CHAPTER ONE

1.0 INTRODUCTION.
This study comprises of five chapters; introduction which is followed by literature review
thereafter methodologies used in the study are proposed. This is followed by the presentation
of data and analysis. The last chapter provides summary of the findings, recommendations
and conclusion. Chapter one consists of the background of the study followed by the
statement of the problem after which the objectives and research questions of the study are
presented. Finally the significance, limitations and delimitations of the study are explored.
1.1 BACKGROUND OF THE STUDY.
The role of business in a society can be divided into economic and social role. The economic
role refers to the primary responsibility of a business organization which is economic in
nature and whose responsibilities are to provide /services, employment, earn profits to be
used in payment of services and to finance expansion and modernization.
A business must continue to emphasize its profit through its performance and at the same
time ensure that the corporate culture in the company is stable. Corporate culture is a deeply
embedded form of social control that influences employees decisions and behaviors.it is
social glue that binds people together and makes them feel part of the organizational
experience. This social glue is increasingly important as a way to attract new staff and retain
top performers.
Corporate culture assists in sense making process. In other words it helps employees
understand organizational events and employees can communicate effectively thereby
reaching higher levels of cooperation with each other because they share common mental
records of realities (Macshane and Glinow 2005).The powerful pervasive role culture plays
in shaping organizational life lends plausibity to speculations that cultural factors may be
linked with performance. A commonly hypothesized link suggests that if an organizations
culture is to contribute to or enhance performance; it must be both strong and possess
distinctive traits, particular values beliefs and shared behavior patterns.

Some scholars have claimed that positive cultural traits boost performance in proportion to
the strength of their manifestation this view has been called the strong culture hypothesis
.Oserian Development Company limited is an organization that is deeply committed to
instilling its corporate culture on its stakeholders, employees and suppliers.
However over the years the organization has been forced to keep up with the pace of rapid
globalization. At the time the company was founded the management comprised of
familymembers thus family values were greatly upheld and very important to the company
and even today family values are still important to the company. Today this has proved to be
a very difficult culture to uphold due to cultural diversity of different employees in the
company who are basedin different parts of Kenya. Due to the numerous challenges that
continue to exist, it is evident that researching the way that corporate culture has been
managed is particularly difficult. Moreover systems based organizations theory states that
there is no one best way to achieve a given result and it is the goodness of fit between the
organizations internal functioning, task, technology and environment which is critical. For
these reasons corporate culture looked at in a single organization is difficult as one cannot
assemble a holistic picture of the totality of change over time(Source, Year).
A lot of changes have been observed within the company regarding organizational
operations, employee relations and employees and organizational performance due to the
corporate cultural change. According to Pearce/Robinson (2007) corporate culture is one of
those focusing areas across organizational units and it is important in establishing efficiency
especially in organizational performance. The organizations history gives us a velar
perspective of how culture has been an important aspect of the companys development for
the last forty seven years.
According to Brooks (2006) an intimate knowledge and awareness of culture should improve
our ability to analyze organizational behavior in order to manage and lead. From the
statement above, it can be said that research in corporate culture enables ability to analyze the
organizations behavior which translates to superior corporate performance. Corporate culture
has two relevant facts, it can shape an organizational processes but it can also act to create
and modify culture. Corporate cultures contribution to performance is a consequence of this

evolving interaction. Secondly it is likely that corporate cultures link to performance is

considerably less straight forward than many rules imply.
1.2 PROFILE
As Sun Tzu, a military general from 3000 BC indicated in his explanation of strategy
Culture forms an integral part of any organizational strategy. It consists of Tao the shared
beliefs, values and the glue that holds an organization together and it also involves the very
nature of the organization. In todays world many of the assumptions are unique and
different from those of a generation ago. The very workforce of nature has changed by
revolutionary proportions, today it seems that many corporate leaders actually think.
Oserian Development Company limited was founded by Hans Zwager a native of
Netherlands who migrated to Kenya in the early 1950s. Hans Zwager, who was born in the
Netherlands, he arrived in Kenya to start up the first Branch of the ANB Bank in Nairobi in
the early 1950s. Hans and his wife June started their own business of importing agricultural
spare parts, and chemicals for agricultural crops. Hans recognized that newly independent
Kenya had huge agricultural potential and he would need support services, so he set up
Kleenway Chemicals in Nairobi and Antipest Ltd in Mombasa in the 1960s. In 1968 he built
a factory that produced the first locally manufactured knapsack sprayers in Kenya. The Dutch
designed Hobra Sprayers were enthusiastically welcomed by small scale farmers as spare
parts and repairs were now always locally available. Later on he sold the company.
Hans purchased Oserian farm in 1969, which was a cattle ranch with 16 employees. Using
his enterprise and his appetite for risk Hans established a new concept - flowers for export
.Later his pioneering work led him to develop Geothermal Energy at Oserian, which now
provides electric power to the entire farm and uses geothermal heat to control diseases in
the rose houses, which has largely replaced chemicals fungicides.
Hans was one of the leading entrepreneurial pioneers in Kenya horticulture and Oserian soon
became the model for flower export to the Dutch and EU markets. Hans started up the TFA
(Tele Flower Auction) in the Netherlands, the first electronic flower auction in the world,
designed to promote and support Kenyan flower exporters. He also saw the opportunity to

trade flowers directly to the UK supermarkets and established World Flowers in 1989,
allowing Kenyan farmers to trade directly with the European High Street superstores.
As Oserian expanded and thrived, he encouraged the development of a social complex,
which included housing 6,000 employees, their families. Today Oserian is one of the most
socially conscious businesses in the country with crches, Primary and Secondary schools
and health care for thousands of children and adults. Hans has committed not only to
business but had long sought for a sustainable harmony between agriculture and the
environment. In 1995 he created a 20,000 acre sanctuary to protect the local wildlife and
ecosystem. Today, Oserian Farm and its greenhouses are surrounded by wildlife, which Hans
sees as a fitting tribute to the beauty of Kenya. Hans is retired and his son Peter Zwager is the
current chairman of the company. Today Oserian Development Company limited is the
leading exporter of fresh cut flowers in Africa and also one of the most technologically
advanced flower farm in the world. Major clients of the company include Netherlands,
United Kingdom, United States, Switzerland, Russia, Japan, Australia and Asia.
1.3 STATEMENT OF THE PROBLEM.
Oserian Development Company limited is an organization that started as a family business
in1969.However over the years the organization has grown to be one of the largest exporters
in the world. During the early years of the organization the board of directors consisted of
family members who made the major decisions in the company.
The company has rapidly expanded over the years thus members of the board of directors
include only a few family members and members from outside the family. Thus the family
culture that the family members held dear to has gradually gotten eroded over the years. This
study therefore seeks to find the effects of corporate culture on organization performance.
1.4 GENERAL OBJECTIVES.
The objective of the study is to determine how corporate culture affects the performance of
an organization.
1.5 SPECIFIC OBJECTIVES.

The specific activities of the study are:

i.

To identify how corporate culture affects motivation inOserian Development

Company limited

ii.

To establish how corporate culture influences training and development in Oserian

Development Company limited.

iii.

To establish how corporate culture affects leadership in Oserian Development

Company limited.

iv.

To identify how corporate culture affects organizational structures in Oserian

Development Company limited.

1.6 RESEARCH QUESTIONS.

The main research question is; how does corporate culture affect theperformance of an
organization?
To answer the main question, answers to the following subsidiary questions will be sought;
i.

How does corporate culture affect motivation in Oserian Development Company

limited?

ii.

How does corporate culture affect training and development in Oserian Development
Company limited?

iii.

In what ways does corporate culture affect leadership Development Company

limited?

iv.

What are the effects of corporate culture on organizational structures in Oserian

Development Company Limited?

1.7 Significance of the Study.

The research intends to be beneficial to the following;
1.7.1 The Management
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The researcher anticipates that the findings of this study will enable the management
ofOserian Development Company Limited to understand the impact of corporateculture on
employee performance. The study will also seek to highlight corporate culture factors that
encourage maximum performance and those that lead to poor performance of employees. The
study also seeks to establish how the management can be able to integrate various factors
aimed at creating an organization that has positively motivated employees who perform
highly. Through this study the management will be able to identify the social and physical
needs of employees and a solution to their problems.
In conclusion the managers will also be able to recognize and appreciate the area of
weaknesses and strengths in relation to performance of employees.

1.7.2 The Employees

Corporate culture plays a big role in motivating, training and even boosting employees work
morale the organization. This study will help the employees to understand the role of
corporate culture in the organization and its effects on organizational performance.
1.7.3The Government
The Government will also benefit from this study as the performance of various
organizations will improve and this will boost the economic growth of the country.
1.7.4 Independent Researchers
This research will significantly help in further future studies as point of reference by other
independent researchers and even by non-governmental organizations in Kenya and beyond.
It will give insight on what has being done and recommended, gaps for further studies which
would need to be looked at.
1.8 Limitations of the Study.
The following are anticipated limitations that I might experience during the study;
1.8.1 Data Accessibility.
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The researcherexpects to encounter

hostility from the organization and lack of co-

operation from respondents, thus being a hindrance from collecting data and also availability
of written records from the organization. This will solved by working closely with the human
resource department.
1.8.2 Transportation.
The researcher intends to carry out the study Oserian Development Company Limited which
is located on the outskirts of Naivasha Town. Transportation might be difficult as the
company is thirty five (35KMs) Kilometers from Naivasha town. This will be solved by
hiring a taxi.

1.8.3 Legal Issues.

Legal issues are also anticipated by the researcher where the company is not legally bound to
disclose its operations to any individual or researcher. Thus the information gathered will be
treated in utmost confidence.
1.8.4 Weather.
The research will be conducted during the rainy season and the researcher anticipates
problems in conducting the research during the rainy periods. This will be solved by buying
gumboots and other accessories.
1.8.5 Tools and Instruments to be used.
A problem on the availability of the tools and instruments to be used is anticipated. The
researcher anticipates late delivery of research tools from the supplier. However proper
follow up will be done so that the supplierdelivers the required materials early.
1.8.6 Ethical Issues.

The question of ethical issues is expected to create problems during the research. Ethical
issues such as respondents asking for bribes before giving out information. Thus the
researcher intends to explain to the respondents that the purpose of the research is purely for
academic purposes.
1.8.7 Organizational Culture.
Culture is the way of individuals. The researcher anticipatesfinding organizational cultures
which are rigid and thus it will create difficulties in gathering information during the
research.
1.9 Scope of the Study
The main objective was to assess the effects of corporate culture on organizational
performance. The study focused on Oserian Development Company limited whose
headquarters are located in Naivasha and the company has two subsidiary offices in Nairobi.
The organization has a flower farm in Naivasha with flower acreage of 500 acres of flowers,
a wildlife sanctuary which is 20,000 acres, Kongoni lodge, Chui lodge and Lapive shop .The
study will focus on the employees who are in the floriculture industry as they form 80% of
the company workforce. Oserian Development Company limited is located along the Moi
south lake road off the Nairobi high way and it is approximately 35kilometers from Naivasha
town.
The studywill focus mainly on the effects of corporate culture on organizational performance.
The study will take a duration of three months that is from February 2016 to April 2016.
Necessary literature documents like company journals, protocols and other relevant
information will also be studied.

CHAPTER TWO
2.0 LITERATURE REVIEW
2.1 Introduction
This chapter deals with literature review and it seeks to explain the effects of corporate
culture on organizational performance. The chapter is divided into three major sections; these
include an analysis of past studies, critical review and the summary of past literature. Finally
the chapter ends with the conceptual framework that shows the relationship between the
independent variable and the dependent variables.
2. 2 Corporate culture
Organization development is concerned with the analysis and diagnosis of the factors that
determine organizational effectiveness and the planning and delivery of programmes to
increase that effectiveness. Organizations want to obtain the commitment of their employees.
Management would like its employees to identify with the values, norms and artifacts of the
organization, hence the need for organizational culture. Management needs to explain and
imbed its culture on its employees; this will enable the employee to get familiar with the
organizational system. During this process of explanation, the employee learns about the
organizational culture and decides whether he can cope with it or not. This means that each
organization is a learning environment. It is the proper understanding of the organizational
culture that leads to the performance of the employee in the organization.
Performance is the extent to which an individual is carrying out assignment or task. It refers
to the degree of accomplishment of the task that makes up an employees job (Cascio, 2006).
Job performance is the net effect of an employees effort as modified by abilities and roles or
9

task perceptions (Jones, 2003). The culture of the organization should be developed to
support continuous improvement, improve employees style of performing their job and thus
develop quality awareness. To operate successfully across cultures, it is important to be able
to recognize cultural differences and be adaptable (Deter, Schroeder, and Mauriel, 2000).
Organizational culture finds expression through the thoughts, intentions, actions and
interpretations of members of the organization (Hallett, 2003).
Academic interest in corporate culture is evidenced by the level of attention it has received
over the last few decades. The relationship between corporate culture and performance has
been the subject of abundant research in several fields, including strategic management,
organizational behavior, and industrial organizations. While this topic is rich in studies, many
researchers concur on the fact that there is no agreement on the precise nature of the
relationship between corporate culture and performance. Organizational culture has been
defined as the normative glue that holds an organization together (Tichy, 1982). Forehand
and von Gilmer (1964) suggest that culture is the set of characteristics that describe an
organization and distinguish it from others. Schein (1990) states that in a more
comprehensive fashion and defines culture as values and behaviors that are believed to lead
to success and are thus taught to new members.
All this is not to deny that leading actors, and to some extent also people in less salient
positions, may have a strong impact on cultural meanings in organizations, as illustrated by
the Enator case, where the preconditions for a rather far-reaching impact was quite good.
Managers, often more than other people, contribute in the shaping or reshaping of meanings
and ideas held by the people they interact with. However, context must be borne in mind in
understanding when and how managers affect the orientations of their subordinates. There
are no recipes for success that just can be copied and applied without consideration of time
and space, Impact on meaning formation is actually, what leadership is about, from a cultural
point of view.
The difficulties in establishing results and the linking of results to particular actors contribute
to the need for paying attention to how performance evaluation, credit and blame exist in a
cultural context. Of interest here are cultural themes such as time perspective, intellectual
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versus action orientations in relationship to tracking responsibility and cultural rules for
pointing versus tabooing milking strategies for improving performances, Obviously, there is
considerable national and industry-level variation. Japanese companies have a reputation for
being long-term oriented and thus having a richer coverage of individuals contributions than
for example US companies. Organizations with complex

R & D work, where individual

contributions may be impossible to measure even in a medium-long perspective, have a

completely different evaluation situation than for example sales organizations.
2.2.1 Effects of Organizational Culture
There has been a great deal of anecdotal evidence and some empirical evidence regarding the
performance effects of organizational culture. Anecdotal evidence begins Peters and
Watermans In Search of Excellence. This book basically stimulated the now familiar
business school case study approach. More recent anecdotal evidence regarding the most
successful companies in the last several decades has also been proffered. According to
Cameron and Quinn (2009), many of the most successful companies, including Southwest
Airlines (21,775% return on investment Wal-Mart (19,807% ROI), Tyson Foods (18,118%
ROI), Circuit City (16,410% ROI), and Plenum Publishing (15,689% ROI), score low on
well-established critical success factors (i.e., entry barriers that prevents organizations from
competing for the same market, Non substitutable products, low levels of bargaining power
on the part of buyers due to customer dependence, low levels of bargaining power for
suppliers because they have no alternative customers, a large market share that promotes
economies of scale, and rivalry among the competition that deflects head-to-head
competition with a potential dominator).
These unlikely winners have strong leadership that promotes unique strategies and a strong
culture to help them realize these strategies. There is also strong anecdotal support indicating
that the primary cause of failure of most major change efforts (such as TQM and
reengineering) has been the failure to successfully change the organizational culture.
According to Heskett (1992), firms have attempted to make this intriguing, but admittedly
inconclusive, anecdotal evidence more systematic and empirical. They had financial analysts
identify the firms they considered most successful and then describe the key factors

11

discriminating these firms from those that were less successful. Seventy-four of the seventyfive analysts indicated that organizational culture was a key factor.
In addition, Denison (2000) found empirical support for the participation/involvement view
of culture higher levels of employee participation were correlated with better organizational
performance. In contrast to this supporting anecdotal and empirical evidence, it has become
well known, and a point of great contention, that the exemplary companies identified by
Peter and Waterman (2002) did not remain exemplary. The general explanation for this is that
these companies failed to change with the times perhaps the very strength of their culture
and their past success prevented them from quickly and successfully adapting to new
environmental requirements. This paradox suggested the need for more longitudinal
investigations of the effects of organizational culture. Growing evidence that excellent
companies do not remain excellent for long also suggests that the traditional notion of a
strong culture may need to be replaced with a more discerning understanding of the types and
role of culture and the need to change culture over the life cycle of the organization. For
example, perhaps a strong consistent culture is useful in the beginning start-up phase of an
organization but a mature organization may need to become more differentiated as well as
more oriented to change and learning. What is important for long term organizational success
may not be a particular type of organizational culture per se but the ability to effectively
manage and change the culture over time to adjust to changes in the situation and needs of
the organization. This understanding has pointed to the need for a more dynamic
understanding of culture and the role of organizational leaders in ensuring that the culture
contributes both to the organizations current and future success.
Schein (2002) argues that leadership today is essentially the creation, the management, and at
times the destruction and reconstruction of culture. In fact, he says, The only thing of
importance that leaders do is create and manage culture and the unique talent of leaders is
their ability to understand and work within culture. Leaders must be able to assess how well
the culture is performing and when and how it needs to be changed. Assessing and improving
organizational culture as well as determining when major cultural transformations are
necessary is critical to long-term organizational success. Managing differentiated cultures
and creating synergies across these cultures is a critical leadership challenge.
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Effective culture management is also necessary to ensure that major strategic and
organizational changes will succeed. Culture management is a key leadership and
management competency. We are aware of successful leaders (Herb Kellerher of Southwest
Airlines, Lee Iacocca of Chrysler, Alfred P. Sloan of G.E., and General Robert E. Wood of
Sears, Roebuck & Co.) Who have succeeded in transforming the culture of the organization,
In addition, a study of U.S. presidents found that charismatic presidents had better
performance on a variety of dimensions, including economic and social performance
However; effective cultural management does not depend on great individual leaders and
charisma.
2.2.2 Leadership and performance
Leadership and performance can be broadly categorized into a number of important phases.
Early studies on leadership (frequently categorized as trait studies on leadership)
concentrated on identifying the personality traits, which characterized successful leaders.
Trait theories assume that successful leaders are born and that they have certain innate
qualities which distinguish them from non-leaders. However, the difficulty in categorizing
and validating these characteristics led to widespread criticism of this trait approach,
signaling the emergence of style and behavioral approaches to leadership. Style and
behavioral theorists shifted the emphasis away from the characteristics of the leader to the
behavior and style the leader adopted. The principal conclusion of these studies appears to be
that leaders who adopt democratic or participative styles are more successful. In this sense,
these early studies are focused on identifying the one best way of leading. Similarly, to trait
theories, the major weakness of style and behavioral theories is that they ignore the important
role, which situational factors play in determining the effectiveness of individual leaders.
This limitation gives rise to the situational and contingency theories of leadership. House,
1991; Vroom and Yetton, 2004) which shift the emphasis away from the one best way to
lead to context-sensitive leadership. Although each study emphasizes the importance of
different factors, the general tenet of the situational and contingency perspectives is that
leadership effectiveness is dependent on the leaders diagnosis and understanding of
situational factors, followed by the adoption of the appropriate style to deal with each
13

circumstance. However, in an apparent return to the one best way of leadership, recent
studies on leadership have contrasted transactional leadership with transformational
leadership.
According to Budd (2005) the brief summary above indicates that research into leadership
has gone through periods of skepticism; recent interest has focused on the importance of the
leadership role to the success of organizations. One of the most respected researchers on
leadership has provided a recent treatise on the importance of leadership by arguing that the
effectiveness of a leader is a major determinant of the success or failure of a group,
organization, or even an entire country. Indeed, it has been argued that one way in which
organizations have sought to cope with the increasing volatility and turbulence of the external
environment is by training and developing leaders and equipping them with the skills to
cope. These claims are based on the assumption of a direct link between leadership and
organizational performance. Widely celebrated cases of a direct leadershipperformance link
may be found in numerous anecdotal accounts of improvements of company performance
attributed to changes in leadership However, empirical studies into the links between
leadership and performance have been lacking. Conceptually, it is argued that the visionary
and inspirational skills of transformational leaders motivate followers to deliver superior
performance. In summary, much of the above evidence presented as supporting the claim of a
leadershipperformance link is anecdotal and frequently over-concentrates on the
transformational role of leaders in corporate successes. It would appear that few studies
have responded to the observation that much of the research reported as supporting this claim
is either inconclusive or empirically suspect.
According to Avolio (2003) the evidence of a leadershipperformance link is largely
anecdotal, considerably more research has empirically examined the organizational culture
performance relationship. Indeed, an examination of the literature is likely to conclude that
organizational culture is one of the most popular concepts of management and organizational
theory. One of the popularity of the culture concept is the increasing number of theoretical
perspectives and organizational disciplines which utilize the concept. The International
Journal of Human Resource Management It is argues that the academic acceptance of
culture, without the usual squabbles and skepticism associated with new concepts, is a major
14

indication of the perceived importance of the concept. However, this is not to infer that there
is consensus on the meaning and relevance of the concept. On the contrary, there is
widespread disagreement on the scope of the organizational culture concept. Consequently, it
is pertinent to note three main issues. First, many researchers note that treating culture as a
unitary concept reduces its value as an analytic tool. Second, culture cannot be equated to
power and politics or climate. And, third, there is disagreement on whether organizational
culture can be easily changed.
Cloke (2002) states that the major reasons for the widespread popularity of an interest in
organizational culture stems from the argument (or assumption) that certain organizational
cultures lead to superior organizational performance. Many academics and practitioners
argue that the performance of an organization is dependent on the degree to which the values
of the culture are widely shared, that is, are strong The claim that organizational culture is
linked to performance is founded on the Perceived role that culture can play in generating
competitive advantage the way in which organizational culture may create competitive
advantage is by building the boundaries of the organization in a manner which facilitates
individual interaction and/or by limiting the scope of information processing to appropriate
levels. Similarly, it is argued that widely shared and strongly held values enable management
to predict employee reactions to certain strategic options thereby minimizing the scope for
undesired consequences. Theorists also argue that sustainable competitive advantage arises
from the creation of organizational competencies which are both superior and imperfectly
imitable by competitors. To this end, it is argued that the uniqueness quality of
organizational culture makes it a potentially powerful source of generating advantage over
competitors. Indeed, many commentators have advised organizations and researchers to
exploit the multiple advantages which could be offered by culture rather than focusing on the
more tangible side of the organization.
Early researchers who link culture to organizational performance are unequivocal in their
claims. An illustration of this is derived from the works of the so-called excellence writers
who argue that successful organizations are distinguished by their ability to promote cultural
values which are consistent with their chosen strategies. Although this view met with initial
popularity, the principal tenets of the argument have been subjected to extensive criticism. By
15

the 1990s, researchers assessing the links between culture and performance were more
cautious. For example, Gordon and DiTomaso (2002) and Denison (2000) both propose that
there is a link between certain organizational culture characteristics and performance but
each add a number of provisos. In particular, they note that culture will remain linked with
superior performance only if the culture is able to adapt to changes in environmental
conditions. Furthermore, the culture must not only be strong (widely shared), but it must also
have unique qualities which cannot be imitated. However, more recently, it has been
suggested that the relationship between culture and Leadership style, organizational culture
and performance are tenuous. Indeed, the growing popularity of the resource-based view of
competitive advantage suggests that the degree to which a culture can be theorized to
determine a sustainable advantage is dependent upon the value, rarity, limitability, and
sustainability of the culture concerned. Much of the richness of culture is founded on the
claim by many researchers that culture is linked to organizational performance. While, some
theorists have questioned the universality of a cultureperformance link, sufficient evidence
exists to suggest that organizational culture is associated with organizational performance.
According to Bass (2005), the earlier review of the literature on the relationship between
leadership andperformance and between culture and performance, many commentators
notethat the performance of an organization is dependent on the conscious alignment
ofemployee values with the espoused values of company strategy. This clearly indicatesthat
organizational culture and leadership are linked. The following is a review of theliterature on
this issue.One way of uncovering the relationship between culture and leadership is to
examine how culture has been conceptualized in organizational theory. Two approaches to
the study of the cultural phenomenon in organizations are: culture as an organizational
variable, then culture seen as something which can be manipulated. Thus the nature,
direction, and impact of such manipulation are dependent on the skills and abilities of the
leader. The majority of the literature which extols the virtues of transformational leadership
demonstrates widespread support for this view. In contrast, if culture is seen as an integral
part of the organization, then the thinking, feeling, and responses of leaders are molded by
the culture.

16

Schein (2002) observes that organizational culture and leadership are intertwined. He
illustrates this inter-connection by looking at the relationship between leadership and culture
in the context of the organizational life cycle. Thus, during the process of organizational
formation, the founder of a company creates an organization which reflects their values and
beliefs. In this sense, the founder creates and shapes the cultural traits of their organization.
However, as the organization develops and time passes, the created culture of the
organization exerts on the leader and shapes the actions and style of the leader. Through this
dynamic ongoing process, the leader creates and is in turn shaped by the organizational
culture. In summarizing the consensus of opinion on the links between organizational culture
and leadership, Bass and Avolio (2003) mirror the argument of Schein (2002) by suggesting
that the relationship between the two concepts represents an ongoing interplay in which the
leader shapes the culture and is in turn shaped by the resulting culture. Bass (2005)
demonstrates the relationship between leadership and culture by examining the impact of
different styles of leadership on culture. He argues that transactional leaders tend to operate
within the limits of the existing culture, while transformational leaders frequently work
towards changing the organizational culture in line with their vision. Similarly, Brown (2002)
observes that good leaders need to develop the skills that enable them to alter aspects of their
culture in order to improve their organizational performance.
2.3

CRITICAL REVIEW

Despite the plenty of studies on corporate culture in the last few decades, there is no widely
accepted causal relationship between corporate culture and performance. The empirical
evidences emerging from various studies about the effect of corporate culture on
performance have so far yielded mixed results that are inconclusive and contradictory.
Because of these contradictory results, the question of whether corporate culture improves or
worsens employees performance is still worthy of further research such as the one being
undertaken in this study. In addition, despite the existence of these studies, very little
attention has been given to the banking industry. This means that the impact of corporate
culture on employees performance in the banking industry has not received adequate
research attention.
2.4

SUMMARY
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The concept of organizational culture is derived from the anthropological concept of culture
that attempts to explain why people in societies believe and behave as they do. Culture is at
the same time both positive and negative in character. It is simultaneously a major factor in
an organization's success, and a significant limiting factor in the face of change. Culture is a
complex of values, beliefs and behaviors that become part of the social fabric of
organizations. The factors which define culture are internal, deriving from the unique
character of the organization, and external, determined by the background and experiences
managers and employees bring to the enterprise. Culture is a major determinant of
productivity; it shapes organizational responses to external pressures and suppresses or
enhances the co-operative effort level of the workforce. Culture has a significant bottom-line
effect on organizational effectiveness, profitability and shareholder value. Once established,
an organization's culture is highly resistant to change. Most employees have had the
experience of dealing with colleagues, managers and direct reports who resist the idea of
change with a dismissive "but we've always done it this way." This statement represents the
bedrock system of beliefs and accompanying behaviors that makes up an organization's
culture.
An intimate knowledge of culture and awareness should improve our ability to analyze
organizational behavior in order to manage and lead. From this statement it can be said that
research into organizational culture enables the ability to analyze organizational behavior
which translates into superior corporate performance. However this does not show clearly the
relationship between corporate culture and organizational performance.

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2.5 Conceptual framework

Motivation

Training

Performance
Leadership

Organizational structures

Dependent Variables

Independent Variable

Source: Author (2016)

Motivation
Motivation is the driving force by which humans achieve their goals. Motivation is said to be
intrinsic or extrinsic. The term is generally used for humans but it can also be used to
describe the causes for animal behavior as well. This study refers to human motivation.
According to various theories, motivation may be rooted in a basic need to minimize physical

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pain and maximize pleasure, or it may include specific needs such as eating and resting, or a
desired object, goal, state of being, ideal, or it may be attributed to less-apparent reasons such
as altruism, selfishness, morality, or avoiding mortality. Conceptually, motivation should not
be confused with either volition or optimism. Motivation is related to, but distinct from,
emotion.

Training
Training is a process in order to change a human being's attitude, knowledge, skills and
behavior. The term training refers to the acquisition of knowledge, skills, and competencies
as a result of the teaching of vocational or practical skills and knowledge that relate to
specific useful competencies. It forms the core of apprenticeships and provides the backbone
of content at institutes of technology (also known as technical colleges or polytechnics). In
addition to the basic training required for a trade, occupation or profession, observers of the
labor-market
Leadership
Leadership is described as the process of social influence in which one person can enlist the
aid and support of others in the accomplishment of a common task" Definitions inclusive of
nature of leadership have also emerged. Alan Keith of Genentech states that, "Leadership is
ultimately about creating a way for people to contribute to making something extraordinary
happen." According to Ken "SKC" Ogbonnia, "effective leadership is the ability to
successfully integrate and maximize available resources within the internal and external
environment for the attainment of organizational or societal goals."
Organizational structures
An organizational structure consists of activities such as task allocation, coordination and
supervision, which are directed towards the achievement of organizational aims. It can also
be considered as the viewing glass or perspective through which individuals see their
organization and its environment. An organization can be structured in many different ways,
depending on their objectives. The structure of an organization will determine the modes in
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which it operates and performs. Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entities such as the branch,
department, workgroup and individual. Organizational structure affects organizational action
in two big ways. First, it provides the foundation on which standard operating procedures and
routines rest. Second, it determines which individuals get to participate in which decisionmaking processes, and thus to what extent their views shape the organizations actions.

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CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction
This chapter will provide a description of the research that will be used to answer the
research questions. This is described as an operational framework whereby facts are placed
so that their meanings are more clear (Peil, 2003). Thus the research will be dictated by the
nature of information collected to answer questions and itwill adopta descriptive design. This
chapter is structured as follows: Introduction, study design and methodology, target
population, sample design, sampling and sampling procedures and data analysis.
3.2 Research design
Research design is a detailed proposal relating to a defined piece of archaeology endeavor
which includes a definition of a problem, subject or hypothesis for investigation, the
background and context to investigation, the proposed means and methods of the proposed
investigations, management arrangements and quality control procedures, a table of costs
(Robinson, 2002)
The case study will used because it allows for a critical data collection and analysis within
the given target population, over a short period of time. The research will use descriptive
research design for it is essential for the researcher to provide an elaborate description of the
phenomenon under study. This will also be important to the researcher as it will enable
him/her to get enough information that will be needed in order to undertake analysis of the
study.
3.3 Target population
A population is the total collection of elements about which we wish to make some
references. The target population includes high level management with thirty employees,
middle level management with forty employees and low level management with fifty
employees. This data will be gathered from the management after presenting the letter of
authority from my institution. The main emphasis will be to gather much more accurate
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information from employees at all levels in order to acquire accurate and actual findings on
the effects of corporate culture on organization performance. The size of target population is
shown in the Table 3.1
Table 3.1 Target population components
Population category

Target population

Percentage (%)

High level management

50

17

Middle level management

70

23

Low level management

180

60

Total

300

100

Source: Author (2016)

From the Table 3.1, the low level management constitutes of a majority of 60% followed by
the middle level management represented by 23% and finally the high level management
represented by 17%.This shows that majority of the employees are from the low level
management
3.4 Sampling design
A small section of the target population will be selected for observation and analysis.
Analysis is the process by which a relatively small number of individuals, objectives or
events are selected and analyzed in order to find out something about the entire population
from which it was selected. A sample can therefore be defined as a small portion of a target
population using some systematic form.
This research study will use stratified random sampling size as itwill enable the
generalization of a larger sample size of percentage of the total population. Several
employees will be randomly chosen and administered with questionnaires to fill. The
population will be divided into 3 strata that istop management, middle management and low
level management.
Sample sizes of 90 respondents will be drawn from the sample frame using simple random
sampling to promote the need for efficiency representativeness. This will be justified
23

according to Kothari (2004) who states that A representative sample can be between 2030% of target population. The sample sizes are shown in Table 3.2

Table 3.2 Sample size

Population category

Target population

Sample size

Percentage %

50

15

17

70

21

23

180

54

60

300

90

100

High level
management
Middle level
management
Low level
management
Total
Source: Author (2016)

From Table 3.2 the sample size will be 30% of the target population. This refers to the
number of respondents that will be targeted by the researcher.
3.5 Data collection methods
The suitable techniques for data collection from the specific sample units will be primary and
secondary data. The research study will use direct observation approach and develop
questionnaires to collect data from the respondents. Questionnaires will be used because they
will ensure uniformity of questions. (See appendix I). Therefore the researcher anticipates
that questions will yield more data than other information. The questionnaires included both
open and closed ended questions.
3.6 Data collection procedures

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The researcher will prepare questionnaires with brief instructions which will allow the
respondents to select the opinions they agreed with or disagree with. The questionnaires will
be dispatched to all respondents through hand delivery on a set date.
The secondary data will be obtained from available literature whose sources included
libraries, internet, textbooks, journals and newspapers. These instruments will be used
because they provided for in-depth data collection and reliable. To avoid bias, the
questionnaires will be administered on each stratum- this willenable the researcher to gather
accurate information and it will also save on time.
3.7 Data analysis
According to Cooper and Schendler (2003), quantitative analysis consists of categorizing,
tabulating and recombining evidence to address the research questions.
The quantitative analysis for this study will use descriptive statistics such as bar charts and
pie charts to display nominal or ordinal data, frequency counts, percentages, graphs to
describe distributions and pie charts test to detect any weaknesses in design and
instrumentation through questionnaires.
The questionnaires will be checked to ensure that they are properly filled and also to check
for the validity and accuracy of the data collected .There will be the use of open and closed
questionnaires.Content validity will be determined using expert judgment whereby the
questionnaires will be given to the research supervisors who will establish that the
instruments measures what it purports to measure. In analysis of the data qualitative
technique of data collection will be used.

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Appendix 1
Questionnaire
Information to respondents
Pleas fill in the questionnaire below. The information is strictly for educational purpose and it
will be treated with a lot of confidentiality.
Section A: personal information
1. Please indicate your status
Male
Female
2. Age
18-25
26-33
34-41
42 and over
3. Educational level
Primary
Diploma
Secondary
Degree
Masters
4. Section B: General information
i.Briefly describe what you understand by corporate culture

.
ii.Does the organization promote corporate culture?
Yes
26

No
iii.What do you think are the effects of corporate culture on organization
performance?....................................................................................................................
..........................................................................................................................................
..........................................................................................................................................
.......................................
5. Section C: Specific research questions on motivation
i.Does corporate culture affect staff motivation in the organization?
Yes
No
ii.If yes in question (ii) briefly explain its
effects

.
iii.What improvement would recommend in matters of staff motivation?

.
6. Section D: Specific research questions on training
i.
How frequently do you attend training in your organization
1-4 times in a year
5-8 times in a year
9-12 times in a year
13 times and above in an year
ii.
Does corporate culture affect performance of organization training?
Yes
No
iii.
If yes, in what ways does it affect organization performance (explain)

iv.

..
In relation to question (ii) above, if it doesnt affect training, how effectively
has the organization spreadits corporate culture?

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v.

What areas would you recommend corporate culture to enhance service

delivery? .............................................................................................................
..............................................................................................................................
..............................................................................................................................

........................................................
7. Section E: Specific research questions on leadership
i.
Does corporate culture add value to leadership in the organization
Yes
No
ii.
If yes in the above question (i) briefly explain

iii.

..
In your opinion, describe the challenges of corporate culture

iv.

..
From your opinion, how can an organization tackle these challenges

8. Section F: Specific research questions on organization structure

i. Are the organizational structures in line with the corporate culture?
Yes
No
ii.If yes in the above question, briefly explain

.
iii.Do the organizational structures function in a reliable way
Yes
No

END

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