Project Materials


The influence of organizational culture on organizational performance.

The influence of organizational culture on organizational performance




1.1 Background of the Research

There are various types of organizations that exist for a range of objectives and to meet the diverse needs of their stakeholders. The nature of an organization is determined by its ownership and dimensions. Examples include accounting firms, schools, retail stores, local governments, airports, automobile factories, hospitals, and hotels. These organizations can be divided into two categories: public and private. Regardless of the type or classification of an organization, it exists to execute particular activities in order to achieve predetermined goals and satisfy its owners and customers. Individuals cannot attain the defined objectives on their own; they require the joint efforts of many people. Members and employees of an organization are able to generate a concerted and synergistic influence through their collective efforts and actions. Gibson, Ivancevich, Donelly, and Konopaske (2005) asserted that organizations have different personalities and that these personalities are mostly molded by their executives; for instance, a despotic and authoritarian executive team is able to establish a fear-filled culture. Therefore, the manner in which a leader or top executive manages his or her people will impact how those employees respond to work in order to meet the profit-making objective of the firm.

Organizational performance is the capacity of an organization to achieve its mission through solid management, robust governance, and a steadfast commitment to achieving particular goals over a specified time period (Stafford & Miles, 2013). Performance is defined equally as the attainment of financial and non-financial goals that allow an organization to be viable and sustainable in both the short and long term (Denison, Haaland, Goelzer, and Yilmaz, 2008). High organizational performance is attained when all of an organization's components collaborate to achieve its goals (Ansoff, 1987). Midway through the 1970s, the concept of organizational culture evolved in the United States through the publications of scholars such as Ansoff (1987), Schein (2007), and Rieley and Clarkson (2001), among others. These academics believed that organizational culture establishes the criteria that enabled Fortune 500 corporations in the United States, the United Kingdom, and other developed nations to improve performance and remain competitive despite intense globalization.

Over the years, management theorists have acknowledged, among other factors, that corporate culture and organizational performance have a tight link. According to Mullins (1999), “…there is a relationship between the culture and performance of an organization.” According to Flamholtz and Kannan-Narasimhan (2005), the impact of organizational culture on the bottom line is crucial for influencing managerial practice and, in turn, financial performance. McShane and Von Glinow (2005), in accordance with the aforementioned perspectives on the relationship between organizational culture and organizational performance, had a somewhat different perspective, namely, “Can organizations with strong cultures have higher performance? Certainly not! There is just a tiny correlation between culture strength and success, according to studies. With the above perspectives and assertions of management theorists, it is easy to conclude that organizational culture is related to job performance and has a positive effect on the organization's overall performance. According to researchers who have studied the impact of organizational culture on employees, it also provides and promotes stability. Gibson et al. (2003) determined that there are two major aspects of culture: strong culture and weak culture. Gibson asserted that a strong culture is characterized by employees who share core values; the greater the number of employees who share and accept the core values, the stronger the culture and the more influential it is on behavior, and the greater the number of employees who do not share and accept the core values, the weaker the culture and the less influential it is on behavior. Mc Shane et al. (2005) accepts the thesis of Gibson et al. and goes on to define a weak culture as one in which the prevailing values are short-lived and held by a small number of people at the top of the .

1.2 Description of the Problem

Over the years, organizations in Nigeria have accepted many modifications, which have demanded a review of the management structure, the addition of mandates and functions, and consequentially, a considerable shift in organizational culture. Stafford and Miles (2013) claimed that a company must be aware of its culture in order to exert influence over its performance. This literally means that an organization must evaluate its own structure, beliefs, values, and assumptions that inform its method of operation. As a result, the organization will not only be able to remain relevant, but will also be able to identify precipitous cultural characteristics that are good for performance and those that are harmful for performance.

1.3 Objective of the Research

The primary purpose of this study is to determine the relationship between organizational culture and organizational performance.

1. Analyze the influence of organizational culture on organizational performance in Nigeria

Determine how much organizational culture influences customer service.

Assess the extent to which organizational culture influences internal business procedures.

1.4 Investigative Question

Does organizational culture have any effect on the performance of organizations in Nigeria?

In what way does organizational culture influence customer service?

What influence does organizational culture have on internal business procedures?

1.5 Scientific

Ho: organizational culture has no effect on the performance of organizations in Nigeria.

Hello: organizational culture has an effect on the performance of organizations in Nigeria.

1.6 of the Research

This research will be significant to the employees and management of various organizations in Nigeria. It will assist the employees in gaining knowledge and awareness of the extent to which they were willing to accept change, allowing them to derive as many benefits as possible from the organization's change initiatives. An evaluation of the organizational culture was essential for management in identifying the root causes of the issues that prevented employees from exhibiting better performance. The top management of various organizations and the would be better informed by the study's findings regarding the impact of organizational culture (at the global and component levels) on organizational performance. In this regard, the study's findings would be useful for reviewing the organization's change strategies to ensure that the changes result in meaningful gains.

1.7 Scope of the Research

This study will investigate the concept and literature surrounding organizational culture and performance, as well as the influence of the former on the latter.

1.8 Limitations of the Research

During the course of study, obtaining funding for general research will be a struggle. In addition, respondents may not be able to or want to submit the questionnaires provided to them.

However, it is anticipated that these limitations will be overcome by maximizing the use of available resources and devoting additional time to research. Therefore, it is strongly expected that despite these constraints, their impact on this research report will be small, allowing the study to achieve its purpose and significance.

1.9 Explanation of Terms

Organizational culture consists of values and behaviors that “contribute to the distinctive social and psychological environment of an organization.”

Organizational performance is the comparison of an organization's actual outputs or outcomes to its expected outputs.

The influence of organizational culture on organizational performance



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