The Effect of Organizational Culture on Business Performance of Financial Institutions. Case Study: Opportunity Bank Uganda Limited

Abstract

The study was undertaken to examine the effect of organizational culture on business performance in financial institutions. Organizational culture (i.e. organizational adaptability, employee involvement in decision making and consistency) was the independent variable while business performance (which includes profitability, customer satisfaction and return on equity) was the dependent variable. The specific objectives of the study were to examine the effect of organizational adaptability on business performance, employee involvement in decision making on business performance, and the organization’s consistency on business performance of financial institutions. The study employed the generic theory of organizational culture by Maurice Yolles (2010) which says that it connects the recognized properties and processes of organizational theory, provides for distinctions between internal and external environment of an organization. This was true in the study. The study used a case study design adopting both quantitative and qualitative approaches on a sample of 9 branches in Opportunity Bank Uganda Limited of which data was collected using a questionnaire and interview guide. The study found out that organizational adaptability had a positive and significant correlation with business performance of (r = 0.604, p≤0.01). Employee involvement in decision making had a positive and significant correlation with business performance of (r = 0.699, p≤0.01) while organizational consistency had a positive correlation with business performance of (r = 0.520, p≤0.01). The study concluded that organizational culture has a significant relationship with business performance in financial institutions. This study recommended that organizational culture traits need to be enhanced and emphasized at all times so as to realize continuously increasing business performance in financial institutions.

Login to download()