INFLUENCE OF ORGANIZATIONAL CULTURE ON EMPLOYEE COMMITMENT (A STUDY OF FIRST BANK OF NIGERIA)
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ABSTRACT
This study examines the
influence of organizational culture on employee commitment, using First Bank of
Nigeria Limited as a case study. Nigeria's deposit money banking sector
operates in a highly regulated, competitive, and dynamic environment shaped by
recurring regulatory reforms, technological disruption, and intense rivalry for
both customers and skilled personnel, all of which make the internal cultural
environment of a bank a critical, though often underexamined, driver of how
committed its employees remain to organisational goals. Although a considerable
body of Nigerian research links organisational culture to employee performance,
comparatively fewer firm-specific studies interrogate its relationship with
employee commitment in a long-established, systemically important bank such as
First Bank of Nigeria. The study is guided by four specific objectives: to
examine the effect of teamwork culture on employee commitment; to determine the
effect of communication culture on employee commitment; to assess the influence
of reward and recognition culture on employee commitment; and to evaluate the
relationship between power/hierarchical culture and employee commitment at
First Bank of Nigeria. A descriptive survey research design will be adopted,
drawing its population from management and non-management staff across selected
branches of First Bank of Nigeria. A structured questionnaire built on a
five-point Likert scale will be administered to a sample determined through an
appropriate statistical formula and a stratified random sampling technique.
Data collected will be analysed using descriptive statistics (frequencies,
percentages, mean, and standard deviation) and inferential statistics,
specifically Pearson Product Moment Correlation and multiple regression
analysis processed with SPSS, to test the stated hypotheses at the 5%
significance level. Drawing on the theoretical anchor of the Competing Values
Framework and Organisational Commitment Theory, and consistent with prior
Nigerian banking-sector findings (Okolocha, 2022; Olanrewaju & Abdul, 2023;
Olise & Chizoba, 2024), the study anticipates that teamwork, communication,
reward and recognition, and, to a lesser extent, power culture will each show a
statistically significant positive relationship with employee commitment at
First Bank of Nigeria. The findings are expected to provide practical guidance
for strengthening the cultural dimensions most associated with commitment and
to extend the empirical literature on organisational culture within Nigeria's banking
industry.
CHAPTER ONE
INTRODUCTION
1.1
Background to the Study
Organisational culture,
broadly understood as the shared values, beliefs, norms, and practices that
shape how members of an organisation think, behave, and relate to one another,
has increasingly been identified as a decisive factor in shaping employee attitudes
and behaviours, including the extent to which employees remain committed to
their organisation's goals (Moses & Chizoba, 2021). In service-driven,
people-intensive industries such as banking, where the quality of customer
interaction and institutional reputation depend heavily on staff conduct and
discretionary effort, the cultural climate within which employees work is
widely regarded as central to sustaining performance and retaining a committed
workforce.
Employee commitment, the
outcome of interest in this study, refers to the psychological attachment an
employee feels toward their organisation, reflected in their willingness to
remain with the organisation, exert effort on its behalf, and internalise its
values and goals. A strong, coherent organisational culture one characterised
by open communication, teamwork, fair reward systems, and shared values is
theorised to foster higher levels of affective and normative commitment among
employees, whereas a weak, inconsistent, or overly rigid culture may contribute
to disengagement, reduced loyalty, and higher turnover intention (Imran &
Ismail, 2021).
First Bank of Nigeria
Limited, established in 1894, is the oldest and one of the most systemically
important commercial banks in Nigeria, with an extensive branch network and a
long institutional history that has shaped a distinctive organisational culture
over more than a century of operation. As with many long-established financial
institutions, First Bank has had to continuously adapt its internal culture to
changing regulatory requirements, digital transformation, and generational
shifts in workforce expectations, making it a particularly instructive setting
in which to examine how organisational culture shapes employee commitment.
Nigerian empirical studies
have consistently found positive associations between specific dimensions of
organisational culture such as teamwork, communication, and ethical practice and
employee outcomes in the banking sector (Okonkwo & Chukwuma, 2021;
Olanrewaju & Abdul, 2023). However, much of this literature has focused on
employee performance rather than commitment specifically, and firm-level
evidence focused on a single major deposit money bank such as First Bank of
Nigeria remains comparatively limited, providing the motivation for the present
study.
1.2
Statement of the Problem
Employee commitment is
widely regarded as essential to organisational stability, service quality, and
long-term performance in the banking industry, yet many Nigerian deposit money
banks continue to grapple with symptoms of weak employee commitment, including
high staff turnover, absenteeism, reduced discretionary effort, and declining
morale, despite considerable investment in staff welfare and engagement
programmes. This raises the question of whether the underlying organisational
culture within these institutions adequately supports the kind of commitment
banks seek to cultivate.
A specific problem in the
literature is that while organisational culture has been extensively linked to
employee performance and organisational effectiveness in the Nigerian banking
sector (Christopher, Okpabi, Terris & Iornenge, 2023), fewer studies
isolate employee commitment as a distinct outcome variable, even though
commitment and performance are conceptually and empirically distinguishable
constructs. Without firm-specific evidence on how particular cultural
dimensions teamwork, communication, reward systems, and power structures relate
specifically to commitment, banks risk investing in culture-change initiatives
that may improve short-term performance metrics without addressing the deeper
psychological attachment that underpins long-term employee retention.
Furthermore, as a
long-established institution with a deeply embedded organisational history,
First Bank of Nigeria presents a distinctive case in which legacy cultural
norms may coexist, and sometimes conflict, with newer cultural expectations
introduced through digital transformation and changing regulatory demands. This
tension between institutional legacy and contemporary cultural expectations has
not been sufficiently explored in existing Nigerian literature, which tends to
generalise findings across the banking sector rather than examining
firm-specific cultural dynamics. It is this gap the limited firm-specific
understanding of how organisational culture influences employee commitment at
First Bank of Nigeria that this study seeks to address.
1.3
Objectives of the Study
The general objective of
this study is to examine the influence of organizational culture on employee
commitment at First Bank of Nigeria. The specific objectives are to:
● i. examine the effect of teamwork
culture on employee commitment at First Bank of Nigeria;
● ii. determine the effect of
communication culture on employee commitment at First Bank of Nigeria;
● iii. assess the influence of reward
and recognition culture on employee commitment at First Bank of Nigeria;
● iv. evaluate the relationship between
power/hierarchical culture and employee commitment at First Bank of Nigeria;
and
● v. recommend strategies for
strengthening organisational culture to enhance employee commitment at First
Bank of Nigeria.
1.4
Research Questions
This study seeks to answer
the following research questions:
● i. What is the effect of teamwork
culture on employee commitment at First Bank of Nigeria?
● ii. What is the effect of
communication culture on employee commitment at First Bank of Nigeria?
● iii. What is the influence of reward
and recognition culture on employee commitment at First Bank of Nigeria?
● iv. What is the relationship between
power/hierarchical culture and employee commitment at First Bank of Nigeria?
1.5
Research Hypotheses
The following null
hypotheses are formulated to guide the study:
● H01: Teamwork culture has no
significant effect on employee commitment at First Bank of Nigeria.
● H02: Communication culture has no
significant effect on employee commitment at First Bank of Nigeria.
● H03: Reward and recognition culture
has no significant influence on employee commitment at First Bank of Nigeria.
● H04: There is no significant
relationship between power/hierarchical culture and employee commitment at
First Bank of Nigeria.
1.6
Significance of the Study
The findings of this study
will be of significant value to the management of First Bank of Nigeria and
other deposit money banks, providing evidence-based insight into which cultural
dimensions most strongly predict employee commitment and thereby informing
culture-change and employee engagement strategies. To human resource and
organisational development practitioners in the banking industry, the study
offers a firm-level reference for designing interventions that go beyond
generic culture initiatives to target the specific dimensions shown to matter
most for commitment.
To regulators and
policymakers within the Nigerian financial sector, understanding the cultural
determinants of employee commitment can inform broader conversations about
workforce stability and institutional risk, given that high staff turnover in
banks has implications for operational continuity and customer trust. To
employees, the study's findings may validate concerns about specific cultural
practices and support advocacy for a healthier organisational climate. Finally,
the study contributes to the academic literature by extending existing Nigerian
banking-sector research, much of which centres on employee performance, into
the comparatively underexplored construct of employee commitment, and it
provides a foundation for future comparative studies across other Nigerian
banks.
1.7
Scope of the Study
This study is delimited in
content to four dimensions of organisational culture teamwork, communication,
reward and recognition, and power/hierarchical culture as independent
variables, and employee commitment as the dependent variable. Organisationally,
the study is restricted to First Bank of Nigeria Limited, with respondents
drawn from management and non-management staff across a purposively selected
set of branches. Geographically, data collection will be concentrated within
Nigeria, with particular focus on branches located in Lagos State, given the
concentration of the bank's head office functions and a substantial proportion
of its workforce in that state.
The study is subject to
the customary limitations of an academic research project of this scale,
including constraints of time and finance that limit the sample size and
geographical coverage of data collection. Reliance on self-reported
questionnaire data introduces the possibility of social desirability bias, as
employees may be reluctant to candidly report negative perceptions of their
employer's culture. In addition, because the study is confined to a single
bank, its findings, while informative, may not be fully generalisable to other
deposit money banks with different organisational histories, ownership
structures, or cultural orientations, a limitation that is acknowledged in the
interpretation of results.
1.8
Definition of Terms
The key terms used in this
study are defined as follows for clarity:
● Organisational Culture: The shared
values, beliefs, assumptions, and norms that shape how members of an
organisation behave and interact with one another and with external
stakeholders.
● Employee Commitment: The psychological
attachment and sense of loyalty an employee has toward their organisation,
reflected in their willingness to remain and contribute to organisational
goals.
● Teamwork Culture: An organisational
climate that emphasises collaboration, mutual support, and joint effort among
employees toward shared objectives.
● Communication Culture: The prevailing
norms and practices governing the flow of information, feedback, and dialogue
between employees and management within an organisation.
● Reward and Recognition Culture:
Organisational norms and systems concerned with acknowledging and compensating
employees for their contributions and achievements.
● Power/Hierarchical Culture: An
organisational culture characterised by clearly defined authority structures,
centralised decision-making, and formal chains of command.
● Affective Commitment: An employee's
emotional attachment to, identification with, and involvement in the
organisation.
● Normative Commitment: A sense of
obligation employees feel to remain with an organisation.
● Deposit Money Bank: A licensed
financial institution authorised to accept deposits and extend credit, forming
part of the formal banking system regulated by the Central Bank of Nigeria.
● Organisational Effectiveness: The
degree to which an organisation successfully achieves its stated goals and
objectives.
REFERENCES
Christopher, T., Okpabi, D., Terris,
A., & Iornenge, R. (2023). Effect of corporate culture on business
performance of deposit money banks in Nigeria. Journal of Management and
Strategy.
Imran, M., & Ismail, F. (2021).
Organizational culture and employee performance: An empirical study.
International Journal of Business and Management.
Moses, O. C., & Chizoba, O. B.
(2021). Effect of organizational culture and employee performance of selected
banks in Anambra State. International Journal of Trend in Scientific Research
and Development, 5(4).
Ojo, O., & Adedeji, S. (2020).
Performance-based reward systems and employee motivation in Nigerian banks.
International Journal of Human Resource Studies, 10(2), 50–68.
Okolocha, E. (2022). Strategic
planning and performance of selected banks in Enugu State, Nigeria. Journal of
Management and Strategy, 13(2), 30–47.
Okonkwo, U., & Chukwuma, C.
(2021). Teamwork, communication, and employee performance in commercial banks
in Anambra State, Nigeria. Journal of Business and Social Research, 11(4),
77–92.
Olanrewaju, T., & Abdul, M.
(2023). Ethical culture and employee performance in Nigerian deposit money
banks. Journal of Banking and Organizational Behavior, 19(1), 15–33.
Olise, M., & Chizoba, E. (2024). Organizational culture and employee performance of selected deposit money banks. Nigerian Journal of Management Studies.
This project contains full academic material including literature review, methodology,
data analysis and conclusion.
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