The Impact of Organizational Culture on Organizational Performance of Banking Sector in Tirana

Abstract

The consolidation of Albanian market brought upon awareness for managers to hire qualified and productive workforce by focusing more on employees rather than costumers. Employees play a critical role in the organizations and should be seen as assets, not expenses. High competition and the desire to improve business profits, led business organizations to study thoroughly and carefully the culture and behavior of leaders and their subordinates, in order to increase organizational performance. The relationship between organizational culture and performance has shown the interest of researchers for many years. The great number of existing studies that examine organizational culture and performance have concentrated on developed countries and just few of them are directed for developing countries, such as Albania. This thesis assesses the impact of organizational culture on organizational performance using a Denison Organizational Culture model. This model contain four main cultural dimensions such as: involvement, consistency, adaptability and mission, used as a independent variables. This dissertation is motivated by some research questions concerning the influence of organizational culture on bank performance and how does each of 4 cultural dimensions affect performance of banking sector in Tirana being as a dependent variable. To illustrate these ideas, a sample of three banks in Tirana were taken: Raiffesein bank, National Commercial bank (BKT) and Alfa bank using a quantitative methodology following with statistical analyzes appropriate for this study. The conclusions and recommendations of this study based on the results of empirical evidence and theoretical analysis tend to contribute in the increase of banking system performance.