The relationship between organisational culture and performance : a case of the banking sector in Nigeria.

Abstract

The interplay between organisational culture and performance is an on-going area of research. Previous studies have not being able to provide constructive explanations of the link between organisational culture and performance. The current study proposes a research model as an extension to the direct link between organisational culture and performance, utilising human resource development policy and human resource outcomes as mediating variables. This study also explores the role of human resource outcomes in the relationship between human resource development policy and commercial banks’ performance in Nigeria. The study adopted a non-experimental research design of ex post facto type, utilising a correlational approach with advanced explanatory design. This suggested the utilisation of concurrent transformative mixed methods for data collection and suitable corresponding data analysis procedures. The instruments used for data collection were the: Organisation Culture Scale (OCS), Dimensions of Learning Organisation Questionnaire (DLOQ), Human Resource Outcomes Scale (HROS), Employee Attitude Survey (EAS), Organisational Citizenship Behaviours (OCBs) and Organisational Performance Scale (OPS). The Cronbach’s alpha coefficients were; 0.886, 0.914, 0.898, 0.900, 0.878 and 0.821, respectively. A combination of simple random sampling and convenience sampling techniques was adopted. While three hundred and eighty (380) questionnaires were distributed to the respondents; three hundred and six (306) were returned. Only one questionnaire was not properly filled and was discarded. The remaining 305 questionnaires represent an 80.3% response rate. Based on the overall objective of the study, five hypotheses were formulated and tested using Pearson Product-Moment Correlation (PPMC) and multiple regression analysis, and Structural Equation Modelling (SEM) via IBM SPSS statistics version 21 and IBM SPSS AMOS version 21, respectively. The study found a statistically significant alternative route from organisational culture to performance, by communicating core values through human resource development policy and shaping employee skills, attitudes and behaviours; as human resource outcome factors, which better explained the variations in commercial banks’ performance in Nigeria. This study extends the frontiers of knowledge in the field of human resource management and organisational behaviour by offering a four-stage explanation/discussion on the culture-performance link.