THE IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE (A STUDY OF DANGOTE GROUP OF COMPANY)

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ABSTRACT

The cognitive systems of human that helps in improving thinking and decision making were based upon organization culture. The multifaceted set of beliefs, assumptions and values helps in presenting different level of culture by conducting business at an effective manner. This research work try to assess the relationship between organizational culture and employee performance. This study also try determine whether organizational culture influences employee’s performance on the basis of gender. The study adopts qualitative and quantitative research design to understand the influence of perceived organizational culture on employees. Findings show that there is a significant relationship between organization culture and employee performance. Also the result of the findings show that there is no significant different in the influence of organization culture on male and female employee performance. Organizations are established for specific purpose and objectives, people also join organizations to satisfy their needs, and in so doing they contribute to organizational performance to achieve the objectives of the organization. Therefore, it is paramount that every organization develops a specific culture that will function effectively because the extent to which employees perform can be dependent on the culture of the organization as revealed from the case study. As a result of the findings of the study, the following recommendations have been made. Cultural studies dealing with organizational performance in Nigeria remain largely an uncharted course. If proper and adequate combination of human a material resource of the organization is put in place, the organization will achieve its objectives. Therefore, the culture of Dangote Group Of Company Sagamu should ensure that those employees understand the way the organization is designed to operate and its defined objectives which it is set to attain.

 







TABLE OF CONTENTS


TITLE PAGE…….………………………………………….……………………………………….i

CERTIFICATION.. ii

DEDICATION.. iii

ACKNOWLEDGEMENTS. iv

ABSTRACT.. 0

CHAPTER ONE.. 1

INTRODUCTION.. 1

1.1 BACKGROUND OF THE STUDY.. 1

1.2 Statement of the Problem.. 3

1.3 Research Question. 4

1.4 Objectives of the Study. 4

1.5 Research Hypothesis. 4

1.6 Significance of the Study. 5

1.7 Scope of the Study. 5

1.8 Limitations of the Study. 5

1.9 Definition of Terms. 5

CHAPTER TWO: LITERATURE REVIEW... 6

2.2 Theoretical Review.. 8

2.2.2 Involvement Theory. 8

2.2.3 Adaptability Theory. 8

2.4 Conceptual Framework. 9

Figure 2.1: Conceptual Framework. 10

2.5 Critique of the Existing Literature. 11

. 11

. 11

. 11

2.6 Research Gaps. 12

2.7  Summary of Literature. 12

CHAPTER THREE.. 14

RESEARCH METHODOLOGY.. 14

3.1 Introduction. 14

3.2 Research Design. 14

3.3 Target Population. 14

3.4 Sample and Sampling Technique. 14

3.6.1 Validity. 17

3.6.2 Reliability. 17

3.6 Data Collection. 17

. 17

3.7 Data Analysis and Presentation. 17

CHAPTER FOUR.. 20

DATA ANALYSIS AND PRESENTATION OF FINDINGS. 20

4.1 Response Rate. 20

4.3 Reliability Test Results. 20

4.4 Respondents’ Gender Demographic Profile. 20

4.4.3 Respondents’ Level of Education. 22

4.5 Presentation of Findings. 22

4.5.1 Culture Involvement and Employee Performance. 22

Table 4.5.1 Culture Involvement and Employee Performance at Dangote Group Of Company. 23

Regression Analysis. 25

REFERENCES. 33

QUESTIONNAIRE.. 36

Level of Education. 36

Culture Involvement and Employee Performance. 36

Culture Involvement and Employee Performance at Dangote Group Of Company. 36

 

 


CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Employee performance refers to how effectively an individual fulfills their duties, responsibilities, and roles within an organization. It is a critical factor influencing organizational success, growth, and sustainability. Researchers have extensively studied employee performance due to its impact on productivity, profitability, and overall organizational outcomes.

The performance of employees is often influenced by a variety of factors, including individual skills, motivation, work environment, leadership, and organizational culture (Armstrong & Taylor,

2020). High-performing employees contribute significantly to achieving strategic goals, while underperformance can hinder progress and reduce competitiveness (Dessler, 2020).

Motivation, a key determinant of employee performance, is shaped by intrinsic and extrinsic factors such as job satisfaction, recognition, compensation, and opportunities for growth (Herzberg, 1966; Maslow, 1943). Effective leadership is another critical factor, with transformational and participative leadership styles positively correlated with enhanced employee performance (Bass & Riggio, 2006).

The work environment, including factors like organizational culture, infrastructure, and interpersonal relationships, also plays a pivotal role in determining performance levels (Robbins & Judge, 2019). A supportive and inclusive environment fosters engagement and productivity, while toxic workplaces lead to burnout and decreased efficiency (Schaufeli & Bakker, 2004).

Moreover, technological advancements and the shift to hybrid work environments post-COVID- 19 have redefined how performance is measured and managed. Organizations now focus on both quantitative and qualitative metrics, emphasizing adaptability, innovation, and collaboration in performance evaluations (Kumar et al., 2022).

In conclusion, understanding the dynamics of employee performance requires a multi-faceted approach that considers individual, organizational, and environmental factors. This knowledge can guide organizations in designing effective performance management systems and policies.

 

The Dangote Group is one of Africa's largest and most diversified conglomerates, headquartered in Lagos, Nigeria. Established in 1981 by Aliko Dangote, the company began as a small trading firm and has grown into a multinational organization operating in key sectors such as manufacturing, agriculture, energy, and real estate. The Dangote Group's operations span several African countries, making it a pivotal driver of economic development and industrialization on the continent (Dangote Group, 2023).

The group is most renowned for its cement division, Dangote Cement Plc, which is the largest cement producer in sub-Saharan Africa. The company dominates the market with plants in Nigeria, Ethiopia, Senegal, Tanzania, and other African countries, contributing significantly to infrastructure development across the continent (Oyewole & Akinlo, 2021).

Besides cement, the Dangote Group has diversified into sugar, salt, pasta, and beverages, solidifying its reputation as a key player in the manufacturing sector (Obinna, 2020).

In recent years, the group has made significant strides in energy production. The Dangote Refinery, expected to be one of the largest single-train refineries in the world, is set to revolutionize Nigeria's oil and gas industry by reducing the country's dependency on imported petroleum products (Bala-Gbogbo, 2021). This initiative underscores the group's commitment to addressing critical economic challenges and fostering industrial growth.

The Dangote Group’s corporate philosophy emphasizes self-reliance, innovation, and social responsibility. Through the Aliko Dangote Foundation, the group has invested in health, education, and poverty alleviation programs, reinforcing its role as a socially responsible organization (ADF, 2022). The group’s commitment to excellence and long-term vision has not only contributed to its success but has also positioned it as a catalyst for sustainable development in Africa.

In conclusion, the Dangote Group’s growth trajectory highlights the importance of diversification, innovation, and strategic investments in driving industrial and economic development. The company serves as a model for African enterprises aspiring to compete on the global stage.

 

Organizational culture refers to the shared values, beliefs, norms, and practices that shape the behavior and attitudes of employees within an organization. It serves as the social glue that binds members together and provides a framework for understanding workplace interactions and expectations (Schein, 2010). Organizational culture is deeply embedded in a company's structure, strategies, and management practices, influencing decision-making, employee engagement, and overall organizational performance (Hofstede et al., 2010).

(Amah, 2009). Organizational culture has a relationship with the organizational structure in determining the performance of employees. A good example is where the culture of the organization enhances delegation and decision making among the employees of the organization such a culture could be very resistant to centralized decision making However, a culture that supports the organizational structure (and vice versa) can be very powerful (Daft, 2003). organizational culture exacts a positive or negative effect on employee performance depending if such culture is good and suitable or not. Therefore, the responsibility of the management is to enshrine good cultural values which will eliminate negative behavior and enhance the performance of the employees and foster a positive workplace environment or a positive organizational culture. Julie Davoren (2014). Success indicators such as revenues, sales volume, market share, and stock prices leading to realization of the organizations goal are the result of employee performance as a result of good organizational culture. Organizational culture should also take cognizance of the culture of the environment so as not to operate an organization that is antagonistic to the environment as the firm interacts with the wider society for the sale of its goods and services. Therefore, it is pertinent to have good organizational culture that promotes not only the wellbeing of the organization but that of the overall society. Upholding the wrong culture could result in poor employee performance and organizational failure. Therefore, the research seeks to investigate the impact of organizational culture on employee performance. A case study of Dangote group of company


1.2 Statement of the Problem

Organizational culture plays a crucial role in shaping employee behavior, motivation, and overall performance. In the context of large conglomerates like the Dangote Group, understanding how different cultural dimensions influence employee performance is vital for maintaining competitive advantage, fostering innovation, and achieving organizational goals. Despite the growing emphasis on the role of organizational culture in enhancing employee productivity, many companies, including Dangote Group, struggle to align their cultural practices with desired performance outcomes.

The specific cultural dimensions of competitive culture, entrepreneurial culture, consensual culture, and bureaucratic culture each have distinct impacts on employee performance.

Competitive culture drives performance through a focus on results and rivalry but may lead to stress and burnout. Entrepreneurial culture fosters innovation and risk-taking but may lack structure and consistency. Consensual culture emphasizes collaboration and teamwork but can delay decision-making processes. Bureaucratic culture ensures order and stability but may stifle creativity and adaptability.

In the case of the Dangote Group, which operates in dynamic and diverse sectors, the interplay of these cultural dimensions presents unique challenges. There is limited research on how these specific cultural dimensions impact employee performance in such a large and multifaceted organization. Understanding this relationship is critical for developing strategies to optimize performance while balancing innovation, competitiveness, collaboration, and structure. Denison (1990)


1.3 RESEARCH QUESTION

 

i.                    Is there a significant relationship between competitive culture and employee performance

ii.                  Is there a significant relationship between entrepreneurial culture and employee performance

iii.                Is there a significant relationship between consensual culture and employee performance

iv.                Is there a significant relationship between bureaucratic culture and employee performance

 

 1.4 OBJECTIVES OF THE STUDY

 

The following are the objectives of this study:

i.                To determine the impact of competitive culture on employee performance

ii.               To determine the impact of entrepreneurial culture on employee performance

iii.              To determine the impact of consensual culture on employee performance

iv.              To determine the impact of bureaucratic culture on employee performance


1.5 Research Hypothesis

H1: There is a significant relationship between competitive culture and employee performance

H2: There is a significant relationship between entrepreneurial culture and employee performance

H3; There is a significant relationship between consensual culture and employee performance

H4: There is a significant relationship between bureaucratic culture and employee performance


1.6 Significance of the Study

The study shall elucidate on the essence of upholding a good organizational culture and transferring same to new employees in the organization.


1.7 Scope of the Study

The study focuses on the appraisal of the impact of organizational culture on employee performance with a case study of Dangote group


1.8 Limitations of the Study

The study was confronted by some constraint including geographical factor and logistics.


1.9 Definition of Terms

Culture: This is considered as the way of life of the people in a particular place and the arts and other manifestations of human intellectual achievement regarded collectively.

Performance: The recognition accorded the accomplishment of an assignment or job in line with pre-determined set standard.

Organization: organization is considered as the group of people working together with common interest and within an instituted structure which defines their roles, responsibility and line of authority with the view of achieving a set goal and objective. All organizations are characterized by a management structure which provides direction of common purpose and which determines relationships between the different activities and organizational employees and subdivides and assigns roles, responsibilities, and authority for the execution of organizational tasks. Organizations consist of open systems that affect and are affected by their environment. 


ORGANISATIONAL CULTURE DEFINED

Organizational culture consists of a framework which determines the behavior of employees in the organization. It is a pattern of shared belief, assumptions, values, and beliefs that provide the awareness what is considered appropriate and inappropriate behavior in an organization.


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