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The effect of organizational culture on effective employee performance in relation to achieving organizational goals

The effect of organizational culture on effective employee performance in relation to achieving organizational goals





Organizational culture refers to a system of shared assumptions, attitudes, and beliefs that indicate acceptable and unacceptable conduct. These principles have a substantial impact on employee conduct and organizational effectiveness.

In fact, the phrase organizational culture was popularized in the 1980s when Peters and Waterman’s best-selling book In Search of Excellence argued that firm performance could be ascribed to a decisive, customer-oriented, empowering, and people-oriented organizational culture. Since then, several research papers, books, and articles have been devoted to organizational culture.

The concept of organizational culture is still relatively novel (Daft, 2003). In contrast to topics such as leadership, which have a long history, organizational culture is a relatively new but rapidly expanding field within management.

Culture is mostly invisible to individuals, similar to how the ocean is invisible to fish. Individuals become more cognizant of their organization’s culture when they have the opportunity to compare it to that of other organizations, despite the fact that it influences all employee actions, thought processes, and behavioral patterns (Amah, 2009).

The organizing role entails the formulation and execution of organizational design decisions. The relationship between organizational culture and organizational design is strong. A culture that allows people to make decisions, for instance, may be particularly resistive to a centralized organizational structure, hence hindering the manager’s capacity to implement such a structure. Nonetheless, a culture that supports the organization’s structure (and vice versa) can be extremely effective (Daft, 2003).

A company’s culture may be one of its greatest strengths or its greatest weakness. In fact, it has been suggested that firms with a culture that is uncommon and difficult to reproduce enjoy a competitive edge. In a 2007 survey conducted by the management consulting company Bain & Company, global business leaders identified corporate culture as equally essential to business success as corporate strategy.

This is hardly a surprise to successful business leaders, who are eager to attribute their company’s success to the culture of their organization (Garvin, 1998). Culture, or shared organizational ideals, may be associated with increased employee performance.

Researchers discovered a correlation between organizational cultures and employee performance in terms of success metrics such as revenues, sales volume, market share, and stock prices, which contributed to the achievement of the organization’s objective.

Concurrently, it is essential to develop a culture that meets the needs of the company’s environment. To the extent that shared values are appropriate for the firm in question, culture may enhance employee performance. For instance, if a company is in the high-tech area, its performance will benefit from a culture that supports innovation and adaptation (Amah, 2009).

However, if a firm in the same industry has a culture that is defined by stability, a high regard for tradition, and a strong desire for adhering to rules and processes, it may suffer as a result of its culture. In other words, just as having the proper culture may be a competitive advantage for an organization, having the wrong culture can lead to performance issues, be accountable for organizational failure, and prohibit the company from adapting and taking risks (Caves and Porter, 1977).

In addition to influencing employee performance, organizational culture is an excellent technique for controlling employee conduct. Culture is a more effective means of regulating and managing employee conduct than organizational norms.

For instance, when a corporation is attempting to increase the quality of its customer service, rules may not be useful, especially when people bring unique difficulties. Creating a culture of customer service may generate better results by encouraging staff to think like customers, with the understanding that the company’s priorities are obvious in this instance.

Therefore, the capacity to comprehend and affect organizational culture is a vital tool for managers to have when carrying out their regulating and organizing functions to improve employee performance and facilitate the achievement of organizational objectives.

In the past two decades, numerous studies on how to enhance employee performance in order to achieve organizational goals have been conducted. It has been stated that strategic group membership and associated collective behaviors are the key drivers of long-lasting variations in business profitability and successful employee performance (Caves and Porter, 1977).

This means that the collective behavior of the organization’s members, which culture serves to regulate, is crucial to the organization’s effectiveness. Glasister and Buckley (1998) highlighted organizational culture as one of the characteristics responsible for organizational effectiveness and employee performance in regard to this thesis.

One of the organization’s most valuable assets has been identified as a strong organizational culture (one in which everyone knows and adheres to the company’s mission, priorities, and practices) that supports the participation and development of all organization members (Denison, 1985). Nonetheless, the researcher intends to investigate the effect of company culture on employee performance.

The overall purpose of this study is to examine the impact of corporate culture on employee performance, and the specific objectives are as follows:

Examine the relationship between company culture and employee performance.
To determine the type of organizational culture that can improve employee performance inside an organization.
To discover obstacles impeding the effectiveness of employees inside an organization.

What influence does organizational culture have on employee performance?
What sorts of organizational culture can improve the performance of employees inside an organization?
What variables hinder the performance of employees in an organization?
There is no significant correlation between an organization’s organizational culture and employee performance.
There is a considerable association between an organization’s organizational culture and employee performance.

1.6 Importance of the Research
In the following aspects, this study on the effect of organizational culture on employee performance toward the achievement of corporate goals is significant:

It would inform managers and other stakeholders in Nigeria about the need for a better organizational culture, as the findings of this study will assist them in selecting and adopting a better organizational culture for improved employee performance.
This study will contribute to the body of knowledge on the effect of organizational culture on the performance of quantity surveying enterprises in Nigeria, thereby forming the empirical literature for future studies in the field.

This study will examine the effect of organizational culture on employee performance in Nigerian organizations by assessing their organizational culture and its effect on employee performance in order to achieve the organizational objective. The research will also provide an overview of the issues that hinder employee success.

Financial limitation – Inadequate funds tend to impede the researcher’s efficiency in locating relevant resources, literature, or information and in collecting data (internet, questionnaire and interview).
Due to time constraints, the researcher will conduct this study alongside other academic duties. This will consequently reduce the time spent conducting research.

Culture is the arts and other aspects of human intellectual achievement viewed as a whole.
Performance is the accomplishment of a given work judged against predetermined, established standards for precision, thoroughness, cost, and velocity. In a contract, performance is deemed to be the execution of an obligation in a manner that free the performer from liability.
Organization: A social unit of individuals that is established and controlled to meet a need or pursue common objectives. Every organization has a management structure that establishes the linkages between the various activities and the members, as well as subdivides and distributes roles, responsibilities, and authority to accomplish various tasks. Organizations are open systems, influencing and being influenced by their environment.

The effect of organizational culture on effective employee performance in relation to achieving organizational goals



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