The Impact of Corporate Culture on Company Performance

4856 Words Nov 30th, 2010 20 Pages
388

Business Intelligence Journal

August

Impact Assessment Of Corporate Culture On Employee Job Performance

Olu Ojo

Abstract
This research study assesses empirically the impact of corporate culture on employee job performance as well as organisational productivity using Nigerian banking industry as the case study. We try to ascertain if organizational culture affects employee job performance, and to formulate recommendations regarding corporate culture and employee job performance. In order to achieve the above objectives, the following research questions were asked: Does corporate culture have any effect on employee job performance? And in what way does corporate culture impacts employee job performance? Two hypotheses
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The empirical evidences emerging from various studies about the effect of corporate culture on performance have so far yielded mixed results that are inconclusive and contradictory. Because of these contradictory results, the question of whether corporate culture improves or worsens employee’s performance is still worthy of further research such as the one being undertaken in this study. In addition, despite the existence of these studies, very little attention has been given to the banking industry. This means that the impact of corporate culture on employee’s performance in the banking industry has not received adequate research attention in Nigeria. Thus, there is a major gap in the relevant literature on Nigeria, which has to be covered by research. This research attempts to fill this gap by studying the situation of the Nigerian banking industry and providing more empirical evidence on the effects of corporate culture on employee job performance based on individual bank-level data.

Literature Review
Organizational culture has been defined as the “normative glue” that holds an organization together (Tichy, 1982). Forehand and von Gilmer (1964) suggest that culture is the set of characteristics that describe an organization and distinguish it from others. Schein (1990), in a more comprehensive fashion, defines culture as values and behaviors that are believed to