Parikalpana: KIIT Journal of Management

Open Access Open Access  Restricted Access Subscription Access

Organizational Culture: A Longitudinal Study of a Public Sector Bank


Affiliations
1 Associate Professor, School of Business Public Policy and Social Entrepreneurship, Dr. B. R. Ambedkar University Gate, Delhi 110006, India
2 School of Business Public Policy and Social Entrepreneurship, Dr. B. R. Ambedkar University, Delhi 110006, India
 

This study aims to map cultural changes in the transformational journey of an Indian public sector bank (PSB) using longitudinal data collected at three different points. This study investigates the relationship between Organizational Culture (OC) and the financial performance. The survey was conducted out using the Organizational Culture Assessment Instrument (OCAI) based on the competing values framework. The findings revealed an emerging pattern between changing culture and financial performance of the Bank culture indicating a shift from clan culture of pre-change initiatives to market culture of phase 1 to primacy of market culture of phase 2, in phase 3 hierarchy was the dominant culture. The findings contradict the extant literature that categorizes public sector employees as resistant to change, adapting to the top leader’s mission in this case. This study maps cultural change in PSB through a longitudinal study using Competing Value Framework (CVF) in an emerging market context, examining the past (then), current, and preferred culture.

Keywords

Organizational Culture Assessment Instrument (OCAI), Competing Values Framework (CVF), Longitudinal Study.
User
Notifications
Font Size

  • Aboramadan, M., Albashiti, B., Alharazin, H., & Zaidoune, S. (2019). Organizational Culture, Innovation and Performance: A Study from a Non-Western Context. Journal of Management Development, 39(4), 437–451. https://doi. org/10.1108/jmd-06-2019-0253.

  • Almaqtari, F.A., Al-Homaidi, E.A., Tabash, M.I., & Farhan, N.H. (2019). The determinants of profitability of Indian commercial banks: A panel data approach. International Journal of Finance & Economics, 24(1), 168 - 185. https://doi.org/10.1002/ijfe.1655

  • Attmore, R.H., & Hancox, D.R. (2016). The Great State of New York Paid Its Bills from a Grocery Store Shopping Cart-Organizational Culture: Its Theory and Practice. EDPACS, 53(2), 1–13.

  • Azeem, M., Munir A., Sajid H., & Muhammad, S. (2021). Expanding Competitive Advantage through Organizational Culture, Knowledge Sharing and Organizational Innovation. Technology in Society, 66 (C).

  • Barsade, S.G., & O’ Neill, O.A. (2014). What’s Love Got to Do with It? A Longitudinal Study of the Culture of Companionate Love and Employee and Client Outcomes in a Long-Term Care Setting. Administrative Science Quarterly, 59(4), 551–98. https://doi.org/10.1177/0001839214538636.

  • Bijoy, R. & Samaresh, B. (2019). Bank Competition and its Determinants: Evidence from Indian Banking. International Journal of the Economics of Business, 26(2), 283-313. DOI: 10.1080/13571516.2019.1592995

  • Brown J., Neary J., Katikireddi S.V., Thomson, H., McQuaid, R.W., Leyland, A.H., Frank, J., Jeavons, L., de Pellette, P., Kiran, S., & Macdonald, E.B. (2015). Protocol for a mixed-methods longitudinal study to identify factors influencing return to work in the over 50s participating in the UK Work Programme: Supporting Older People into Employment (SOPIE). BMJ Open, 5(12), e010525. https://doi.org/10.1136/bmjopen-2015-010525 65

  • Calciolari, S., Prenestini, A., & Lega, F. (2018). An Organizational Culture for All Seasons? How Cultural Type Dominance and Strength Influence Different Performance Goals. Public Management Review, 20(9), 1400–1422. https://doi. org/10.1080/14719037.2017.1383784.

  • Caliskan, A., & Zhu, C. (2019). Organizational Culture Type in Turkish Universities Using OCAI: Perceptions of Students. Journal of Education, Culture and Society, 10(2), 270–92. https://doi.org/10.15503/jecs20192.270.292.

  • Cameron, K.S., & Quinn, R.E. (1999). Diagnosing and Changing Organizational Culture. New York, NY: Addison-Wesley.

  • Cameron, K.S., & Quinn, R.E. (2011) Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. San Francisco, CA: Jossey-Bass.

  • Chatman, J.A., & Jehn, K.A. (1994). Assessing the Relationship between Industry Characteristics and Organizational Culture: How Different Can You Be?. Academy of Management Journal, 37(3), 522–53. https://doi. org/10.2307/256699.

  • Chatman, J.A. (1991). Matching People and Organisations: Selection and Socialisation in Public Accounting Firms. Administrative Science Quarterly, 36(3), 459. https://doi.org/10.2307/2393204.

  • Chatman, J.A., & O’Reilly, C. (2016). Paradigm Lost: Reinvigorating the Study of Organizational Culture. Research in Organisational Behavior, 36(199–224). https://doi.org/10.1016/j.riob.2016.11.004.

  • Choi, Y.S., Seo, M., S., Scott, D., & Jeffrey, M. (2010). Validation of the Organizational Culture Assessment Instrument: An Application of the Korean Version. Journal of Sport Management, 24(2), 169–89. https://doi.org/10.1123/ jsm.24.2.169.

  • Cooke, R.A., & Szumal, J.L. (1993). Measuring Normative Beliefs and Shared Behavioral Expectations in Organisations: The Reliability and Validity of the Organizational Culture Inventory. Psychological Reports, 72(S3), 1299–1330.

  • Craig, C.J. (2010). The Market Orientation-Marketing Performance Relationship- The Empirical Link in International Joint Ventures. International Journal of Trade and Global Markets, 3, 414–31.

  • Danneels, E. (2010). Trying to Become a Different Type of Company: Dynamic Capability at Smith Corona. Strategic Management Journal, 32(1), 1–31. https://doi.org/10.1002/smj.863.

  • Davis, R., & Cates, S. (2018). The Implementation of the Organizational Culture Assessment Instrument in Creating a Successful Organizational Cultural Change”, International Journal of Business & Public Administration, 15(1).

  • Denison, D.R., & Spreitzer, G.M. (1991). Organizational Culture and Organizational Development: A Competing Values Approach. Research in Organizational Change and Development, 5(1), 1–21.

  • Diana, I.N., Supriyanto, A.S., Ekowati, V.M., & Ertanto, A.H. (2021). Factor Influencing Employee Performance: The Role of Organizational Culture. The Journal of Asian Finance, 8(2), 545–53.

  • Dyck, B., Walker, K., & Caza, A. (2019). Antecedents of Sustainable Organizing: A Look at the Relationship between Organizational Culture and the Triple Bottom Line. Journal of Cleaner Production, 231, 1235–1247. https://doi. org/10.1016/j.jclepro.2019.05.287.

  • Fekete, H., & Bocskei, E. (2011). Cultural Waves in Company Performance. Research Journal of Economics and ICT, 3, 38-42.

  • Fernandez, S., & Rainey, H.G. (2006). Managing Successful Organisational Change in the Public Sector. Public Administration Review, 66(2), 168–76. https://doi. org/10.1111/j.1540-6210.2006.00570.x.

  • Fietz, B., & Günther, E. (2021). Changing organisational culture to establish sustainability. Controlling & management review, 65(3), 32–40. https://doi. org/10.1007/s12176-021-0379-4.

  • Filatotchev, I., Ireland, R.D., & Stahl, G.K. (2022). Contextualizing Management Research: An Open Systems Perspective. Journal of Management Studies, 59, 1036-1056. https://doi.org/10.1111/joms.12754

  • Flamholtz, E.G., & Randle, Y. (2008). Leading Strategic Change: Bridging Theory and Practice. Madrid, Spain, Cambridge University Press.

  • Fortune, M. (2022). Fortune magazine’s 100 best companies to work for. Assessed 15 July 2022. https://fortune.com/franchise-list-page/best-companies-2022- methodology

  • Gulati, R., & Kumar, S. (2016). Assessing the Impact of the Global Financial Crisis on the Profit Efficiency of Indian Banks. Economic Modelling, 58, 167–81.

  • Hartnell, C.A., Ou, A.Y., & Kinicki, A. (2011). Organizational Culture and Organizational Effectiveness: A Meta-Analytic Investigation of the Competing Values Framework’s Theoretical Suppositions. Journal of Applied Psychology, 96(4), 677–94.

  • Hedley, K., White, J., Petit De La Roche, C., & Banerjee, S. (2007). The Retail Banking Industry in 2015: Trends and Strategies to Focus on and Develop. Strategic Direction, 23, 32–34.

  • Herguner, G., & Reeves, N.B.R. (2000). Going against the National Cultural Grain: A Longitudinal Case Study of Organizational Culture Change in Turkish 67

  • Higher Education. Total Quality Management, 11(1), 45–56. https://doi. org/10.1080/0954412007017.

  • Hijal-Moghrabi, I., Sabharwal, M., & Berman, E.M. (2017). The importance of ethical environment to organizational performance in employment at will states. Administration & Society, 49(9), 1346-1374. https://doi. org/10.1177/0095399715581043

  • Hofstede, G., Neujien, B., Ohayv, D.D., & Sanders, G. (1990). Measuring Organisational Culture: A Quantitative and Qualitative Study across Cultures. Administrative Science Quarterly, 35, 286–316.

  • Kim, T., & Chang, J. (2019). Organizational Culture and Performance: A Macro- Level Longitudinal Study. Leadership & Organization Development Journal, 40(1), 65–84. https://doi.org/10.1108/lodj-08-2018-0291.

  • Kling, G., Harvey, C., & Maclean, M. (2017). Establishing Causal Order in Longitudinal Studies Combining Binary and Continuous Dependent Variables. Organizational Research Methods, 20(4), 770–99. https://doi. org/10.1177/1094428115618760.

  • Kloot, L., & Martin, J. (2007). Public Sector Change, Organisational Culture and Financial Information: A Study of Local Government. Australian Journal of Public Administration, 66(4), 485–97. https://doi.org/10.1111/j.1467- 8500.2007.00558.x.

  • Knein, E., Greven, A., Bendig, D., & Brettel, M. (2020). Culture and Cross-Functional Coopetition: The Interplay of Organizational and National Culture. Journal of International Management, 26(2), 100731.

  • KPMG & CII (2013). Indian Banking- Maneuvering through Turbulence: Emerging Strategies. Accessed on 19 April 2022. https://silo.tips/download/indianbanking- maneuvering-through-turbulence-emerging-strategies.

  • Lenka, Sanjita and Subudhi, Rabi, Work Life Balance, Job Satisfaction and Organizational Commitment: A Study on Bank Employees Bhubaneswar, Odisha (March 1, 2019). International Journal of Research and Analytical Reviews (IJRAR) March 2019, Volume 6, Issue 1, Available at SSRN: https:// ssrn.com/abstract=3352463

  • Lindberg, A., & Meredith, L. (2012). Building a Culture of Learning through Organizational Development: The Experiences of the Marin County Health and Human Services Department. Journal of Evidence-Based Social Work, 9(1–2), 27–42. https://doi.org/10.1080/15433714.2012.636309.

  • Ližbetinová, L., Lorincová, S. & Caha, Z. (2016). The Application of the Organizational Culture Assessment Instrument (OCAI) to Logistics

  • Enterprises. NAŠE MORE: Znanstveni Časopis Za More i Pomorstvo, 63, 170–76.

  • Mishra, S., & Subudhi, R. N. (2019). The Methodological Domain in Management Research. Methodological Issues in Management Research: Advances, Challenges, and the Way Ahead, 1–10. https://doi.org/10.1108/978-1-78973- 973-220191001

  • Mishra Y and Subudhi, RN (2019). Technical and higher educational institutions of Odisha: A study on impact of employer branding and organisation attractiveness on citizenship behavior International Journal of Civil Engineering and Technology (IJCIET) Volume 10, Issue 01, January 2019, pp. 1965 1977, http://iaeme.com/Home/issue/IJCIET?Volume=10&Issue=1 Mohan, T.R. (2016). The Changing Face of Indian Banking. Economic and Political Weekly, 57–67.

  • Moon, K. (2016). The Effects of Diversity and Transformational Leadership Climate on Organizational Citizenship Behavior in the U.S. Federal Government: An Organisational-Level Longitudinal Study. Public Performance & Management Review, 40(2), 361–81. https://doi.org/10.1080/15309576.2016.1216002.

  • Morgan, N.A., & Vorhies, D.W. (2018). The Business Performance Outcomes of Market Orientation Culture and Behaviors. In Review of Marketing Research, 255–82. Emerald Publishing Limited.

  • Mukherjee, A., Nath, P., & Pal, M.N. (2002). Performance Benchmarking and Strategic Homogeneity of Indian Banks. Int. J. Bank Marketing, 20, 122–39. Naranjo-Valencia, J.C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2011). Innovation or Imitation? The Role of Organizational Culture. Management Decision, 49(1), 55–72.

  • Narasimham, C.R. (1998). Report of the Committee on Banking Sector Reforms - A Summary. Assessed on 15 July 2022. https://rbi.org.in/scripts/BS_ ViewBulletin.aspx?Id=23

  • Nayak, P.J. (2014). Report of the Committee to Review Governance of Boards of Banks in India. Accessed on 14 April 2022. https://rbidocs.rbi.org.in/rdocs/ PublicationReport/Pdfs/BCF090514FR.pdf.

  • Nold, H., & Michel, L. (2021). Organizational Culture: A Systems Approach. In Accounting and Finance Innovations. IntechOpen. O’Donnell, O., & Boyle, R. (2008). Understanding and Managing Organisational Culture. Dublin, Ireland, Institute of Public Administration. Okwata, P. A., Wasike, S., & Andemariam, K. (2022). Effect of Organizational Culture Change on Organizational Performance of Kenya Wildlife Service 69

  • Nairobi National Park. Administrative Sciences, 12(4), 139. MDPI AG. Retrieved from http://dx.doi.org/10.3390/admsci12040139. Accessed on 26.3.2023

  • O’Neill, R.M. & Quinn, R.E. (1993). Editors’ Note: Applications of the Competing Values Framework. Human Resource Management, 32(1), 1–7.

  • Oney-Yazici, E., Giritli, H., Topcu-Oraz, G., & Acar, E. (2007). Organizational Culture: The Case of Turkish Construction Industry. Engineering, Construction and Architectural Management, 14, 519–31.

  • Ongore, V.O., & Kusa G.B. (2013). Determinants of Financial Performance of Commercial Banks in Kenya. International Journal of Economics and Financial Issues, 3(1), 237–52.

  • O’Reilly, C.A., Chatman, J., & Caldwell, D.F. (1991). People and Organizational Culture: A Profile Comparison Approach to Assessing Person-Organization Fit. Academy of Management Journal, 34(3), 487–516.

  • Ortiz, J.P., & Arnborg, L. (2005). Reflections on Involvement Culture and Power in Organisations. Performance Improvement, 44(6), 31–37.

  • Park, S.; Lee, D. S.; Son, J. (2021). Regulatory reform in the era of new technological development: The role of organizational factors in the public sector. Regulation & Governance,15(3), 894-908. DOI: 10.1111/rego.12339.

  • Ployhart, R.E., & Vandenberg, R.J. (2010). Longitudinal Research: The Theory, Design, and Analysis of Change. Journal of Management, 36(1), 94–120. https://doi.org/10.1177/0149206309352110.

  • Quinn, R.E., & Rohrbaugh, J. (1983).A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis. Management Science, 29(3), 363–77.

  • Quinn, R.E., Clair, L.S., Faerman, Sue R., Thompson, M.P., & McGrath, M.R. (2020). Becoming a Master Manager: A Competing Values Approach, Sixth Edition Wiley E-Text Student Package. Nashville, TN, John Wiley & Sons. Rakatu, V.L.; Chandra, A.K.; Soma, M.K. (2022). Employee Engagement, Job Performance, Turnover Intention and Workplace Culture: A Comparative Study of Private and Public Sector Banks in Chhattisgarh. IUP Journal of Organizational Behavior, 21(2), 117–140.

  • Rao, K.S. (2021). Induce Spirit of Privatisation in Public Sector Banks. Economic and Political Weekly, 59(18), 12–14.

  • Ruijer, E.H.J.M. & Huff, R.F. (2016). Breaking through Barriers: The Impact of Organizational Culture on Open Government Reform. Transforming Government People Process and Policy, 10(2), 335–50. https://doi.org/10.1108/ tg-07-2015-0028.

  • Salman, M., Ganie, S. A., & Saleem, I. (2020). Employee Competencies as Predictors of Organizational Performance: A Study of Public and Private Sector Banks. Management and Labour Studies, 45(4), 416–432. https://doi-org.mdilibrary. remotexs.in/10.1177/0258042X20939014

  • Sarta, A., Durand, R. & Vergne, J.-P. (2021). Organizational Adaptation. Journal of Management, 47(1), 43–75. https://doi.org/10.1177/0149206320929088 Schein, E.H. (2009). The Corporate Culture Survival Guide, New Edition. Jossey- Bass.

  • Schein, E.H., & Schein, P. (2016). Organisational Culture and Leadership. 5th ed. Nashville, TN, John Wiley & Sons.

  • Schraeder, M., Tears, R.S., & Jordan, M.H. (2005). Organizational Culture in Public Sector Organizations: Promoting Change through Training and Leading by Example. Leadership & Organization Development Journal, 26(6), 492–502.

  • Scott, W.R. & Davis, G.F. (2007). Organisations and Organising: Rational, Natural and Open Systems Perspectives. New York.

  • Seidl, D. & Becker, K.H. (2006). Organisations as Distinction Generating and Processing Systems: Niklas Luhmann’s Contribution to Organization Studies. Organisation (London, England) 13(1), 9–35. https://doi. org/10.1177/1350508406059635.

  • Shin, C., & Park, J. (2019). Classifying Social Enterprises with Organizational Culture, Network and Socioeconomic Performance: Latent Profile Analysis Approach. Journal of Open Innovation: Technology, Market, and Complexity, 5(1),17. https://doi.org/10.3390/joitmc5010017.

  • Singer, J.D., & Willett, J.B. (2003). Applied Longitudinal Data Analysis: Modeling Change and Event Occurrence. Oxford University Press, New York, NY. Singh, A. (2020). Organizational Culture Analysis: A Study of Indian IT Industry Using OCAI Instrument. International Journal of Management, 11(6), 1394- 1402.

  • Sinha, J.B.P. (2009). Culture and Organisational Behaviour. Christchurch, New Zealand, Sage Publications.

  • Sinha, J.B.P., & Kanungo, R.N. (1997). Context sensitivity and balancing in Indian organizational behaviour. International Journal of Psychology, 32(2), 93– 105. https://doi.org/10.1080/002075997400890

  • Slack, N.J., & Singh, G. (2018). Diagnosis of Organizational Culture in Public Sector Undertakings Undergoing Reforms. Public Organization Review, 18(3), 361-380.

  • Smith, W.K., & Lewis, M.W. (2011). Toward a Theory of Paradox: A Dynamic Equilibrium Model of Organizing. Academy of Management Review, 36(2), 381–403. https://doi.org/10.5465/amr.2011.59330958.

  • Spicer, A. (2020). Organizational Culture and COVID‐19. The Journal of Management Studies, 57(8), 1737–40. https://doi.org/10.1111/joms.12625.

  • Subudhi, R.N. (2019), «Testing of Hypothesis: Concepts and Applications», Subudhi, R.N. and Mishra, S. (Ed.) Methodological Issues in Management Research: Advances, Challenges, and the Way Ahead, Emerald Publishing Limited. pp. 127-143. https://doi.org/10.1108/978-1-78973-973-220191009

  • Suderman, J. (2012). Using the Organizational Cultural Assessment (OCAI) as a Tool for New Team Development. Journal of Practical Consulting, 4(1), 52– 58.

  • Thi Tran, Y.; Nguyen, N. P.; Nguyen, L. D. (2022). Results-oriented Culture and Organizational Performance: The Mediating Role of Financial Accountability in Public Sector Organizations in Vietnam. International Journal of Public Administration, [s. l.], 45(3), 257–272,. DOI 10.1080/01900692.2020.1841227.

  • Tian, M., Deng, P., Zhang, Y., & Salmador, M. P. (2018). How Does Culture Influence Innovation? A Systematic Literature Review. Management Decision, 56(5), 1088–1107.

  • Trends, G.H.C. (2016). Shape culture Drive strategy. Accessed 12 February 2022. https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2016/ impact-of-culture-on-business-strategy.html.

  • Tseng, S. (2010). The Correlation between Organizational Culture and Knowledge Conversion on Corporate Performance. Journal of Knowledge Management, 14(2), 269–84. https://doi.org/10.1108/13673271011032409.

  • Van Huy, N., Thu, N. T. H., Anh, N. L. T., Au, N. T. H., Phuong, N. T., Cham, N. T., & Minh, P. D. (2020). The validation of organisational culture assessment instrument in healthcare setting: results from a cross-sectional study in Vietnam. BMC public health, 20(1), 316. https://doi.org/10.1186/s12889-020- 8372-y

  • Vijayalakshmi, C., Awasthy, R., & Gupta, R.K. (2009). Assessment of Cultural Shifts in an Indian Public Sector Bank. International Journal of Indian Culture and Business Management, 2(3), 307. https://doi.org/10.1504/ijicbm.2009.023551.

  • Wajeeha, A.; Kashif, F.; Imtiaz, A., & Goi, C. L. (2022). What matters most in achieving customer satisfaction in banking? A study from the perspective of employee characteristics. TQM Journal, 34(4), 627-650.

  • Warrick, D.D. (2017). What Leaders Need to Know about Organizational Culture. Business Horizons, 60(3), 395–404. https://doi.org/10.1016/j. bushor.2017.01.011.

  • Warrick, D.D., & Gardner, D.G. (2021). Leaders Build Cultures: Action Steps for Leaders to Build Successful Organisational Cultures. Journal of Leadership, Accountability and Ethics, 18(1), 36–52.

  • Woodall, J. (1996). Managing Culture Change: Can It Ever Be Ethical?. Personnel Review, 25(6), 26–40. https://doi.org/10.1108/00483489610148518.

  • Yu, T., & Wu, N. (2009). A Review of Study on the Competing Values Framework. International Journal of Business and Management, 4(7). https:// doi.org/10.5539/ijbm.v4n7p37.

  • Zalami, A. (2005). Alignment of Organisational Cultures in the Public and Private Sectors. Presentation given at Excellence in Public Service. Amman, Jordan. Retrieved from: http://ijqr.net/journal/v11-n3/11.pd

  • Zhang, Z., & Zhu, X. (2012). Empirical Analysis of the Relationship between Organisational Culture and Organisational Performance. In Proceedings of 2012 National Conference on Information Technology and Computer Science. Paris, France, Atlantis Press.


Abstract Views: 344

PDF Views: 0




  • Organizational Culture: A Longitudinal Study of a Public Sector Bank

Abstract Views: 344  |  PDF Views: 0

Authors

Richa Awasthy
Associate Professor, School of Business Public Policy and Social Entrepreneurship, Dr. B. R. Ambedkar University Gate, Delhi 110006, India
Diwakar Singh
School of Business Public Policy and Social Entrepreneurship, Dr. B. R. Ambedkar University, Delhi 110006, India

Abstract


This study aims to map cultural changes in the transformational journey of an Indian public sector bank (PSB) using longitudinal data collected at three different points. This study investigates the relationship between Organizational Culture (OC) and the financial performance. The survey was conducted out using the Organizational Culture Assessment Instrument (OCAI) based on the competing values framework. The findings revealed an emerging pattern between changing culture and financial performance of the Bank culture indicating a shift from clan culture of pre-change initiatives to market culture of phase 1 to primacy of market culture of phase 2, in phase 3 hierarchy was the dominant culture. The findings contradict the extant literature that categorizes public sector employees as resistant to change, adapting to the top leader’s mission in this case. This study maps cultural change in PSB through a longitudinal study using Competing Value Framework (CVF) in an emerging market context, examining the past (then), current, and preferred culture.

Keywords


Organizational Culture Assessment Instrument (OCAI), Competing Values Framework (CVF), Longitudinal Study.

References





DOI: https://doi.org/10.23862/kiit-parikalpana%2F2023%2Fv19%2Fi2%2F223461