Research Article: 2021 Vol: 20 Issue: 6S
Eman Al-bawaia, The University of Jordan
Muhammad Alshurideh, The University of Jordan and University of Sharjah
Bader Obeidat, The University of Jordan and The British University in Dubai
Ra’ed Masa’deh, The University of Jordan
Due to the difficulties faced by banks in Jordan in recent years due to the economic and political conditions surrounding Jordan, and a lack of studies this study aims to investigate the effects of corporate culture and employee motivation on organizational effectiveness in the Jordanian banking sector. Using a quantitative research design, data were collected by a questionnaire-based survey of employees in Jordanian banks. 365 usable responses were analysed, and demonstrated a significant effect of corporate culture and three of its dimensions; clan culture (human relation), market culture (rational goal) and hierarchy culture (internal process) on organizational effectiveness. A fourth-dimension adhocracy culture (open system) did not contribute to organizational effectiveness. There was also a significant interaction between employee motivation, specifically extrinsic and intrinsic motivation, and organizational effectiveness. The conclusion of this study is that bank managers can achieve effectiveness by building a balanced organizational culture that combines different corporate cultures (clan, market and hierarchy). This study also suggests that bank managers should spread an adhocracy culture to encourage innovation and help the banks to weather outside stressors. Bank managers may also be able to improve performance of employees by focusing on extrinsic and intrinsic motivation.
Corporate Culture, Employee Motivation, Organizational Effectiveness, Competing Value Framework, Jordanian Banks.
Organizational effectiveness is one of the most studied topics in business, especially in the private sector. There is great interest in the level of organizational effectiveness that determines an organization’s ability to compete and survive in today’s turbulent and complex environment (Alshurideh et al., 2020; Bettayeb et al., 2020; Taryam et al., 2020; Obeidat et al., 2021). According to Richard et al. (2009), organizational effectiveness can facilitate the achievement of goals through a blend of competencies and ethics. Two important factors affecting organizational effectiveness are corporate culture and employee motivation. These factors were selected for further investigation by this study in an attempt to generalise prior research results to a specific business sector in Jordan. The purpose of this study is to analyse the effect of employee motivation and corporate culture on organizational effectiveness in the Jordanian banking sector.
An effective organization can manage many factors such as ambiguity, flexibility, customer-orientation, production, value-orientation, and structured learning (Alkitbi et al., 2020; Alshamsi et al., 2020; Kurdi et al., 2020; Svoboda et al., 2021). The organization should also be aware of the scope of staff duties and capabilities (Shannak et al., 2010; Marjani & Soheilipour, 2012; Obeidat et al., 2017a, b; Alshurideh et al., 2021). Other studies used different factors to measure organizational effectiveness: goal, resource control, and multiple constituencies (Zu’bi et al., 2012; Mahadeen et al., 2016; Obeidat et al., 2019; Aburayya et al., 2020). Leaders and managers worldwide recognise employee engagement as one of the most important factors affecting organizational effectiveness (Welch, 2011; Shannak et al., 2012; Alameeri et al., 2020; Al-Dmour et al., 2021; Al Kurdi et al., 2020; AlShehhet al., 2020; Alsuwaidi et al., 2020; Al Shebli et al., 2021). Corporate culture has been modelled in many different dimensions such as organizational performance, effectiveness, and turnover (Altaf, 2011; Moh'd et al., 2013; Masa’deh et al., 2018; Abuhashesh et al., 2021; Odeh et al., 2021). Cameron & Quinn (2006) present a theoretical classification of corporate culture called the competitive value framework. This framework consists of four dimensions (clan, adhocracy, market and hierarchy). When employees are satisfied with their work and their jobs, the organization will benefit (Alshraideh et al., 2017; Ammari et al., 2017; Alzoubi et al., 2020; Hayajneh et al., 2021). Many researchers have shown that employee satisfaction adds to organizational effectiveness and that motivated employees have high productivity. This increases customer satisfaction and creates a good corporate reputation (Siddique1 et al., 2011; Alshurideh et al., 2012).
In the annual report of the Association of Jordanian Banks (2016), financial indicators, such as balance of bank assets, balance of facilities granted, balance of total deposits and capital adequacy ratio, and show a slight rise in the liquidity ratio but by the lowest compering with indicator 2015. According to banking sector report (2013), banks suffered a decline in growth due to political and economic conditions. The banking sector is an important contributor to the gross domestic product; in 2011 it had a rate of 11.6% of the GDP. Managers in the banking sector face challenges in achieving organizational goals such as high competition and a changing environment, which in turn affects the control of resources. According to the researcher's knowledge, the relationship between corporate culture and organizational effectiveness has not been studied through the adoption of the competing value framework. Thus, this study is important for four main reasons. First, this research makes an important contribution to the existing literature by examining the effects of corporate culture and employee motivation on organizational effectiveness in different environments. There is scant prior research examining these specific interactions. Second, it is the first study of these interactions in the Jordanian banking sector. Third, this study is the first to investigate the influence of organizational culture (clan, adhocracy, market and hierarchy) on organizational effectiveness. Finally, this study will be the first to define the relationship between employee motivation and organizational effectiveness.
This paper illustrates the definitions and measures of study variables: corporate culture, employee motivation as an independent variable, and organizational effectiveness as a dependent variable and research hypotheses. Moreover, this paper shows research data including population of the study, data collection methods, data analysis techniques and validity and reliability that test the level of consistency and stability of the instrument.
Operational Definitions of the Variables
Corporate Culture (First Independent Variable)
This study will use competing value framework, its classification of four types of organizational culture (clan, adhocracy, market and hierarchy) (Cameron & Quinn, 2006). First clan culture, when employees share the same values and attitudes, they will be like a one family member who work in a positive friendly environment. In which heads and supervisors are playing the role of parents and mentors. Loyalty, customs, and high commitment are the bases that unite employees. The organization highlights the important role of developing human resources and fostering cohesiveness and morale in achieving lasting benefits (Sugita & Takahashi, 2015; Abu Zayyad et al., 2020). Adhocracy, according to Sugita & Takahashi (2015), Al Kurdi et al. (2020), Alyammahi et al. (2020) and Kabrilyants et al. (2021), a work environment must be active, innovative and entrepreneurial. Leaders are supposed to carry the responsibility of taking risks and to be innovators (Al-Dhuhouri et al., 2020; Al Mehrez et al., 2020; Al Naqbia et al., 2020; Harahsheh et al., 2021). Commitment to creativity and making new experiments are the most essential factors to achieving cohesion within an organization. The main long-term objectives of an organization are to have new resources and to achieve growth. Creating new products and offering distinguished services are the keys to organization’s success, which highlights the vital role of product and service leaders in any organization (Alshurideh et al., 2014 &m Al-Khayyal et al., 2020).
Market: The most important objectives of the firm are to have a good reputation and to be able to achieve success. The firm’s long-term emphasis is on outperforming competitors and reaching goals. The success of the firm can be measured through its market share and market penetration. The management style in the firm is characterized by competitiveness and Achievement (Sugita & Takahashi, 2015).
Hierarchy, according to Sugita & Takahashi (2015), the work environment must have a formal organisational structure, where employee behaviours are governed by rules and directives. Leadership is based on organized coordination and monitoring. The most important mission is to preserve a smooth workflow in an organisation. Rules and policies are regarded as the bond of an organisation. An organisation’s long-term objective is to maintain stability and efficiency. Several factors contribute to achieving success, including effective delivery, managed schedules, and affordable costs. Employee management is responsible for employment predictability and security.
Table 1 Dimension and Measurements of Corporate Culture |
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Corporate Culture | |||
Dimension | No. | Measurements | References |
Clan | Q1 | My organization is a very personal place. It is like an extended family. People seem to share a lot of them. | Leisen et al. (2002) |
Q2 | The head of my organization is generally considered to be a mentor, sage, or a father or mother figure. | ||
Q3 | The glue that holds my organization together is loyalty and tradition. Commitment to this firm runs high. | ||
Q4 | My organization emphasizes human resources. High cohesion and morale in the firm are important. | ||
Adhocracy | Q5 | My organization is a very dynamic and entrepreneurial place. People are willing to stick their necks out and take risks. | Leisen et al. (2002) |
Q6 | The head of my organization is generally considered to be an entrepreneur, an innovator, or a risk taker. | ||
Q7 | The glue that holds my organization together is a commitment to innovation and development. There is an emphasis on being first. | ||
Q8 | My organization emphasizes growth and acquiring new resources. Readiness to meet new challenges is important. | ||
Market | Q9 | My organization is very job oriented. A major concern is with getting the job done, without much personal involvement. | Leisen et al. (2002) |
Q10 | The head of my organization is generally considered to be a producer, a technician or a hard driver. | ||
Q11 | The glue that holds my organization together is the emphasis on tasks and goal accomplishment. A job orientation is commonly shared. | ||
Q12 | My organization emphasizes competitive actions and achievement. Measurable goals are important. | ||
Hierarchy | Q13 | My organization is a very formalized and structural place. Established procedures generally govern what people do. | Leisen et al. (2002) |
Q14 | The head of my organization is generally considered to be a coordinator, an organizer, or an administrator. | ||
Q15 | The glue that holds my organization together is formal rules and policies. Maintaining a smooth-running institution is important here. | ||
Q16 | My organization emphasizes performance and stability. Efficient, smooth operations are important. |
Employee Motivation (Second Independent Variable)
Extrinsic Motivation can be defined as the incentive package, including the salary paid by the employee for his/her work, whether this salary is fair and satisfactory to him, promotion opportunities, in addition to financial incentives, and the appreciate by managers and praise the work of the employee affect the success of the employee in the performance of his/her work (Alkalha et al., 2012; Abuhashesh et al., 2019). Intrinsic Motivation can be defined as empowering employees by giving them the Authority, responsibilities and trust to perform their jobs, as well as involving them in decision-making and providing a good working environment, involving employees in solving difficult problems facing the organization affects employee motivation.
Table 2 Dimension and Measurements of Employee Motivation |
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Employee motivation | |||
Dimension | No. | Measurements | References |
Extrinsic Motivation | Q17 | The level of my wage affects my performance. | Forsgren & Haskell (2015) |
Q18 | The level of my wage is fair and satisfactory. | ||
Q19 | My promotion opportunity affects my performance. | ||
Q20 | Financial rewards (salary, bonus and perquisite) increase my motivation. | ||
Q21 | Being appreciated and being praised by my manager increases my success and performance at work. | ||
Intrinsic Motivation | Q22 | Authority/responsibility and dependence requests in the workplace affect my motivation. | Forsgren & Haskell (2015) |
Q23 | Participation in decision-making process affects my motivation. | ||
Q24 | A good working environment effects my motivation to perform. | ||
Q25 | The more difficult the problem, the more I enjoy trying to solve it |
Organization Effectiveness (Dependent Variable)
Organization effectiveness measure was adopted from Masa’deh et al. (2016), dimensions of organizational effectiveness measure include: improved ability to innovate, improved coordination of efforts, and rapid commercialization of new products. Other contributions may include: the ability to anticipate surprises, responsiveness to market change, and reduced redundancy of information/knowledge.
According to Lee & Choi (2003) Organizational performance is measured by comparing with competitors using elements; market share, profitability, growth rate, innovation and overall success. For the purpose of this study the organization effectiveness will measure through three approaches. The first is the goal approach, the organization is considered successful when it meets its objectives and goals. In order to achieve this, affirmation by management that the structure of organizations backs their goals and objectives trying to achieve, should be provided. It is important also to have combined actions and works of the organization’s individuals so as to provide services of high quality to clients. The second is the Resource Control approach: which recommended organizations to bring the resources important for their production, from the environment, if they want to continue to exist. The commitment of personnel to contracts, regulations and laws is essential according to this approach, which also stressed the need to adopt managerial and financial reporting system at the right time when talking about decisions of management. Resource Control approach emphasizes on protecting various properties and resources through avoiding mistakes, wrong use, deception and damage.
The third is the multiple constituency approach: which pays attention to the issue of facing opponents. This approach identifies different concerns of various persons and groups in the organization. In order to consider and measure the state of comfort of employees and clients, it is important to conduct regular surveys to increase employees’ satisfaction in their jobs and reduce complaints of clients.
Table 3 Dimension and Measurements of Organization Effectiveness |
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Organization Effectiveness | |||
Dimension | No. | Measurements | References |
Goal Approach | Q26 | Management has a reasonable assurance that the structure will support planned goals and objectives | Mahadeen et al. (2016, p.41) |
Q27 | There is a comprehensive integration of activities and efforts of people in the organization to ensure the achievement of goals and objectives | ||
Q28 | Effective operations within my organization lead to quality products/services that are consistent with the organization’s mission | ||
Q29 | My organization is successful in achieving its objectives | ||
Q30 | Service recipients’ studies indicate a high level of satisfaction of our products/services | ||
Resource control approach | Q31 | My organization is capable of attracting the needed resources to produce its products/services | Mahadeen et al. (2016, p.41) |
Q32 | My organization ensures its staff’s adherence to laws, regulations and contracts | ||
Q33 | Management directives and decisions rely on a timely financial and managerial reporting system | ||
Q34 | Resources are being safeguard against loss due to waste, abuse, errors and fraud | ||
Multiple constituency approach | Q35 | My organization survived against its competitors over the last few years | Mahadeen et al. (2016, p.41) |
Q36 | Different interests of individuals /groups are recognized and fulfilled. | ||
Q37 | Periodical surveys indicate a reasonable job satisfaction among employees in my organization | ||
Q38 | Periodical surveys indicate high customer satisfaction of our products/services | ||
Q39 | Management has a reasonable assurance that the structure will support planned goals and objectives |
Theoretical Framework
The present research aims to develop a theoretical model to explore the effect of corporate culture and employee motivation on organization effectiveness Figure (1).
Research Hypotheses
In order to test the research model of the effect of corporate culture and employee motivation on organization effectiveness, the study is hypothesized as follows:
First Main Hypothesis
H01: There is no effect (at the level α ≤ 0.05) of corporate culture on organizational effectiveness in the Jordanian bank sector.
Sub-hypotheses related to H1 hypothesis
H01a: There is no effect (at the level α ≤ 0.05) of clan culture on organizational effectiveness in the Jordanian bank sector.
H01b: There is no effect (at the level α ≤ 0.05) of adhocracy culture on organizational effectiveness in the Jordanian bank sector.
H01c: There is no effect (at the level α ≤ 0.05) of market culture on organizational effectiveness in the Jordanian bank sector.
H01d: There is no effect (at the level α ≤ 0.05) of hierarchy culture on organizational effectiveness in the Jordanian bank sector.
Second Main Hypothesis
H02: There is no effect (at the level α ≤ 0.05) of employee motivation on organizational effectiveness in the Jordanian bank sector.
Sub-hypotheses related to H2 hypothesis
H02a: There is no effect (at the level α ≤ 0.05) of extrinsic motivation factors on organizational effectiveness in the Jordanian bank sector.
H02b: There is no effect (at the level α ≤ 0.05) of intrinsic motivation factors on organizational effectiveness in the Jordanian bank sector.
Population and Sample
The targeted population of this research consisted of all banks in Jordan because the managers at banking sector faces challenges like high competition, risks came from changing in environment that affect the ability to control and maintain the needed resource, and achieve organization goals. The target sample of this study consists of all employees working in 16 Jordanian banks where the population is 18923 employees (Association of Bank in Jordan, 2016).
Table 4 The Number of Employees Working in Jordanian Banks (2016) |
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Bank | Total Number of Employees | Order in 2016 | Total Percent of Number of Employees |
Arab bank | 2990 | 1 | 14.53% |
The Housing Bank for Trade and Finance | 2393 | 2 | 11.63% |
Jordan Islamic Bank | 2236 | 3 | 10.87% |
Bank of Jordan | 1578 | 4 | 7.67% |
Cairo Amman Bank | 1553 | 5 | 7.55% |
Jordan Ahli Bank | 1379 | 6 | 6.70% |
Jordan Kuwait Bank | 1151 | 7 | 5.59% |
Bank Al Etihad | 1022 | 8 | 4.97% |
Islamic International Arab Bank | 877 | 9 | 4.26% |
Jordan Commercial Bank | 713 | 10 | 3.47% |
Arab Jordan Investment Bank | 706 | 11 | 3.43% |
Capital Bank | 583 | 12 | 2.83% |
Invest Bank | 508 | 13 | 2.47% |
ABC Bank (Jordan) | 492 | 14 | 2.39% |
Jordan Dubai Islamic Bank | 478 | 15 | 2.32% |
Societe Generale Bank | 264 | 16 | 1.28% |
Total | 18.923 | 91.98% |
Because of the difficulties encountered in implementing the probability sampling, including the procedures used in banks such as the privacy policies, which led to the difficulty of distribution of questionnaires. In addition to the size of the target population is relatively large which was making it difficult to reach all people and the limited time available to collect data (Masa’deh et al., 2013a; Sekaran & Bogie, 2016; Tarhini et al., 2015, 2017). This led to use convenience sampling. The researchers were able to distribute 383 questionnaires to the available banks which gave the approval to fill them without taking into account the size of the bank. As shown in Table (5), the number of questionnaires varied according to the Bank's policy and privacy concerns. The number of retrieved data was 373 out of a total of 383 distributed questionnaire representing 97.4% of the total number of questionnaires distributed. Eight questionnaires were excluded because they were incomplete packing. Thus, the final number of valid questionnaires for statistical analysis is 365 and 95.4% of the number of questionnaires distributed.
Table 5 The Research Sample Distribution |
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Bank | Number of employees included in the sample |
Arab bank | 76 |
The Housing Bank for Trade and Finance | 25 |
Jordan Islamic Bank | 31 |
Jordan Ahli Bank | 31 |
Jordan Kuwait Bank | 32 |
Bank Al Etihad | 50 |
Islamic International Arab Bank | 55 |
Jordan Commercial Bank | 15 |
Capital Bank | 20 |
Jordan Dubai Islamic Bank | 38 |
Total | 373 |
Data Collection Methods
The researchers collected Secondary data for the purpose of testing hypotheses and achieving the goal of the study by reference to magazines, articles and previous studies through the site of the University of Jordan (ezlibrary.ju.edu.jo). The next step was to gather the primary data (the data obtained for the first time by the researchers) through the distribution of questionnaires to employees of the Jordanian banking sector, where the distribution was used personally or through e-mail. The fastest way to achieve a higher percentage of responses was used to mobilize questionnaires. It was noted that the majority of respondents prefer to fill questionnaires more personally than using the email. The researchers’ procedures for communicating with the target group were through a review of the head quarter of the bank and then a review of the training department, which determined the appropriate method to fill the questionnaire and the number of responses allowed by the researchers, and the dates of receipt of questionnaires completed.
Respondents were asked to assess their agreement or disagreement with the items provided using 5-point Likert scale where 5 indicated strong agreement and 1 indicated strong disagreement. The questionnaire also encompassed items concerning the organizational characteristics included number of employees, age of the organization, and respondents’ characteristics. A total of 4 indicators (clan, adhocracy, market and hierarchy) were designed to measure corporate culture. For each indicator 4 items were adopted from previous studies (Leisen et al., 2002) in which such scales were reported to be both reliable and valid. To measure employee motivation, 2 indicators were used; five items for extrinsic motivation, four items for intrinsic motivation. These items were adopted from previous studies (Forsgren & Haskell, 2015) in which such scales were found to be both reliable and valid. Organization effectiveness was measured using 3 indicators were used; five items for goal approach, four items for resource control approach, and four items for multiple constituency approach. The items were adopted from previous studies (Mahadeen et al., 2016) and they were reported to be both reliable and valid.
Validity and Reliability
The researchers measured the goodness of the questionnaire through two methods which are validity and reliability. “Validity the test of how well an instrument that is developed measures the particular concept it is intended to measure. Reliability is a test of how consistently a measuring instrument measures whatever concept it is measure. In other words, validity is concerned with whether we measure the right concept and reliability with stability and consistency of measurement” (Sekaran & Bogei, 2016).
Face Validity
The researchers conducted a pilot test by distributing the questionnaire to a group of respondents (from the study population) who are not included in the study sample to answer the study questions. The researchers carried out the appropriate test for the study questions and found that there is an internal consistency and stability among the study questions. The researchers initially found that the study questions measured what is supposed to be measured.
Reliability
The researchers used Cronbach’s alpha to measure the internal consistency and stability of the questions of the questionnaire as the Hair et al. (2010) pointed out that this value should be higher than 0.6. Table 6 below shows the Cronbach’s alpha scale of the study variables.
Table 6 Cronbach’s Alpha Coefficient |
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Variable | Cronbach’s Alpha | No. of items |
Corporate Culture | 0.923 | 15 |
Clan | 0.806 | 4 |
Adhocracy | 0.785 | 4 |
Market | 0.802 | 3 |
Hierarchy | 0.812 | 4 |
Employee Motivation | 0.841 | 7 |
Extrinsic motivation | 0.690 | 3 |
Intrinsic motivation | 0.791 | 4 |
Organization effectiveness | 0.917 | 14 |
Goal Approach | 0.842 | 5 |
Resource control approach | 0.810 | 4 |
Multiple constituency approach | 0.806 | 5 |
It is clear from the results of the above table that all the values of Cronbach’s alpha were higher than 0.6 and this indicates the existence consistency among the questions of the study and this in turn confirms the stability of the study tool.
Demographic Characteristics of Respondents
The demographic variables in the personal characteristics of the sample of the study by finding the frequency and percentages as shown in Table 7 below.
Table 7 The Main Attributes of the Participating Respondents |
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Respondent's features | ||
Gender | ||
Frequency | Percent | |
Male | 225 | 61.6 |
Female | 140 | 38.4 |
Age | ||
20 - Less than 25 Years | 44 | 12.1 |
25 – Less than 30 Years | 74 | 20.3 |
30 – Less than 35 Years | 109 | 29.9 |
35 Years+ | 138 | 37.8 |
Educational Level | ||
PhD | 3 | 0.8 |
Master Degree | 58 | 15.9 |
Higher Education Diploma | 10 | 2.7 |
Bachelor Degree | 270 | 74 |
Others: Mid Diploma | 17 | 4.7 |
Others: Tawjhi | 7 | 1.9 |
Experience | ||
Less than 3 Years | 54 | 14.8 |
3 – Less than 6 Years | 58 | 15.9 |
6 – Less than 9 Years | 63 | 17.3 |
9 Years+ | 190 | 52.1 |
Position | ||
Manager | 49 | 13.4 |
Assistant Manager | 45 | 12.3 |
Head of department | 65 | 17.8 |
Employee | 206 | 56.4 |
It is clear from the table 7 above that the number of males reached 225, which represents 61.6% and 140 females, which represents a percentage 38.4%. This indicates that banks by nature (study sample) tend to employ males more than females due to the nature of the banks often require work long hours. The table above show that the age group of 35 Years+ was the highest percentage of the respondent sample, by 37.8%, followed by the age group 30 – Less than 35 Years and the percentage was lower 29.9%, while the lowest rate was for the age group 20 - Less than 25 Years and by 12.1%, these percentages indicate the harmony of age groups and the experience of career staff. The percentage of respondents in the category of employees was the highest, accounting for 56.4% of the respondents and the lowest percentage of respondents in the category of assistant manager job at 12.3%, followed by the manager position at 13.4%. This is proportional to the structure of banks, where the proportion of the largest staff and less for leadership positions, for example, the manager is responsible for a large number of employees.
In view of the academic qualifications, the majority of the respondents were Bachelor Degree, 74%, and the lowest percentage of the PhD degree 0.8%. This indicates a focus on the appointment of the Bachelor Degree and above, and not focusing on higher degree only, but focusing on experience. It is also noted that there is a small percentage of the Mid Diploma 4.7% and Tawjhi 1.9% as some jobs do not require high qualifications such as supporting jobs in institutions. The table includes the category of experience of 9 Years+ the highest percentage of respondents was 52.1%, followed by the category of experience from 6 – Less than 9 Years 17.3%. The third category of experience comes from 3 – Less than 6 Years and 15.9%, and in the last rank category of experience Less than 3 Years and by 14% This corresponds to the proportion of respondents according to age group.
The Descriptive Statistics of the Study Main Variables
This section prepares the descriptive statistics of the main variables of the study. The main objective is to find the arithmetic mean of the variables, the standard deviation and the relative importance. According to Nael (2006), the level of relative importance is measured by the following:
Accordingly, the importance is divided into three levels: low, medium, high, where the low level (1- 2.33), the medium level (2.34-3.67) and the high level (3.68-5) Based on the five Likert points “Strongly disagree (1), Disagree (2), Moderately agree (3), Agree (4), Strongly agree (5)”, the following table includes descriptive analysis of relative importance for main variables of study.
Table 8 Mean and Standard Deviation of the Main Variables |
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Questions | Mean | Std. Deviation | Level of Importance | Rank |
Corporate culture | 3.737 | 0.605 | High | 3 |
Employee Motivation | 4.265 | 0.556 | High | 1 |
Organizational effectiveness | 3.797 | 0.587 | High | 2 |
The indicators in the table above show the level of relative importance of the main variables of the study as high. This indicates that there are positive attitudes among the respondents regarding the extent of these variables in the Jordanian banking sector.
Multicollinearity Diagnostics
Before starting to analyze the hypotheses of the study, it should be ascertained that there is no problem in collinearity since this problem results from a high correlation between two independent variables. If there is a problem with the collinearity, this means that there is an intersection between the slop (β) of the first independent variable and slop (β) of the second dependent variable. According to Yoo et al. (2014), the existence of this problem (collinearity) leads to inability to determine the level of effect of each independent variable on the dependent variable. Gujarati & Porter (2010) pointed out that the value of Variance inflation factor (VIF) should be less than 10 and that the value of the tolerance should be higher than 0.1.
Table 9 Collinearity Test |
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Variables | Tolerance | VIF |
Clan | 0.352 | 2.843 |
Adhocracy | 0.464 | 2.155 |
Market | 0.331 | 3.022 |
Hierarchy | 0.364 | 2.748 |
Extrinsic motivation | 0.565 | 1.769 |
Intrinsic motivation | 0.565 | 1.769 |
It is clear from the results of the table above that all the values of tolerance were higher than 0.1 and that all the values of variance inflation factor (VIF) less than 10 and this indicates that there is no problem in the collinearity and therefore there is no problem in the study models and accordingly will be tested hypotheses of the study has shown.
Inferential Statistics: Hypotheses Testing and Discussion
Second Main Hypothesis
In order to test the first hypothesis, the following model will be used to achieve this, since the main hypothesis will be judged by the significance of the ANOVA table. The analysis below shows each of the following tables.
O.E = α + β1 C.CU + β2 AD.CU + β3 M.CU + β4 H.CU + €.
Table 10 Multiple Regression Analysis for the First Hypothesis |
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Model Summary Table | |||
R | 0.706 | ||
R-square | 0.499 | ||
Adjusted R square | 0.493 | ||
Anova Table | |||
F-Value | 89.61 | ||
Sig | 0.000 | ||
Coefficients Table | |||
Variables | Beta | T-Calculated | Sig |
Constant | 1.233 | 8.563 | 0.000 |
Clan | 0.113 | 2.331 | 0.020 |
Adhocracy | 0.015 | 0.327 | 0.744 |
Market | 0.225 | 3.957 | 0.000 |
Hierarchy | 0.318 | 5.806 | 0.000 |
Table 11 Results of Testing the First Main Hypothesis and the Sub Hypotheses |
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Hypotheses | Result |
H01: There is no effect (at the level α ≤ 0.05) of corporate culture on organizational effectiveness in the Jordanian bank sector. | Rejected |
H01a: There is no effect (at the level α ≤ 0.05) of clan culture on organizational effectiveness in the Jordanian bank sector. | Rejected |
H01b: There is no effect (at the level α ≤ 0.05) of adhocracy culture on organizational effectiveness in the Jordanian bank sector. | Accepted |
H01c: There is no effect (at the level α ≤ 0.05) of market culture on organizational effectiveness in the Jordanian bank sector | Rejected |
H01d: There is no effect (at the level α ≤ 0.05) of hierarchy culture on organizational effectiveness in the Jordanian bank sector | Rejected |
Second Main Hypothesis
Table 12 Multiple Regression Analysis for the Second Hypothesis |
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Model Summary Table | |||
R | 0.380 | ||
R-square | 0.145 | ||
Adjusted R square | 0.140 | ||
Anova Table | |||
F-Value | 30.613 | ||
Sig | 0.000 | ||
Coefficients Table | |||
Variables | Beta | T-Calculated | Sig |
Constant | 2.074 | 9.334 | 0.000 |
Extrinsic motivation | 0.129 | 2.173 | 0.030 |
Intrinsic motivation | 0.275 | 4.219 | 0.000 |
Table 13 Results of Testing for the Second Main Hypothesis and the Sub Hypotheses |
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Hypotheses | Result |
H02: There is no effect (at the level α ≤ 0.05) of employee motivation on organizational effectiveness in the Jordanian bank sector. | Rejected |
H02a: There is no effect (at the level α ≤ 0.05) of extrinsic motivation factors on organizational effectiveness in the Jordanian bank sector | Rejected |
H02b: There is no effect (at the level α ≤ 0.05) of intrinsic motivation factors on organizational effectiveness in the Jordanian bank sector | Rejected |
Organizations seek to achieve effectiveness, and important elements are organizational culture and employee motivation. Where organizational culture plays an important role in achieving the effectiveness of the organization and requires study of its affect and the motivation of employees plays an important role in achieving the effectiveness. This study focuses on studying the impact of these variables on the organizational effectiveness from the point of view of employees working in Jordanian banks. This study also investigates the knowledge gap through studying the effect of the corporate culture on the ability of banks to work effectively, as well as determining the impact of extrinsic and intrinsic motivation. As the best of researchers’ knowledge, this study provides a new contribution to study the direct relationship between the dimensions mentioned above and the effectiveness of the organization. The study analyzed the effect of corporate culture and employee motivation on the effectiveness of the organization through collecting data employees working in the Jordanian banking sector. As banks operate in an unstable and highly competitive environment, they need to ensure their effectiveness in achieving their goals and mission to overcome competitors and ensure the achievement of goals.
The first objective of this study was to examine the effect of corporate culture on organizational effectiveness at Jordanian banks sector. The results showed that there is an effect of corporate culture on the effectiveness of the organization and this result is consistent with previous studies; Positive organizational culture increases organizational effectiveness (Altaf, 2011), the overall performance of firms whether quantitative or qualitative is positively influenced by corporate culture components (Arikan & Enginoglu 2016). The results of the study show that there is an impact of organizational culture on the performance of the organization (Pinho et al., 2014), and the effectiveness of the organization is positively influenced by organizational factors such as culture (Arefin et al., 2015). As the pattern of organizational culture affects the effectiveness of the organization; the organizations can be effective by using four models of corporate culture: the effectiveness criteria of human relations model which reflects flexibility and internal focus, the rational goal model which emphasizes control and external focus, the open system model which emphasizes flexibility and external focus and the internal process model which is defined by control and internal focus.
Based on the results of the study, the use of three models of corporate culture namely the relationship model (clan culture); the rational objective model (market culture) and the internal processes model (hierarchy culture) have a significant effect on banks organizational effectiveness. While Naranjo-Valencia et al. (2016) found that there is a strong influence on the adhocracy culture on performance, and that the clan culture positively affect the performance, but lower than the culture of adhocracy, and that the market culture negatively affects the performance either a hierarchical culture has no effect on performance. This result indicates that banks in order to achieve organizational effectiveness should focus on raising the level of loyalty, tradition and commitment, focusing on human and moral resources and increasing cohesion among employees, it also has to find a shared orientation among the staff and to set achievable goals and focus on accomplishing the tasks and achieving the goals. It is useful to define formal rules and policies and focus on performance and stability and also efficient, smooth operations. However, the result indicated that the open system model (adhocracy culture) has no effect on banks organizational effectiveness. The result is not in line with what Naranjo-Valencia et al. (2016), where they found that adhocracy culture greatly affected the performance of the organization. The second objective of this study was to examine the effect of employee motivation on organizational effectiveness at Jordanian banks sector. The results showed that there is an effect of employee motivation on the effectiveness of the organization and this result is consistent with previous studies; there is a direct correlation between employee motivation and the effectiveness of the organization, and it must establish organizational structures and staff empowerment and support practices (Hunaiti et al., 2010; Manzoor, 2012; Abualoush et al., 2018 a,b). If employees are motivated, they will have a greater sense of integration with the organization and when their level of motivation is high, they will perform their work in a sense of responsibility and efficiency (Masa’deh et al., 2013b; Osabiya, 2015). Employee motivation affects the effectiveness of banks as the employee who has motivation increases his/her response to the Bank's objectives and thus affects the Bank's effectiveness. Accordingly, the factors affecting the motivation of employees, both the extrinsic and intrinsic motivation, must be examined.
Based on the results of the study, the extrinsic and intrinsic motivation; have a significant effect on banks organizational effectiveness this result is consistent with previous study; Gohari et al. (2013) they discovered that it is ideal to have a decent reward framework in the organization and assess it on worker profitability, including intrinsic and extrinsic motivation. This result indicates that banks in order to achieve organizational effectiveness should focus that manager should appreciate the employees' efforts by praising their work, and the banks should increase the financial incentives to increase their performance. Banks should also focus on providing a work environment that increases employee motivation and allows employees to participate in problem solving and propose appropriate solutions that increase motivation for work. The researchers faced some difficulties during the study, including data collection, as the study population and the number of banks were large. The policy of privacy in number of banks was the biggest obstacle to gathering information. The approval was to fill a few numbers of questionnaires in each bank. In addition to the procedures for approving the distribution of questionnaires, it took a great deal of time. Coordination with the Bank's management and training department was made to submit the request for data. After a period of up to one week or more, the decision to approve and determine the number of questionnaires, in addition to the limited time available to distribute questionnaires and gather information. Also, the lack of a number of previous studies that study the dimensions of the study variables led to the difficulty of conducting more comparisons of the results of the study.
Dr. Muhammad Alshurideh, Associate Professor, The University of Jordan and University of Sharjah are the corresponding author for the paper.