Organizational Culture and Employees Performance Among Selected Employees in Fast Food Chain

Organizational Culture and Employees Performance Among Selected Employees in Fast Food Chain

Amelie L. Chico^1*, Nilo P. Lopena Jr.², Rosalyn B. Esmero ², and Julia Kaira R. Gatchalian²

¹UM Panabo College, Adviser, Department Business Administration Education, Panabo City, Philippines.

²UM Panabo College, Student, Department Business Administration Education, Panabo City, Philippines.

DOI: https://doi.org/10.47772/IJRISS.2023.70601

Received: 10 May 2023; Accepted: 16 May 2023; Published: 16 June 2023

ABSTRACT

This study aimed to determine the relationship between organizational culture and employee performance among selected employees of a fast-food chain in Panabo City. The study’s variation is organizational culture and employee performance. The moderator of this study worked for a fast-food chain. The indicators of organizational culture are involvement, consistency, adaptability, and mission. The researchers used the quantitative-descriptive design to investigate the relationship between organizational culture and employee performance. The participants of this study are the fast food employees in Jollibee Gredu and Jollibee Highway. All the twenty-nine (29) fast food employees on the morning shift who work from 6:00 a.m to 12:00 p.m in Jollibee Gredu and all the sixteen (16) fast food employees on the afternoon shift who work from 12:00 p.m to 3:00 p. m. on Jollibee Highway. A total of 45 fast-food employees participated in the study. The statistical methods used in the study were weighted mean and Pearson-r. The computed r-value is 0.726 and is associated with a p-value of 0.000, less than 0.05. It implies that the null hypothesis is rejected. As a result of the findings, it was concluded that there is a significant relationship between organizational culture and employee performance among selected employees of a Panabo City fast-food chain.

Keywords: Organizational Culture, Employees Performance, Fast Food Chain, (Involvement, Consistency, Adaptability, Mission).

INTRODUCTION

Employee performance is one of the most important aspects of any business. Their performance determines their value to the company as an employee. It also determines whether or not a company succeeds. According to Ngwa, Adeleke, Agbaeze, Ghasi, and Imhanrenailena, (2018, p.3) the performance of every employee is a major concern to the human resource department.  Employees are sometimes hesitant to give their all on the job, regardless of their qualifications or length of service. Some people who show a high level of performance at the start of their careers begin to decline when they are expected to use their experience and perform even better. Many people only work within the parameters of their job descriptions and are uninterested in contributing to the organization’s goals

The key to achieving organizational goals and remaining competitive is employee performance (Hijry & Haleem, 2017, p. 900). Employee performance is an essential building block of an institute, and organizations must investigate the factors that lay the groundwork for high performance. Because no organization can progress through the efforts of one or two individuals, it takes all members’ combined efforts. Performance is a multidimensional concept that aims to achieve results and is linked to an organization’s strategic goals (Mesiya 2019, p. 74-75).

According to Mañabo (2019, p. 21), employee performance in the organization is fostered by an organizational culture where employees are seen as essential to its growth. They match the organization’s goals and objectives with their own and take ownership of the organization’s overall success. They experience excellent performance because the management recognizes and rewards their efforts, encouraging them to invest more in their work. Moreover, Awadh et al. (2013), as cited by Alemu (2021, p. 1), claimed that a high degree of employee performance is associated with a culture with a well-integrated and effective set of values, beliefs, and behaviours. However, many experts think that culture would remain related to greater performance only if the culture can adapt to changes in external conditions.

In Panabo City, in an interview with one of the employees in a fast food chain in Panabo through social media platforms, she indicated that one of the organization’s cultures is involvement. It is critical to have effective involvement in a business. Effective involvement helps prevent misunderstandings and conflicts among employees and allows employees to perform better. Employee performance can have a beneficial or harmful impact on the company.

The researchers have not found any study about organizational culture and employee performance in the locality of Panabo City, hence establishing the research gap in the study. Due to this factor, the researchers opted and acquired an interest in conducting a survey that is the same as the abovementioned variable. Additionally, the researchers were convinced to investigate this study due to these circumstances.

Taking all of this into account, organizational culture distinguishes the best way to express oneself within the organization and has a shared set of assumptions, values, norms, and beliefs that control how employees act in an organization, thus affecting the overall aspect of the business. Hence, in this study, the researchers will collect information about cultures inside the organization to learn about the organizational culture of different organizations through the help of the researchers’ respondents.

Upon completing this study, the researchers aim to determine the organization’s culture and how it affects. The findings may exemplify that owners, employees’ customers, and the researchers conducting the study will improve the organization’s Performance and productivity, considering that organizational cultures are critical to the success of organizational change and the promotion of business excellence and productivity.

This study is interconnected with Denison’s (2000) theory, which Sadry, Zeerak, and Popalzai (2022, p. 4) cited. According to Denison, organizational culture’s critical components are mission, consistency, adaptability, and involvement. So, each of the four traits was found to be a substantial predictor of other effectiveness measures like quality, employee satisfaction, and overall employee performance, according to the researchers.

          The independent variable in the study is organizational culture, with the indicators of involvement, consistency, adaptability, and mission. The indicator involvement is the first organizational trait that ensures employee participation in decision-making and working together to complete tasks. The second trait is consistency, which focuses on maintaining the status quo by being well-coordinated and well-integrated. The third indicator is adaptability, which refers to developing solutions to changing needs. Finally, the last independent variable indicator is the mission, which refers to the organization’s strategic direction, vision and intent, goals, and objectives. On the other hand, employee performance is the dependent variable.

In Organizational Culture, according to Lemma (2020, p. 2), culture is inextricably linked to company employees’ values and beliefs. These cultural norms are not visible but significantly impact employee performance and profitability. It is the distinction between what is important and unimportant in the organization. Organizational culture impacts employee performance, which can be negative or positive. In the same vein, according to Salihu, A. D., Salihu, M. B. R., and Musa (2016, p. 48), an organization must establish an organizational culture to maintain its position in the market. The organizational culture must be developed to support an organization and promote continuous improvement. A company’s culture has a significant impact on employee performance and commitment, making it crucial for the company’s advancement. An organization with a flexible culture will give its employees a working environment where they can do their jobs efficiently and independently without feeling burdened. Thus according to Wambugu (2014, p. 80), Organizational Culture evolves to cope with such dynamic changes and meet the varying demands of employee expectations and satisfaction, which influence employee performance.

On the other hand, Schein (2004), as cited by Mullock (2014, para. 9), emphasizes the importance of organizational culture, stating that it has the potential to be both a strength and a weakness. For the organization. For example, if it serves as a strength, it facilitates communication among members of the organization, decision-making and control, and the creation of commitment and cooperation within the organization. Prior research indicates that a strong culture of an organization based on managers and leaders aids in improving the level of performance. Managers link organizational performance and culture to provide a competitive advantage (Awadh & Saad, 2013; Mohammad, 2017, p. 82). As to Agu (2020, p. 23), culture is an interconnected pattern of human knowledge, belief, and behavior that is both the result of and passed down through generations as part of the human learning capacity. Language, ideas, beliefs, customs, taboos, codes, institutions, tools, techniques, works of art, rituals, ceremonies, and symbols are thus components of culture. The culture (or cultures) in which a person lives significantly impacts their attitudes, values, ideals, and beliefs. Culture can be a powerful ally or a powerful impediment to organizational success.

An organization’s culture comprises all the life experiences each employee brings to the organization. Because of their roles in decision-making and strategic direction, the organization’s founder, executives, and other managerial staff significantly impact culture. Nonetheless, every employee affects the work culture (Heathfield, 2020, para. 5). Moreover, Mullock (2014, para. 9) also stated that traditions are rare when an organization has many subcultures and only a few values and behavioral norms are shared. In addition, he also indicated that employees in organizations characterized by these traits are more likely to be salary earners than members of the organization. As a result, they have less commitment and responsibility in their performance. Around 77 percent of adults all over four countries (the United States, France, the United Kingdom, and Germany), when applying for a job, prioritize a company’s culture, and more than half of respondents said that organizational culture is more vital than income when it pertains to job satisfaction. Whereas unique perks and high salaries used to be the keys to attracting top talent, the situation has changed. Companies must understand that salary alone will not make their employees happy; culture is critical (Glassdoor’s Culture Survey, 2019; Periyasami, 2022 para. 26). The article “How Culture Impacts Performance” (2020) mentioned that Gallup studies employee engagement and the relationship between culture and performance.

Furthermore, As per Ahmed and Shafiq (2014, p. 22), the organizational culture serves as the norm, directing employees to consistently increase their job performance to the company. Organizational culture can serve as a legally binding requirement for its members because it can be clearly stated in the various laws and regulations of the organizations. As a result, those who work for the organization will be required to adopt attitudes and behaviors consistent with its vision, goals, and strategies. Organizational culture may have an impact on how well a company performs.

In Employee Performance, as cited by Wambugu (2014, p. 80), an employee is a critical element of an organization, and the success or failure of the organization is dependent on individual employee performance, which affects positively or negatively the overall performance of the organization. Every business has its way of doing things, has developed norms and procedures over time, and has a unique atmosphere and feeling, known as organizational culture. As mentioned by Abdullahi, Raman, and Solarin (2021, p. 232), employees are seen as part of an organization that is involved in the organization’s day-to-day actions to ensure that the organization continues to survive or exist. Moreover, Employee motivation is also increased by factors such as empowerment and recognition, according to the findings. Employee motivation will improve, as will their accomplishments and organizational performance if their empowerment and recognition are increased (Dobre, 2013; Mohammed, 2017, p. 82). It was also supported by Batugal and Tindowen (2019, p.2432), who indicated that employees tend to perform well and work hard because they enjoy their jobs. Employees with high job satisfaction levels exhibit pro-social behavior, which includes being helpful to customers, coworkers, and supervisors for the benefit of the employees and their organization.

Furthermore, the performance of employees is essential to the company’s overall success, so business owners require employees capable of getting the job done. To develop consistent and objective evaluation methods, business leaders must first understand the key benefits of employee performance. This assists in determining the business organization’s strengths, weaknesses, and potential managerial gaps (Leonard, 2019, para. 1). More than 85 percent of employees are dissatisfied with their jobs, according to the SHRM 2020 report cited by (Periyasami, 2022, para. 2). As a result, businesses must devise a strategy to boost employee engagement, which leads to higher employee productivity. He also stated that forcing employees to work in a vacuum will result in poor performance. Employee performance is influenced by external factors, including the employer, personal preferences, and other factors.

This study aimed to determine the level of organizational culture and employee performance among fast food chains. Specifically, it sought answers to the following questions: (1) What is the level of organizational culture among selected employees in the fast food chains in Panabo City in terms of; involvement; consistency; adaptability; and mission?; (2) What is the level of employee performance among selected employees in a fast food chain in Panabo City?; (3) Is there any significant relationship between organizational culture and employee performance among employees in fast food chain in Panabo City? This study tested the null hypothesis at 0.05 significance that stated no significant relationship exists between organizational culture and employees performance among employees in fast-food chains.

METHOD

This section of the study describes in detail how the study was carried out, as well as the method and procedure used in this study. This presentation included the presentation of the research participants, the materials/instruments used in the study, and the research design and procedures.

Participants

The respondents of this study are fast-food employees who work in Panabo City, Davao Del Norte. The study respondents consisted of fast-food employees from Jollibee Gredu and Jollibee Highway. Those respondents who met the criteria of being fast-food employees and were designated in Panabo City are eligible to participate in the study. On the other hand, those who did not meet these criteria are ineligible to participate. All the twenty-nine (29) fast food employees on the morning shift who work from 6:00 a.m to 12:00 p.m in Jollibee Gredu and all the sixteen (16) fast food employees on the afternoon shift who work from 12:00 p.m to 3:00 p. m. on Jollibee Highway are to participate in this study. A total of 45 fast-food employees participated in the study. There were thirty (30) fast food chains in Panabo City, and out of the thirty (30) fast food chains, only two (2) of the establishments participated. In determining the study participants, the researchers used total population sampling. Total population sampling is a form of purposive sampling method in which the entire population is examined.

Materials/Instruments

The researchers used a standardized questionnaire adapted from Alemu (2021, p. 59). The adapted questionnaire was used to determine the respondent’s responses to the independent and dependent variables. The research questionnaire is divided into two sections: part one (1) is about the respondent’s demographics, and part two (2) is about the level of organizational culture and the evaluation of employee performance. Experts in the fields validated the questionnaires to secure their validity. For the two (2) parts, respondents were asked to check a single selected choice on a scale of five (5) means strongly agree to one (1), which means strongly disagree.

The scale that would determine the level of organizational culture in the fast food chain in Panabo City were as follows: (1) the scale of 4.21–5.00 was considered very high, which means that the level of organizational culture was always practiced; (2) the scale of 3.41–4.20 was considered as high, which means that the level of organizational culture was often practiced; (3) the scale of 2.61–3.40 was considered as moderate, which means that the level of organizational culture was sometimes practiced; (4) the scale of 1.81–2.60 was considered as low, which means that the level of organizational culture was less practiced; (5) the scale of 1.00–1.80 was considered as very low, which means that the level of organizational culture was not practiced.

The scale that would determine the level of employees performance in fast food chains in Panabo City were as follows: (1) the scale of 4.21–5.00 was considered very high, which means that the level of employees performance was very satisfactory; (2) the scale of 3.41–4.20 was considered as high, which means that the level of employees performance was satisfactory; (3) the scale of 2.61–3.40 was considered as moderate, which means that the level of employees performance was fair; (4) the scale of 1.81–2.60 was considered as low, which means that the level of employees performance was less satisfactory; (5) the scale of 1.00–1.80 was considered as very low, which means that the level of employees performance was not satisfactory.

Design and Procedure

This research study used the descriptive-correlation method. According to Sekaran (2003), as cited by Bolanio, Miranda, and Barcial (2021, p.18), a descriptive analysis is performed to determine and define the properties of the variables of interest in a scenario. Descriptive studies are now being conducted to understand the organizations’ nature better. The correlation is frequently used throughout the study to identify relevant variables related to the problem. As the two variables and analysis method are defined by explaining the effects of organizational culture and employee performance among fast food employees, this research employs a description method.

Furthermore, this study took two months to complete, beginning with the preparation of the research instrument and ending with the validation of the questionnaire. The researchers conduct an initial interview in the fast food chain they have undertaken to obtain the names of the manager. This is for the researcher to know to whom they will address their letter in order to conduct their research.

The researchers then wrote a letter to the fast food chain’s manager requesting permission to conduct the study. They also took the manager’s list of fast food chain employees who worked for their company. Afterward, panel members validated the researchers’ questionnaire.

The researchers then administered the research to their respondents via face-to-face. Each fast food employee was given a questionnaire to answer the survey. After acquiring the questionnaire from the respondents, the researchers instantaneously tallied the collected data from the respondents and subjected it to statistical analysis. This way, the researchers knew a great deal of information from their respondents. The statistical tools that were used in the study are the following: (1) Weighted Mean was used in the study to determine the level of organizational culture, and employees performance among selected fast food chains, and (2) Pearson-r was used to determine the significant relationship between organizational culture and performance among selected fast-food chain employees.

RESULTS AND DISCUSSION

               This section presents the finding of the study, which address the questions raised in the statement of the problem. It denotes the interpretation and analysis of data gathered and the corresponding implications supporting the analytical discussions.

Level of Organizational Culture

This research shows the level of organizational culture, which is measured in terms of the involvement, consistency, adaptability, and mission.  The evaluations are based on an 8-item question in an indicator relating to organizational culture in a selected fast food chain in Panabo City.  As shown in Table 1, the organizational culture among selected fast-food chains has a grand mean of 4.52, which is described as very high.  It means that organizational culture is always practiced.  According to Magee (2002) as cited by Mohsen, Neyazi, and Ebtekar (2020, p. 882), organization culture is fundamentally associated with employee performance.  As a result, organizational culture affects performance.  Understanding the organization of culture sustainability will significantly encourage the firm to improve its long-term performance.

Presented in Table 1 are the organizational culture among employees in fast-food chain in Panabo City. The responses of the participants to each indicator were presented, analyzed, and thoroughly deliberated on below. The mission dimension of organizational culture got the highest overall mean of 4.56 which describe as very high. This means that level of organizational culture among employees in fast-food chain in terms of mission dimension of organizational culture is always practiced. Under the mission dimension part, it is notable that item 3 got the highest mean of 4.69, describe as very high in there is a clear mission that gives meaning and direction to our work. This means that level of organizational culture among employees in fast-food chain in terms of mission dimension of organizational culture is always practiced. However, item 8 had the lowest mean of 4.47, describe as very high in the leadership has “gone on record” about the objectives we are trying to meet. This means that level of organizational culture among employees in fast-food chains in terms of mission dimension of organizational culture is always practiced. This is also evident in the study of Denison, Nieminen, and Kotraba (2014) as cited by Abane, Adamtey, and Ayim (2022, p.3), the mission attribute is concerned with how a sense of purpose, vision, and mission can help a community or organization thrive by directing how people should behave because organizations function as societies, the mission trait further describes the requirement for firms to have a mission in which strategic and policy orientations are used to achieve the goals. As a result, successful businesses must have a clear sense of purpose and direction that outlines the company’s strategic goals and objectives.

Table 1. Level of Organizational Culture

On the other hand, the consistency dimensions of organizational culture got the overall mean of 4.51, which describe as very high. . This means that level of organizational culture among employees in fast-food chains in terms of consistency dimension of organizational culture is always practiced. Under this indicator, items 4, I know that ignoring core values will get me in trouble, 5, there is an ethical code that guides our behaviour and tells us right from wrong and 6, when disagreement occurs, we work hard to achieve “win-win” solutions got the highest mean of 4.60, which describe as very high. This means that level of organizational culture among employees in fast-food chains in terms of consistency dimension of organizational culture is always practiced. However item 8 got the lowest mean of 4.29, which describe as very high in it is easy to reach consensus, even on difficult issues. This means that level of organizational culture among employees in fast-food chains in terms of consistency dimension of organizational culture is always practiced. This is also supported by the theory of Budi and Abidin, (2021, p. 263) who stated that the relationship with organizational culture (consistency) is that if the leader actively cares for his staff by paying attention, giving staff awards for achievement, upholding rules, being firm in decision making, and serving as a role model for his subordinates, this will provide a sense of security and comfort.

Moreover, involvement dimension of organizational culture got an overall mean of 4.50, which describe as very high. This means that level of organizational culture among employees in fast-food chains in terms of involvement dimension of organizational culture is always practiced. Under this indicator, items 7, I believe that, in our organization, we practice teamwork, and 8, Teamwork makes work get done easily, rather than working individually got the highest mean of 4.78, which describe as very high. This means that level of organizational culture among employees in fast-food chains in terms of involvement dimension of organizational culture is always practiced. However, item 5 got the lowest mean of 4.20, which describe as high, in my organization business planning is an ongoing activity and involves everyone in the process to some degree. This mean that level of organizational culture among employees in fast-food chains in terms of involvement dimension of organizational culture is often practiced. This is also evident in the study of Mousavi et al. (2015) as cited by Pathiranage, Jayatilake, and Abeysekra (2020, p. 530), involvement is essential for influential organizational culture.  Involvement includes transparent communication, employee-focused leadership, and strong interpersonal relationships in the organization.

Lastly, the adaptability dimension of organizational culture got the lowest overall mean of 4.49, which is describe as very high . This means that level of organizational culture among employees in fast-food chains in terms of adaptability dimension of organizational culture is always practiced. Under this indicator, item 8 got the highest mean of 4.64, describe as very high in all members have a deep understanding of customer wants and needs. This means that level of organizational culture among employees in fast-food chains in terms of adaptability dimension of organizational culture is always practiced. However, item 4 got the lowest mean of 4.33, which describe as very high in attempts to create change usually meet the resistance. This means that level of organizational culture among employees in fast-food chains in terms of adaptability dimension of organizational culture is always practiced. This indicator is supported by the theory of Denison et al. as cited by Alatas (2018, p. 17), who stated that Organizations with an adaptability culture recognize external signals and transform them into opportunities for acquiring knowledge, fostering innovation, and advancing capabilities.

Level of Employee’s Performance

Employee performance in Panabo City fast food chain was evaluated using a 7-item questionnaire, and the overall mean was 4.64, with the descriptive equivalent of very high. It means that the employee performance among fast food chains is very satisfactory. Under this variable, it is notably that item 1 got the highest mean of 4.76 with a descriptive equivalent of very high in I believe that better communication enables me to perform well. This means that level of employee performance among employees in fast-food chain is very satisfactory. However, item 6 had the lowest mean of 4.53 with a descriptive equivalent of very high in I could manage more responsibilities in my job than assigned to me. This finding is related to the study of Satyendra (2021, para. 4), which states that employee performance is the level of achievement with which employees fulfil the organizational mission at work. Employees’ jobs are to improve their performance by achieving a specific target or mission.          

 Table 2. Level of Employees Performance

Furthermore, the remaining items 2, I feel that my tasks are clear and I have the necessary knowledge to complete them, item 5, I perform my work to the expected standards, and item 3, I have the required skills to perform my task got the mean of 4.69, 4.67, and 4.62 with a descriptive equivalent of very high respectively and both item 4, I have the required level of motivation to perform the task with minimum will and efforts and item 7, I am able to manage my time and allocate resources effectively, got a mean of 4.60 with a descriptive equivalent of very high, which means that the employee’s performance among fast food chain is very satisfactory.

Significant Relationship between Organizational Culture and Employee Performance among selected Employees in Fast Food Chain

Table 3 shows a significant relationship between organizational culture and employee performance among selected Fast Food Chain employees, with an R-value of 0.726 and a P-value of 0.000, indicating a level of significance less than 0.05. The null hypothesis is thus rejected. As a result, there is a significant relationship between organizational culture and employee performance.

Table 3. Significant Relationship between Organizational Culture and Employee Performance among selected Employees in Fast Food Chain

It means that there is a significant relationship between organizational culture and employee performance among selected fast food chain employees. This result supports Awadh and Saad (2013, p. 172) conclusion that organizational job performance has a strong impact on organizational culture, which leads to increased productivity. Organizational norms and values based on different cultures have an impact on workforce management. A strong culture in an organization enables effective and efficient management of workforce employees.

CONCLUSIONS AND RECOMMENDATIONS

This section presents a summary of the findings and the researchers’ conclusions and recommendations based on the investigation results.

Conclusions 

           Based on the finding of the study, following conclusions are drawn: for the level of Organizational Culture, the mission dimension of organizational culture had an average weighted mean of 4.56 among the four indicators, followed by consistency dimensions of organizational culture with a rating of 4.51, involvement dimension of organizational culture with a rating of 4.50, and adaptability dimension of organizational culture with a rating of 4.49. The grand mean is 4.52, which is considered very high. The level of employee performance among selected employees in the fast food chain had an overall mean of 4.64, described as very high. The computed r-value between organizational culture and employee performance is 0.726 and a P-value of 0.000, indicating a significance level of less than 0.05. The null hypothesis is thus rejected. Therefore, there is a significant relationship between Organizational Culture and Employees Performance among selected employees in the fast food chain in Panabo City. This study is supported by the theory of Alemu (2021, p. 47), the organizational culture framework created for this study makes the claim that an organization’s overall employee performance is directly impacted by its organizational culture practices. The findings showed a favourable relationship between employee performance and all organizational culture characteristics, including involvement, adaptability, consistency, and mission.

Recommendations 

Based on the findings and conclusions of the study, the following recommendations are suggested;

According on the researchers’ lowest mean score of 4.20 in the level of organizational culture, it is recommended that fast food chain businesses should involve their employees in planning an ongoing activity, as this will increase their motivation to perform well in their assigned duties by making them feel like they are part of the organization and so will improve organizational productivity, promote effective working relationships, and have a positive effect on business results.

Moreover, in the level of employee performance, item 6 got the lowest mean of 4.53. Employees are having a hard time managing more responsibilities in their job than what was assigned to them. So it is suggested that the manager should ensure a healthy work balance and that employees should set a plan to manage all the responsibilities as it affects the organizational performance and performance motivation.

Furthermore, future researchers may use this study since the findings of this study indicate that there is a relationship between organizational culture and employee performance. Both the owners of fast food chains and the fast food chain employees will benefit from this, as well as the society.

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