Impact of Organizational Culture on Employee Performance

Evidence from the Banking Industry in Pakistan

Authors

  • Fatima Shahid Karachi University Business School, University of Karachi, Karachi – Pakistan
  • Neelum Qazi Department of Economics & Management Sciences, NED University of Engineering & Technology, Karachi – Pakistan https://orcid.org/0009-0006-6545-5737
  • Shaharyar Sheikh Department of Human Resource Management, Hamdard University, Karachi – Pakistan https://orcid.org/0009-0003-0034-433X
  • Syed Waqar Ahmed Karachi University Business School, University of Karachi, Karachi – Pakistan
  • Abdullah Ansari Department of Public Administration, University of Karachi, Karachi – Pakistan

DOI:

https://doi.org/10.48112/bms.v1i3.916

Abstract

Abstract Views: 1068

Workplace culture plays a significant role in job choice and employee engagement, building a sense of belonging and enhancing productivity. This study explored organizational performance when connected with Hofstede’s cultural dimensions. A quantitative questionnaire which measured Hofstede’s four cultural dimensions including Power Distance, Uncertainty Avoidance, Individualism-Collectivism, and Masculinity was used as the research instrument to collect data from the employees serving in private banks in Karachi that were selected conveniently. The findings reveal a strong correlation between Organizational Performance and Hofstede’s cultural dimensions. Nevertheless, the correlation between Organizational Performance and Individualism-Collectivism and Masculinity was found in a reverse order suggesting that increased Individualism-Collectivism and Masculinity resulted in decreased Organizational Performance. This study offers valuable insight for banks and other organizations seeking to tailor their workplace environments to optimize employee productivity and satisfaction.

Keywords:

Individualism-collectivism, Masculinity, Organizational culture, Power distance, Uncertainty avoidance

Author Biographies

Fatima Shahid,

She is currently a Research Scholar at Karachi University Business School, University of Karachi in Karachi – Pakistan. She received her Master’s Degree in Business Administration from the University of Karachi in Karachi – Pakistan.

Neelum Qazi,

She is currently a Lecturer at the Department of Economics & Management Sciences, NED University of Engineering & Technology in Karachi – Pakistan. She received her M.Phil. Degree in Human Resource Management from the University of Karachi in Karachi – Pakistan.

Shaharyar Sheikh,

He is currently serving at the Department of Human Resource Management, Hamdard University in Karachi – Pakistan. He received his Master’s Degree in Management Sciences from the University of Karachi in Karachi – Pakistan.

Syed Waqar Ahmed,

He is currently a Research Scholar at the Karachi University Business School, University of Karachi in Karachi – Pakistan. He received her Master’s Degree in Business Administration from the University of Karachi in Karachi – Pakistan.

Abdullah Ansari,

He is currently a Lecturer at the Department of Public Administration, University of Karachi in Karachi – Pakistan. He received his Master’s Degree in Human Resource Management from Karachi University Business School, University of Karachi in Karachi – Pakistan.

References

Dorfman, P. W., & Howell, J. P. (1988). Dimensions of national culture and effective leadership patterns: Hofstede revisited (Vol. 3). Greenwich, CT: JAI press.

Durán-Brizuela, R., Brenes-Leiva, G., Solís Salazar, M., & Torres-Carballo, F. (2017). Effects of power distance diversity within workgroups on work role performance and organizational citizenship behavior. Revista Tecnología en Marcha, 30, 35-48. https://dx.doi.org/10.18845/tm.v30i5.3222

Farouk, S., Abu Elanain, H. M., Obeidat, S. M., & Al-Nahyan, M. (2016). HRM practices and organizational performance in the UAE banking sector: The mediating role of organizational innovation. International Journal of Productivity and Performance Management, 65(6), 773-791. https://doi.org/10.1108/IJPPM-01-2016-0010

Ghosh, A. (2011). Power distance in organizational contexts-a review of collectivist cultures. Indian Journal of Industrial Relations, 89-101. https://www.jstor.org/stable/23070557

Hasan, H., Wahid, S. N. S., Jais, M., Mustapha, M., & Pauzi, S. F. M. (2020). The effect of uncertainty avoidance on job performance of government employees in Pahang Darul Makmur: A regression analysis approach. Communications in Computational and Applied Mathematics, 2(2).

Ho, F. N., Wang, H. M. D., & Vitell, S. J. (2012). A global analysis of corporate social performance: The effects of cultural and geographic environments. Journal of Business Ethics, 107, 423-433. https://doi.org/10.1007/s10551-011-1047-y

Hofstede, G. (1984). Culture's consequences: International differences in work-related values (Vol. 5). Sage.

Hofstede, G. (2001). Culture's consequences: Comparing values, behaviors, institutions and organizations across nations. Thousand Oaks.

Hofstede, G. (2011). Dimensionalizing cultures: The Hofstede model in context. Online Readings in Psychology and Culture, 2(1), 8. https://doi.org/10.9707/2307-0919.1014

Hofstede, G., & Bond, M. H. (1984). Hofstede's culture dimensions: An independent validation using Rokeach's value survey. Journal of Cross-Cultural Psychology, 15(4), 417-433. https://doi.org/10.1177/0022002184015004003

House, R. J. (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks, CA.

Imran, M., Ismail, F., Arshad, I., Zeb, F., & Zahid, H. (2022). The mediating role of innovation in the relationship between organizational culture and organizational performance in Pakistan's banking sector. Journal of Public Affairs, 22, e2717. https://doi.org/10.1002/pa.2717

Khandwalla, P. (1977). The design of organizations. Harcourt Brace Jovanovich, New York, NY.

Khatri, N. (2009). Consequences of power distance orientation in organisations. Vision, 13(1), 1-9. https://doi.org/10.1177/097226290901300101

Kim, K. H. (2007). Exploring the interactions between Asian culture (Confucianism) and creativity. The Journal of Creative Behavior, 41(1), 28-53. https://doi.org/10.1002/j.2162-6057.2007.tb01280.x

Kirkman, B. L., Chen, G., Farh, J. L., Chen, Z. X., & Lowe, K. B. (2009). Individual power distance orientation and follower reactions to transformational leaders: A cross-level, cross-cultural examination. Academy of Management Journal, 52(4), 744-764. https://doi.org/10.5465/amj.2009.43669971

Li, L., Kang, K., & Sohaib, O. (2023). The impact of group support on college student’s online business motivation: The uncertainty avoidance thinking as a moderating factor. Business Perspectives and Research, 22785337231163946. https://doi.org/10.1177/22785337231163946

Luo, S., Wang, J., & Tong, D. Y. K. (2020). Does power distance necessarily hinder individual innovation? A moderated-mediation model. Sustainability, 12(6), 2526. https://doi.org/10.3390/su12062526

Minkov, M., & Kaasa, A. (2021). A test of Hofstede's model of culture following his own approach. Cross Cultural & Strategic Management, 28(2), 384-406. https://doi.org/10.1108/CCSM-05-2020-0120

Mustafa, G., & Glavee-Geo, R. (2017). Role of masculinity and uncertainty avoidance orientation in the relationship between team learning behavior and self-efficacy. In Exploring the Influence of Personal Values and Cultures in the Workplace (pp. 242-264). IGI Global.

Oyserman, D., Coon, H. M., & Kemmelmeier, M. (2002). Rethinking individualism and collectivism: evaluation of theoretical assumptions and meta-analyses. Psychological Bulletin, 128(1), 3. https://psycnet.apa.org/doi/10.1037/0033-2909.128.1.3

Rhee, M., Alexandra, V., & Powell, K. S. (2020). Individualism-collectivism cultural differences in performance feedback theory. Cross Cultural & Strategic Management, 27(3), 343-364. https://doi.org/10.1108/CCSM-05-2019-0100

Shahzad, F. (2014). Impact of organizational culture on employees’ job performance: An empirical study of software houses in Pakistan. International Journal of Commerce and Management, 24(3), 219-227. https://doi.org/10.1108/IJCoMA-07-2012-0046

Soares, A. M., Farhangmehr, M., & Shoham, A. (2007). Hofstede's dimensions of culture in international marketing studies. Journal of Business Research, 60(3), 277-284. https://doi.org/10.1016/j.jbusres.2006.10.018

Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach's alpha. International Journal of Medical Education, 2, 53. https://doi.org/10.5116/ijme.4dfb.8dfd

Watts, L. L., Steele, L. M., & Den Hartog, D. N. (2020). Uncertainty avoidance moderates the relationship between transformational leadership and innovation: A meta-analysis. Journal of International Business Studies, 51, 138-145. https://doi.org/10.1057/s41267-019-00242-8

Żemojtel-Piotrowska, M., & Piotrowski, J. (2023). Hofstede’s cultural dimensions theory. In Encyclopedia of Sexual Psychology and Behavior (pp. 1-4). Cham: Springer International Publishing. https://doi.org/10.1007/978-3-031-08956-5_1124-1

Bulletin of Multidisciplinary Studies

Downloads

Published

2024-10-01

How to Cite

Shahid, F., Qazi, N., Sheikh, S., Ahmed, S. W., & Ansari, A. (2024). Impact of Organizational Culture on Employee Performance: Evidence from the Banking Industry in Pakistan. Bulletin of Multidisciplinary Studies, 1(2), 138–145. https://doi.org/10.48112/bms.v1i3.916

Issue

Vol. 1 No. 2 (2024)

Section

Articles

License

Copyright (c) 2024 Bulletin of Multidisciplinary Studies

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Crossref
Scopus
Google Scholar
Europe PMC

Similar Articles

1 2 > >> 

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)