THE IMPACT OF CORPORATE CULTURE AND EMPLOYEE MOTIVATION ON ORGANIZATION EFFECTIVENESS IN BANKING SECTOR OF PAKISTAN

Abstract

This study seeks to examine the impact of corporate culture and employee motivation on organizational effectiveness in the Pakistani banking sector, taking into account the challenges faced by banks in Pakistan in recent years due to the country's economic and
political conditions, as well as the lack of research in this area. Employing a quantitative research methodology, data was gathered through a survey consisting of questionnaires administered to personnel working in banks in Pakistan. Analyzed were 365 useable
replies, revealing a notable impact of corporate culture and three of its characteristics - clan culture (human relation), market culture (rational purpose), and hierarchical culture (internal procedure) - on organizational success. The presence of a fourth dimension,
specifically an adhocracy culture (open system), did not have a positive impact on the effectiveness of the firm. There was a notable correlation between employee motivation, particularly extrinsic and intrinsic motivation, and organizational effectiveness. The study
concludes that bank managers can enhance their effectiveness by establishing a harmonious organizational culture that integrates various business cultures, including clan, market, and hierarchy. This study also indicates that bank management should promote an adhocracy culture in order to foster innovation and assist the banks in navigating external pressures. Bank managers can enhance staff performance by directing their attention towards both extrinsic and intrinsic incentives.