ROLE OF ORGANIZATIONAL CULTURE ON ORGANIZATIONAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA: A CASE OF COMMERCIAL BANKS IN VOI SUB COUNTY

Abstract

The study aimed to assess the role of organizational culture in organizational performance with a specific focus of commercial banks in Voi Sub County. The study used descriptive research design. The study population was 72 respondents (General Managers, assistant managers and credit officers) in the selected commercial banks in Voi Sub County. The researcher used stratified random sampling to select 43 respondents. The main data collection method for the study was questionnaires. The study adopted qualitative data analysis. Data analysis was done with the help of SPSS version 20.0. The study concluded that for performance of firms to improve, present organization culture should be supportive and compatible with intended strategies and day to day running of activities of employees. The study also concluded that the banks implement market culture by putting more emphasis on order, rational production, and goal accomplishment in combination with external interactions with suppliers, customers, subcontractors and competitors. The banks also concentrate more on competitive orientation towards rivals and emphases on achievements on the market place to distinguish the Market from other cultures. The study recommended that commercial banks need to encourage employees to have a sense of identity which increases their commitment to work since to positively influence organizational performance. Focus should be directed at leaders in different capacities as they play the role of coaches in giving general direction, but further encourage individual decision-making to determine the operating details.