Research Article

The Influence of Organizational Culture on Employee Performance in the Banking Sector: Evidence from GCB Bank, Ghana

Erica O. Opoku
Taiyuan University of Technology, China
* Corresponding author
Chang Hongqin
Taiyuan University of Technology, China
Simon A. Aram
Taiyuan University of Technology, China
DOI icon 10.24018/ejbmr.2022.7.2.1345

Read Counter
4669

Downloads
4242

Citations

Share

Article Sidebar

Submitted 2022-03-04
Published 2022-03-28

Read counter = 4669 times

Table of Contents

Article Main Content

Today's banking and business environment is extensively dynamic. However, an efficient organizational culture and its specific roles regarding performance combine different culture systems, resulting in high productivity and satisfaction, thereby increasing the organization's profitability. This study assesses the interactive effects of organizational culture and its magnitude of influence on the performance of employees in GCB bank Ghana. The study further evaluates how the relationship between organizational culture and employee performance is affected when job satisfaction (moderating variable) is considered. A descriptive cross-sectional survey was conducted for 339 employees of GCB Bank in all Greater Accra Region branches in Ghana. Multiple linear regression analysis indicated that organizational culture contributes to a substantial rise in employee performance, with entrepreneurial culture implementation causing a higher increase in employee performance as compared to consensual and bureaucratic culture. The introduction of a moderating variable (job satisfaction) further suggested that its presence increases employee performance in a well-structured cultured environment. In organizations, one culture may be more effective than the other; hence, employees' performance could heighten or weaken from their satisfaction or dissatisfaction with a particular culture.

Keywords: Banking, Employee Performance, Job Satisfaction, Organizational Culture

References

  1. bdullah, N., Shamsuddin, A., Wahab, E., & Hamid, N. (2014). The Relationship between Organizational Culture and Product Innovativeness. Procedia - Social and Behavioral Sciences, 129, 140-147. doi: 10.1016/j.sbspro.2014.03.659.
     Google Scholar
  2. Adjeikwame, R. (2019). The Impact that Fringe Benefits have on Job Satisfaction and Employee Engagement at Sinapi Aba Savings and Loans Limited (SASL). International Journal of Advanced Engineering Research and Science, 6(7), 558-576. doi: 10.22161/ijaers.6763.
     Google Scholar
  3. Alvesson, M. (2002). Understanding organizational culture. SAGE Publications Ltd, https://www.doi.org/10.4135/9781446280072.
     Google Scholar
  4. Aspridis, G., Grigoriou, J., & Grigoriou, St., (2012). The role of sports leadership and the position of women. Inquiries in Sport & Physical Education, 10(3), 66-75.
     Google Scholar
  5. Atiku, S. O., Chitakunye, P., Fields, Z. (2014). Consensual and Entrepreneurial Culture: Insights from Organisational Culture and Human Resource Development Policy in Nigerian Banks. Mediterranean Journal of Social Sciences, 5(20). doi:10.5901/mjss.2014.v5n20p101.
     Google Scholar
  6. Awadh, A. M., & Saad, M. (2013). Impact of Organizational Culture on Employee Performance. International Review of Management, 2(1), 2306-9007.
     Google Scholar
  7. Awolowo, O. (2003). The impact of Culture on Employee Performance in selected Textile Firms in Nigeria. Nordic Journal of African Studies, 12(3), 164-179.
     Google Scholar
  8. Belias, D., & Koustelios, A. (2014). Organizational Culture and Job Satisfaction: A Review. International Review of Management and Marketing, 4, 132-149.
     Google Scholar
  9. Boyce, A., Nieminen, L., Gillespie, M., Ryan, A., & Denison, D. (2015). Which comes first, organizational culture or performance? A longitudinal study of causal priority with automobile dealerships. Journal of Organizational Behavior, 36. doi:10.1002/job.1985.
     Google Scholar
  10. Cameron, K., & Quinn, R. (2006). Diagnosing and changing organizational culture: based on the competing values framework (Revised Ed.). Wiley Imprint, San Francisco: CA: Jossey-Bass.
     Google Scholar
  11. Cook, J (2020). Striking a Balance in Management: Flexibility vs. Rigidity. Retrieved from https://edwardlowe.org/striking-a-balance-in-management-flexibility-vs-rigidity/.
     Google Scholar
  12. Chow, C. W., Kato, Y., & Merchant, K. A. (1996). The use of organizational controls and their effects on data manipulation and management myopia: A Japan vs US comparison. Accounting, Organizations and Society, 21(2-3), 175-192.
     Google Scholar
  13. Cui, X., & Hu, J. (2012). A Literature Review on Organization Culture and Corporate Performance. International Journal of Business Administration, 3(2). doi: 10.5430/ijba.v3n2p28.
     Google Scholar
  14. Deem, J.W, Barnes, B.H, Segal, S. H., Preziosi, R. (2010). The Relationship of Organizational Culture to Balanced Scorecard Effectiveness. SAM Advanced Management Journal, 75(4), 31-40.
     Google Scholar
  15. Deloitte. (2013). Culture in Banking Under the Microscope. Retrieved from The Deloitte Bank Survey:
     Google Scholar
  16. https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/financial-services/deloitte-uk-culture-in-banking.pdf.
     Google Scholar
  17. Denison Consults (2019). Introduction to the Denison Model. Retrieved fromhttps://www.denisonconsulting.com/wp-content/uploads/2019/08/introduction-to-the-denison-model.pdf.
     Google Scholar
  18. Denison, D. (2000). Organizational culture: Can it be a key lever for driving organizational change. In S. Cartwright and C. Cooper (Eds.), the handbook of organizational culture. London: John Wiley & Sons.
     Google Scholar
  19. Deshpande, R., & Farley, J. (1999). Executive Insights: Corporate Culture and Market Orientation: Comparing Indian and Japanese Firms. Journal Of International Marketing, 7(4), 111-127. doi: 10.1177/1069031x9900700407.
     Google Scholar
  20. Doughty, J., May, B., Butell, S., & Tong, V. (2002). Work environment: A profile of the social climate of nursing faculty in an academic setting, Nursing Educ. Perspectives. 4(23), 191-196.
     Google Scholar
  21. Heidrick, & Struggles. (2013). Leading Culture Change in Banking.
     Google Scholar
  22. Hellriegel, D., & Slocum, J. M. (2011). Organizational Behavior. (13th ed.): Mason, OH: South-Western Cengage Learning.
     Google Scholar
  23. Hendryadi, Suratna, Suryani, & Purwanto, B. (2019). Bureaucratic culture, empowering leadership, affective commitment, and knowledge sharing behavior in Indonesian government public services. Cogent Business & Management, 6(1), 1680099. doi:10.1080/23311975.2019.1680099.
     Google Scholar
  24. Hou, B., Hong, J., Zhu, K., & Zhou, Y. (2019). Paternalistic leadership and innovation: the moderating effect of environmental dynamism. European Journal of Innovation Management, 22(3), 562-582. doi: 10.1108/ejim-07-2018-0141.
     Google Scholar
  25. Janicijevic, N., Nikcevic, G., & Vasic, V. (2018). The influence of organizational culture on job satisfaction. Ekonomski Anali, 63(219), 83-114. doi: 10.2298/eka1819083j.
     Google Scholar
  26. Kane-Urrabazo, C. (2006). Management's role in shaping organizational culture. Journal Of Nursing Management, 14(3), 188-194. doi: 10.1111/j.1365-2934.2006.00590.x.
     Google Scholar
  27. Kang, J. H., Matusik, J., Kim, T.-Y., & Phillips, J. (2016). Interactive effects of multiple organizational climates on employee innovative behavior in entrepreneurial firms: A cross-level investigation. Journal of Business Venturing, 31, 628-642. doi:10.1016/j.jbusvent.2016.08.002.
     Google Scholar
  28. Körner, M., Wirtz, M. A., Bengel, J., & Göritz, A. S. (2015). Relationship of organizational culture, teamwork and job satisfaction in interprofessional teams. BMC health services research, 15(1), 1-12.
     Google Scholar
  29. Kuria E. (2011) Factors influencing the levels of job satisfaction of the deputy head teachers of public secondary schools in Kenya. Unpublished thesis Kenyatta University.
     Google Scholar
  30. Marker, A. (2010). "Organizational Culture". In Handbook of Improving Performance in the Workplace.
     Google Scholar
  31. Mark, M. (2014). what is Corporate Culture and How it Affects Performance. Retrieved from https://www.emergenetics.com/blog/corporate-culture-affect-performance/
     Google Scholar
  32. Mete, E. (2017). The Path Extended from Organizational Culture to Innovative Work Behavior: A Research on a Defense Company. Journal of Business Research – Turk, 9, 403-428. doi:10.20491/isarder.2017.251
     Google Scholar
  33. Newport, F., & Harter, J. (2016). U.S. Workers' Satisfaction with Job Dimensions Increases. Retrieved from https://news.gallup.com/poll/195143/workers-satisfied-job-dimensions.aspx.
     Google Scholar
  34. Pirayeh, N., Mahdavi, A., Nematpour, A. M., & Al-Zahra, T. (2011). Study of Organizational Culture Influence (Based on Denison's Model on Effectiveness of Human Resources in Karun Oil & Gas Production Company. Australian Journal of Basic and Applied Sciences, 5(9), 1886-1895.
     Google Scholar
  35. Ramlall, S. (2008). Enhancing Employee Performance Through Positive Organizational Behavior. Journal Of Applied Social Psychology, 38(6), 1580-1600. doi: 10.1111/j.1559-1816.2008.00360.x.
     Google Scholar
  36. Ratnawat, R. (2014). Impact of Organizational Culture on Employee Performance: Review and Research Agenda. Zenith International Journal of Business Economics & Management Research, 4(12), 186-197.
     Google Scholar
  37. Saari, L., & Judge, T. (2004). Employee attitudes and job satisfaction. Human Resource Management, 43(4), 395-407. doi: 10.1002/hrm.20032.
     Google Scholar
  38. Schein, E. H. (2004). Organizational Culture and Leadership. (3rd Edition Ed.). San Francisco: Jossey-Bass.
     Google Scholar
  39. Shahzad, F., Xiu, G., & Shahbaz, M. (2017). Organizational culture and innovation performance in Pakistan's software industry. Technology in Society, 51, 66-73. doi:10.1016/j.techsoc.2017.08.002.
     Google Scholar
  40. Stephen, E. N., & Stephen, E. A. (2016). Organizational Culture and Its Impact on Employee Performance and Job Satisfaction: A Case Study of Niger Delta University, Amassoma. Higher Education of Social Science, 11(5), 36-45. doi:http://dx.doi.org/10.3968/8876.
     Google Scholar
  41. Strasser, D. C., Smits, S. J., Falconer, J. A., Herrin, J. S., & Bowen, S. E. (2002). The influence of hospital culture on rehabilitation team functioning in VA hospitals. Journal of rehabilitation research and development, 39(1), 115-126.
     Google Scholar
  42. Tsai, Y. (2011). Relationship between Organizational Culture, Leadership Behavior and Job Satisfaction. BMC Health Services Research, 11(1). doi: 10.1186/1472-6963-11-98.
     Google Scholar
  43. Uddin, M., Luva, R., & Hossain, S. (2012). Impact of Organizational Culture on Employee Performance and Productivity: A Case Study of Telecommunication Sector in Bangladesh. International Journal of Business and Management, 8(2). doi: 10.5539/ijbm.v8n2p63.
     Google Scholar
  44. Walker, D. (2012). Barclays' Incoming Chair Says Bank Pay Will Fall. Retrieved from:
     Google Scholar
  45. http://online.wsj.com/article/SB10000872396390443884104577647131488770156.html.
     Google Scholar
  46. Wanjiku, N. A., & Agusioma, N. L. (2014). Effect of Organisation Culture on Employee Performance in Non-Governmental Organizations. International Journal of Scientific and Research Publications, 4(11), 1-12.
     Google Scholar
  47. Watson, D., Wiese, D., Vaidya, J., & Tellegen, A. (1999). The two general activation systems of affect: Structural findings, evolutionary considerations, and psychobiological evidence. Journal of personality and social psychology, 76(5), 820.
     Google Scholar
  48. Yilmaz, C., & Ergun, E. (2008). Organizational culture and firm effectiveness: An examination of relative effects of culture traits and the balanced culture hypothesis in an emerging economy. Journal of World Business, 43(3), 290-306.
     Google Scholar
  49. doi:https://doi.org/10.1016/j.jwb.2008.03.019.
     Google Scholar
  50. Zain, Z. M., Ishak, R., & Ghani, E. K. (2009). The influence of corporate culture on organizational commitment: A study on a Malaysian listed company. European Journal of Economics, Finance & Administrative Sciences, 17, 16–26.
     Google Scholar
  51. Zhang, F. L., & Pan, J. (2009). Fuzzy Knowledge Management for the Semantic Web. New York: Springer.
     Google Scholar