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Chapter # 1. Introduction: 1.1. Background of The Study

This document provides an introduction to a study about how organizational culture affects employee performance and efficiency. It identifies a gap in previous research - that few studies have examined the impact of organizational culture on employee efficiency in Pakistan, particularly the banking sector. The study aims to analyze the relationship between organizational culture and employee efficiency, investigate what type of relationship exists, and examine the moderating role of motivation. It outlines research questions, objectives to identify key determinants of culture and efficiency and measure their relationship, and significance around helping organizations and employees understand how culture impacts performance.

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syeda zoya maqsood
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105 views

Chapter # 1. Introduction: 1.1. Background of The Study

This document provides an introduction to a study about how organizational culture affects employee performance and efficiency. It identifies a gap in previous research - that few studies have examined the impact of organizational culture on employee efficiency in Pakistan, particularly the banking sector. The study aims to analyze the relationship between organizational culture and employee efficiency, investigate what type of relationship exists, and examine the moderating role of motivation. It outlines research questions, objectives to identify key determinants of culture and efficiency and measure their relationship, and significance around helping organizations and employees understand how culture impacts performance.

Uploaded by

syeda zoya maqsood
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER # 1.

INTRODUCTION
1.1. Background of the Study

This study is about organizational culture that how it affects the employees’
performance which can result in employees’ efficiency towards their work. As understand
people to like their duty and responsibility for that organization should motivate them. In the
present century, it is must for the employees to get know about the importance of hardworking.
In every organization employee are motivated in different ways. The organization culture has
great impact on employee’s efficiency. The culture is an arrangement of different attitudes,
behaviors, norms and values that differentiate the organization from other organization. Every
organization had different culture that leads to the employees’ efficiency and good
performance.

The amount of research studying organizational culture has increased significantly over
the last decade (Denison 1990; Agbonna 2000; Hofstede 2001. scholars (Hofstede, 1980;
Ouchi, 1981; Hofstede & Bond, 1988; Kotter and Heskett, 1992; Magee, 2002) claim that
organizational culture could be used for measuring economic performance of an organization.
However, organizational excellences could be varied since cultural traits differ from
organization to organization and certain cultural traits could be source of competitive
advantages through causal ambiguity (Barney, 1991 and Peters and Waterman, 1982). The
world is changing rapidly, and the level of employee expectation and satisfaction also change
accordingly. Organizational culture adapts overtime to cope up with such dynamic changes and
meet the varying demand of employee expectations and satisfactions. Therefore, a supportive
culture as pointed out by Ritchie (2000) is considered as a motivational instrument which
promotes the employees to perform smoothly and ensures better productivity (Ritchie, 2000).
In the time of economic recession, increasing the profitability of an organization is more
important to stakeholders. The organization culture can connect the employees to their business
and by implementing policies that help to fulfill the employees’ needs. The change is needed
if the organization culture negatively affects the employees’ efficiency. The organization
culture should adopt a way which will improve the betterment of the organization’s
performance and reputation. The environment of an organization is developed by the
organization culture. The strong organizational culture helps employees to communicate and
participate effectively and efficiently in the decision making and with the customer’s
satisfaction.

Research has been carried out on various issues of organizational culture, for example,
organizational culture types (Tharp, 2009) emphasize the stages of culture across the
organization whereas organizational psychology (Schein, 1990) focuses on how culture makes
an impact on employees’ psychology and performance. These two issues of organizational
culture set up equilibrium where an organization can achieve its maximum level of
effectiveness and efficiency (Deem, Barnes, Segal & Preziosi, 2000) that shows the link
between organizational culture and employee performance. (J. Meng, B.K. Berger, 2019)
showed that a supportive culture and a strong leadership performance in public relations
facilitate the organization’s communication and development initiatives to increase
professionals’ work engagement. Dasgupta and B. Gupta, (2019) showed that espoused
organizational culture values have an impact on the individual’s acceptance and use of Internet
technology in a government agency in developing country. This implies that organizational
culture should be carefully managed for the successful adoption and diffusion of Internet and
other technologies. Juris Iljins et al, (2015) results confirmed that stability, reward system, job
satisfaction, team orientation, empowerment, core values and agreement are most important
organizational culture factors influencing organizational climate. A.A. Eniola et al, (2019)
outcomes demonstrate that TQM has an immediate positive and significant impact on SMEs'
performance just as an indirect, significant and positive effect on their performance through
OC. Top management leader's benevolence, and adhocracy OC dimension have positive and
significant effects on employee creativity (Ogbeibu et al 2018).

Eminent researchers have examined the impact of organizational culture on


organizational performance but very few studies have measured impact of organizational
culture on employee efficiency (Uddin et al., 2013). Most of the studies conducted in the past
evaluated effects of impact of organizational culture on organizational performance (Mashal &
Saima, 2014) and employee productivity (Uddin et al., 2013). They have conducted the
research in Western context but didn’t conduct it in eastern context. Furthermore, several
studies have measured the mediating role of various factors including trust and engagement
(Jaun & Bruce, 2019) but none of the study has measured the moderating effects of motivation
between organizational culture and employee efficiency in Pakistan’s social and cultural
context in general and Banking Sector of Pakistan (Rawalpindi) in particular.
Although many researchers identified many areas of research which remain
untouched by previous researchers however the main aim/objective of this research paper is to
evaluate that how the organizational culture impacts the employee’s efficiency with a
moderating role of motivation in eastern context (Pakistani Context).

1.2. Gap Analysis

Eminent researchers have examined the impact of organizational culture on


organizational performance but very few studies have measured impact of organizational
culture on employee efficiency (Uddin et al., 2013).
The scholar cannot find any comprehensive study regarding organizational culture and
employee efficiency in Pakistan’s social and cultural context in general and Banking Sector of
Pakistan (Rawalpindi) in particular. Most of the studies conducted in the past evaluated effects
of impact of organizational culture on organizational performance (Mashal & Saima, 2014)
and employee productivity (Uddin et al., 2013). They have conducted the research in Western
context but didn’t conduct it in eastern context. Furthermore, several studies have measured
the mediating role of various factors including trust and engagement (Jaun & Bruce, 2019) but
none of the study has measured the moderating effects of motivation between organizational
culture and employee efficiency in Pakistan’s social and cultural context in general and
Banking Sector of Pakistan (Rawalpindi) in particular.

Thus, this study intends to comprehensively analyze the impacts of organizational culture
on employee efficiency and examine the moderating role of motivation on such relationship in
Banking sector of Pakistan (Rawalpindi) in particular.
1.3. Problem Statement
“Organizational culture determines organizational behavior it functions as an internal
control measure that coordinates employees’ effort. Rigid or dry culture can lead to
inefficiency of employees and can cause serious consequences for an organization.
Motivation plays a vital role if the organizational culture is motivating then the employee
will feel encouraged and perform better. On the other hand, if there is dry or non-
motivating culture then it will lessen the employee efficiency.”

1.4. Research Questions


1. What are the determinants of culture?
2. Do these determinants have any significant impact on employee efficiency?
3. What factors determine employee efficiency?
4. what are the different indicators used to measure employee efficiency?
5. Does motivation play moderating role between the relationship of organizational
culture and employee efficiency?

1.5. Study Objectives

Following are the objectives of this study:-

1. To identify major determinants of organizational culture and employee


efficiency.
2. To measure the relationship of organizational culture and employee efficiency.
3. To investigate the type of relationship exists between organizational culture and
employee efficiency.
4. To measure the moderating effects of motivation on the relationship of
organizational culture and employee efficiency?

1.6. Significance of the Study

a) In the time of economic recession, increasing the profitability of an organization


is more important to stakeholders. The organization culture can connect the
employees to their business and by implementing policies that help to fulfill the
employees’ needs. Therefore this study will have its significance in both public
and private sector if they consider organizational culture as important factor.

b) This present study will help the organization to cope up with the upcoming
challenges. As organizational culture stimulates independent thinking,
entrepreneurship and innovation in the individual employee, strong
Organizational cultures proffer more advantages such as more motivated
employees, unity and groupthink among employees, and often Organizations
with the later culture outdo the ones with the former.
c) In addition, this study attempts to create awareness to the employees that how
the organizational culture can affect their performance.

d) This study intends to identify barriers and challenges faced by the management
in handling cultural issues and suggest appropriate solutions.

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