THE ROLE OF ORGANIZATIONAL CULTURE IN SHAPING EMPLOYEE PERFORMANCE IN FINANCIAL INSTITUTIONS

Abstract

Background: This research investigates how organizational culture influences worker performance in Pakistan's financial institutions.

Methods: A quantitative approach was employed, utilizing evaluated questionnaires to collect data from a variety of public and non-public banking institutions. Simple random sampling was used to meet two conditions: (1) confidentiality and (2) reliable measurement of variables. The sample included 568 valid respondents, consisting of top managers (37.32%), middle management personnel (26.76%), supervisors (8.45%), technical staff (14.08%), and non-technical staff (13.38%). Respondents' ages are detailed in Table 1, with the largest group being those aged 26-30 years (32.39%). The average working experience among participants was eight years. Established measurement instruments used included the "Multifactor Leadership Questionnaire (MLQ)" for leadership, the "Organizational Culture Assessment Instrument (OCAI)" for organizational culture, and the "Organizational Commitment Questionnaire (OCQ)" for organizational commitment. Data were analyzed using partial least square equation modelling (PLS-SEM).

Results: The study demonstrated that organizational culture significantly influences worker performance. A positive organizational culture enhances employee outcomes, assignments, mood, and sense of belonging.

Conclusions: For the financial sector and similar institutions, the findings suggest that fostering a supportive organizational culture is crucial for maximizing human potential and improving performance. This study underscores the importance of organizational culture as a key factor in employee performance and provides direction for enterprise progress within the financial industry.