Chapter One

1 Introduction

1.1 Background of the Study

Many business managers struggle to survive in a competitive global market because of

challenging characteristics in business, more than 90% of business excellence initiatives fail to
succeed because of poor cultural integration among company managers in the corporate group.
(Bolboli & Reiche, 2014). Idris et al, (2015) indicated that poor cultural integration within
diversified business companies affects the economic performance of the corporate group and the
shareholders’ value. The lack of effective organizational culture is a primary cause of poor
performance and productivity in the corporate group (Eaton & Kilby, 2015).

Organizational culture consists of the values and assumptions shared within an organization. It
defines what is important and unimportant in the company and, consequently, directs everyone in
the organization toward the “right way” of doing things. (Steven McShane, Mary Ann Von
Glinow - Organizational Behavior (2017))

Organizational culture (OC) is composed of beliefs and expectations shared by members of an

organization. It consists of common norms, values, and beliefs of individuals within that group.
In a historical context, this could be considered the cultural equivalent of the rituals, rites,
symbols, and stories of a people. By today’s standards, it usually refers to the mutual outlook,
assumptions, and standards of an organization’s membership. It determinants include an
organization’s structure, leadership, mission, and strategy. Organizational culture can give
employees a feeling of unity and purpose and can help a team cope with complex and dynamic
changes. A strong organizational culture can serve as an asset in helping team members
accomplish goals and to experience fulfillment in their careers. In fact, an analysis of a
company’s organizational culture can be a predictor of factors such as job satisfaction, employee
commitment to the organization, or the likelihood of success of a quality improvement initiative.
Culture can be framed through various lenses. For example, one framework is Hofstede’s
cultural dimensions, which contends that culture is based on the dimensions of masculinity,
power distance index, uncertainty avoidance, and pluralism. (Richard Chalmer and Grace D.
Brannan, May 22, 2023.)
Okpara (2007) cited in Elias Tadesse’s research paper (2019) that many organizations in Africa
are plagued by poor performance, high turnover rates, and low productivity, largely due to the
negative work attitudes of the workforce. It is believed that organizational culture could
somehow affect the level of job satisfaction. As a result of the importance of organizational
culture and its effects on organizational outcomes.

Culture is the “social glue” which provides a “we-feeling”, thus combating distinction
mechanisms that are an inevitable part of an organization. Organizational culture provides the
foundation for contact and understanding a common framework of meanings. If these tasks are
not satisfactorily carried out, culture will dramatically reduce an organization's performance.
There can be different cultures within organizations, although certain basic organizational
principles or standards can exist, but in some ways these vary within different work
environments.

(Rasak Bamidele Ph.D. Landmark University, Omu-Aran, Kwara State (January 2022) source (t:
https://www.researchgate.net/publication/357605292))

1.2 Statement of the Problem

In our current competitive world every organization searches for a way to win either in a profit-
oriented organizations or non-profit-oriented organizations. They all look for the way to be
effective and efficient. There are so many factors that affects the efficiency and effectiveness of
an organization and organizational culture is one of them specially recently a more productive
organization focuses on organizational culture. Every organization profit-oriented, non-profit-
oriented, small and medium sized enterprises, educational institutions and even government
agencies uses a culture to win in their field. James Heskett (An author of (win from within)
2022) defines organizational culture as a (competitive weapon).

James Heskett defines organizational culture as (a shared by organization members: what

governs how and why we do what we do, also as generally accepted behaviors and artifacts
(customs and tradition): Things that identify us from others) which means organizational culture
is a (personality of an organization). Every organization starting from small enterprises to a big
corporation and government agencies have an organizational culture which defines them
positively or negatively weather they know it or not.

Organizational culture could be bad as good as they are, they could hinder the performance of an
organization as same as they help. Organizational culture helps in increasing the productivity,
performance of employee, employee engagement and satisfaction, promotes organizational
reputation, increase customer satisfaction and so many factors that helps the organization to be
successful and winner. Culture also could be bad, according to a study of John kotter and James
Heskett a strong culture creates a sense of pride and that turns into arrogance toward customers,
suppliers, and others; and that could lead the organization to its failurity.

Based on this discussion in this research the researchers will try to assess the culture of the
organization and how organizational cultures affects the productivity of an organization.
Therefore, this research will help to distinguish and control good and bad cultures and how they
could enhance or hinder the productivity in Bank of Abyssinia.

1.3 Major Research Questions

1. Does an organization have a defined and clear culture?

2. Does an organization share a culture with every employee?

3. How could organizational culture create?

4. How could culture help in enhancing the productivity of organization?

1.4 Objective of the Study

1.4.1 General Objective

The general objective of this study is to assess the organizational culture practices in increasing
productivity at BOA.

1.4.2 Specific Objective

1. To assess the culture of BOA.

2. To assess how culture help in enhancing the productivity of organization.

3. To assess the how to create a new organizational culture.

4. To assess the how culture help in enhancing the productivity of organization

1.5 Significance of the Study

The significance of this study is to assess the existing culture of organization and give a direction
for an organization to create and share its new culture with its employees, it gives a direction on
how culture affects the productivity of an organization. BOA is known for its innovative culture
for the past certain years and that is one of reasons of BOA to get succeed in the country. So,
assessing and showing these kind of positive results to them encourage them to practice more
new cultures.

In addition to that the study will serve as a base knowledge for the next researchers who are
interested in the similar studies or for those who wants to study the exact same title deep and
widely.

Finally, this study helps the researchers as a partial fulfillment of a degree and also helps in
increasing their level of knowledge in the topic and enhances the skills on how to practice the
culture in the future in work environment.

1.6 Scope and Delimitation

The scope of the study is delimited to employees and managers work in main branch (Adama
Branch) of BOA located in Adama city, Oromia, Ethiopia. Bank of Abyssinia is one of the
largest corporations with many branches in the country and that makes it broad to assess for the
researchers. The researchers choose to assess the main branch because of cost and time. Based
on that since the culture of a main branch is similar with the head office because the orders and
experience is directed to it from the head office and also it is the one which represents the rest of
the branches found in the city and that is a good reasoning for generalization.

1.7 Organization of the Study

The research paper is organized in to five chapters. The first chapter deals with problem
definition and its approach, which is composed of background of the study, statement of
problem, objectives, significance, scope and delimitation and organization of the study. The
second chapter covers literature review of related researches. The third chapter is will discuss
about the research methodology which explains about the methods the researchers will use to
collect data.

Chapter four will be about data presentation, analysis and interpretation of the study. Finally,
chapter five is about summary of major finding, conclusion and recommendation of the study.