Influence of Organizational Culture on Performance of Commercial Banks in Kenya

Abstract

For a long time organizational culture has been considered important to organizations. However, research on organizational culture has been relatively narrow in scope and frequently failed to link organizational culture to organizational performance. This study sought to establish the relationship between organizational culture and organizational performance in commercial banks in Kenya. The study was based on a descriptive survey design. The target population consisted of employees of 42 commercial banks in Nairobi County. The study sample was selected through stratified random sampling techniques. A sample of 120 respondents was picked for the study. A questionnaire was used to collect data. Data was analyzed using descriptive and inferential statistics and the results presented in Tables. The study conclude that commercial banks had organization culture that determined how things were done, employees were like-minded and held similar beliefs and values, commercial banks were guided by values of consistency, adaptability and effective communication system, employees had a sense of identity which increased their commitment to work and commercial banks had clearly spelt out work ethics. The study also concludes that employees of commercial banks in Kenya observed acceptable personal habits while at work, were guided by the organizations’ overall strategic plan in carrying out their work, completed work assigned to them as per the desired standards, and committed maximum efforts to their work. The study also concludes that there was a positive significant relationship between organizational culture and organizational performance in commercial banks in Kenya. It is recommended that organizational culture should be enhanced in commercial banks in Kenya since it influences organizational performance. The findings of the study are expected to provide a source of information for policy makers, researchers and human resources professionals to understand link between organizational culture and organizational performance in commercial banks in Kenya