Background of the Study
Organisations are regarded as a unit which functions in a society. At the establishment and during the process of development, every organisation develop their culture over time. The aim of the organisational culture is to promote unity and cohesion aimed to stimulate the enthusiasm and innovation of employees to improve the economic efficiency of the company. In addition, employee performance is greatly influenced by corporate culture (Tianya, 2015).
Organizations are seen as groups that operate in society. As the organisation forms and grows, its culture is developed over time. The purpose of this culture is to create unity, foster enthusiasm and innovation among employees, thereby increasing economic performance (Haverd Business Review, 2018). Corporate culture has a profound influence on employee behaviour and actions, and it becomes second nature for them to follow the accepted practices (Lam, 2017). Each company has its own character, and the organisational culture is an unseen but influential force between colleagues, changing the way they interact with each other.
Every organisation is unique in its own way and possess culture which may sound not too important but it is a strong force among a group of people who work together. This culture affects the performance of the employees. However, as an organisation becomes more established, certain behavioural patterns become the norm and are accepted by members of staff (Citeman, 2008). This is essential for the success of an organisation as it encourages unityand coexistence among employees, which in turn helps to improve the economic efficiency of the company. As long as there is coexistence present in an organisation, there is a high chance people will develop certain cultures overtime a result of occurrence which requires people to adjust (Shein E. H, 2010) . This brought about the term organisational culture which is simply the way of operation in a certain organisation.
It is importanct for the culture of the SME’s in Nigeria to be checked as it is supposed to be one of the bed rock of Nigeria Economy . The country is located in the western part of Africa agh the land mass of 923,768 SQ.KM (Nigeria High Commission, UK, N.A) and total population of 213,401,323(United Nations Population Division ,2022) one of the largest economy in Africa . Blessed it a lot of Natural resources , the country Is expected to thrift by making the proper use of the natural advantage arount her .Howvere it is observed that several factors are responsible for standard of the SME sectors in Nigeria one of which Is the culture of the sector it self .The sector is contributing …. To the Nigeria economy since independence , however it is expected the sector should always checkmates its objectives so as be able to measure its key performance indicator (KPI)
It is observed that several factors like Inadequate Infrastructue, Lack of fund, ,Corruption, Lack of access to latest technology and Government policies
Are sume of the factors that are militationg the progress of SMEs in Nigeria .This paper has been able to identify and discuss this factor and also suggested possible solutions for the SMEs to adop
Introduction to Small and Medium Size Enterprise(SMEs) in Nigeria
The small and medium sized enterprises SMEs sector in Nigeria is an important one, making up the largest portion of the country’s private sector. SMEs in Nigeria are characterized by their small size, limited access to finances, limited capacity to absorb technology and limited access to market innovative nature. They are often seen as a key to economic growth and job creation (Adebayo, 2018). Although N igeria SMEs can be described as fragmented, with the majority of them operating in the informal economy, However, these businesses account for a significant amount of economic activity, providing employment opportunities and contributing greatly to the GDP of the nation (Adekunle, 2010).
Since its independence in 1960, Nigeria Oil and Gas sector has being the major boost of the nation’s economy helping the country to be ranked the among top oil producing nations around the world leaving the SMEs to only contribute small percentage of the nation’s Gross Domestic Product (GDP). In 2019, Nigeria’s Oil and Gas sector accounted for 5.8% of the nation’s GDP and provided 95% of its foreign exchange profit and 80% of its budget revenue (Kisi rim Nw 2019).
In order to ensure the success of SMEs in Nigeria, it is important to ensure that the organisational culture is well defined and understood by all employees (Tianya, 2015). This includes setting clear expectations for employees, providing them with the necessary resources, and encouraging open communication and collaboration (Citeman, 2008). Additionally, SMEs in Nigeria must to ensure that the organisational culture is flexible and adaptive, as this will allow the organisation to respond quickly to changes in the external environment. The ongoing examination of how organizational culture impacts employee performance is significant, as policies and personnel may shift over time.
Benefit/Relevance of the Study
It is important to do research on the impact of organisational culture on employees’ performance of SMEs in Nigeria because it is essential to understand how organisational culture affects the performance of employees. A situation where an employee is paid as low as thirty pounds a month to work for ten hours a day, five days a week. We can conclude that that will not go well with such an employee. Understanding the impact of organisational culture on employees’ performance can help SMEs in Nigeria to identify the areas that need to be improved to increase productivity and performance. The culture of an organization can has a significant effect on employee performance in SMEs in Nigeria, it is however important to understand the impact of organizational culture on employee performance in order to improve efficiency and productivity.” (Chertoff et al, 2015). In conclusion, this research can provide insights on how to create a positive organisational culture that can help to motivate and retain employees. It can also help SMEs to better understand the needs and expectations of their employees and develop strategies to better meet them.
Research Question
What are the impacts that organisational culture has on employee performance in SMEs in Nigeria?
Research Aims and Objectives
This research project aims to investigate the impacts that organisational culture has on employee performance in SMEs in Nigeria
