTION                                                           1

1.1 Background of the study                                                                           1

1.2 Statement of the Problem                                                                          4

1.3 Objectives of the Study                                                                             4

1.4 Research questions                                                                                    5

1.5 Research Hypothesis                                                                                 6

1.6 Significance of the Study                                                                           6

1.7 Scope of the Study                                                                                    8

1.8 Limitation of the Study                                                                             8

1.9 Definition of terms                                                                                    8

CHAPTER TWO: REVIEW OF RELATED LITERATURE                        

2.1 Introduction                                                                                          11

2.2 Conceptual Framework                                                                        12

2.3 Training and Development                                                                             20

2.4 Dimensions of Training & Development                                                        21

2.5 Employee Competence                                                                         26

2.6 Recruitment                                                                                          28

2.7 Organizational Culture and Employee’s Performance                                   29

2.8 Theoretical Framework                                                                        31

2.9 Empirical Review                                                                                 34

2.10 Summary of Literature Review                                                           36

2.11 Research Gap                                                                                         37

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Introduction                                                                                             38

3.2 Research design                                                                                        38

3.3 Area of the Study                                                                                     39

3.4 Sources of Data                                                                                        39

3.5 Population of the Study                                                                           39

3.6 Sample Size                                                                                              40

3.7 Research Instrument                                                                                      41

3.8 Validation of the instrument                                                                    41

3.9 Reliability of the instrument                                                                     42

3.10 Data Collection Method                                                                         42

3.11 Method of Data Analysis                                                                       42

CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA

4.1 Introduction                                                                                            43

4.2 Presentation of Data                                                                                      43

4.3 Analysis of Data                                                                                   43

4.4 Test of Hypotheses                                                                               55

4.5 Discussion of Findings                                                                         59

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

5.1     Introduction                                                                                                  60

5.2     Summary of findings                                    60

5.3     Conclusion                                                                                               60

5.4     Recommendations                                                                                        61

5.5     Suggestion for Further Studies                                                                     62

Reference                                                                                                   63

Appendixes                                                                                                          69

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

Organizations are a constituent of people with different ideological orientations, values, opinions, and attitudes coming together cooperatively to achieve a goal. It therefore implies that the belief system, goals, objectives, philosophies are all part of the corporate culture of any organization, which are learned by every member of the organization. Organizational culture is one of the essential tools in understanding the behavior of people in organizations. It is a persuasive force that controls an employee’s work life; the thread that binds the entire organization together. In the other hand, organizational performance involves engaging in recurring activities aimed at establishing organizational goals, monitoring progress toward the goals, and making adjustments to achieve those goals more effectively and efficiently (Omoregbe and Umemezia, 2017). It also means having the different parts of an organization work together to achieve great results which are measured in terms of the value being delivered (Hopkins, 2004).

It is very necessary for an organization to establish an organizational culture to maintain its position in market. The organizational 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 culture of an organization 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. 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 (Salihu, Rayyan and Umar, 2016).

However, 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. This therefore explains the reason why a good amount of time and resources have been invested in carrying out research in this field (Omondi, 2014). Conversely, 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 but if they don’t perform as directed and according to expected standard it will retard the organization’s success.

Organizational culture comprises the unwritten customs, behaviors and beliefs that determine the "rules of the game" for decision-making, structure and power. It's based on the shared history and traditions of the organization combined with current leadership values. In effect, culture dictates the way we do business here and the organizational survival tactics that facilitate assimilation and personal success (Dave and Urich, 2011). With a strong organizational culture, employees do things because they believe it's the right thing to do and feel they'll be rewarded for their actions. However, if the leadership team lacks integrity or stop diversity, powerful cultures can change into cults, cliques, castes and insider clubs. Organizational culture can be treated as a series of distinctive characteristics of a specific organization. Some modern definitions of organizational culture are dynamic, directed at creativity, innovations and entrepreneurship. Therefore, this study will focus on the effect of organizational culture on employee performance Hardis and Dromedas in Umunya, Anambra State.

1.2     Statement of the Problem

Since employees are seen as the greatest and most valuable assets that implement and complement other factors of production in an organization. Increased competition, globalization, alliances and major work force department have created a greater need for organizational culture. Managing organizational culture is emerging as one of the key managerial challenges in the 21st century.

 Nevertheless, organizational culture affects the performance and productivity of organizations in a tremendous way such as poor corporate governance and poor corporate culture are responsible for the problems faced by good organizations in Nigeria. In several instances, it has been shown that most employees in the organizations do not have the knowledge of its vision, mission and strategic goals.

 Many of the companies might have a bureaucratic culture that do not promote entrepreneurial and risk-taking initiatives and no clear communication between management and employees. Therefore, in the bid to proffer solution to the above problems, the study to access the effect of organizational culture on employee performance at Hardis and DromedasUmunya, Anambra State.

1.3     Objectives of the Study.

The broad objective of the study is to examine the effect of organizational culture on employee performance at Hardis and Dromedas.

And the specific objectives is:

  1. To determine the relationship between training and development on employees competency.
  2. To examine the relationship between reward and productivity within the organization.
  3. To ascertain how recruitment can enhance the market share of the organization.

1.4     Research Question                     

The following research question were formulated for this study

  1. What is the relationship between training and development on employee’s competency?
  2. What is the extent of relationship between reward and productivity within the organization?
  3. How can recruitment enhance the market share of the organization?

 1.5     Research Hypotheses

The hypothesis are tested to show how significant the research question and hypothesis are verified. The following hypothesis are formulated to guide this study;

H0:    Training and development has no significant relationship on employee competency?

H1:    Training and development has a significant relationship on employee competency?

H0:        Reward has no significant increase on the productivity of the organization?

H1:    Reward has significant increase on the productivity of the organization?

H0:    Recruitment cannot positively enhance the market share of the organization?

H1:    Recruitment can positively enhance the market share of the organization?

1.6     Significant of the Study

This study will be helpful for future researchers in gaining secondary information and can serve as literature review for potential references. It will also serve as a centerpiece idea to other students willing to pursue research in a similar field.

Secondly, this research will help the government in making some decisions about insurance organizations in the country like healthcare insurance, how much tax returns insurance companies are expected to pay back to the government, some favorable decisions to the insurance companies about the working conditions and pay for their employees.

Thirdly, the analysis of this research study will provide important details pertaining to the culture of firms in the insurance industry. The details gained will provide firms in this sector with requisite knowledge that will enable them identify culturally related strengths, leverage their company‘s overall strength as well as address cultural weakness that hamper success.

Finally, the company under study in particular will be of immense benefit in that the management will be able to use the information produced after the research is complete to re-engineer and restructure the organization‘s culture in order to improve their employee job performance and by extension organizational performance. The management can also use some of the information to formulate a strategy for the organization. And, for the employees of the organization under study, this research will enable them gain a better understanding of their role in shaping the organization‘s culture and how this influences their performance and by extension the overall performance of the organization.

 1.7     Scope of the Study

This study on the effect of organizational culture on employees’ performance covers Hardis and Dromedas in Umunya, Anambra State.

1.8     Definition of Terms

1.8.1  Organizational culture

This is a system of shared values, beliefs, norms which governs the way people behave in an organization. This strong values has a strong influence on the people in the organization and dictate how they dress, act and perform their jobs.

1.8.2  Employee

An individual who works part time of full time under a contract of employment, whether oral or written, express or implied, and has recognized rights and duties.it can also be a person who is below the executive level who is hired by another to perform a service especially for wages or salary and is under others control.

1.8.3  Performance

The accomplishment of a given task measured against a preset known standard of accuracy, completeness, cost, and speed. In a contract, performance is deemed to be the fulfilment of an obligation, in a manner that releases the performance from all liabilities under the contact.

1.8.4 Training and Development

Training and development can be described as "an educational process which involves the sharpening of skills, concepts, changing of attitude and gaining more knowledge to enhance the performance of employees.

1.8.5 Employee Competency

This can be defined as the ability of an individual to do a job properly. This is a set of defined behaviors that provide a structured guide enabling the identification, evaluation and development of the behaviors in individual employees.

1.8.6 Reward

This can be seen as money or another kind of payment that is given or received for something that has been done or that is offered for something that might be done.

1.8.7 Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs. This is computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period. Productivity is a critical determinant of cost efficiency.

 

1.8.8 Recruitment

 Refers to the overall process of attracting, shortlisting, selecting and appointing suitable candidates for jobs  (either permanent or temporary) within an organization.Recruitment can also refer to processes involved in choosing individuals for unpaid roles.

1.8.9 Market share

Out of total purchases of a customer of a product or service, what percentage goes to a company defines its market share. Market share is calculated by taking the company's sales over the period and dividing it by the total sales of the industry over the same period. This metric is used to give a general idea of the size of a company in relation to its market and its competitors.

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