IMPACT OF ORGANISATIONAL CULTURE ON EMPLOYEE WELLBEING AMONG BANKERS IN IBADAN (A CASE STUDY OF GUARANTEE TRUST BANK, AWOLOWO BODIJA, IBADAN)
A CASE STUDY OF GUARANTEE TRUST BANK (PROJECT WRITE-UP)
Free write-up project on impact of organizational culture on employee wellbeing among bankers in ibadan ( case study of guarantee trust bank, awolowo bodija, ibadan). The research was done by banking and finance final year student.
1.1 Background of the Study
The perception towards Organizational culture has become more significant from early 1980s. Organisational Culture mainly includes the values, opinions and attitudes of a company. Culture refers to how the things are undertaken within different Organisation (Nazir & Umar, 2016). It is also famous that the culture of the Organisation is mainly focuses with the direction of learning. Thus, it is very much essential to recognise the aspects of the culture of an Organisation before any change is going to be implemented. It has been seen that the hidden rules and expectations of behaviour in an Organisation where the rules are not officially considered, employees know what is anticipated from them. It is the responsibility of the management to make decisions on policy about the Organisation culture (Hillary,2018).
Workplaces are important participants in society. Besides their economic importance, they influence several factors at an individual, community and society level. People spend most of their active time working (Aamondt, 2012); suitable physical, and social work environments, protective working conditions ensure adequate employee motivation and performance (Lamb et al., 2016; Renee, 2008), and the return on investments in health and safety at work is more than twice as much as the invested amount. These findings motivate modern companies to invest in employees’ well-being. This motivation is particularly pronounced in industries such as information technology (IT) where the retention, motivation and satisfaction of employees with expertise and experience are key factors in long-term business success.
The World Health Organisation defines mental health as “a state of well-being in which every individual realizes his or her own potential, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to her or his community” (WHO, 2018). Conditions at the workplace such as basic hygiene factors (Herzberg, 2004), the quality of communication, information flow, social support, and having regard for individual abilities are closely related to the extent to which employees’ experience that their workplaces meet the criteria set in the above definition. Mental well-being poses one of the greatest challenges to societies in the 21st century. The European Union established priority areas in mental health and well-being in 2008, one of which areas is prevention and intervention at the workplace (European Commission, 2008).
Employee well-being is a multifaceted and fluid concept whose understanding largely varies across Organisation and countries. Some of the factors that previous studies consistently found to be associated with workplace-related and personal wellbeing are value-based working environment and leadership style, open communication and dialogue, teamwork and cooperation, clear and coordinated objectives, flexibility, balance between business and personal life, and fair salary and benefits (Kowalski et al, 2010).A low level of perceived work- related stress, a high level of Organisational identification, and a low level of turnover intention are among the most frequently applied criteria for employee well-being in the European Union (Kiss et al., 2018). The present study also used these measures as the indicators of employee well-being.
Since the disproportionate mortality and comorbidity rates in Hungary are primarily attributed by several authors to chronic stress (Kopp et al., 2004, 2006). Indices of mental and physical well-being and mortality rates are worse than would be predicted by socio-economic factors. According to the 2015 Eurostat survey, the so-called Central-Eastern European health paradox is still observable. Several international research teams point out that chronic stress and mental or behavioural factors have essential importance in this phenomenon (Kopp et al., 2007). The related studies also draw attention to the direct importance of new forms of employment widespread in developed societies (WHO), and particularly to the importance of psychosocial factors. People are exposed to these effects in smaller and larger communities where they spend most of their time, and the workplace has primary importance in this respect.
In sum, work-related stress is a form of stress to which individuals are exposed at the Organisation or during work, and which impairs their quality of life and often leads to severe diseases or tragedies. There are diverse sources of stress at the workplace such as time pressure, lack of autonomy, role ambiguity, conflicts in cooperation, lack of supervisor’s support, lack of appreciation, and perceived instability and unpredictability of one’s employment with an Organisation, that is, a high level of perceived job insecurity (Probst & Lowler, 2006). Findings reported by Kivimäki and Siegrist (2016) show that work-related stress may increase the risk and symptoms of cardiovascular disease and atherosclerosis over time.
A significant relationship between job insecurity and coronary heart disease was revealed in a cohort study by Ferrie and colleagues (2013). In a similar vein, a comprehensive study by Kiss, Polonyi and Imrek (2018) points out the effects of chronic stress on physical and mental health and its relationship with the burnout syndrome. It is also worth considering the economic side of the problem, that is, the financial costs of an employee’s health impairment.
Workplace-related experiences of members of an organisation are distilled into their perceived organisational culture. organisational culture is a cohesive social force that supports internal integration and adaptation to the external environment (Daft, 2008). It is a shared system of beliefs and way of thinking established by the leaders and founders and accepted by all members of the organisation (Klein, 2006). Hofstede (2008) uses the analogy of an operating system suggesting that culture as a software enables people to function as hardware. This is a dynamic interaction between the environment and the individuals. Employees construct a shared social reality in their interactions with colleagues at the workplace, which has an impact on their beliefs, emotion regulation and behaviour in certain situations. A stable organisational culture is based on a well-defined system of values (Schein, 2004). This system of values influences members’ work style, communication and openness within the organisation, their opportunities to foster community life and to realize their potential, and many other everyday organisational practices that have an impact on employees’ well-being.
Numerous types of organisational culture models and several organisational culture assessment instruments have been proposed in the literature. One of the most commonly used organisational culture model is The Competing Values Framework (CVF). This model focuses on leadership styles, organisational cultures and competencies while taking account of employees’ values. The objectives Organisation pursue to increase efficiency and productivity are based on various values. The authors used the operating characteristics of efficient Organisation to define the axes of the CVF.
The vertical axis is defined by the two poles of flexibility and control, while the poles of the horizontal axis are internal and external focus. The two axes define four different types of cultures: team culture, adhocracy, market culture, and hierarchy. Hierarchy is the earliest and most permanent type of culture, which is characterized by bureaucracy. It ensures predictability and security for employees, who are assigned well- defined specific roles. In this type of culture, employees are primarily expected to observe the rules and to have respect for formal positions. Hierarchy is placed on the controlled pole because employees are regularly supervised. The priorities of this type of culture are predictability, order, stability and balance, which are ensured by continuous documentation and stabilization. Leaders’ primary functions are coordination and monitoring (Denison & Spreitzer, 1991).
A market culture considers the organisation as an economic entity, which pursues rational interests and focuses on profits, productivity and efficiency. Employees have more autonomy and scope for personal development, while the tasks and objectives are clearly defined. This type of culture is also highly controlled but externally focused. Its priorities are productivity, efficiency and performance improvement. Leaders are directors on one hand, who fulfil a coordinating function, and producers on the other hand, focusing on productivity. (Denison & Spreitzer, 1991) A more recent development is the innovation-oriented adhocratic culture, which has taken a definite shape over the past decades. This type of culture usually develops in organic and open systems or at matrix Organisation. Its primary advantage is its adaptability. It focuses on innovation, creativity and risk taking. Information flow is open in this culture, and members are motivated and supported rather than controlled. This culture is ideal for those with a strong need for personal development, since this is its highest priority. It is an externally focused and flexible culture, which often relies on external resources. Leaders themselves are also innovators or brokers. (Denison & Spreitzer, 1991).
A team culture focuses on human relations. This culture prioritizes agreement, coordination and teamwork. It assigns high importance to both commitment and personal development. Decision making is not leaders’ sole responsibility, but other members are also involved and informed. This type of culture meets the needs for communion and learning. It is internally focused and flexible. Leaders are mentors and facilitators. (Denison & Spreitzer, 1991)
The way employees perceive their work environment and organisational culture has essential importance in their well-being, health, and enjoyment and quality of work (Hellriegel & Slocum, 1974). Employee well-being can be measured by factors such as sick leave rates, fatigue, and absenteeism (Peterson & Wilson, 2002). This type of culture is synonymous with the team culture in that it is centered around teamwork, and it lays special focus on the human condition and employees’ problems. In addition, consensual culture exhibited the strongest, negative association with nurses’ turnover intention, while hierarchical culture showed a significant positive association.
Culture reported the lowest levels of stress and the highest levels of productivity and enjoyment, followed by those working in adhocratic, hierarchical and market cultures. Several studies suggest that one of the most important protective factors is the presence of social support, which is often associated with a team-oriented environment (La Rocco et al., 1980). As we can see, workplaces have an important role and responsibility in ensuring the necessary conditions for well-being at a societal level. One the major components of the organisational experiences is the perceived organisational culture. The present study was aimed at identifying those organisational conditions that would act as protective factors against work-related stress through the organisational culture.
1.2 Statement of Problem
It is true that the concept of culture in a company cannot be attributed to a single definition because it becomes difficult to define it, since in general the concept of culture stems from cultural anthropology. Culture is a structured set of basic assumptions that have been discovered or developed by a structured group as it learns to deal with problems of external adaptation and internal integration that have performed well in previously considered to be generally applicable and therefore can be taught to new members as the correct way of perceiving, thinking, feeling with these problems. Noteworthy also is that the concept of culture can be better understood through the interactions observed between Organisation and employees and we cannot say that they are subject to the limitation closely on matters of purely business culture, but contain a subset consisting of norms and values.
There is strong evidence of a significant relationship between organisational culture and increased employees’ productivity and there is a positive relationship between corporate culture and employee job performance. A positive organisational cultures positive impact on employees’ performance by motivating, shaping and channeling their behaviors towards the attainment of corporate objectives. organisation culture has received relatively low levels of empirical investigation among the possible antecedents of employee performance, culture researchers have devoted numerous articles to the nature and definitions of culture, relatively fewer articles have been contributed towards culture and performance research. In addition, Edgar mentioned the reason for this was the difficulty in operationalizing the culture construct. Although empirical research has been carried out, there has been little evidence to prove the effect of organisation culture on employee performance.
Organisation Culture has a great influence on performance as it dictates how things are done, Organisation’s philosophy, work environment, performance targets, and Organisation stability. organisational culture in the last few decades, the empirical evidences emerging from various studies about the effect of organisational culture on performance have so far yielded varied results that are inconclusive and contradictory. He further states that there is no agreement on the precise nature of the relationship between organisational culture and performance.
1.3 Research Questions
- What is the relationship between management-staff relationship and employee wellbeing in GTB bank Bodija Ibadan?
- Is there any relationship between giving employee equal right and employee wellbeing among bankers in Ibadan?
- How does authoritative management leadership influence employee wellbeing among bankers in Ibadan?
- What is the relationship between market culture and employee wellbeing among bankers in Ibadan?
1.4 Research Objectives
The broad objective of this study is to investigate the impact of organisational culture on employee wellbeing. Specifically, this study will;
Investigate management-staff relationship among banker in Ibadan
Determine the different staff right among bankers in Ibadan
Examine the different managerial rules among bankers in Ibadan
Investigate the market culture among bankers in Ibadan
Determine the relationship between organisational culture and employee wellbeing among bankers in Ibadan
1.5 Research Hypothesis
H01: There is no significant relationship between management-staff relationship and employee wellbeing among bankers in Ibadan, Oyo State.
H02: There is no significant relationship between staff rights and employee wellbeing among bankers in Ibadan, Oyo State.
H03: There is no significant relationship between authoritative managerial rules and employee wellbeing among bankers in Ibadan, Oyo State
H04: There is no significant relationship between market culture and employee wellbeing among bankers in Ibadan, Oyo State
1.6 Significant of the study
This study is significant because it will help us to understand the role of culture in business organisation whose aims is to the develop and plan human resources management, in recruitment and selection, learning and evolution, labor relations and working climate in business, health, safety, prosperity, fulfillment of regulatory requirements for employees, equal opportunities, and any other matter relating to the employment relationship.
This study will also help to know what influences employee’s performance in banking sector, how it affects and mainly enabling the organisation to achieve the goals of the company and to provide guidance and support on all matters concerning employees. The main goal is to ensure that organisation policies and practices re related to employment and human development and relationships between management and labor. The function of organisational management can play an important role in creating an environment that allows people to make the best use of their potential and realize their potential to the benefit of both the organisation and themselves.
This study will also help to investigate the factors in Organisation, that successfully manage change, is already incorporated in their business policies in human resource management along with their strategies. The strategic process of change in education, labor relations, compensation packages and other not just operational issues associated with staff employed, as the way in which employees are related to the nature and direction of the business are inextricably linked. The function of organisational management may be involved in the initiation of change but can also act as a stabilizing factor in situations where a change could damage the function and objectives of the business. To facilitate change, managers should be fully informed of the reasons that employees resist in change and the approaches that can be adopted so as to curb any resistance there, and even to obtain their consent that this change is desirable.
1.7 Scope of the Study
This study is restricted to Ibadan metropolis the capital city of Oyo state.
1.8 Operational Definition of Terms
Bank: A bank is a financial institution that accept and deposits from the public and create a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital market.
Well-being: Wellbeing is not just the absence of disease or illness. It is a complex combination of a person’s physical, mental, emotional and social health factors. In short, wellbeing could be described as how you feel about yourself and your life.
Culture: Culture is a way of life of a group of people, the behaviour, belief, values and symbols that they accept, generally without thinking about them and they are passed along by communication and imitation from one generation to the next. Culture is a symbolic communication.
Employee: An employee is an individual who was hired by an employer to do a specific job. The employee is hired by the employer after an application and interview process result in his/her selection as an employee. The term of an individual employment is specified by an offer letter, an employment contract or verbally.
Impact: It is the action of one object coming forcibly into contact with another and a marked effect or influence
2.1 Concept Review
The concept and definition of organisational culture has been debated by many experts in the field for over a decade. The term “culture” originally comes from social anthropology. According to them, concept of culture was coined to represent, in a very broad and holistic sense, the qualities of any specific group that are passed from one generation to the next (Kotter, 1992). organisational culture is the set of shared values, beliefs, and norms that influence the way employees think, feel, and behave in the workplace Culture is transmitted to an organisation member by means of socialization and training, rites and rituals, communication networks, and symbols (Schein, 2011). Organisational culture is as collection of traditions, values, beliefs, policies and attitudes that constitute a pervasive context for everything one does and thinks in an organisation (Agwu, 2014). Schein (1992) defines organisational culture as: a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. Schein also states that these assumptions come to be taken for granted because they solve the group’s problems repeatedly and reliably. Also notes that culture can be analyzed at several different levels including artifacts, espoused values and basic underlying assumptions. Artifacts are defined as “visible Organisational structures and processes” (Schein., 1992). Examples of artifacts include dress codes, architecture, newsletters, signs, and banners.
Another level of culture stated by Schein is Espoused Values. Espoused Values are audible and spoken, and includes goals, sayings, philosophies, strategies and slogans. The third level described by Schein is Basic Underlying Assumptions. Basic Underlying Assumptions are “unconscious, taken-for granted beliefs, perceptions, thoughts, and feelings”. This includes assumptions that are not directly observable, consequently hard to analyze and change.
Similar to Schein, Denison (2005) defines organisational culture as “underlying beliefs, values, and assumptions held by members of the organisation, and the practices and behaviors that exemplify and reinforce them.” Zhang (2010) also describes organisational culture as a model, composed by some basic assumptions; and the assumptions are found and created gradually by a certain group in the process of exploring the method of adapting to external environment and solving internal interconnected system. Internal integration is the socialization of new members in the Organisation, creating the new boundaries of the organisation and the feeling of identity among personnel and commitment to the organisation (Treblanche, 2003). External adaptation is also said to be creation of competitive edge, making sense of environment in terms of acceptable behavior and social system stability. The definitions by (Schein, 2004) and (Zhang, 2010.) Offer both deeper basic assumption and faith that is shared by organisational members in explaining the purpose; and the environment of organisation itself. Also, the affirmations focus on internal integration and external adaptation of Organisation which are the organisational culture attributes that define the performance of Organisation. It is thus admittance that organisational culture is paramount to organisational success (Gammack, 2006).
Ravasi (2006) wrote that organisational culture is a set of shared assumptions that guide what happens in Organisation by defining appropriate behavior for various situations. It is also the pattern of such collective behaviors and assumptions that are taught to new organisational members as a way of perceiving and, even, thinking and feeling. According to (Needle, 2004), organisational culture represents the collective values, beliefs and principles of organisational members and is a product of such factors as history, product, market, technology, strategy, type of employees, management style, and national culture; culture includes the organisation vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits. As it can be seen from the above definitions, there are some commonalities between and it can be assumed that organisational culture comprises of some sort of values, beliefs, and attitudes that are held by individuals and the organisation.
2.1.1 How Organisational Culture developed
According to Dwirantwi (2012) postulates that as a concept, culture is inseparable from the notion of human society. To try and change the prevailing culture within an organisation, one has to take cognizance of the relevant societal culture. On the other hand, argues that a company’s organisation culture does not pop out of thin air and, once it is established, it does not fade away. An organisation ‘s current customs, traditions, and general way of doing things are largely due to what it has done before and the degree of success it has had with these endeavors. This leads one to its ultimate source of an organisation ‘s culture: its founders. Robbins further emphasizes that the founders of an organisation have a major impact on that organisation early culture. They have a vision of what the organisation should be, and they are unconstrained by previous customs and ideologies. The process of culture creation occurs in three ways:
First, founders only hire and keep employees who think and feel the way they do; second, they indoctrinate and socialize these employees to their way of thinking and feeling; and finally, the founder’s own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions. When the organisation succeeds, the founder ‘s vision becomes seen as a primary determinant of that success. At this point, the founder ‘s entire personalities become embedded in the culture of the organisation.
In the other ways, Ojo (2012) indicated that the values and norms which are the basis of organisational culture are formed through the following four ways. These are:
- By Leaders in the organisation, especially those who have shaped them in the past. People identify with visionary leaders – how they behave and what they expect. They note what such leaders pay attention to and treat them as role models,
- Through Critical Incidents or Important events from which lessons are learned about desirable or undesirable behavior.
- Through effective working relationship among organisation members. This establishes values and expectations.
- Through the organisation Environment: Culture is learned over a period of time. Where a culture has developed over long periods of time and has become firmly embedded, it may be difficult to change quickly.
According to Nadia (2015), the culture of the organisation has been derived from two resources which are as follows
- For developing the culture of the organisation norms, attitudes and values of the senior executives is involved. Whole culture of the organisation revolves around the charismatic leadership.
- The people who have been working previously in the Organisation have helped to solve the problems that may face by the new employees. Norms have been made from such incidents that myths may transfer to the new employees within the organisation.
For the development of the organisational culture three things are required as:
- Commitment (based on common philosophy and purpose)
- Competence (indicate the development and reward in key areas)
- Consistency (purpose is to spread the competence by attracting, developing, and retaining the right person for the right job) (Impact of Organisational Culture on Employee’s Performance)
2.1.2 Types of Organisational culture
According to Nadia (2015) there are two main approaches of the models of culture as type models. These models are responsible for the classification of the organisational culture from one to the limited number of the groupings. In lieu of the models one model suggests that there are four type’s organisational culture and each represents the structure and its sets of system. These four types are: Power, Task, Role and Person. And the other culture model types Profile Models: These types of models do not try to categorize the organisational culture, but they try to identify and explore its key characteristics. When such identification have been occurred than they have been compared to the culture that organisation demands and needs to operate and any appropriate changes that are required to be taken must be made. In the other way, Kim (2011) categorized organisational culture into four: Clan culture, hierarchy culture, adhocracy culture and market culture are each rooted in a model of organisational theory research.
The Hierarchy/ Control Culture characterized by stability and an internal focus, is made up of a formal structured chain of command and control that emphasizes constancy, predictability, and efficiency. A very formalized and structured place to work. Procedures govern what people do. organisation with this kind of culture deals with doing things right which implies efficient utilizations of resources and achieving the right outputs. The leaders pride themselves on being good coordinators and organizers who are efficiency minded. Maintaining a smooth-running organisation is most critical. Formal rules and policies hold the organisation together. The long-term concern is stability and performance with efficient and smooth operations. Success is defined in terms of dependable delivery, smooth scheduling and low cost.
The management of employees is concerned with secure employment and predictability. Efficiency, punctuality, consistency and uniformity are the value driven in organisation with such kinds of culture. Error detection, measurement, process control, systematic problem solving and quality tools are quality strategies in such kinds of Organisation. The identification of organisational cultures into different categories and dimension is not sufficient to attempt to understand and measure the culture of the organisation. However, it is also very important to measure the impact that the culture has on the everyday operations and workings of the organisation, that is, how the organisation organizes itself, its relations with customers (internal and external) and how the organisation treats staff, those should be key aspects when building a successful culture (Sun, 2012).
The Market Culture/ compete characterized by stability and an external focus, produces a competitive organisation that emphasizes results and achieving goals. organisation with this culture is result-oriented whose major concern is getting the job done. It is with the intensions of doing things fast. In such organisation people are competitive and goal-oriented. Quality Strategies of organisation is measuring customer preferences, improving productivity, creating external partnerships, enhancing competitiveness, involving customers and suppliers. The leaders are hard drivers, producers, and competitors. They are tough and demanding. The glue that holds the organisation together is an emphasis on winning. Reputation and success are common concerns. The long-term focus is on competitive actions and achievement of measurable goals and targets. Success is defined in terms of market share and penetration.
The Clan culture, characterized by a flexible and internal focus, is a collaborative culture with a strong commitment to the people of the organisation and their development, much like an extended family. Is with the motto of” do things together”. Exists in an organisation where there is a very pleasant place to work in which people share a lot of personal information, much like an extended family. The leaders or heads of the organisation are seen as mentors and perhaps even parent figures. The organisation is held together by loyalty or tradition. In this case, commitment is high. The organisation emphasizes the long-term benefit of human resources development and attaches great importance to cohesion and morale. Success is defined in terms of sensitivity to customers and concern for people. The organisation places a premium on teamwork, participation, and consensus. In an organisation with this type of organisation culture, leaders are facilitator, mentor and team builder. And the value drivers in such kind of culture are commitment, communication and development. In organisation with this king of culture quality strategy is empowerment, team building, employee involvement, human resource development, open communication.
The Adhocracy/create Culture characterized by a flexible and internal focus, makes up a creative culture that promotes entrepreneurship, innovation, and unique ways to meet challenges and stay on the leading edge. is organisational culture where a work place is dynamic, entrepreneurial, and creative i.e.do things first. In such organisational culture, leaders are considered innovators and risk takers. The glue that holds the organisation together is commitment to experimentation and innovation. The organisation long-term emphasis is on growth and acquiring new resources. Success means gaining unique and new products or services. Being a product or service leader is important. The organisation encourages individual initiative and freedom. The quality strategy is, creating new standards, anticipating needs, continuous improvement, finding creative solutions.
2.1.3 Functions of Organisational Culture
Organisational culture has different functions in the life of any Organisation. It plays several important roles within an organisation. As such it provides a sense of identity and generates organisational commitment as well as commitment to the organisation mission and clarifies and reinforces standards of behavior (Greenberg, 2003). According to (Patel, 2014), the functions of organisational culture can manifest itself through creating the feeling of identity among personnel and commitment to the organisation and competitive edge to enable the members (especially new members) in the organisation to well understand acceptable behavior and social system stability.
Dwirantwi (2012) indicates that culture helps to account for variations among Organisation and managers, both nationally and internationally. Culture helps to explain why different groups of people perceive things in their own way and perform things differently from other groups. Culture can help reduce complexity and uncertainty. It provides a consistency in outlook and values, and makes possible the process of decision-making, co-ordination and control. There is nothing accidental about cultural strengths. There is a relationship between an Organisation culture and its performance. And he explains that culture performs the four main functions.
First and foremost, Culture supplements rational management creation of work. Culture is a time- consuming process. He continues by saying that, organisation culture cannot suddenly change the behavior of people in an organisation. Culture communicates to people through symbols, values, physical settings, and language, and thereby supplements the rational management tools such as technology and structure.
The second function is it facilitates induction and socialization. Induction is a process through which new entrants to an organisation are socialized and indoctrinated in the expectations of the organisation; its cultural norms, and undefined conduct. The newcomer imbibes the culture of the organisation, which may involve changing his / her attitudes and beliefs to achieving an internalized commitment to the organisation.
Furthermore, culture promotes a code of conduct; a strong culture in an organisation explicitly communicates modes of behavior so that people are conscious that certain behaviors are expected and others would never be visible. The presence of a strong culture, would be evident where members share a set of beliefs, values, and assumptions which would influence their behavior in an invisible way. Where culture has been fully assimilated by people, they persistently indulge in a typical behavior in a spontaneous way. Promotion of the culture of quality can helps achieve good business results.
Lastly; sub-cultures contribute to organisational diversity: sub-cultures, and sub-systems of values and assumptions, which may be based on departmentalization, activity centers, or geographical locations, provide meaning to the interests of localized, specific groups of people within the macro-organisation. Sub-cultures can affect the organisation in many ways: (i) they may perpetuate and strengthen the existing culture; (ii) they may promote something very different from those existing; (iii) they may promote a totally opposite sub-culture (beliefs and values) or counter culture when in a difficult situation.
1) Process-oriented vs. results-oriented (Means-oriented vs. Goal-oriented)
This dimension is most closely associated with the effectiveness of the organisation. A process-oriented culture focus on how the work is done, it concerns more about technical and bureaucratic routine while results-oriented culture concerns about the outcome, where employees are asked about what to be done. The two sides of the dimensions are also different in level of risk taking. As Process-oriented culture emphasize on the assurance during working process, employees avoid risks and even make limited effort in the task. By contrast, employees in results-oriented tend to take more risk in order to achieve specific internal goals.
2) Job-oriented vs. employee-oriented
This dimension relates to management philosophy. The job-oriented culture assumes responsibility for the employees’ job performance only; it even heavily presses employees to perform the task. In opposite, employee-oriented culture considers also the employees’ wellbeing; it cares about individual issues too.
3) Professional vs Parochial (local)
In professional culture, employees are identified with their profession or content of their job. In the local culture, the identity of members is determined by the team or unit they work in.
4) Open system vs. closed system
This dimension reflects the level of the accessibility of an organisation. It refers to the internal and external communication style and how easily newcomers are welcome. In open system, a member is open to both insiders and outsiders as they believe everyone can fit the organisation.
5) Tight vs. lose control (Easy going work discipline vs. strict work discipline)
This dimension deals with the amount of internal control, structuring and discipline. It expresses the formality and punctuality level of the organisation. In a tight culture, members are expected to be punctual, serious and cost-conscious while loose culture exposes less control and discipline.
6) Pragmatic vs normative (External driven vs. internal driven)
This dimension is about customers’ satisfaction, or in general, it defines the principal way of dealing with the environment. The pragmatic culture (external driven), mostly existing in units such as selling or customer services, focus on fulfill the customers’ requirement. On the other side, normative culture (internal driven) emphasis on business ethics and honesty issues, which appears in units involving in laws and regulation. More recent, in his website, Hofstede (2014) add two more dimensions: degree of acceptance of leadership style and degree of identification with your organisation. Degree of acceptance of leadership style implies how the leadership style of employee’’ direct boss is alighted with their preferences. Degree of identification with your organisation tells us the degree to which one identifies with the organisation, such as internal goals, clients, direct boss, team, etc.
2.2 Theoretical Framework
2.2.1 Daniel Denison’s Model
Denison and Neale (2011) identify four cultural traits Involvement, Consistency, Adaptability and Mission. These underlying traits are expressed in terms of a set of managerial practices and measured using the twelve indices that make up the model. (Denison & Neale, 2011). The below succeeding paragraphs briefly discuss each of the four organisational culture traits and their respective indices.
Involvement is the degree to which individuals at all levels of the organisation are engaged in pursuit of the mission and work in a collaborative manner to fulfill organisational objectives. This trait consists of building human capability, ownership and responsibility. Organisation empower their people, build their Organisation around teams, and develop human capability at all levels (Lawler, 1996). Executives, managers, and employees are committed to their work and feel that they own a piece of the organisation. People at all levels feel that they have at least some input into decisions that will affect their work and that their work is directly connected to the goals of the organisation (Spreitzer, 1995).
When capability development is higher than empowerment, this can be an indication that the organisation does not entrust capable employees with important decision making that impact their work. Capable employees may feel frustrated that their skills are not being fully utilized and may leave the organisation for better opportunities elsewhere if this is not dealt with. On the other hand, when empowerment is higher than capability development, this is often an indication that people in the organisation are making decisions that they are not capable of making. This can have disastrous consequences and often happens when managers confuse empowerment with abdication. When team development is higher than empowerment or capability development, it provides an indication that there cannot be much substance to the team. The team is likely to go about their daily activities without a real sense of purpose or without contributing to optimal organisational functioning.
Consistency is the Organisation core values and the internal systems that support problem solving, efficiency, and effectiveness at every level and across organisational boundaries. Organisation also tend to be effective because they have “strong” cultures that are highly consistent, well-coordinated, and well-integrated (Saffold, 1988). The fundamental concept is that implicit control systems, based upon internalized values, are a more effective means of achieving coordination than external control systems which rely on explicit rules and regulations (Weick, 1987). Behavior is rooted in a set of core values, and leaders and followers are skilled at reaching agreement even when there are diverse points of view. This type of consistency is a powerful source of stability and internal integration that results from a common mindset and a high degree of conformity (Senge, 1990). When agreement is lower than core values and coordination, this tends to indicate that the organisation may have good intentions, but may become unglued when conflict or differing opinions arise. During discussions, different people might be seen talking at once or ignoring the input of others, and withdrawal behaviors might be observed. The result is that nothing tends to get resolved and the same issues tend to arise time and time again.
Adaptability is the ability of the company to scan the external environment and respond to the ever-changing needs of its customers and other stakeholders. Organisation hold a system of norms and beliefs that support the organisation capacity to receive, interpret and translate signals from its environment into internal behavior changes that increase its chances for survival and growth (Denison, 1990). Ironically, Organisation that are well integrated are often the most difficult ones to change (Kanter, 1983).
Adaptable Organisation are driven by their customers, take risks and learn from their mistakes, and have capability and experience at creating change (Nadler 1998, Senge 1990). When customer focus is higher than creating change and organisational learning, this signifies that the organisation may be good at meeting customer demands currently, but is unlikely to be planning for future customer requirements or leading customers to what they may want in the future.
However, when organisational learning and creating change are higher than customer focus, there is an indication that the organisation is good at recognizing best practices and creating new standards in the industry, but has difficulty in applying their learning to their own customers. Mission is the degree to which the organisation and its members know where they are going, how they intend to get there, and how each individual can contribute to the organisation success. Successful Organisation have a clear sense of purpose and direction that defines organisational goals and strategic objectives. They express the vision of how the Organisation will look in the future (Hamel & Prahalad, 1994).
When an organisation underlying mission changes, changes also occur in other aspects of the organisation culture. When strategic direction, intent and vision are higher than goals and objectives, this indicates that the organisation may have a difficult time executing or operationalizing its mission. There may be brilliant visionaries who have a difficult time translating dreams into reality. When goals and objectives are higher than strategic direction, intent and vision, this often indicates that the organisation is good at execution but lacks a real sense of direction, purpose or long-range planning. The focus is usually a short term, bottom-line focus with little forward planning.
Thus, the four traits of Denison‟s Model of Culture and Effectiveness have been expanded by Denison & Neale (1996), Denison & Young (1999) as well as Fey & Denison (2003) to include three sub-dimensions for each trait for a total of 12 dimensions. The following are the four main cultural traits with their sub dimensions:
Involvement trait (Attributes: capability development, team orientation, and empowerment); Consistency trait (Attributes: core values, agreement, and coordination and integration); Adaptability trait (Attributes: creating change, customer focus, and organisational learning); Mission trait (Attributes: vision, strategic direction and intent, and goals and objectives).
Two of the traits, involvement and adaptability, are indicators of flexibility, openness, and responsiveness, and were strong predictors of growth. The other two traits, consistency and mission, are indicators of integration, direction, and vision, and were better predictors of profitability. Each of the four traits was also significant predictors of other effectiveness criteria such as quality, employee satisfaction, and overall performance. Mission and consistency are linked to financial performance, while involvement and adaptability can be linked to customer satisfaction and innovation. The four traits were strong predictors of subjectively-rated effectiveness criteria of the total sample of firms, but were strong predictors of objective criteria such as return-on-assets and sales growth only for larger firms.
Involvement is the degree to which individuals at all levels of the organisation are engaged in pursuit of the mission and work in a collaborative manner to fulfill organisational objectives. This trait consists of building human capability, ownership and responsibility. Organisation empower their people, build their Organisation around teams, and develop human capability at all levels (Becker, 1964; Lawler, 1996; Likert, 1961). Executives, managers, and employees are committed to their work and feel that they own a piece of the organisation. People at all levels feel that they have at least some input into decisions that will affect their work and that their work is directly connected to the goals of the organisation (Spreitzer, 1995).
When capability development is higher than empowerment, this can be an indication that the organisation does not entrust capable employees with important decision making that impact their work. Capable employees may feel frustrated that their skills are not being fully utilized and may leave the organisation for better opportunities elsewhere if this is not dealt with this may improve the Employee performance of the organisation.
On the other hand, when empowerment is higher than capability development, this is often an indication that people in the organisation are making decisions that they are not capable of making. This can have disastrous consequences and often happens when managers confuse empowerment with abdication. When team development is higher than empowerment or capability development, it provides an indication that there cannot be much substance to the team. The team is likely to go about their daily activities without a real sense of purpose or without contributing to optimal organisational Employee performance (Lawler, 1996).
Consistency is the organisation core values and the internal systems that support problem solving, efficiency, and effectiveness at every level and across organisational boundaries. Organisational so tend to be effective because they have “strong” cultures that are highly consistent, well-coordinated, and well-integrated (Saffold, 1988). The fundamental concept is that implicit control systems, based upon internalized values, are a more effective means of achieving coordination than external control systems which rely on explicit rules and regulations (Pascale, 1985, Weick, 1987).
Behavior is rooted in a set of core values, and leaders and followers are skilled at reaching agreement even when there are diverse points of view (Block, 1991). This type of consistency is a powerful source of stability and internal integration that results from a common mind-set and a high degree of conformity (Senge, 1990). When agreement is lower than core values and coordination, this tends to indicate that the organisation may have good intentions, but may become unglued when conflict or differing opinions arise. During discussions, different people might be seen talking at once or ignoring the input of others, and withdrawal behaviors might be observed. The result is that nothing tends to get resolved and the same issues tend to arise time and time again.
Consistency trait is also considered critical for achieving internal integration based on its ability to facilitate the coordination of activities. Unlike involvement, however, which emphasizes flexibility, consistency emphasizes stability and involves three components labelled, core values, agreement, and coordination and integration. These three components refer, respectively, to the degree to which organisational members, share a set of values which create a sense of identity and a clear set of expectations, are able to reach agreement on critical issues and reconcile differences when they occur, and work together well to achieve common goals, this might improve the Employee performance of a firm (Denison, 2000).
The ability to be responsive toward external environment, internal customers (employees) and external customers by understanding the business demand environment into actions may give a chance to be resilient, growing and expanding. The ability to recognize and react to external and internal environments should be in line with the ability to react to internal and external customers. According to (Ahmad, 2012), the organisation is able to adjust its program to the existing environment outside the organisation as well as the adjustment of the group against the rules or norms in the group or organisation, as well as the adaptation of the organisation or company to environmental changes. (Indayati and Rofiaty, 2011) assert that a high level of adaptability is a necessity for any Organisation as the environment is really unconditioned. Thus, skills and competencies mastered by students are expected to be the provision of their lives in the future with a great deal of demands and development.
There are some dimensions of variable of adaptability. The first is the ability to create change. The organisation should be able to change and adapt to environmental changes or adapt to potential changes that may occur in the future. The second is the ability to focus on the customer. In the context of education, the world is aimed at learners’ achievements, and this requires constant sensitivity to the emerging demands of the customers and the measurement of the factors that drive customer’s satisfaction. The last is the organisation ability to learn. Organisation must be responsive and adaptive to keep learning in every strategic decision to anticipate the internal environment to face the competition. Organisation are required to continue to develop and enhance their capabilities through learning, so that the products and services provision will give satisfaction to the customers.
A clear mission should be in accordance with the culture and needs of the company and the needs of the market. All this should foster employees’ commitment to their jobs and foster their morale, sense of harmony in the working lives of employees and excellent working standards (Doloksaribu, 2001). The appreciation to the mission gives two big influences on the functioning of the company, namely, determining the benefits and meaning by defining social roles and external goals for the institution as well as defining the role of individuals with regards to the role of the institutions. Through this process, the behavior of intrinsic meaning or even spiritual may exceed the functional role of the bureaucracy, providing clarity and direction or rules. Awareness of the organisation mission gives a clear direction and objectives that serve to define a series of appropriate measures for the organisation and its members.
There are some dimensions of variable of mission. The first is strategic directions and intentions. A successful organisation has a clear direction and goal that are clearly defined in the organisation goals and strategic objectives, and these are reflected in the organisation vision for the future. The second is goals and objectives. The mission provides direction to the managers (top management) in making an appropriate strategy to achieve and communicate the organisation goals and objectives, creating a common feeling toward the jobs being done. The last is vision. Vision is the expected aspiration of the state to be realized in the future. To achieve these ideals goals, of course, should move all resources starting at the top to the bottom levels.
2.2.2 Edgar Schein Model
Schein (2004) believed that there are three levels in an organisation culture and his model focuses on artifacts, values, and assumptions.
Artifacts: The first level is the characteristics of the organisation which can be easily viewed, heard and felt by individuals collectively known as artifacts. The dress code of the employees, office furniture, facilities, behavior of the employees, mission and vision of the Organisational come under artifacts and go a long way in deciding the culture of the workplace. And this aspect of the organisational culture is the simplest perspective on culture which is provided by the tangible artifacts that reveal specific cultural predispositions.
Values: The next level according to this model which constitutes the organisation culture is the values of the employees and rules of behavior. The values of the individuals working in the organisation play an important role in deciding the organisation culture. The thought process and attitude of employees have deep impact on the culture of any particular organisation. The mind-set of the individual associated with any particular organisation influences the culture of the workplace. Values pertain largely to the ethics embedded in an organisation.
Assumed Values: The third level is the assumed values of the employees which can’t be measured but do make a difference to the culture of the organisation. There are certain beliefs and facts which stay hidden but do affect the culture of the organisation. The inner aspects of human nature come under the third level of organisation culture. The Organisation follow certain practices which are not discussed often but understood on their own and much more difficult to deduce through observation alone. These are tacit assumptions that infect the way in which communication occurs and individuals behave. They are often unconscious, yet hugely important.
2.2.3 O’Reilly, Chatman and Caldwell Model
Edgar (2013) developed a model based on the belief that cultures can be distinguished by values that are reinforced within Organisation. Their organisational Profile Model (OCP) is a self-reporting tool which makes distinctions according seven categories – Innovation and risk taking, Stability, Respect for People, Outcome Orientation, and Attention to Detail, Team Orientation, and Aggressiveness. These seven dimensions are:
- Innovation and Risk taking: characterizes the degree to which employees are encouraged to be innovative and take risks while performing their duties.
- Attention to detail: the degree to which employees are expected to exhibit precision, analysis, and attention to detail or task. It means that paying attention to being precise/ careful.
- Outcome Orientation: the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve these outcomes.
- People Orientation: the degree to which management decisions take into consideration the effect of outcomes on people within the organisation. It is degree of value and respect for people.
- Team Orientation: the degree to which work activities are organized around teams rather than individuals based.
- Aggressiveness: the degree to which the people are aggressive and competitive regarding their work rather than easy going.
- Stability: the degree to which organisational activities emphasize maintaining the status quo in contrast to growth. Or the organisational openness to change.
2.3 Employee Performance
According to Mohammad, Rumana and Saad (2013) the word ‘performance’ can be used to describe different aspects such as societal performance, organisational performance, employee performance, and individual performance etc. Performance on the other hand refers to be the ability (both physical & psychological) to execute a specific task in a specific manner that can be measured as high, medium or low in scale. Performance refers to the degree of achievement of the mission at work place that builds up an employee job. Different researchers have different thoughts about performance. Mostly researchers used the term performance to express the range of measurements of transactional efficiency and input & output efficiency. Performance is a continuous process to controversial issue between organisational researchers.
Employee’s performance means the ability of employees to attain goals either personal or organisational by using resources efficiently and effectively. Sometime the term performance mixed with productivity. Performance and productivity were two different things. Productivity means the ratio represents the volume of work done within the due to the period while performance is an indicator of productivity, consistency, and quality of work (Fakhar, Zahid & Muhammad, 2013).
From Dedrick (1999) points, employee performance could be defined as the record of outcomes achieved, for each job function, during a specified period of time. If viewed in this way, performance is represented as a distribution of outcomes achieved, and performance could be measured by using a variety of parameters which describe an employee’s paten of performance over time. Different studies related to employee performance variables were carried out in the past. A study Murphy and Kroeker (1988) defines employee performance as a function of the individual’s performances on the specific tasks that comprise standard job descriptions, and declares that it is also affected by variables such as maintaining good interpersonal relations, absenteeism and withdrawal behaviors, substance abuse and other behaviors that increase hazards at the workplace (Murphy, 1989). A study Befort and Hattrup (2003) indicates that the essence of job performance relies on the demands of job, the goals and the mission of the organisation and the beliefs of the organisation about which behavior are mostly valued. To conclude, employee performance could be simply understood as the related activities expected of a worker and how well those activities were executed.
2.3.1 Measurement of employee performance
Performance of employee is calculated against the performance standard by the organisation. Good performance means that how employee performed in the task that assigned to him. Performance is a main multidimensional build aimed to get results and has a strong link to planned objectives of an organisation. The work of employee is made up by his achievement of mission of organisation that shows the limits of performance. The achievement of objectives of organisation has been designed based on employee performance. An employee’s achievement when he gains the goals of organisation at workplace is called performance. Different researchers have identified different thoughts, attitudes and beliefs of performance as it helps in measurement of input and output effectiveness measures that guide transactional relationship (Nadia, 2015).
In this study the performance of employee should be measured by employee job performance. Due to the reason a company undertakes the individual job performance measure to evaluate the performance of employee it includes individual task performance evaluation and employee behavioral competency performance evaluation. In order to measure the dependent variable employee performance, individual work performance questionnaire (IWPQ) that was developed by (Koopmans 2014) was used; the questionnaire consists of 18 questions and addresses aspects of task performance, contextual performance and productive behavior of employee job performance on a 5-Point Likert Scale.
2.4 Empirical Review
This section outlines the result of different researches on the topic ‘’ the effect of organisational Culture on Employee Performance’’ and it is tried to summarize below. Impact of organisational culture on employee performance and productivity by undertaking a case study of telecommunication sector in Bangladesh. The result of this study also indicated the sound role of organisational culture on employee performances and productivities. It also indicated that organisational culture significantly influences employee performance and productivity in the dynamic emerging context. The findings of this paper significantly demonstrate both positive and negative mannerism of organisational culture which has significant consequences on employees as well as organisational performance. It also asserted that organisational culture is an open system approach and it has interdependent and interactive association with Organisation performance.
Agwu (2014) made a study on the ‘’organisational Culture and Employee Performance in the National Agency for Food and Drugs Administration and Control (NAFDAC) in Nigeria’’. It assumes that a positive organisational culture will enhance employee’s performance. The three major findings of the research were NAFDAC’s organisational culture of decentralization provide employees with greater intrinsic rewards than other traditional means of governance, there is a significant relationship between organisational culture and increased employees’ commitment in NAFDAC and the last research result was there is a significant relationship between organisational culture and increased employees’ productivity in NAFDAC.
Ojo (2009) analyzed and assesses empirically the impact of corporate culture on employee job performance as well as organisational productivity using Nigerian banking industry as the case study. He tried to ascertain if organisational culture affects employee job performance, and to formulate recommendations regarding corporate culture and employee job performance. He came out with the result that majority of the respondents strongly agrees that corporate culture has effect on employee job performance, and that majority of the employee’s respondents agree that corporate culture has effect determines the productivity level of the organisation. organisational culture is a major determinant of an employee’s efficiency and effectiveness in carrying out their jobs. That is, organisational culture is one of the major key determinants of how employees perform or behaves in their job (Ojo, 2012).
Additionally, Sun (2012) said organisational culture can have an influence on: employee motivation; employee morale and ‘good will’; productivity and efficiency; the quality of work; innovation and creativity and the attitude of employees in the workplace. With the great number of Organisation and institutions globally, it is only natural that the general well-being of workplaces has become an object of theoretical interest and extensive research. An organisation wellbeing is described as the way in which its function and quality are perceived by employees. It includes the employees’ physical and mental health, sense of happiness and social wellbeing, which are all attributed with the term “job satisfaction” (Grant, Christianson & Price 2007).
Job satisfaction is one of the most frequently investigated variables in organisational culture, behavior and other occupational phenomena, ranging from job design to supervision. In general, job satisfaction encapsulates an employee’s felling about his/ her job. Research, however, has revealed that job satisfaction is a multidimensional phenomenon, influenced by several internal and external factors, like the individual’s values, principles, personality and expectations and the job’s nature, the opportunities provided etc. Many different components of job satisfaction have been defined and studied, in the frame of a general effort to analyze and promote it (Koustelios & Kousteliou, 2001).
The basis for the investigation and assessment of job satisfaction was formed by the Motivation-Hygiene theory of Herzberg and Mausner (1959), according to which employees’ feelings toward their job are affected by two factors, motivators and hygiene issues. In particular, motivators are able to create satisfaction by fulfilling the individual’s needs for meaning and personal growth. They include the work itself, personal achievement, responsibility, recognition and advancement. Those factors satisfy a person’s need for self-actualization, thus lead the employee to develop positive job attitudes. Hygiene factors, on the other hand, do not actually motivate employees, but –if they are properly handled- can minimize the feeling of dissatisfaction.
They include physical working conditions, job security, supervision, salary, institution policy and administration, interpersonal relations and benefits. If the hygiene factors are addressed, the motivators will promote the employee’s job satisfaction and encourage production (Herzberg, Maunser, & Snyderman, 1959). Therefore, Herzberg and his colleagues (1959) formulated the two-factor theory, according to which job satisfaction and dissatisfaction are two separates, and sometimes ever unrelated, phenomena, which they should not be measured on the same continuum. Intrinsic factors – motivators are considered to be “satisfiers”, while extrinsic factors – hygiene factors are perceived as “dissatisfiers”. The significance of Herzberg’s work lies in the fact that it revealed the global character of job satisfaction. The global approach is used in the study of the employee’s overall attitude toward their work, while the facet approach is used in the study of separate job parts which are likely to promote or prevent job satisfaction and dissatisfaction (Sowmya & Panchanatham, 2011).
A few years later, Hackman & Oldman (1975) formed another model of job satisfaction, in order to describe the causal relation between a job’s features and the employees’ behavior. This relation is affected by three psychological conditions: 1. Experienced meaningfulness of work, 2. Experienced responsibility for the outcomes of work and 3. Knowledge of the actual results of work. According to this theory, employees are more likely to react positively to their work if they experience the feeling that their work is remarkable and that they are responsible for their job performance and if they are aware of their actual job performance. The first psychological condition is affected by three fundamental job features, skill variety (different activities require different skills), task identity (completion of a special task) and task significance (the effect of a task on other people).
The second condition is affected by another job feature, autonomy (independence and freedom during the completion of a task), while the third condition is affected by the job feature of feedback (providing accurate information about the effectiveness and performance in a specific task). The combined values of these five variables define the overall complexity of the task, which is called motivating potential. The motivating potential is the degree that intrinsic motivation of the employee can be caused and it is affected by the combination of the above five features (Hackman & Oldman 1975). During the following decades, many researches were conducted in order to define and describe the dimensions of the job satisfaction phenomenon. The work of Kennerly (1989) revealed the relationship between job satisfaction, leadership behaviors and ORGANISATIONAL culture. More specifically, ORGANISATIONAL behaviors, like warmth among employees, mutual trust, respect and rapport between employees and superiors can be significant predicting factors of the job satisfaction experienced by employees in the field of health (Kennerly, 1989). The work of Billingsley and Cross (1992) showed that leadership support, work involvement and low role conflict can be predicting factor of job commitment, job satisfaction and unwillingness to quit (Billingsley & Cross 1992).
Moody (1996) found that job satisfaction was higher among employees with many years of experience in the specific institution, in terms or nature of work, income and cooperation among colleagues (Moody 1996). In the years that followed, the interest of researchers was turned to a cognitive approach of job satisfaction, taking into account not only the employees’ needs, but their cognitive processes that determine their attitudes and perspectives. Spector (1997) reviewed the most popular job satisfaction instruments and summarized the following facets of job satisfaction: appreciation, communication, co-workers, fringe benefits, job conditions, nature of the work itself, the nature of the ORGANISATION itself, ORGANISATION’s policies and procedures, payment, personal growth, promotion opportunities, recognition, security and supervision.
The study of Doughty et al. (2002) showed that the most appreciated job satisfaction factors were job involvement, cohesion among colleagues, support from superiors and opportunities for autonomous action (Doughty, May, Butell, & Tong, 2002). The counterpart factor revealed by the study of Castillo and Cano (2004) was the work itself, while working conditions were reported to be the less important factors (Castillo & Cano, 2004). Other factors of job satisfaction reported in the study of Ambrose et al. (2005) were salaries, mentoring and promotion opportunities
(Ambrose, Huston, & Norman, 2005).
Job satisfaction has been widely measured and studied in the frame of many scientific fields and it has been correlated with several factors: demographic, individual, occupational etc. In terms of demographic characteristics, job satisfaction has been correlated with age gender and educational level. In some cases, educational level, position held and years of experience were found to be factors that could partially predict the levels of employees’ job satisfaction (Grant, Christianson, & Price, 2007). Hill, Birrel, & Cook, (1985) have found positive correlation between gender and job satisfaction, while Asha (1994) showed that job satisfaction among women employees was related to their perception of family environment. Clark, Oswald, & Warr, (1996) revealed that married and widowed employees experience higher job satisfaction levels than single and divorced employees. Jung, Moon, & Hahm, (2007) came to the conclusion that job satisfaction was affected by the employees’ gender in terms of working environment and wages.
The recent studies of Belias et al. (2013a; 2013b) revealed that the experience of job satisfaction among Greek bank employees is affected by several demographic features. More specifically, the factor of gender seemed to affect the employees’ feeling of job satisfaction in terms of nature of work and attitudes toward their immediate superior. Female employees were more likely to feel that their salary was not adequate to cover their needs, the promotion opportunities were low, their work was monotonous and their superior was rude or annoying more than men did. In terms of age, Lee & Wilbur (1985) had revealed that job satisfaction increased with age, as older employees were more satisfied with the extrinsic features of their job. Those findings were confirmed by the researches of Falcon (1991) and Oleckno & Blacconiere (1993). Blackburn & Bruce (1989) had shown that job satisfaction is correlated with age, education and length of tenure. Al-Ajmi (2001) stated that young managers might share the opinion that their expertise is not appreciated enough and that aged generations enjoy an almost complete monopoly on important jobs. Thus, they tend to be less satisfied with their job, as job satisfaction is influenced by the factor of having a highly prestigious job and earning enough money. Choudhury & Gupta (2011) found that the feeling of job satisfaction and pay satisfaction is more likely to affect the turnover intention of employees under 25 years than those who are over 25 and relatively experienced.
In the studies of Belias et al. (2013a; 2013b), age was negatively correlated with the factors of nature of work, working conditions and promotions, indicating that young employees were more dissatisfied with their duties, aspects of promotion and co-workers. The fact that job satisfaction appears to be lower among young employees may be explained by their lack of experience, high possibilities of making mistakes and great anxiety in their attempt to carry out the role assigned to them, while they are more likely to be affected by negative experiences and uncomfortable situations. Taking into consideration the bank employees’ educational level, research findings do not seem to agree, as it has been both positively (Clark et al., 1996; Zou, 2007) and negatively (Wae, 2001; Phil, 2009) correlated with job satisfaction, while other investigations indicated no significant correlation (Green, 2000). In the study of Bader, Hashim & Zaharim, (2013), employees of secondary level education showed higher job satisfaction levels than employees holding an undergraduate degree. One possible explanation which is given is that highly educated employees are more likely to have higher expectations thus feel more dissatisfied with job opportunities. The study of Belias, Koustelios et al. (2013) showed that university degree holders were more satisfied with the nature of their work, while master degree holders had higher promotion expectations and more positive attitudes toward their superiors.
An employee’s position in a certain institution is considered to be highly correlated with the feeling of job satisfaction. Studies like the ones of Reilly, Brett, & Stroh, (1993) and Howard & Frink (1996) had revealed that managers are more likely to experience higher levels of job satisfaction than clerks and other staff, as they are provided with more opportunities for growth. However, the study of Bader et al. (2013) showed that high level managers, department managers and staff experience approximately the same job satisfaction levels. Finally, researches have shown that the years of experience both in a certain institution and in general are likely to affect the feeling of job satisfaction of employees. Wae (2001), for example, indicated that bank employees with long working experience were more satisfied with their job than employees with short experience. Others, like Phil (2009) and Green (2000) found no statistically significant difference. In the study of Belias, Koustelios et al. (2013), it was found that the employees’ years of experience both in the specific institution and in general were negatively correlated with their attitudes toward their immediate superior and the position held was positively correlated with working conditions, nature of work and the employees’ perception of the institution as a whole.
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