Corporate Culture and Organizational Effectiveness: A Study of the Nigerian Banking industry

Abstract

The study examined the effect of Corporate Culture on organizational effectiveness in the banking industry. A total of 388 managers were randomly drawn from a population of 13,339 managers of all the 24 banks in Nigeria. The instruments used for data collection were questionnaires and oral interview. A total of 320 copies of the questionnaire were retrieved and analyzed. Spearman’s Rank Correlation Statistical tool was used to test the hypotheses. The findings indicate that adaptability positively influences organizational profitability and market share. There is no significant relationship between adaptability and organizational productivity.  Shared mission, employee involvement, and shared values (consistency) are positively related to profitability, productivity and market share. Based on these findings we concluded that corporate culture has significant influence on organizational effectiveness. It is therefore recommended that in addition to continuous adaptability, organizations should put in place definite plans to minimize cost and waste, as this will promote effectiveness. Organizations’ mission should be shared amongst employees to enable them contribute effectively to the achievement of organizational goals. Employees should be involved in decision-making process, especially in issues that concern them, as this will make them to be committed to the achievement of such decisions taken. Organization’s values should be shared amongst employees as it will enable them to act in the interest of the organization at all times. Socialization of new employees should be encouraged, as it is a powerful tool in managing shared values.  New bases for shared values need to be reformulated in response to variety in the organization’s environment to enable the organization adapt to environmental turbulence.

Keywords: Corporate culture, adaptability, shared mission, employee involvement,
shared values, organizational effectiveness,