Examining the impact of organizational culture on corporate performance. (Case study of First Capital Plus and SG-bank Ghana )
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Date
June 2015
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Abstract
In an increasingly competitive banking environment, the initiation of an effective organizational culture strategy can be a critical success factor. The study investigates the impact of organizational culture on corporate performance within the Ghanaian banking industry with particular focus on First Capital Plus Bank (FCPB) and SG-Bank. The study employed both qualitative and quantitative approaches. The research population comprised management (Chief executive Officer and 4 general managers) and non-management (Staff) of the two banks and was estimated at 505, out of which a sample of 150 was chosen. The researcher adopted purposive sampling techniques in soliciting information for the study. SPSS statistical package and Microsoft Excel were employed in analyzing the data. The study established that, the organizational culture traits of FCPB and SG-Bank included Involvement, Consistency, Adaptability and Mission traits that were in consistence with Denison’s model of organizational culture traits. Again, the study established that, majority of the management and staff of FCPB and SG-Bank indicated that the organizational culture of the banks was very good in enabling the organization achieve it mission. Additionally, the result implied that there was a positive relationship between organizational culture and staff retention. According to the regression model, organizational cultures have an impact on corporate profitability. The organizational cultures were statistically significant at p-value of 0.05. Also the organizational cultures had a predictive power (R2) of 0.843 approximately 84.3 percent chance of predicting corporate profitability which was moderate. The study finally recommended that, organizations must structure it recruitment processes to attract and engage incumbents with the same beliefs and values that constitute the organization’s culture. Companies should also ensure that they align corporate culture with performance management systems.
Description
A thesis submitted to the School of Business KNUST in partial fulfilment of the requirements for the award of Master of Business Administration (Strategic Management and Management Consulting).