ORGANIZATIONAL CULTURE AS A PREDICTOR OF ORGANIZATIONAL PERFORMANCE OF PRIVATE FIRMS IN CAMEROON: MANECH COMPANY, DOUALA CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The impact of globalization presents a significant challenge for organizations worldwide. Cultivating and maintaining a robust organizational culture is imperative for organizational success. Burnes (2020) defines organizational culture as attitudes, beliefs, and modes of operation, while Stafford and Miles (2018) characterize it as a system of shared assumptions, values, and beliefs shaping internal and external interactions. Hofstede and Hofstede (2020) suggest that organizational culture varies across entities, influenced by factors like achievement, fairness, collaboration, and rules. Organizational performance, crucial for fulfilling missions through effective management and governance, involves achieving specific goals over time (Stafford & Miles, 2013). Denison et al. (2018) further define performance as meeting financial and non-financial objectives for sustainability. Ansoff (2019) emphasizes that high performance results from cohesive efforts within an organization. The concept of organizational culture emerged in the 1970s, with scholars such as Ansoff, Schein, and Rieley among others attributing its significance to the success of major companies, particularly amid globalization. In the 1990s, as globalization intensified in regions like Asia, Africa, and South America, organizations in developing countries began recognizing the importance of organizational culture (Marcoulides & Heck, 2019). Facing pressure to adapt to globalized cultures introduced by multinational corporations, these organizations underwent transformative changes to remain competitive (Kamugisha, 2018; Stafford & Miles, 2020).

Organizational culture greatly influences change strategies, with alignment between culture and company goals increasing the likelihood of successful change initiatives (Schein, 2019). While senior managers typically shape organizational culture, Magee (2022) notes that the culture perceived by members may differ, including implied, informal, or formalized aspects. Thus, understanding organizational culture is vital for effective planning and performance implementation. Nevertheless managers play a pivotal role in guiding organizations toward performance goals, shaping both real and perceived organizational culture (Rieley & Clarkson, 2019). Given the current emphasis on performance improvement, organizations prioritize fostering effective cultures to enhance performance (Minkov & Blagoev, 2021). Furthermore, to enhance organizational performance through effective organizational culture, several interconnected dynamics must be considered. These include aligning employee actions with organizational values, ensuring clarity in principles and values, understanding the relationship between individual behavior and performance, and the impact of effective planning on performance (Mbuvi, 2020). On the other hand, Burke and Litwin (2018), caution that organizational culture, if not managed properly, can lead to chaos and decreased performance. For instance, as organizations strive to involve more individuals in decision-making processes, a lack of cohesive organizational vision can diminish effectiveness. Similarly, conflicts between perceived, desired, real, and informal cultures can hinder organizational performance potential (Kamugisha, 2018). While numerous researchers have explored the link between organizational culture and performance, the majority of studies have focused on Western developed nations. Consequently, there is limited research on the impact of organizational culture in developing countries (Farashahi et al., 2019). Nevertheless, Denison et al. (2018) recommend further research to investigate organizational culture phenomena in diverse cultural contexts, particularly in non-Western nations.Therefore, a survey will be conducted in order to examine organizational culture as a predictor of organizational performance in private firms in Cameroon.

1.2 Statement of the Problem

Over the years, organizational culture has become increasingly integral to daily organizational operations as its influence on performance is widely acknowledged. Managing performance has emerged as a significant challenge in management research. Exploring the culture within an organization reveals a shared mindset and common guiding principles among employees regarding the business (Racelis, 2020). Additionally, extensive literature examines the effects of organizational culture on employee performance and productivity. Scholars such as Hofstede (2020), Ouchi (1981) and Magee (2002) argue that organizational culture serves as a metric for assessing an organization's economic performance. Stewart (2019) suggests that profitability, being the primary objective of any organization, can be improved by assessing the organization's work culture. He emphasizes that employees' beliefs and attitudes constitute the most significant aspect of work culture. Hence, it is in the light of these that the study seeks to examine organizational culture as a predictor of organizational performance in private firms in Cameroon. 

1.3  Objectives of the Study

The main purpose of this study is to examine organizational culture as a predictor of organizational performance in private firms in Cameroon. Specifically, the study will;

1.Investigate the relationship between organizational culture and organizational performance in Manech Company, Douala Cameroon.

2.Identify the key factors influencing organizational culture organizational performance in Manech Company, Douala Cameroon.

3.Investigate the impact of organizational culture on organizational performance in Manech Company, Douala Cameroon.

1.4 Research Questions

The following questions have been prepared for the study:

Is there any relationship between organizational culture and organizational performance in Manech Company, Douala Cameroon?

2. What are the key factors influencing organizational culture organizational performance in Manech Company, Douala Cameroon?

3. What is the impact of organizational culture on organizational performance in Manech Company, Douala Cameroon?

1.5  Research Hypotheses

H0: There is no significant relationship between corporate culture and organizational performance in manufacturing companies in Cameroon.

Ha: There is a significant relationship between corporate culture and organizational performance in manufacturing companies in Cameroon.

1.6  Significance of the Study

Findings from the study will inform government, policymakers and regulatory bodies in Cameroon about the importance of fostering a conducive corporate culture in manufacturing companies. This will lead to the development of guidelines or policies aimed at promoting positive cultural practices that enhance organizational performance and competitiveness in the manufacturing sector. Furthermore, companies in Cameroon will be able to implement strategies in cultivating a supportive and empowering work environment, which can lead to improved employee morale, loyalty, and productivity.  Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to corporate culture as determinant of organizational performance in the manufacturing companies in Cameroon.

1.7 Scope of the study

The scope of this study is boarded on corporate culture as determinant of organizational performance in the manufacturing companies in Cameroon. Empirically, this study will investigate the correlation between corporate culture and organizational performance in the manufacturing companies in Cameroon, assess the impact of corporate culture on organizational performance in the manufacturing companies in Cameroon and examine the role of corporate culture in fostering employee engagement in the manufacturing companies in Cameroon.

Geographically, the study will be delimited to employees  in manufacturing companies in Douala, Cameroon.

1.8 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Corporate Culture: is the collective values, beliefs, attitudes, and behaviors that characterize an organization.

Organizational performance: is the effectiveness and efficiency with which an organization achieves its objectives and goals.

Employee: an individual employed by an organization or company to perform specific tasks or duties in exchange for compensation.