ORGANIZATIONAL CULTURE AND PERFORMANCE (A CASE OF FIDELITY BANK PLC ENUGU)

ABSTRACT

The impact of culture on organizational performance cannot be over flogged. Culture is observable as a set of behaviour among a particular group of peoples. The collective rules by which an  organization operates  define  its  culture. These rules are formed by shared behaviours, values, beliefs and norms. It forms the basis for how various units within an organization perceives and reacts to situations. Culture serves as a binding force that defines people’s behviours within an organization even when they are not being monitored. It imbibes a sense of ethics and principles in people and compels them to do what is right thereby enhancing effectiveness and efficiency in organization’s performance. This research work is meant to critically analyze the binding force that is inherent in organizational culture that brings about maximum performance in an organization.

CHAPTER ONE

1.2   INTRODUCTION

Each  group  of  human  society  has  different mechanisms to  coordinate the  individual doings  of  their members. Beyond this, other social mechanisms play an important role for social system which are based on shared ways of thinking, feeling or doing. Common assumptions, shared values and norms, same understanding of symbols, same ways of interpretation and rules of communication function as social adhesives in human organizations (Weik and Lang 2001:203).

All these phenomena are subsumed in the concept of organizational culture, which seems to be one of the most complex fields in the science of economics.

1.2  BACKGROUND OF THE STUDY

In economic research, organizational culture is relatively new and first came up at the end of the 70s. At this   time,   the   Japanese   economy   boomed   and   their industrial working practice was seen to be more successful

than the working style in the USA or Western Europe. In a further step, the recognized and many studies comparing different  national  culture  have  been  performed  (Heinen

1987:4).During  the  80s,  the  concept  of  organizational culture became increasingly established. The enormous interest of industries encouraged scientific discussion.

The best known theoretical models for organizational culture are proposed by Schein, Hofstede, Peters and Waterman, Ouchi, Deal and Kennedy (Tuppinger, 2003:122 and Hofstede, 1982).

Besides different scientific traditions and definitions of organizational culture,  Schreyogg  (1991)  summarizes  the most relevant elements of the concept.

i.  Organizational  culture  is  mostly  an  implicit phenomenon consisting of shared beliefs, which determine self image and definition of the own organization.

ii.    Organizational culture are kept alive and its sense is not self reflected

iii.    Concept of organizational cultures subsumes shared orientations and values. It is a collective phenomenon influencing strongly individual doings and is

iv. The  basis  for  uniformity  and  coherence  in organizational doings.

v.   Organizational cultures result from a learning process of organization in interaction with its internal and external environment.

vi.   Certain  doings   historically  successful  in   problem solving build up the basis of common accepted behaviours.

vii.    Organizational culture  brings  sense  and  orientation into a complex world in the way as it supports selections and interpretation.

viii.    Organizational culture is transferred in a process of socialization and is not learned consciously.

Imaga (2001:44) quoting O. Sheldon, defines an organization as the “process of combining work which individuals or groups have to perform with facilities necessary for its execution, so that the duties so performed

provide  the  best  channels  for  the  efficient,  systematic, positive, and coordinated application of the available effort”.

It must then be noted that when different people come together as one group, they bring in their individualities, which join together to form a whole part. More often than not, these individualities are subtle and not overt, since the whole swallows the individual.

Invariably, these traits will impact the way that organization will do things, how the members of the organization will see it and how it will be seen from -outside. In essence “the way we do things here” will either positively or negatively affect an organization and the performance of its employees. It will determine how the employees see themselves and how the owners’ of the business and management see the workers.

1.3  STATEMENT OF THE PROBLEM

This study sets out to establish how important organizational culture is on the performance of the organization.

Organizational culture is too important a subject not to be discussed: By its nature, it is interdisciplinary and ultimately must be practical as well as theoretical. Organizational culture does not guarantee economic development but its absence usually indicates present or future  problems.  If  organizational  culture  is  indeed  the major determinate of organization behaviour, it would be salient, appropriate and timely to finally recognize its effect on the performance of organizations.

1.4  RESEARCH OBJECTIVES

The specific objectives of this study include the following:

1. To  ascertain  the  various  sources  of  organizational culture

2. To highlight the factors that influence cultural changes in an organization

3. To  assess  the  impact  of  culture  on  organizational performance.

4. To investigate how cultural changes affect performance

5. To identify the various ways of learning organizational culture.

1.5  RESEARCH QUESTIONS

1. What are the various sources of organizational culture?

2. To what extent can the factors that influence cultural changes affect performance in fidelity Bank Plc Enugu?

3. Does the impact of culture pose any challenge to the organizational performance?

4. To what extent do cultural changes affect performance in Fidelity Bank Plc Enugu?

5. How does the learning of the various organizational cultures affect performance?

HYPOTHESES FORMULATION

Research hypothesis is a tentative answer to a set of research, the following hypotheses are considering the nature of this research, the following hypotheses are proposed in their Null (H0) and Alternative (H1) forms which would be pursued to arrive at our conclusions and recommendations.

Hypothesis One

Ho:  Personal values of the key management personnel of our   organization   is   not   the   main   sources   of organization culture.

H1:   Personal values of the key management personnel of our  organization is  the main source of  organization culture.

Ho:  The socio-economic and political trends are not the major factor that influences organization cultural change.

H1:   The socio-economic and political trends are the major factor that influences organization culture change.

Ho:  Organizational culture does not improve the level of productivity.

H1: Organizational  culture  improves  the  level  of productivity.

Ho: Identification of  the  various  ways of  learning organizational culture does not enhance efficiency.

H1: Identification of the various was of learning organizational culture enhances efficiency.

1.6  SIGNIFICANCE OF THE STUDY

This study is significance for these following reasons:

1. Organization:    Organizational    culture    has    been recognized   as   crucial   for   the   improvement   of employee’s  performance  especially  in  the  banking sector of the economy. Financial institutions and managers of banks will realize the need for corporate culture and its effect on employee performance.

2. Policy maker and other government agents: This study will serve as a relevant literature of strategies as inculcating organizational culture and performance as it concerns banking policy in governance.

3. General public: This study will be of immense help to other researcher since it is quick in structuring their internal environment to enhance performance and also increase the level of efficiency. Being a new topic, interested students and researcher can read and know more about organizational culture and performance.

1.7  SCOPE OF THE STUDY

This study is focused on organizational culture and performance with special reference to Fidelity Bank Plc.

1.8   LIMITATION OF THE STUDY

In  the  course  of  the  work,  the  researcher  had  to contend with some problems militating against the study. Some of the constraints include:

Financial Constraint

Such an empirical research demands much fund for its successful accomplishment. Much money was required to cover transportation costs, and materials used for the study. These problems constituted a major impediment for the smooth and thorough of the research work.

Time Constraint

Time is a scare resource, one of the major factors necessary for any study or research work is time, but most often might be too short or inadequate. Due to the limited time given for the study, the researcher could not get all the information required for the study.

Attitude of Respondents

Some of the respondents were reluctant to cooperate with the research because they felt would not benefit from the study.

1.9  HISTORICAL BACKGROUND OF FIDELITY BANK PLC

Fidelity Bank Plc began operations in 1988, as a merchant bank. In 1999, it converted to commercial banking and then became a universal bank in February 2001.

The current enlarged Fidelity Bank is a result of the merger with the former FSB International Bank Plc and Manny Bank Plc (under the Fidelity brand name) in December 2005.

Fidelity Bank is today ranked amongst the top 10 in the Nigerian banking industry, with presence in the major cities and commercial centres of Nigeria. Over the years, the bank has been reputed for integrity and professionalism. It is also respected for the quality and stability of its management.

Fidelity employees are also respected in the Nigerian banking industry for the quality of training they receive on

the job, as well as in good business schools both in Nigeria and overseas. The management is particular about the quality  of  people  that  join  the  system.  To  qualify  as  a member of Team Fidelity, a candidate is expected to possess three vital statistics, with the acronym TAC: Talent (an innate mental aptitude), Ambition (a desire to succeed), and character (a total quality of integrity which will guide the talent and ambition to productive ends).

The management is focused on building and maintaining a virile and well-respected brand that caters to the   needs   of   its   growing   corporate,   commercial   and consumer banking clientele. For this purpose, the bank is leveraging its pedigree in investment banking Fidelity was a merchant bank for 11 years) and its structures and services offerings for a retail populace.

Fidelity Bank also enjoys the respect and partnership of a network of offshore institutions with it has correspondent banking, confirmation lines, credit and other relationships. These include, ANZ London, Afrieximbank, Cairo,   Egypt,   ABSA   South   Africa,   Commerce   Bank,

FrankFurt, Citibank, N.A London and New York, FBN Bank, UK Ltd, SCB, London, HSBC, US Ex-im Bank, USAID, etc.

Vision and Mission

Vision: to be no. 1 in every market we serve and for every branded product we offer.

Mission: to make financial services easy and accessible.

Products and Services

The following are some of the products and services offered by Fidelity Bank:

i.    Fidelity Easy Assets Leasing Scheme ii.    Fidelity Multiple Benefits Account

iii.    Fidelity Current Account Plus iv.   Fidelity Savings Account

v.   Fidelity Premium Student Account vi.   Premium Graduate Account

vii.    Fidelity Personal Savings Scheme (FPSS)

viii.    Fidelity SWEETA Fidelity Personal Banking

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