Organizational Culture and Employee Job Performance: Case of Insurance Companies in Anuradhapura District

Abstract

The concept of organizational culture has become a fundamental aspect in business, management, psychology and sociology (Oyafunke et al., 2014). According to Hofstede (1980), culture is the collective thinking of minds which create a difference between the members of one group from another. Organizational culture creates the value of an institution not only by the manners and behaviors of every individual in the organization but also by the collective attitudes and behavior of the organization in general (Aksoy et al., 2014). Several studies have investigated the relationship between organizational culture and employee performance. Once companies achieve effective organizational culture, they might continue to diversify business without affecting performance (Murphy, 2013). Strong culture in the organization is very helpful to enhance the performance of the employees that leads to the goal achievement and increases the overall performance of an organization (Deal & Kennedy, 1982). Some studies show a strong culture as a driving factor for organizational performance (Simoneaux & Stroud, 2014; Pinho et al., 2014). Rahmisyari (2016) stated that strength of corporate culture has a significant effect on both individual and company performance in the long term. He further mentioned that even the culture will become one of the increasingly important factors in determining the success or failure of a company. In the situation of increasing competition, globalization, alliances and major work force development have generated an essential need for corporate culture. Thus, it is assumed that managing organization culture is one of the key managerial challenges of the millennium. More often than not, employees are unconscious of their organization culture until it is become a problem and until the occurrence of a new culture which can be made obvious and explicit (Oyafunke et al., 2014). However, many organizations today put more efforts on the focus of only intrinsic and extrinsic reward systems to enhance employee performance, giving less concern on the value and belief system. Furthermore, there is no conclusive finding on the link between organizational culture and employee performance. There is limited literature pertaining to organizational culture and employee performance in Sri Lankan context specifically in insurance industry. Based on above understanding, this study formulates the research problem as “Is there any relationship between organizational culture and employee performance in insurance companies in Anuradhapura district?” Thus, the purpose of this study is to investigate the impact of organization culture on employee job performance in insurance industry in Anuradhapura district.

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