Correlation between Organizational Culture, Innovation and Employee

Performance: Evidence from Banking Sector of Pakistan

A study was done in 2012 by students from Bahauddin Zakariya University, Multan by using a
questionnaire to which bank employees from different cities of southern Punjab responded.
Questions regarding dimensions of organizational culture (mission, core values, concern for
employees & trust, organizational learning and empowerment) and employee productivity were
chosen and 167 complete responses were collected to become a part of the study. Respondents
included supervisors, sales officers and front desk employees of banks in Pakistan.
The purpose of the survey was to judge the impact of organizational culture on workers’
performance, measure how innovation effects performance and discover the facilitating effects of
innovation between organizational culture and staff performance
The results of the survey showed a positive relation between core values of the organization and
the innovation within that organization They also reflected the positive association between
concern for employee & trust and organizational innovation. This means that if the management
puts faith in its employees, this would lead them to become more productive hence innovative,
because if employees are certain that the management trusts them, they would let them know
about any issues they might encounter with technical equipment/service difficulties, which can
then be resolved and improved.
It was further seen that there should exist a clear mission statement to encourage an innovative
atmosphere for organizational innovation. Moving on, the findings showed the strongest positive
relationship between organizational learning & empowerment and organizational innovation.
Organizational learning encourages organizational innovation as difficulties encountered by one
person and solution of that problem shared among other employees inspires organizational
innovation in service industry like banks.
Finally, the results of the study also showed a direct relationship between organizational
innovation and employee productivity. Thus, it is significant for organizations to consider the
inter-connections between efficiency, quality and innovation while figuring and executing
techniques relating to any of them.
To conclude the study, it was suggested that since solid connections have been found between
organizational culture, innovation and workers' performance, the banks’ management may
enhance the culture by encouraging learning amongst its workers and empowering them. To put
it plainly, supervisors should value the inventive and creative cultures to enable innovation
ability and as a result, increased productivity at work.