(A CASE STUDY OF FIRST ALUMINUM COMPANY PORT HARCOURT)
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ABSTRACT
The purpose of this study was to examine the impact of organizational culture on employee job performance. Employees were randomly selected from the First Aluminum Company Port Harcourt through stratified probability sampling technique resulting in the sample size of (N=40) with 20 copies of questionnaire returned and used for the analysis using chi-square (X2) statistical tool. Findings reveal that organizational culture is a key factor that significantly affect employee performance, however, values as a component of culture was seen as having no significance relationship as if only a cultural dimension that exist in the sub-consciousness of organizational member work practices and norms have a positive correlation with employee job performance. Organizational culture that is innovation oriented, support oriented, and coordination oriented is likely to have a higher level of job performance than those with rules and regulations oriented. Based on these it was recommended amongst others that, organizations should adopt an open culture that encourages support orientation, innovation orientation and coordination orientation; only with these that organization will take risk and welcome fresh ideas.
TABLE OF CONTENTS
COVER PAGE i
ABSTRACT ii
DECLARATION iii
CERTIFICATION iv
DEDICATION v
ACKNOWLEDGEMENTS vi
TABLE OF CONTENTS vii
LIST OF TABLES ix
LIST OF FIGURES x
CHAPTER ONE 1
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 5
1.5 Statement of Hypothesis 5
1.6 Significance of the Study 5
1.7 Scope and Delimitations of the Study 6
1.8 Limitation of the study 6
1.9 Definition of Related Terms 7
Values 8
CHAPTER TWO 9
LITERATURE REVIEW 9
2.1 Conceptual Framework 9
Fig. 2.1: Conceptual Framework 9
Values 12
2.1.3 Employee Performance 13
2.1.4 Measures of Employee Performance 13
2.2 Theoretical Framework 15
CHAPTER THREE 21
RESEARCH METHODOLOGY 21
3.1 Research Design 21
3.2 Population of the Study 21
3.3 Sample and Sampling Technique 21
3.4 Sources and Methods of Data Collection 22
3.5 data analytical method 22
3.7 RELIABILITY AND VALIDITY 23
CHAPTER FOUR 24
DATA PRESENTATION 24
Data Presentation Analysis 24
4.1 DATA PRESENTATION 24
4.3 TESTING OF HYPOTHESIS 30
CHAPTER FIVE 35
DISCUSSION OF FINDING 35
5.1 DISCUSSION OF FINDING 35
CHAPTER SIX 37
SUMMARY, CONCLUSION AND RECOMMENDATIONS 37
6.1 SUMMARY 37
6.2 CONCLUSION 38
6.3 RECOMMENDATIONS 38
REFERENCES 40
APPENDIX I 41
APPENDIX II 42
APPENDIX III 44
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Organizational development is concerned with the analysis and diagnosis of the factors that determine organizational effectiveness, and the planning and delivery of programmes to increase that effectiveness.
Organizations want to obtain the commitment of their employees. Management would like its employees to identify with the values, norms and artifacts of the organization; hence the need for organizational culture. Management needs to explain and infuse its culture in its employees; this will enable the employee to get familiar with the organizational system.
During this process of explanation, the employee learns about the organizational culture and decides whether he/she can cope with it or not. This means that each organization is a learning environment. It is the proper understanding of the organizational culture that, the performance of employee in the organization is ascertained. Performance is the extent to which an individual is carrying out assignment or task. It refers to the degree of accomplishment of the task that makes up an employee’s job (Cascio, 2006). Job performance is that net effect of an employee’s effort as modified by abilities and roles or task perception (Jones, 2003). The culture of the organization should be developed to support continuous improvement, improve employees style of performing their jobs and thus develop quality awareness. To operate successfully across cultures, it is important to be able to recognize cultural differences and be adaptable.
Organizational culture finds expression through the though, intentions, actions and interpretations of members of the organization (Hallett, 2003).
Academic interest in corporate culture is evidence by the level of attention it has received over the last few decades. The relationship between corporate culture and performance has been the subject of abundant research in several fields, including strategic management, and organizational behaviour of the while this topic is rich in studies, many researchers concur on the fact that there is not agreement on the precise nature of the relationship between corporate culture and performance. Despite the plethora of studies on corporate in the last few decades, there is no widely acceptable causal relationship between corporate and performance. The empirical evidences emerging from various studies about the effect of corporate cultured on performance have so far yielded mixed results that are inconclusive and contradictory. Because of these contradictory results, the questions 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 Aluminium Companies 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 Aluminium Companies and providing more empirical evidence on the on the impact of organizational culture on employee job performance.
1.2 Statement of the Problem
Employee performance poses a lot of problems and concerns to managers in both public and private enterprises the world over, the reason being that, the successfully venture of business is the sole responsibility of corporate managers in trying to coordinate organizational resources to achieve predetermined objectives within a specific time frame. These objectives are the main reasons for the establishment of individual organization, there managers must raise the performance level for their employees by looking for what would motivate each employee including creating an organizational climate that enables learning and innovative responds to challenges, competitive threats, or new opportunities. A strong culture that encourages adaptation and change enhances organizational performance by energizing and motivating employees, unipting people around shared goals and a higher mission, and shaping and guiding employee behaviour so that everyone’s actions are aligned with strategic priorities. Thus, creating and influencing on adaptive culture is one of the most important jobs for organizational leaders. The right quality culture can drives good performance.
McHugh et al (1993) argue that bad and poor culture of the organization will lower the level employee performance and productivity from the employees and consequently contributes to decrease the efficiency and performance of the organization. When this happened, organization is at risk of fulfilling its social responsibilities to its customers, suppliers, employees, and its host communities. This is the only way organization(s) can achieve its goals and objectives.
Organizational culture reflects employee’s views about the way things are done around here”. In fact, corporate culture may be considered to be personality of the organization. In every organization, there are ways of doing things, if maintain over the years, the ways of doing things become that organization’s culture (Handy, 1986). Defined organizational culture as: Deep set of beliefs about ways works should be organized, the way authority be exercised, people rewarded, people controlled the degree of formalization required, how much planning and how far ahead? What combination of obedience and initiative is looking for in the subordinate? Do committees control individuals? Are rules and procedures strictly adheres to? These are all parts of organizational culture.
From the above definition, one can then research that organizational culture is embedded in the way people act, what they expect from each other and how they make sense of each other’s actions.
1.3 Objectives of the Study
The main purpose of this work is to examine the influence of organizational culture on employee performance. Other objectives are;
1. To examine relationship between value and employee performance in first Alluminium company in Port Harcourt.
2. To examine relationship between norm and employee performance in first Alluminium company in Port Harcourt.
3. To examine relationship between practices and employee performance in first Alluminium company in Port Harcourt.
1.4 Research Questions
It is the desire f the researcher to investigate the development of the influence of organizational culture on employee performance with the following research question;
1. Does value relate with employee performance in first Alluminium company in Port Harcourt?
2. Does norm relate with employee performance in first Alluminium Company in Port Harcourt?
3. Does practices relate with employee performance in first Alluminium Company in Port Harcourt?
1.5 Statement of Hypothesis
HO1: There is no significant relationship between value and employee performance in first Alluminium Company in Port Harcourt.
HO2: There is no significant relationship between norm and employee performance in first Alluminium Company in Port Harcourt.
HO3: There is no significant relationship between practices and employee performance in first Alluminium Company in Port Harcourt.
1.6 Significance of the Study
This study is important because, it will expose students, and other academicians to the concept and principles of organizational culture and its concomitant effect on organizational variables. This study will aid business managers and other corporate bodies to come to terms with organizational cultural influences and the best possible way to align them to the best interest of the organization. It will also be useful to other researchers and the general public.
1.7 Scope and Delimitations of the Study
The scope of this study is delimited into the followings:
1. Content Scope: The specific areas of employee performance the study investigated include; productivity, effectiveness and efficiency. Whereas the areas of organizational culture includes value, norm and practices.
2. Geographical scope: This study covers an examination of strategic contributions of organizational culture on the employee performance of first alluminium Company in Port Harcourt.
3. Unit of Analysis: This is a macro study because it is interested in ascertaining the effectiveness of an organization in this direction.
1.8 Limitation of the study
In carrying out this research work, the researcher was constraint by lot of factors which include but not limited to the following:
Time Constraint: The time frame provision for this study was short.
Financial Constraint: Usually, a study of this nature involved some level of expenditure; therefore, finance was also a limiting factor.
1.8 Definition of Related Terms
Effectiveness
Effectiveness is the capability of producing a desired result or the ability to produce desired output. When something is deemed effective, it means it has an intended or expected outcome, or produces a deep, vivid impression.
Efficiency
It is the ability to avoid wasting materials and time in doing something or in producing a desired result.
Employee behavior is rooted in a set of core values and leaders and followers are skilled at reaching an agreement even when they have differing views.
Employee Performance
Employee performance is derived from the word performance that means real work produced an employee within a specific time period. Performance is a comparison between the work of the real compared to the standard set by the company.
Employee performance is the working result of the employee within a certain time period. Performance is the degree to which the employee reaches the job requirement. Performance is the achievement record resulting from the acquisition of a particular job function or activity during a specific time period.
Organization Culture
It is literally described by many researchers in diverse studies for various measures. Culture is critical to understanding any society or group. Through the process of socialization individuals bring into groups. Groups have the capacity to shape, influence, and determine group members’ outlooks, viewpoints, outputs, attitudes and indeed behaviors.
Productivity
Productivity involves goal attainment. It is the successful transfer of input to output at the lowest possible cost. Productivity implies both efficiency and effectiveness.
Values
Every organization has a set of values, whether or not they are written down. The values guide the perspective of the organization as well as its actions. Writing down a set of commonly-held values can help an organization define its culture and beliefs.
Norms
Values and norms (sometimes moral values and norms) is a term used to describe the basic pillars of the organizational culture. These are unwritten rules and principles of behavior – some level of awareness of corporate culture. These are facts that are in the organization and considered relevant and important.
Practices
Organizational Practices are located immediately outside of the Core Culture. They are not the elements of Core Culture; they are the behaviors that convert ideals to actions which keep the culture alive.
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