AN ASSESSMENT OF THE EFFECT OF ORGANIZATIONAL CULTURE ON THE PERFORMANCE OF QUANTITY SURVEYING FIRMS IN NIGERIA

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ABSTRACT

Quantity surveying service firms in contemporary times have evolved into structurally standard organization where there’s the understanding of organizational culture asanessential management philosophy that drives performance. Using a survey design approach,this research examines the effect of organizational culture on the performance of quantity surveying firms. Ninety quantity surveyors from forty quantity surveying firms in Lagos completed the questionnaire used for this research. Psychometric test was also carried out on the questionnaires with average cronbach’s alpha (α) value of 0.87. The research instrument was also justified on face, content, construct and external validity. Mean score was used for ranking the types of organizational culture and the challenge sto the formalization of organizational culture while importance index was used to ascertain the level of importance attached to organizational culture. Spear man rank correlation was used to evaluate the inter-correlation among the types of organizational culture and there relationship between organizational culture and performance variables. Kruskal- Wallis H-test was used to test if there was any significant difference in the perceptions of the three hierarchies of quantity survey orsin quantity surveying firm son organizational culture while Step wise regression was used to explain the effect of organizational culture on performance. The study revealed that quantity surveying firm Karel argyle sole proprietorship and/or partnership business structure and operating multiple organizational cultures. The study also revealed positive significant correlation between they types of organizational culture and performance.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Organizational culture defines the way employees complete tasks and interact with each other in an organization. The cultural paradigm comprises various beliefs, values, rituals and symbols that govern the operating style of the people within a company. Corporate culture binds the workforce together and provides a direction for the company. In times of change, the biggest challenge for any organization may be to change its culture, as the employees are already accustomed to a certain way of doing things (Ojo, 2008).

The dominant culture in organizations depends on the environment in which the company operates the organization’s objectives, the belief system of the employees and the company’s management style. Therefore, there are many organizational cultures. For example, highly bureaucratic and well-structured organizations typically follow a culture with extensive controls. Employees follow standard procedures with a strict adherence to hierarchy and well-defined individual roles and responsibilities. Those in competitive environments, such as sales, may forgo strict hierarchies and follow a competitive culture where the focus is on maintaining strong relationships with external parties. In this instance, the strategy is to attain competitive advantages over the competition. The collaborative culture is yet another organizational way of life. This culture presents a decentralized workforce with integrated units working together to find solutions to problems (Cascio, 2006).

Strong corporate cultures indicate that employees are like-minded and hold similar beliefs and ethical values. When these beliefs and ethical values align with business objectives, they can prove to be effective in building teams because rapport and trust quickly ensues. The bonds that the teams build help them avoid conflicts and focus on task completion. Strong corporate cultures ease communication of roles and responsibilities to all individuals. Employees know what is expected of them, how management assesses their performance and what forms of rewards are available.

Organizational cultures can have varying impacts on organizational performance and motivation levels of employee. Oftentimes, employees work harder to achieve organizational goals if they consider themselves to be part of the corporate culture. Different cultures operating in one company can also impact performance. For example, if the organization maintains a reserved “talk when necessary” culture, employees may work accordingly; however, if the organization allows one area, say the sales team, to be outspoken and socially active, the organization may experience rivalries among areas. Thus, allowing an area to set up their own culture can affect the performance of the employees deployed elsewhere in the company (Schein, 2004).