Impact of Organisational Culture on Employee Performance
Added on 2023-04-20
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Running head: ORGANISATIONAL CULTURE AND EMPLOYEE PERFORMANCE
A STUDY TO UNDERSTAND THE IMPACT OF ORGANIZATIONAL CULTURE ON
EMPLOYEE’S PERFORMANCE TOWARDS THE ATTAINMENT OF ORGANIZATIONAL
GOALS IN UK. A CASE STUDY OF JOHN LEWIS & PARTNERS
Name of the Student:
Name of the University:
Author’s Note:
Page 0 of 83
Running head: ORGANISATIONAL CULTURE AND EMPLOYEE PERFORMANCE
A STUDY TO UNDERSTAND THE IMPACT OF ORGANIZATIONAL CULTURE ON
EMPLOYEE’S PERFORMANCE TOWARDS THE ATTAINMENT OF ORGANIZATIONAL
GOALS IN UK. A CASE STUDY OF JOHN LEWIS & PARTNERS
Name of the Student:
Name of the University:
Author’s Note:
Page 0 of 83
1IMPACT OF ORGANISATIONAL CULTURE ON EMPLOYEE PERFORMANCE
ABSTRACT
The concept of organisational culture had gained a significant amount of prominence within
the framework of the contemporary business world. Previous researches define it as the
conglomeration of the values, beliefs, customs and other attributes of an organisation which
distinguish it from others and thereby creates a unique identify for it. More importantly, it is
seen that there are various factors which affect the entity of organisational culture, like
organisational values, HRM practices, leadership style, employees, clientele and others.
Recent researches have clearly revealed that there exists a correlation between the entities
of organisational culture and employee performance.
Employee performance can be defined as the productivity or the performance which each of
the employees within the framework of an organisation gives on the basis of the job roles
which are allocated or delegated to them. Previous researches have revealed the fact that
performance or the productivity of the employees depends on the factors like leadership
style, HRM practices, training and motivation, job fit and others. On the basis of this, it can
be said that there are various common factors between the entities of organisational culture
and employee performance and both of them are dependent on each other on the score of
the common factors that they share. It is precisely this relation that this research work will try
to explore in the particular context of the organisation John Lewis.
The topic that the researcher had selected is “A study to understand the impact of
organizational culture on employee’s performance towards the attainment of organizational
goals in UK. A case study of John Lewis & Partners”. The researcher for the collection of the
required data or information and also for the completion of the research takes the help of
quantitative research method and the findings of the research reveals the fact that the entity
of organisational culture does have an impact on employee performance.
Page 1 of 83
ABSTRACT
The concept of organisational culture had gained a significant amount of prominence within
the framework of the contemporary business world. Previous researches define it as the
conglomeration of the values, beliefs, customs and other attributes of an organisation which
distinguish it from others and thereby creates a unique identify for it. More importantly, it is
seen that there are various factors which affect the entity of organisational culture, like
organisational values, HRM practices, leadership style, employees, clientele and others.
Recent researches have clearly revealed that there exists a correlation between the entities
of organisational culture and employee performance.
Employee performance can be defined as the productivity or the performance which each of
the employees within the framework of an organisation gives on the basis of the job roles
which are allocated or delegated to them. Previous researches have revealed the fact that
performance or the productivity of the employees depends on the factors like leadership
style, HRM practices, training and motivation, job fit and others. On the basis of this, it can
be said that there are various common factors between the entities of organisational culture
and employee performance and both of them are dependent on each other on the score of
the common factors that they share. It is precisely this relation that this research work will try
to explore in the particular context of the organisation John Lewis.
The topic that the researcher had selected is “A study to understand the impact of
organizational culture on employee’s performance towards the attainment of organizational
goals in UK. A case study of John Lewis & Partners”. The researcher for the collection of the
required data or information and also for the completion of the research takes the help of
quantitative research method and the findings of the research reveals the fact that the entity
of organisational culture does have an impact on employee performance.
Page 1 of 83
2IMPACT OF ORGANISATIONAL CULTURE ON EMPLOYEE PERFORMANCE
ACKNOWLEDGEMENT
I would like to thank my supervisor for offering me the opportunity to undertake this research
work and complete my dissertation on the topic “A study to understand the impact of
organizational culture on employee’s performance towards the attainment of organizational
goals in UK. A case study of John Lewis & Partners”. I would also like to thank all my friends
for the help that they have offered during the entire course of this research work.
I would also like to thank Mr. .................................... for helping me out at every important
step of this research and without whose support I would not have been able to complete this
work.
Lastly, I would also like to thank my family members for the support that they have given me
during the entire time. Thank You All.
Page 2 of 83
ACKNOWLEDGEMENT
I would like to thank my supervisor for offering me the opportunity to undertake this research
work and complete my dissertation on the topic “A study to understand the impact of
organizational culture on employee’s performance towards the attainment of organizational
goals in UK. A case study of John Lewis & Partners”. I would also like to thank all my friends
for the help that they have offered during the entire course of this research work.
I would also like to thank Mr. .................................... for helping me out at every important
step of this research and without whose support I would not have been able to complete this
work.
Lastly, I would also like to thank my family members for the support that they have given me
during the entire time. Thank You All.
Page 2 of 83
3IMPACT OF ORGANISATIONAL CULTURE ON EMPLOYEE PERFORMANCE
Table of Contents
Chapter 1: INTRODUCTION....................................................................................................6
1.1 Introduction....................................................................................................................6
1.2 Background of the Study...............................................................................................6
1.3 Overview of the organisation John Lewis......................................................................6
1.4 Problem Statement........................................................................................................7
1.5 Rationale of the Study...................................................................................................7
1.6 Research Aim.....................................................................................................................8
1.7 Research Objectives..........................................................................................................8
1.8 Research Questions...........................................................................................................8
1.9 Significance of the Study....................................................................................................8
1.10 Outline of the Study..........................................................................................................8
Chapter 2: LITERATURE REVIEW........................................................................................10
2.1 Introduction......................................................................................................................10
2.2 Conceptual Framework....................................................................................................11
2.3 Concept of organisational Culture....................................................................................11
2.4 Factors affecting organisational culture...........................................................................13
2.4.1 Leadership Approach................................................................................................13
2.4.2 Nature of the Business..............................................................................................14
2.4.3 Organisational values, policies and workplace ambience.........................................14
2.4.4 Employees of the organisation..................................................................................15
2.4.5 HRM practices followed by the organisation.............................................................15
2.4.6 Clientele of the organisation......................................................................................16
2.5 Concept of employee performance..................................................................................16
2.6 Factors affecting employee performance.........................................................................17
2.6.1 Job Fit........................................................................................................................17
2.6.2 Training offered to the employees.............................................................................17
2.6.3 Morale and workplace culture...................................................................................18
Page 3 of 83
Table of Contents
Chapter 1: INTRODUCTION....................................................................................................6
1.1 Introduction....................................................................................................................6
1.2 Background of the Study...............................................................................................6
1.3 Overview of the organisation John Lewis......................................................................6
1.4 Problem Statement........................................................................................................7
1.5 Rationale of the Study...................................................................................................7
1.6 Research Aim.....................................................................................................................8
1.7 Research Objectives..........................................................................................................8
1.8 Research Questions...........................................................................................................8
1.9 Significance of the Study....................................................................................................8
1.10 Outline of the Study..........................................................................................................8
Chapter 2: LITERATURE REVIEW........................................................................................10
2.1 Introduction......................................................................................................................10
2.2 Conceptual Framework....................................................................................................11
2.3 Concept of organisational Culture....................................................................................11
2.4 Factors affecting organisational culture...........................................................................13
2.4.1 Leadership Approach................................................................................................13
2.4.2 Nature of the Business..............................................................................................14
2.4.3 Organisational values, policies and workplace ambience.........................................14
2.4.4 Employees of the organisation..................................................................................15
2.4.5 HRM practices followed by the organisation.............................................................15
2.4.6 Clientele of the organisation......................................................................................16
2.5 Concept of employee performance..................................................................................16
2.6 Factors affecting employee performance.........................................................................17
2.6.1 Job Fit........................................................................................................................17
2.6.2 Training offered to the employees.............................................................................17
2.6.3 Morale and workplace culture...................................................................................18
Page 3 of 83
4IMPACT OF ORGANISATIONAL CULTURE ON EMPLOYEE PERFORMANCE
2.6.4 Goals and Expectations............................................................................................18
2.6.5 Rewards and Incentives............................................................................................19
2.6.6 HRM approaches and policies..................................................................................19
2.7 Impact of organisational culture on employee performance............................................20
2.8 Summary..........................................................................................................................20
Chapter 3: RESEARCH METHODOLOGY............................................................................21
3.1 Introduction......................................................................................................................21
3.2 Research Philosophy.......................................................................................................21
3.3 Research Approach.........................................................................................................22
3.4 Research Design..............................................................................................................22
3.5 Data Collection Method....................................................................................................22
3.6 Sample Size.....................................................................................................................23
3.7 Research Method.............................................................................................................23
3.8 Ethical Considerations.....................................................................................................23
3.9 Research Limitations........................................................................................................24
3.10 Summary........................................................................................................................24
Chapter 4: FINDINGS AND ANALYSIS.................................................................................25
4.1 Reliability analysis............................................................................................................25
4.2 Demographic Questions...................................................................................................26
4.3 Questions on Organizational Culture (questions on linear scale ranging from 1 to 5, and
two limits are strongly agree and strongly disagree)..............................................................31
4.4 Questions on employee performance..............................................................................42
4.5 Descriptive.......................................................................................................................47
4.6 Correlation........................................................................................................................49
4.7 Regression Analysis.........................................................................................................50
Chapter 5: CONCLUSION AND RECOMMENDATIONS......................................................76
5.1 Introduction......................................................................................................................76
5.2 Conclusion.......................................................................................................................76
5.3 Linking with objectives.....................................................................................................76
Page 4 of 83
2.6.4 Goals and Expectations............................................................................................18
2.6.5 Rewards and Incentives............................................................................................19
2.6.6 HRM approaches and policies..................................................................................19
2.7 Impact of organisational culture on employee performance............................................20
2.8 Summary..........................................................................................................................20
Chapter 3: RESEARCH METHODOLOGY............................................................................21
3.1 Introduction......................................................................................................................21
3.2 Research Philosophy.......................................................................................................21
3.3 Research Approach.........................................................................................................22
3.4 Research Design..............................................................................................................22
3.5 Data Collection Method....................................................................................................22
3.6 Sample Size.....................................................................................................................23
3.7 Research Method.............................................................................................................23
3.8 Ethical Considerations.....................................................................................................23
3.9 Research Limitations........................................................................................................24
3.10 Summary........................................................................................................................24
Chapter 4: FINDINGS AND ANALYSIS.................................................................................25
4.1 Reliability analysis............................................................................................................25
4.2 Demographic Questions...................................................................................................26
4.3 Questions on Organizational Culture (questions on linear scale ranging from 1 to 5, and
two limits are strongly agree and strongly disagree)..............................................................31
4.4 Questions on employee performance..............................................................................42
4.5 Descriptive.......................................................................................................................47
4.6 Correlation........................................................................................................................49
4.7 Regression Analysis.........................................................................................................50
Chapter 5: CONCLUSION AND RECOMMENDATIONS......................................................76
5.1 Introduction......................................................................................................................76
5.2 Conclusion.......................................................................................................................76
5.3 Linking with objectives.....................................................................................................76
Page 4 of 83
5IMPACT OF ORGANISATIONAL CULTURE ON EMPLOYEE PERFORMANCE
5.4 Recommendations...........................................................................................................78
5.5 Future scope....................................................................................................................79
Reflective Report....................................................................................................................80
References.............................................................................................................................81
Appendix................................................................................................................................87
Page 5 of 83
5.4 Recommendations...........................................................................................................78
5.5 Future scope....................................................................................................................79
Reflective Report....................................................................................................................80
References.............................................................................................................................81
Appendix................................................................................................................................87
Page 5 of 83
6IMPACT OF ORGANISATIONAL CULTURE ON EMPLOYEE PERFORMANCE
Chapter 1: INTRODUCTION
1.1 Introduction
This chapter intends to offer an overview of the entire study which had been undertaken
by the researcher. For examples, the chapter will enumerate the research aim, objectives,
questions, problem and other aspects of the research work. More importantly, the chapter
will also offer an outline of the structure of the entire dissertation. Furthermore, the chapter
will also shed light on the topic, namely, “A study to understand the impact of organizational
culture on employee’s performance towards the attainment of organizational goals in UK: A
case study of John Lewis & Partners” which had been selected for the conduct of the
research.
1.2 Background of the Study
Shields et al. (2015) are of the viewpoint that the term ‘employee performance’ had
become the catch-phrase of the contemporary business world because of the fact that the
overall productivity of an organisation is dependent on the individual job productivity of the
different workers. As opined by Anitha (2016), this is important from the perspective that the
gross revenue earned by an organisation is directly related to the individual job productivity
of the employees. The net result of this is that the different organisations are increasingly
focusing on the aspect of employee performance as a way to earn a higher amount of
revenue and also to attain a higher level of growth (Kontoghiorghes 2016). However, at the
same time it needs to be said that there are various factors which affect the job productivity
of workers like workplace culture, leadership, job design, HRM practices and others
(Ramdhani, Ramdhani and Ainissyifa 2017). According to Fu et al. (2015), one of the most
important factors which affect the job productivity of the workers is the culture that is being
followed within the framework of an organisation. Terzioglu, Temel and Sahan (2016) have
articulated the viewpoint that the entities of workplace culture and employee performance
are directly related to each other and a congenial organisation culture positively affects the
performance of the workers. This is perhaps one of the major reasons why the different
organisations are increasingly focusing on the creation of a positive workplace culture for the
enhancement of the job productivity of the workers.
1.3 Overview of the organisation John Lewis
The organisation John Lewis & Partners, founded in 1864 by John Lewis, is a UK based
“chain of high-end department stores” (John Lewis & Partners 2019). The organisation is
known for the wide array of products or services that it offers to the customers starting from
electronics, home-ware to other kinds of nursery and healthcare products and services
Page 6 of 83
Chapter 1: INTRODUCTION
1.1 Introduction
This chapter intends to offer an overview of the entire study which had been undertaken
by the researcher. For examples, the chapter will enumerate the research aim, objectives,
questions, problem and other aspects of the research work. More importantly, the chapter
will also offer an outline of the structure of the entire dissertation. Furthermore, the chapter
will also shed light on the topic, namely, “A study to understand the impact of organizational
culture on employee’s performance towards the attainment of organizational goals in UK: A
case study of John Lewis & Partners” which had been selected for the conduct of the
research.
1.2 Background of the Study
Shields et al. (2015) are of the viewpoint that the term ‘employee performance’ had
become the catch-phrase of the contemporary business world because of the fact that the
overall productivity of an organisation is dependent on the individual job productivity of the
different workers. As opined by Anitha (2016), this is important from the perspective that the
gross revenue earned by an organisation is directly related to the individual job productivity
of the employees. The net result of this is that the different organisations are increasingly
focusing on the aspect of employee performance as a way to earn a higher amount of
revenue and also to attain a higher level of growth (Kontoghiorghes 2016). However, at the
same time it needs to be said that there are various factors which affect the job productivity
of workers like workplace culture, leadership, job design, HRM practices and others
(Ramdhani, Ramdhani and Ainissyifa 2017). According to Fu et al. (2015), one of the most
important factors which affect the job productivity of the workers is the culture that is being
followed within the framework of an organisation. Terzioglu, Temel and Sahan (2016) have
articulated the viewpoint that the entities of workplace culture and employee performance
are directly related to each other and a congenial organisation culture positively affects the
performance of the workers. This is perhaps one of the major reasons why the different
organisations are increasingly focusing on the creation of a positive workplace culture for the
enhancement of the job productivity of the workers.
1.3 Overview of the organisation John Lewis
The organisation John Lewis & Partners, founded in 1864 by John Lewis, is a UK based
“chain of high-end department stores” (John Lewis & Partners 2019). The organisation is
known for the wide array of products or services that it offers to the customers starting from
electronics, home-ware to other kinds of nursery and healthcare products and services
Page 6 of 83
7IMPACT OF ORGANISATIONAL CULTURE ON EMPLOYEE PERFORMANCE
(Butler 2019). More importantly, the organisation currently has 51 departmental stores in
different parts of UK and its focus on the cost leadership strategy had enabled it to become a
household name among the customers of UK (John Lewis & Partners 2019). Furthermore, in
the recent times following the path of internationalisation the concerned organisation had
opened its departmental stores in the nations of Australia, Ireland and others (John Lewis &
Partners 2019). The gross revenue earned by the organisation for the year 2017 was £3.78
billion and the organisation at the same time offers employment to more than 94,000
individuals (John Lewis & Partners 2019).
1.4 Problem Statement
The organisation in the wake of the fierce competition that it is currently facing in the
retail industry of UK from organisations like Tesco, Asda and others had decided to cut down
the bonus of more than 85,000 employees (BBC News 2019). More importantly, the
incentives that the employees were entitled to in the earlier times had also been reduced
and commissions are being offered to the employees in its place on the basis of the
business that they give to the organisation (Butler 2019). This in turn had created the kind of
culture within the organisation which is fiercely competitive and is also affecting the job
productivity of these employees. This is precisely the problem that the researcher intends to
analyse and also aspires to show the manner in which inculcation of a positive workplace
culture is likely to enable the organisation to improve the performance of the workers.
1.5 Rationale of the Study
The issue that the researcher had selected for the purpose of this study is the manner in
which the entity of organisational culture can be used by the organisations to boost the
performance of the workers. This is important in the light of the fact that the focus of the
contemporary organisations is on the manner in which their profitability can be enhanced
and thereby they are devising measures through the job productivity of the workers can be
improved (Anitha 2016). However, many times it is seen that the organisations in order to
enhance the job productivity of the workers evolve a coercive or aggressive kind of
workplace culture which in the longer run proves to be detrimental for the interests of the
organisation and also adversely affects their performance (Ramdhani, Ramdhani and
Ainissyifa 2017). Thus, it can be said that this is one of the major problems that the different
organisations are facing currently and the resolution of which is of paramount interest for
their growth as well as development. It is in this context that the researcher had decided to
analyse the correlation between organisational culture and employee performance and also
understand the manner in which workplace culture can be used to improve the job
productivity of the workers in an effective manner.
Page 7 of 83
(Butler 2019). More importantly, the organisation currently has 51 departmental stores in
different parts of UK and its focus on the cost leadership strategy had enabled it to become a
household name among the customers of UK (John Lewis & Partners 2019). Furthermore, in
the recent times following the path of internationalisation the concerned organisation had
opened its departmental stores in the nations of Australia, Ireland and others (John Lewis &
Partners 2019). The gross revenue earned by the organisation for the year 2017 was £3.78
billion and the organisation at the same time offers employment to more than 94,000
individuals (John Lewis & Partners 2019).
1.4 Problem Statement
The organisation in the wake of the fierce competition that it is currently facing in the
retail industry of UK from organisations like Tesco, Asda and others had decided to cut down
the bonus of more than 85,000 employees (BBC News 2019). More importantly, the
incentives that the employees were entitled to in the earlier times had also been reduced
and commissions are being offered to the employees in its place on the basis of the
business that they give to the organisation (Butler 2019). This in turn had created the kind of
culture within the organisation which is fiercely competitive and is also affecting the job
productivity of these employees. This is precisely the problem that the researcher intends to
analyse and also aspires to show the manner in which inculcation of a positive workplace
culture is likely to enable the organisation to improve the performance of the workers.
1.5 Rationale of the Study
The issue that the researcher had selected for the purpose of this study is the manner in
which the entity of organisational culture can be used by the organisations to boost the
performance of the workers. This is important in the light of the fact that the focus of the
contemporary organisations is on the manner in which their profitability can be enhanced
and thereby they are devising measures through the job productivity of the workers can be
improved (Anitha 2016). However, many times it is seen that the organisations in order to
enhance the job productivity of the workers evolve a coercive or aggressive kind of
workplace culture which in the longer run proves to be detrimental for the interests of the
organisation and also adversely affects their performance (Ramdhani, Ramdhani and
Ainissyifa 2017). Thus, it can be said that this is one of the major problems that the different
organisations are facing currently and the resolution of which is of paramount interest for
their growth as well as development. It is in this context that the researcher had decided to
analyse the correlation between organisational culture and employee performance and also
understand the manner in which workplace culture can be used to improve the job
productivity of the workers in an effective manner.
Page 7 of 83
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