’

CAPSTONE REPORT ON

IMPLICATION OF ORGANIZATION CULTURE ON EMPLOYEE

PERFORMANCE IN THE BANKING SECTOR

SUBMITTED BY:-

DIMPLE HASNANI

USHA KORANGA

MOUCHUMI GOGOI

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 D E C LA R A T I O N

We hereby declare that the project work entitled “A study on implication of organization
culture on employee performance in banking sector”submitted to Lovely
ProfessionalUniversity, is a record of an authentic work done by us under the guidance of Dr.
Ritu Sharma, Lovely Professional University, in order to fulfill the requirement of project. This
work has not been copied from any source and whatever decoration and connection made in the
circuit is a total dedicated work of all the three members in our group.

Dimple Hasnani(11603810)

MouchumiGogoi(11609231)

UshaKoranga(11606935)

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 CERTIFICATE

This is to certify that the Report entitled “A study on implication of organization culture on
employee performance in Banking sector” is submitted in partial fulfillment of the
requirements for the award of Degree of Master of Business Administration in MBA at the
Lovely Professional University, Punjab is an original work carried out by them under my
guidance. To the best of my knowledge and belief the matter embodied in the report has not
been submitted by them to any other University/Institute for the award of any Degree/Diploma.

………………………………….........

Dr. Ritu Sharma

UID -19099

Assistant Professor

Lovely Professional University

Phagwara

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 ACKNOWLEDGEMENT

It is our extreme pleasure presenting our report on “A study on implication of organization

culture on employee performance in banking sector”. We expressed ourdeepgratitude to our
project mentor as project guide Dr. Ritu Sharma, who gave us the inspiration to take the project
and guided us regarding each and every minute detail about this attempt. She has been a
constant source of motivation for us throughout the whole project work. We deeply thank her
for all the hard work and inspiration she inputted upon us for carrying on with the project work.
Our profound sense of gratitude is due to our Dr. Rajesh Verma, Head of School for constant
encouragement and guidance. Last but not the least we are thankful to all the faculty members
who directly or indirectly helped us at various stages of our project duration and ultimately
contributing in making our project fully operational. We thank our parents for their emotional
support and constant encouragement which helped us strive and move forward. We would like
to thank all our friends for their support, for all the thoughtful and stimulating discussions that
encouraged us to think outside Box.

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 TABLE OF CONTENT

INTRODUCTION 6-11

REVIEW LITERATURE 12-14

OBJECTIVES AND NEED 15

SCOPE AND LIMITATIONS 16

RESEARCH METHODOLOGY 17-23

CONCLUSION 24

REFFERENCES 25

ANNEXURE 26-29

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TOPIC INTRODUCTION
Each and every organization have their ownunparalleledpersonal appeal, just like people do.
The unparalleledpersonal appealof an organization is denoted to as its culture. In groups of
people who work together, organizational culture is an unseeable but right force thatregulates
the behavior of the members of that group.
Organizational culture is anarrangement of shared outpresumptions, assesses, and faiths, which
rules how people act in organizations. These shared out values have a rightact upon on the
people in the organization and prescribe how theyattire, behave, and do their jobs. Every
organization builds up and maintains anunparalleled culture, which rendersroad map and limits
for the behavior of the members of the organization.
Organizational culture is compiled of 7featuresthepriority from high to low. Every organization
has a clear-cut value for each of these characteristics, which, when combined, defines the
organization's unparalleled culture. Members of organizations makeopinions on the value their
organization places on these features and then adapt their behavior to cope with this
comprehended set of values.

Characteristics of Organizational Culture

1. Innovation – Organizations withculturesthatdirect a high value on conceptionadvocate

their employees to take chances and introduce in the carrying out their jobs.
Organizations with cultures that place a lowvalue on invention expect their employees to
do their job as the way they have been trained, without any improvement in their
performance.

2. Attention to Detail - these features of organizational culture prescribesthelevel to which

employees are required to be exact in their work. A culture that directs a high value on
care to detail expects their employees to perform their work with preciseness. A culture
that places a low value on this characteristic does not.

3. Accent on Outcome- organizations that concentrate on results, instead of how the

results are achieved, place a high stress on this value of organizational culture. An
organization that teaches its sales force to do whatever it takes to get sales orders has a
culture that places a high value on the stress on outcome features.

4. Accent on People - organizations that aim a high value on this features of organizational
culture place a lot of grandness on how their ideas will involve the people in their
organizations. For these companies, it is important to treat their employees with respect
and self-worth.

5. Teamwork -Organization that manages work actions around teams rather than how an
individual place a high value on this characteristic of organizational culture. People who
work for these types of organizations inclineto have a convinced relationship with their
fellow worker and managers.
6. Aggressiveness- Thefeature of organization culture prescribes about whether the group
members are awaited to be self-assertive or easy going when carrying on with company

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 within the market compete place. Companies with an fast-growing culture provides a
high value on competitiveness and exceeding the competition at all cost
7. Stability– A company who places a high value on stability areprinciple oriented, certain
and bureaucratic in nature. This type of companies typically provide uniform and certain
levels of output and function and best in non-changing market condition

BANKING
Banking developed in the 14th C in the prospering cities of Renaissance Italy but in many ways
was a continuation of opinions and conceptions of credit and lending that had their roots in the
ancient world. Banking history says that the number of banking dynasties – notably, the
Medicis, the Fuggers, the Welsers, the Berenbergs and the Rothschilds – have played a central
role over many centuries. The most former existingretail bank is Banca Monte deiPaschi di
Siena, while the oldest existing merchant bank is Berenberg Bank.
A bank is a monetary institution that takesdeposits from the public and creates credit. Lending
actions can be performed either directly or indirectly through capital markets. Due to their
significance in the monetary stability of a country, financial institutions are highly determined
in most countries. Most countries have devoted a system known as fractional reserve banking
under which banks agree liquid assets equal to only a portion of their current liabilities. In
accession to other regulations aimed to confirm liquidity, banks are generally subject to lower
capital requirements based on an international set of capital standards, known as the Basel
Accords.

BANKING IN INDIA:

Banking in India, in the advancedsense, comes from the last decades of the 18th century.
Amongst the first banks were the Bank of Hindustan, which was founded in 1770 and liquidated
in 1829–32; and the General Bank of India, founded in 1786 but failed in 1791.
The largest bank, and the oldest still in being, is the State Bank of India (S.B.I). It came from
the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one
of the three banks subsidized by an administration government; the other two were the Bank of
Bombay in 1840 and the Bank of Madras in 1843. The three banks were converged in 1921 to
frame the Imperial Bank of India, which upon India's autonomy, turned into the State Bank of
India in 1955.
In 1960, the State Banks of India was given control of eight state-related banks under the State
Bank of India (Subsidiary Banks) Act, 1959. These are presently called its partner banks. In
1969 the Indian government nationalized 14 noteworthy private banks; one of the enormous
banks was Bank of India. In 1980, 6 more private banks were nationalized. These nationalized
banks are the lion's share of moneylenders in the Indian economy. They rule the keeping money
division in view of their expansive size and across the board arranges.

The Indian banking sector is broadly classified into:

 Scheduled banks
 Non-scheduled banks

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The scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India
Act, 1934. The scheduled banks are further classified into:
 Nationalised banks
 State Bank of India and its associates
 Regional Rural Banks (RRBs)
 Foreign banks and
 Other Indian private sector banks

The term commercial banks refer to both scheduled and non-scheduled commercial banks
regulated under the Banking Regulation Act, 1949.
Generally banking in India is reasonably mature in terms of supply, product range and reach-
even though reach in rural India and to the poor still remains a challenge. The government has
developed first step to address this through the State Bank of India expanding its branch
network and through the National Bank for Agriculture and Rural Development (NABARD)
with facilities like microfinance.
MAJOR PLAYER IN INDIA:

1.HDFC BANK LTD

2.ICICI BANK LTD

3. STATE BANK OF INDIA LTD

4.PUNJAB NATOINAL BANK LTD

5.BANK OF BARODA LTD

6.FEDERAL BANK LTD

7.AXIS BANK LTD

8.ING VYSYA BANK LTD

9.IDBI BANK LTD

10.INDUSIND BANK LTD

11.YES BANK LTD

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CURRENT PERIOD

The Indian banking sector is broadly separated into scheduled banks and non-scheduled banks.
All banks accepted in the Second Schedule to the Reserve Bank of India Act, 1934 are
Scheduled Banks. These banks let inScheduled Commercial Banks and Scheduled Co-operative
Banks. Scheduled Co-operative Banks includes Scheduled State Co-operative Banks and
Planned Urban Cooperative Banks. Scheduled Commercial Banks in India are separated into
five different groups according to their holding and/or nature of operation:
• State Bank of India and its Associates
• Nationalise Banks
• Private Sector Banks
• Foreign Banks
• Regional Rural Banks.

By 2010, banking in India was broadly mature in terms of provision, product range and reach-
even though reached in rural India still continues to compete for the private sector and foreign
banks. In terms of character of assets and capital adequacy, Indian banks are believed to have
clean, firm and crystal clear balance sheets relative to other banks in corresponding economies
in its region. The Reserve Bank of India is an independent body, with minimum pressure from
the government. The growing of Indian economy anticipatedbeing strong for quite some time-
especially in its services sector-the want for banking services, especially retail banking,
mortgages and investment services are expected to be strong. One may also expect M&as,
takeovers, and asset sales.
In March 2006, the Reserve Bank of India has allowed Warburg Pincus to increase its stake in
Kotak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been
permitted to hold more than 5% in a private sector bank since the RBI declared norms in 2005
that any stakesincreasing 5% in the private sector banks would need to be vetted by them.
In recent years critics have charged that the non-government owned banks are too strong-
growing in their loan recovery efforts in connection with housing, vehicle and personal loans.
There are press reports that the banks' loan recovery efforts have driven defaulting on borrowers
to suicide.
In 2013 the Indian Banking Industry employed 1,175,149 employees and had aamount of
109,811 branches in India and 171 subdivisions abroad and manages an aggregate deposit of
₹67,504.54 billion (US$1.1 trillion or €890 billion) and bank credit of ₹52,604.59 billion
(US$820 billion or €690 billion). The profit of the banks operating in India was ₹1,027.51
billion (US$16 billion or €14 billion) against a turnover of ₹9,148.59 billion (US$140 billion or
€120 billion) for the financial year 2012–13.

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BANKING STRUCTURE IN INDIA:

In today is dynamic world banks are inevitable for the development of a country. Banks play a
pivotal role in enhancing each and every sector. They have helped bring a draw of development
on the world’s horizon and developing country like India is no exception. Banks fulfills the role
of a financial intermediary. This means that it acts as a vehicle for moving finance from those
who have surplus money to (however temporarily) those who have deficit. In everyday branch
terms the banks channel funds from depositors whose accounts are in credit to borrowers who
are in debit. Without the intermediary of the banks both their depositors and their borrowers
would have to contact each other directly. This can and does happen of course. This is what has
led to the very foundation of financial institution like banks. Before few decades there existed
some influential people who used to land money. But substantially high rate of interest was
charged which made borrowing of money out of the reach of the majority of the people so there
arose a need for a financial intermediate. The Bank have developed their roles to such an extent
that a direct contact between the depositors and borrowers in now known as disintermediation.
Banking industry has always revolved around the traditional function of taking deposits, money
transfer and making advances. Those three are closely related to each other, the objective being
to lend money, which is the profitable activity of the three. Taking deposits generates funds for
lending and money transfer services are necessary for the attention of deposits.

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INDIAN BANKING INDUSTRY ANALYSIS:

The banking scenario in India has been changing at fast pace from being just the borrowers and
lenders traditionally, the focus has shifted to more differentiated and customized product/service
provider from regulation to liberalization in the year 1991, from planned economy to market.
Economy, from licensing to integration with Global Economics, the changes have been swift.
Almost all the sector operating in the economy was affected and banking sector is no exception
to this. Thus the whole of the banking system in the country has undergone a radical change.
Let us see how banking has evolved in the past 57 years of independence. After independence
in 1947 and proclamation in 1950 the country set about drawing its road map for the future
public ownership of banks was seen inevitable and SBI was created in 1955 to spearhead the
expansion of banking into rural India and speed up the process of magnetization. Political
compulsions brought about nationalization of bank in 1969 and lobbying by bank employees
and their unions added to the list of nationalized banks a few years later. Slowly the unions
grew in strength, while bank management stagnated. The casualty was to the customer service
declined, complaints increased and bank management was unable to item the rot. In the
meantime, technology was becoming a global phenomenon lacking a vision of the future and
the banks erred badly in opposing the technology up gradation of banks. They mistakenly
believed the technology would lead to retrenchment and eventually the marginalization of
unions. The problem faced by the banking industry soon surfaced in their balance sheets. But
the prevailing accounting practices unable banks to dodge the issue. The rules of the game
under which banks operated changed in 1993. Norms or income Recognition, Assets
classification and loan loss provisioning were put in place and capital adequacy ratio become
mandatory. The cumulative impact of all these changes has been on the concept of state
ownership in banks. It is increasingly becoming clear that the state ownership in bank is no
longer sustainable. The amendment of banking regulation act in 1993 saw the entry of new
private sector banks and foreign banks.

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Review of literature:

 Litwin and Stringer (1968)[32] are of the sentiment that activity fulfillment increments
as the individual sees the earth as having greater accomplishment openings. People who
are in accomplishment atmosphere rate themselves as higher entertainers than people in
less propelling atmosphere. Sales people are evaluated higher in execution in the event
that they see an accomplishment atmosphere. Assistants are appraised higher in
execution on the off chance that they see a power atmosphere.

 Kaezka and Kirk (1968) in their investigation found that execution is influenced by
authoritative atmosphere. As indicated by them, representative focused atmosphere was
related with superior as far as lower unit cost, higher benefit and so on

 rederickson (1968) in his examination "A few Effects of Organizational Climate on

Administrative execution" found that 'inventive' atmosphere yields more noteworthy
profitability and unsurprising undertaking execution.

 Friedlander, F and Margulies, N (1969) in their examination "Numerous effect of

authoritative atmosphere and individual esteem framework upon work fulfillment is of
the conclusion that hierarchical atmosphere is a noteworthy determinant of individual
employment fulfillment (eg: - between individual relations, assignments included self-
acknowledgment and accomplishment)" they say that connection between authoritative
atmosphere and occupation fulfillment fluctuates with the sort of atmosphere and
measure of occupation fulfillment.

 Dewhirst D.(1971)[15] in his examination "Effect of hierarchical atmosphere on the

want to oversee Among Engineers and Scientists" led among 320 administrators and
non-chiefs in 2 non-benefit advancement associations achieved the conclusion that
supervisors who put more noteworthy incentive on overseeing additionally had experts
who set more prominent incentive on turning into a director

 Payne and Mansfield (1973) [47] found that the perception of organisational climate by
managers tend to be more positive than perceptions by non-managers.

 Pritchard, R. also, Karsick B.(1973) [50] in their investigation, "The impacts of

Organizational Climate on Managerial Job Performance and Job Satisfaction" opines
that hierarchical atmosphere was more firmly identified with workers' activity
fulfillment than their activity execution.

 The connection between authoritative structure and occupation fulfillment has been
analyzed by Ivaneevich and Donnelly(1975) [26] with a specimen of 295 exchange
businessperson in a level association and found that they were more fulfilled regarding
self-sufficiency and self-completion, experienced lower measure of tension anxiety and
performed more productively than their partners working in a medium and a tall
association.

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 Khanna, B.B.(1986) [4] in his unpublished doctoral paper "Connection between
Organizational Climate and Organizational part push and their effect upon
Organizational Effectiveness" says that hierarchical atmosphere has no huge relationship
with the requirement for autonomy, poise and development. Accomplishment
atmosphere has positive relationship with work inclusion, authoritative responsibility,
hierarchical connection, work fulfillment, add up to fulfillment and aggregate adequacy.
Control atmosphere has negative connection with authoritative duty, hierarchical
connection, work fulfillment, add up to fulfillment and aggregate adequacy. Expansion
atmosphere is decidedly related with authoritative responsibility, work fulfillment, add
up to fulfillment and aggregate viability. Reliance atmosphere has no relationship with
any measure. Alliance atmosphere has negative relationship with work fulfillment and
aggregate viability. Master impact atmosphere has positive connection with hierarchical
connection.

 Denison D.R. (1996)[13] says that atmosphere is for the most part worried about those
parts of the social condition that are deliberately seen by authoritative individuals

 Burk R.J. (1996)[10] found that authoritative factors, for example, measure, nature of
business, open versus private areas and workers statistic calculate, for example, years
the association and various leveled level likely impact the consequences of
representatives' appraisal of occupation fulfillment. He additionally found that guys who
were at essentially higher hierarchical levels than females revealed fundamentally more
elevated amounts of occupation fulfillment. At the point when the authoritative level
was controlled the sexual orientation distinction was not found.

 Throughout the most recent two decades, there have been marvelous changes in
authoritative administration on the planet (Schein, 2011). This has been ascribed to new
forceful rivalry in the commercial center close by the developing differing
representatives in numerous associations (Rhine and Christen, 2012). The intricacy of
business condition has likewise constrained associations to scan for more effective
administration methodologies. Therefore, an attention on hierarchical culture is getting
awesome significance in the business division. As indicated by Kotter (2012)
hierarchical culture directly affects an assortment of authoritative factors. Research
likewise demonstrates that if representatives are guided by similar standards and
qualities in their association, their execution would enhance (Hofstede, 2007).The study
was guided by the Schein's theory of organizational culture, the equity theory and the
theory of organizational excellence by Thomas Peters and Robert Waterman. Schein's
theory of organizational culture focuses on the basic underlying organizational
assumptions, espoused values and artefacts and how their linkages can influence
performance (James & Jones, 2005). Equity theory maintains that individuals make
comparison by looking at how their efforts are rewarded in respect to those of people in
similar positions. The view of individuals on the fairness of rewards they get relative to
others affects their level of work drive hence their performance. The theory explains
how organizations can improve the performance of employees by adopting

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 organizational culture that rewards employees appropriately. The theory of
organizational excellence by 2 Thomas Peters and Robert Waterman (2014) states that a
good organization is characterized by a preconceived notion leaning toward its
accomplishment, being focused on the customer, self-sufficiency and skills of doing
business. The theory also considers culture as a component of an integrated social
system serving the common good, thereby promoting organizational performance and
the well-being of all its stakeholders (Smelser, 2005).

 As indicated by Magee (2002) hierarchical culture is the arrangement of suspicions that

individuals from an association subscribe to. The presumptions are basically convictions
and qualities. Convictions concentrate on reality and they originate as a matter of fact
while values are about standards that are attractive and worth taking a stab at. It is the
particular variety of rule that is shared by everybody in the association. This thusly
controls the way these individuals mix with each other and with outcasts. The sharing of
these convictions and qualities make a business culture (Azhar, 2003). Robbins (2012)
sees authoritative culture as a homogeneous acumen of the association in view of
remarkable uniqueness isolating one association from the other.

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Objectives:
1. To analyse the factor effecting culture
2. To analyse the factor effecting performance

Need of the study:-

Organizational culture as a significant contextual factor in performance management is hardly studied.

The need of this study is to expand the base of knowledge and empirically test the relationship between
the effects of organizational culture on performance of employees. Organizational culture has the ability
to increase job satisfaction, and awareness about problem solving and developing coordination among
the employees. If the organizational culture becomes incompatible with the employees’ expectations, the
organization's success will also decrease so it is the duty of managers to focus more on the culture of the
organization that has a significant effect on employee’s performance, if they want to succeed in their
businesses. As theorganizational values has a significant effect on employee's job performance as the
organisation climate is mostly assumed as a vice versa relationship. As an employee it is main asset of an
organisation and that of the organisation depends on individual employee performance which affects
positively or negatively the organisation performance at large. Every business has their own way of
doing things, has developed norms and procedures over time and has different atmosphere and feeling
and this is the organisation culture. The study analyses the influence of organisation culture on
employee's performance in the banking. It has offered recommendations on what can be done to achieve
optimum performance while adopting the right culture.

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Scope of the study:-

 This study includes performance management, employee job satisfaction and leadership
behaviour, personal –organizational fit and organizational change.
 This study has made an attempt to measure the organizational culture and performance
by conducting the survey done on 31 employees in banking sector.

Limitations of the study:-

 This study is focused on the factors affecting culture and performance.

 The research is done on the basis of non random sampling on banking employees
 This study limits itself to organizational culture and how this influence employee job
performance.

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RESEARCH METHODOLOGY
Descriptive Research
Type of research
Data collection method Primary data collection through questionnaire
Sample size 32

Sampling Technique

Non random sampling

A sampling method where some elements of the population have no chance of selection, or
where the probability of selection cannot be accurately determined. We have selected non
random sampling because the topic of study is limited to banking sector and its employees.

Convenience sampling

With convenience sampling, the samples are selected because they are accessible to us. Subjects
are chosen simply because they are easy to access and convenient for us.

Object wise RM

Object 1: Use of primary data and application of factor analysis.

Object 2: Use of primary data with application of descriptive Factor Analysis (EFA).

Research methodology that is used in this study is “descriptive research”.

DATA COLLECTION

To collect the data, Primary data collection method has been used. Primary data is that those
which is new, fresh data being collected for first time and has far greater importance then the
already existing data. These are required in solving the problem which requires some new
measures to be done.

Method for Primary Data collection- QUESTIONNAIRE

In our report the questionnaire method of data collection was selected. We have taken the data
through the face to face interaction.

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FACTOR ANALYSIS

PERFORMANCE FACTORS

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .686
Bartlett's Test of Sphericity Approx. Chi-Square 382.191

Df 190

Sig. .000

Rotated Component Matrix a

Component

1 2 3 4

per15 .806
per20 .746
per19 .744
per16 .670
per17 .662
per4 .661
per10 .648
per7 .631 .617
per5 .892
per6 .717
per14 .700
per1 .686
per18 .746
per2 .731
per13 .629
per3 .618
per9 .571
per8 .570
per12 -.765
per11 .738

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.

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Total Variance Explained
Com Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
pone % of Cumulative % of Cumulative % of
nt Total Variance % Total Variance % Total Variance Cumulative %
1 8.100 40.498 40.498 8.100 40.498 40.498 4.810 24.051 24.051
2 2.050 10.251 50.749 2.050 10.251 50.749 3.545 17.727 41.777
3 1.813 9.067 59.816 1.813 9.067 59.816 3.122 15.610 57.387
4 1.620 8.101 67.917 1.620 8.101 67.917 2.106 10.531 67.917
5 .973 4.867 72.785
6 .949 4.746 77.530
7 .778 3.889 81.419
8 .724 3.622 85.041
9 .571 2.855 87.896
10 .478 2.390 90.286
11 .466 2.328 92.614
12 .362 1.811 94.426
13 .299 1.497 95.923
14 .240 1.198 97.120
15 .182 .910 98.030
16 .135 .675 98.706
17 .107 .534 99.239
18 .076 .380 99.619
19 .056 .279 99.898
20 .020 .102 100.000
Extraction Method: Principal Component Analysis.

Performance factors

Kaiser-Meyer-Olkin Measure of Sampling Adequacy should be more than 0.50. It shows the
test which was conducted has valid responses and is considered to be satisfied and fulfilling the
above condition because the value of KMO is 0.686.

Also the cumulative percentage should be more than 60%. Then only it is accepted a proved and
valid study. In this study the cumulative percentage for finding performance factors is 67.91%.

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CULTURE

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .614
Bartlett's Test of Sphericity Approx. Chi-Square 587.152

Df 190

Sig. .000

Rotated Component Matrix a

Component

1 2 3

cul15 .851
cul19 .838
cul16 .808
cul1 .759
cul3 .691 .536
cul7 .673
cul8 .641 .640
cul2 .598
cul17 .538
cul6 .515
cul9 .887
cul10 .839
cul11 .786
cul12 .736
cul4 .669
cul18 .544 .654
cul13 .595 .636
cul14 .594 .614
cul5 .572
cul20 .904

Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 6 iterations.

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Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

% of Cumulative % of Cumulative % of Cumulative

Component Total Variance % Total Variance % Total Variance %

1 12.469 62.346 62.346 12.469 62.346 62.346 6.603 33.017 33.017

2 1.557 7.785 70.131 1.557 7.785 70.131 6.602 33.010 66.027
3 1.063 5.316 75.447 1.063 5.316 75.447 1.884 9.419 75.447
4 .940 4.699 80.145
5 .782 3.908 84.053
6 .669 3.346 87.399
7 .487 2.435 89.834
8 .457 2.284 92.118
9 .297 1.483 93.601
10 .267 1.334 94.935
11 .247 1.236 96.171
12 .177 .883 97.054
13 .161 .805 97.859
14 .123 .615 98.474
15 .095 .474 98.948
16 .079 .395 99.344
17 .055 .274 99.618
18 .041 .205 99.823
19 .031 .154 99.977
20 .005 .023 100.000

Extraction Method: Principal Component Analysis.

Cultural factors

Kaiser-Meyer-Olkin Measure of Sampling Adequacy should be more than 0.50. It shows the
test which was conducted has valid responses and is considered to be satisfied and fulfilling the
above condition because the value of KMO is 0.614.

Also the cumulative percentage should be more than 60%. Then only it is accepted a proved and
valid study. In this study the cumulative percentage for finding cultural factors is 75.447%.

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 Factors affecting performance
After using SPSS tool we found out the following factors which affects the performance of the
employees in banking industry.

1. Commitment towards work

2. Guidance given by and authority to seniors
3. Peers’ attitude
4. Positive Attitudes affects Job Performance
5. Control over employees

1. Commitment towards work

The empirical results shows that there is a fairly high relationship between employee commitment and
organizational performance in a Company implying that employee’s commitment improves the
company’s performance. It is therefore concluded that organizational performance can simply be
improved through employee commitment. It is also found that there is a high relationship between
employee commitment and employees’ turnover that employees’ turnover rate is highly determined by
the level of employee commitment of the workers.

2. Guidance given by and authority to seniors

The more authority given to the senior the employee’s performance in the task will be more
effective. Employees in bank appreciate it when authority is being with top level management.
Therefore, if authority is delegated to the employees, execution of tasks will be ineffective but
many studies also say that the centralized decision making, strict hierarchy and long chain of
commands tend to reduce the employee satisfaction, which in turn lessens the commitment with
the job and organization. Effective employee performance is dependent upon the satisfaction
and commitment of human resource.

3. Peers’ attitude
Employees/peers influence the productivity of their co-workers, with peer pressure which plays
a significant role in how well employees perform. When they are surrounded by hard-working,
high-achieving colleagues, employees are more likely to perform better because they have pressure to match
up to their co-workers and because they see the level of achievement possible through thier hard work.
Likewise, if they work in a low-output working environment, performances may suffer.

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4. Positive Attitudes affects Job Performance
Encouragement and recognition by Managers to employees with positive attitudes boosts satisfactory or
above-average performance. The employees contribute to a positive workplace and impact positively the
workplace morale. They often become unnoticed because people with negative attitudes or weak performance
demand for more of a manager's time. Recognition reinforces their positive attributes and promotes continues
achievement.

5. Control over employees

The control has a significant effect on employee performance management. There is direct relationship
between management control performances with the employees. Therefore it can be explained that the
management control with indicator control environment, risk assessment, information and
communication, control activities and monitoring can improve the performance of employees in the form
of quantity, quality and time.

23
CONCLUSION
The study done on “implications of organizational culture on employees' performance” show
that culture plays a vital role in making people effective or ineffective. The factors which affects
the performance the most are Commitment towards work, Guidance given by and authority to
seniors, Peers’ attitude, Positive Attitudes affects Job Performance, Control over employees.
These factors play a major role to improve or worsen the performance and the
outcome/productivity of an employee or an organization as a whole. To improve the
productivity of people of an employee or the organization these factors must be kept in mind to
make people efficient and effective so that it can lead to the success of the organization.
The changes in cultural values and beliefs can change the performance and effectiveness of the
work done by employees.

24
REFERRENCES

 https://pdfs.semanticscholar.org/6712/5a0e070b66fcf8058314d1680bb6958c604c.pdf
 http://erepository.uonbi.ac.ke/bitstream/handle/11295/94009/Oduol_Effects%20of%20o
rganizational%20culture%20on%20performance%20of%20subsidiaries%20of%20select
ed%20regional%20commercial%20banks%20headquartered%20in%20Kenya.pdf?sequ
ence=3
 http://shodhganga.inflibnet.ac.in/bitstream/10603/22816/13/13_chapter2.pdf
 http://erepository.uonbi.ac.ke/bitstream/handle/11295/99563/Maina_Influence%20Of%2
0Organizational%20Culture%20On%20Performance%20Of%20Commercial%20Banks
%20In%20Kenya.pdf?sequence=1&isAllowed=y
 http://mujournal.mewaruniversity.in/JIR%201-4/13.pdf

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 ANNEXURE

QUESTIONAIRE

IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEES PERFORMANCE

1. Age
a) Below 25
b) 25-35
c) 35-45
d) 45 or above

2. Gender
a) Male
b) Female
c) Others

3. Name of the organization ______________________________

4. Position _____________________

Strongly agree Agree Neutral Disagree Strongly disagree

1 2 3 4 5

PERFORMANCE

1. Prevention is better than cure.

1 2 3 4 5

2. Freedom to employees breeds indiscipline.

1 2 3 4 5

3. Usually, emphasis on team work dilutes individual accountability.

1 2 3 4 5

4. Thinking out and doing new things tones up the organization’s vitality.
1 2 3 4 5

5. Surfacing problems is not enough; we should find the solutions.

1 2 3 4 5

6. A good way to motivate employees is to give them autonomy to plan their work.
1 2 3 4 5

7. Employees’ involvement in developing an organization’s mission and goals contributes to

productivity.
1 2 3 4 5

26
8. In today’s competitive situations, consolidation and stability are more important than
experimentation.
1 2 3 4 5

9. I am able to handle any situation.

1 2 3 4 5

10. I have clarity in my mind regarding my actions towards my task.

1 2 3 4 5
11. I never do what I don’t want to do.
1 2 3 4 5

12. I easily get influenced by others’ actions.

1 2 3 4 5

13. I want to control the people while participating in group activities.

1 2 3 4 5

14. I persist in activities which I think are critical.

1 2 3 4 5

15. I get fully involved in the entire task I do.

1 2 3 4 5

16. I always set a higher target after completing one goal.

1 2 3 4 5

17. I get more satisfaction if I do my own work effectively without bothering about the result.
1 2 3 4 5

18. I want others to say what to do and what not to do.

1 2 3 4 5

19. I am not afraid of accepting any kind of work given to me.

1 2 3 4 5

20. I listen carefully to others’ opinion about my behaviour.

1 2 3 4 5

27
CULTURE
1. Nurturing and helping subordinates is encouraged here.

1 2 3 4 5

2. People here are treated according to their working assignments and not on the basis of cast,
language, etc.

1 2 3 4 5

3. People feel free to have and express opinions and ideas that are different from their bosses.

1 2 3 4 5

4. Seniors exercise their authority in most matters and theirs is accepted by their juniors.

1 2 3 4 5

5. Official moral support and help to employees and colleagues in a crisis.

1 2 3 4 5

6. Taking independent action relating to their jobs.

1 2 3 4 5

7. Team work and team spirit.

1 2 3 4 5

8. Trying out innovative ways of solving problems.

1 2 3 4 5

9. Genuine sharing of information, feelings and thoughts in meetings.

1 2 3 4 5

10. Interpersonal contact and support among people.

1 2 3 4 5

11. Seniors encouraging their subordinates to think about their development and take action in that
direction.

1 2 3 4 5

12. Accepting and appreciating help offers by others.

1 2 3 4 5

13. Encouraging employees to take a fresh look at how things are done.

1 2 3 4 5

28
14. Free discussion and communication between seniors and subordinates.

1 2 3 4 5

15. Close supervision of employees, and directing their action.

1 2 3 4 5

16. Facing challenges inherent in the work situation.

1 2 3 4 5

17. Free interaction among employees, each respecting other’s feelings.

1 2 3 4 5

18. People care for the total organization and not only about their own groups or teams.

1 2 3 4 5

19. Importance is given to long term planning and working for the future.

1 2 3 4 5

20. People do not have time to think of future needs; they are too busy completing their assigned
tasks.

1 2 3 4 5

29