Abstract: The general purpose of this study is to assess the effects of organizational culture on employee performance in Peacock Paint Nigeria Plc Etinan-Akwa Ibom State. Research questions and hypotheses were formulated to guide the study. For the purpose of this study, the survey research method there is descriptive in nature and has the basic characteristics which involves the collection of data to facilitate the answer of research questions through which the test of hypothesis was adopted, this method was considered appropriate because it helped the researcher to describe, examine, analyze and interpret the variables in the study.
From the analysis of data presented, a number of findings were made from the study which examine the effect of organizational culture on employee performance in Peacock Paint Nigeria Limited, Etinan-Akwa Ibom State are as follows: The study found that there is a significant effect of competitive culture on employee performance, The findings show that entrepreneurial culture has a significant effect on employee performance, The study also shows that there is a significant effect of bureaucratic culture and employee performance, Finally, it was processed from the study that consensual culture also has a significant effect on employee performance.
Effects Of Organizational Culture On Employee Performance In Peacock Paint Nigeria Plc Etinan-Akwa Ibom State
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 (Bulach, 2012). Every organization is influenced by the existing culture which varies from organization to organization (Chegini, 2010). Thus, organizational culture is one of the essential tools in understanding the behavior of people in such an organization. It is a persuasive force that controls an employee’s work life; the thread that binds the entire organization together.
According to Cambridge dictionary, culture can be defined as the way of life, especially the general customs and beliefs, of a particular group of people at a particular time. Thus, organizational culture is described by Needle (2004) as the behavior or interaction of humans within an organization. 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).
There are many researches that have linked culture in the organization with many different organizational behaviors. This has been recognized that there is a correlation between culture of organization & employee job performance (Sheridan, 1992), decision making (Gamble & Gibson, 1999) and productivity (Kopelman, Brief and Guzzo, 1990). Luthans (1998) stated that organizational culture has often time presented within the organization, and it was not given importance needed in an organization.
The culture of organization is highlighted to bring out every important component of the organization. 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 (Aluko, 2013).
Every organization wants employee commitment because it is very important for an organizational effectiveness (Curtis, 2001). If the employees understand the organizational culture properly 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 (Dave, 2011). 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 (Dyer, 2007).
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 in Peacock Paint Nigeria Plc Etinan, Akwa Ibom 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 in Peacock Paint Nigeria Plc Etinan, Akwa Ibom State is drawn.
1.3 Objective of the Study
The general purpose of this study is to assess the effects of organizational culture on employee performance in Peacock Paint Nigeria Plc Etinan-Akwa Ibom State. Specifically, the study sought to:
- Determine the effects of competitive culture on employee performance.
- Determine the effects of entrepreneurial culture on employee performance.
- Determine the effects of bureaucratic culture on employee performance.
- Determine the effects of consensual culture on employee performance.
1.4 Research Question
The following research questions are raised to aid the study.
- To what extent does competitive culture affects employee performance?
- Is there any significance effect between entrepreneurial culture and employee performance?
- To what extent does bureaucratic culture affects employee performance?
- What is the significance effect between consensual culture and employee performance?
1.5 Research of Hypothesis
This research is undertaken on the basis of the following hypothesis.
- There is no significant effect of competitive culture on employee performance.
- There is no significant effect of entrepreneurial culture on employee performance.
- There is no significant effect of bureaucratic culture on employee performance.
- There is no significant effect of consensual culture on employee performance.
1.6 Scope of the Study
The study covers all business organizations in Akwa Ibom State. However, due to time and financial constraint, the researcher limited the study only to Peacock Paint Nigeria Limited, Etinan-Akwa Ibom State. Therefore this study seeks to empirically investigate on the effects of organizational considering competitive, entrepreneurial, bureaucratic and consensual cultures on employee performance using Spread Sheet Package to analysis the primary data obtained from the business organization.
Effects Of Organizational Culture On Employee Performance In Peacock Paint Nigeria Plc Etinan-Akwa Ibom State
1.7 Limitation of the Study
In the course of this research work, a lot of problems are bound to be encountered among which includes the following:
- Secrecy: Most respondent were indifference on their part to provide credible answers to the research questions.
- Human errors and biasness: This is because some data’s were obtained through discussions and interviews therefore there is the possibility of human error of omitting some vital information. Respondent may also exaggerate important information in order to give their organization a positive credit for fear of what seem an invasion into the organization’s privacy.
- Time factor: The time given within which the work has to be completed is definitely inadequate considering the tedious work involved ranging from getting the raw data, computation to conclusion.
