Role of Organizational Culture on Performance of Commercial Banks in Malindi Sub County, Kenya.

Abstract

The study aimed at assessing the role of organizational culture in organizational performance with a specific focus of commercial banks based in Malindi Sub County. The specific objectives of this study were to examine the role of clan culture, adhocracy culture, market-oriented culture and hierarchical culture in organizational performance. The study used descriptive research design. The study targeted general managers, assistant managers, tellers and credit officers who totaled to 225. Quantitative data was collected through a structured questionnaire composed of Likert Scale questions. The main data analysis techniques adopted were descriptive statistics and regression analysis. The main study findings indicated that Market Culture, Clan culture, Adhocracy Culture and Hierarchical Culture all positively and significantly influence performance of commercial banks in Malindi Sub County. Based on the findings, the study recommended that with the prevalent competitive environment around the world, it is imperative for the organizations to strengthen their organizational set of principles that define who its employees, customers and suppliers are and how to interact with each other and whether they think independently when carrying out their work duties. The study also recommended that commercial banks also need to encourage employees to have a sense of identity which increases their commitment to work since this will positively influence organizational performance. There is also a need to focus should be directed at leaders in different capacities as they play the role of coaches in giving general direction, but further encourage individual decision-making to determine the operating details. Additionally, the study recommended a need for organizational culture to be enhanced in commercial banks in Kenya since it enhances organizational performance. In particular, commercial banks should encourage employees to pull towards a common goal.

Key Words: Clan Culture, Market Oriented Culture, Hierarchical Culture, Performance of Commercial Banks