There are two main aims of this study in the light of current research books. First is to test empirically the organisational culture and performance marriage in bank industry, especially in Indonesia framework. Second is to check empirically whether organisational culture could make a differentiation between the best and the worse performance of Indonesian banking industry.
To test empirically the partnership between strong organisational culture and performance (C-P) in a sample of Indonesian bankers industry.
To test empirically the partnership between organisational culture difference and performance in a sample of Indonesian lenders industry.
To test empirically the partnership between organisational culture and fraud (C-F) conception, in Indonesian banking context.
To test empirically whether organisational culture can differentiate between Islamic loan provider and conventional bankers, in Indonesian bank context.
There are academically and empirically some expected efforts from this research. It first of all relates to provide a framework for studying the organization culture in the banking Industry. Saffold (1998) highlights that organizational culture and performance studies reveal a general conceptual construction. This framework relates organizational culture account with organizational performance compared to the effectiveness of cultural traits. This study, however, differs from the existing platform. Besides providing good commercial culture of management methods, this study construction is also affected by societal, professional (specific bank industry), and specific culture of Islamic Bankers (see section 2. 8 literature review for more detail). This platform hopefully may help lenders' management in Indonesia to manage their corporate and business culture and eventually improve their performance and decrease the fraudulence as well.
Secondly, this research will elaborate new things relating to organizational culture and performance studies. For instance it'll compare the high and low performance of the lenders, between Islamic loan provider and the rest of the banks, test the relationship between organizational culture and scams, and use CAMEL (longitudinal) data in measuring loan company performance. The existing studies such as Peters and Waterman (1982), Kotter and Heskett (1992) do evaluation however predicated on convenience organization samples.
Thirdly, this research will also conquer methodological imperfections from previous studies. These imperfections such as engaging organisations on the analysis are in small amounts and can't be representing the whole industry; decided on respondents aren't representing the complete organisation civilizations (convenience examples), mostly top level managerial-up (Calori and Sarnin, 1992; Kotter and Heskett, 1992; Wilderom, Glunk and Maslowski, 2001). Incorporating with high and low performer banks, this analysis, however, will use bank examples more than 75% of the banking industry (in term of resources) or even more than 30% (30-40 banks) in terms of amount of bank in banking industry. Simple arbitrary sampling in selecting the respondents will be utilized to signify culture of the complete organisations.
Fourthly, this research will sophisticated the effect of organizational culture on organizational performance in Indonesian framework, a non-western and emerging countries. Such studies are uncommon. Those organizational culture studies are usually conducted in european countries, typically USA and European countries. This research will expose weather organizational culture may become an indication of bank performance so that related functions like the banking supervisory specialist may be beneficial in improving its guidelines on banking guidance and polices. Since this organisational culture - performance study emphasizing banking industry is also exceptional, this research will also good for the bank industry, especially both in Indonesia and rising countries and world bank industry.
Plan of the study
The thesis will consist of nine chapters altogether. The background, target of the analysis, and plan of the analysis will be presented in chapter one.
Chapter two provides the backdrop of Indonesia and Indonesia banking industry. Overview of Indonesian bank industry will be highlighted. This overview will include record, development and current condition of the Indonesian bank industry. The framework of Indonesian banking industry consisted of five classifications of loan company may also be presented. How to gauge the performance (CAMEL Ranking system) of every bank may also be provided.
Chapter three presents the literature overview of organisational culture and performance. A critical research of main factors: organisational culture, organisational performance, and relationship of organisational culture-performance will be offered. This chapter will show conceptualisation (including nationwide culture) and measurement of organisational culture. The key empirical studies of organisational culture-performance, major studies of culture including Indonesia, and the Islamic and conventional bank or investment company studies will be shown. Limitations of existing studies and research gaps to be stuffed may also be identified and the positioning taken in the literature will be justified. Research hypotheses produced will be provided.
Chapter four presents the study design of this study. Durability and weaknesses of research idea will be critically provided. An appropriate research way and strategy will be identified and justified. Operationalisation of the device used will be provided. Appropriate techniques to be used to test hypotheses are described and justified.
Chapter five presents the consequence of strong culture thesis using overall CAMEL ranking as the aim of bank performance. Section six presents the result of culture difference thesis using overall CAMEL ranking as the aim of bank performance. Section seven will test the partnership between organisational culture and specific perception of scam. In section eight, whether organisational culture can make a differentiation between Islamic and classic bank's performance will be examined.
Chapter nine offers a brief summary of results and conclusions. This chapter will be discussed implications of the results for theory, practise, and the Central Loan company Indonesia as the banking regulator and supervisor. Recommendations and interesting strategies for future research will be provided.
Based on the distillation of strong culture and culture gap thesis, a proposed model of this research is shown in body 1. The degree and rapidity of change in the external environment where organisations operate are enormous and constant. This environmental stresses and changes such as new rules, new and existing competitors, information technology and communication change will lead to adaptation and successful organisations. Experiencing this learning process, company gradually learns and develops a much better understanding to make effective and effective responses.
H1: There's a significant romantic relationship between strong culture and overall standard bank performance, using overall CAMEL rating
H2: There is a significant relationship between strong culture and overall standard bank performance, using overall CAMEL rating.
H3: There's a significant romance between strong culture and scam perception of people and organisation in the Indonesian banking context.
Islamic banks are governed by Islamic rules that prohibited interest on loan and debris. Profit-and-loss showing (PLS) paradigm is the principle of Islamic banks. However, Islamic and standard banking companies have the same characteristics of business as a loan company and operate in the same industry. Presuming organizational culture-performance exists in conventional finance institutions, whether it also is present in Islamic banking companies. Thus, organizational culture can distinguish between Islamic banks and conventional banking institutions. The fourth hypothesis to be examined is:
H4: Organisational culture can identify between Islamic lenders and conventional finance institutions, in Indonesian banking context.
Environmental pressures and changes: societal and professional culture
Figure 1 A Proposed Model
Overall bank performance (CAMEL score)
H5: Differencing high and low performance
H5a: Islamic bank and conventional bank
Organisational assumptions, values, and principles (Schein, 2004)
Good corporate culture (process): Management insurance policies, system, procedures and adjustments specifically give attention to corporate culture
Organisation learning and response (Schein, 2004)
Adaptive change and flexibility
Black brand = Influence
Blue collection = Feedback
Source: Designed from Kotter and Heskett (1992), Offer and Kennedy (1992), Peters and Waterman (1992), Denison (1990), O'Reilly (1989), Hammer (2004), O'Reilly and Chatman (1991), Cameron and Quinn (2006), Wilderom and Van den Berg (1998), and Gup (1991)
Individual behaviour information and performance
Customers emphasis and service orientation
Coordination/integration, control, drive, and involvement
CAMEL Rating standard bank compliance. .
Rating of management is the score of the managerial capacity of the
Bank management in performing its business, adequacy of risk
management, and conformity of the lender with applicable legal
provisions and commitments made to Standard bank Indonesia and/or other
Bank compliance is defined as the conformity of the Bank with
applicable legal provisions, including however, not limited to the Legal
Lending Limit, Net Open Position, and Know Your Customer
Schein 418 Learning and change cannot be enforced on people. Their engagement and participation is necessary in diagnosing the proceedings, in figuring out what to do, and in actually causing learning and change. A lot more turbulent, ambiguous, and out of control the world becomes, a lot more the learning process must be shared by all the users of the public unit doing the training.
Kilmann (Schein) p. 38 In summary, organizational midlife is the time when
managers contain the most choice as to whether as well as how to manage
cultural issues which is which means time when they need to
be most alert to how to diagnose where the firm is and
where it is certainly going. As organizations face significantly turbulent
environments, flexible cultures, civilizations that encourage diversity
rather than uniformity, may be more advantageous
than strong ethnicities.
1 Kilmann p. 144
Culture IS NOT ONLY an Internal Affair Stanley M. Davis
In brief summary, OPEC, industry economics, and government
regulation all damaged the petrol companies more than did their
customers and challengers; and they influenced the oil companies'
cultures as well as their strategies.
In summation, the culture at Lincoln is dependant on the strong
convictions of the company's founders and is well developed
vertically, horizontally, and historically. It really is similar in many
ways from what Sethia and Von Glinow (see Chapter Nineteen)
call an "integrative" culture. The culture is pervasive and affects
the company's framework, compensation systems, physical facilities,
relations with customers and stockholders, and personnel
policies as well as the daily action of professionals and employees.
p. 160 Summary
Specialized corporate civilizations have numerous advantages,
including strong member determination to the principles inherent in
the culture. However, such pervasive civilizations are less tolerant of
divergent principles, which creates potential issues with morale
and turnover. Careful recruitment and selection of members
predisposed to accept a preexisting or new culture should minimize
these problems. However, another downside is the inability
of specialized ethnicities to adapt quickly to changing environmental
conditions. The benefits of uniformity and
commitment must be balanced against the negatives of potential
stagnation and reduced flexibility. It appears that specialized
cultures may be better suited to environments where
fundamental changes have a minimal probability of event because
as much work must maintain particular cultures
as is required to create them. The managements of Lincoln Electric
Moreover, a number of writers have begun
to develop a variety of theories of culture change that
might assist managers in their efforts to "manage" their civilizations.
For example, Pettigrew (1979) shows that since leaders
are the "creators" of culture, culture change is supported by
a change in leadership; thus, management succession is the essen-'
tial component in culture change. From a fairly different perspective,
O'Toole (1979) argues that culture is imbedded in
organizational structures such as a company's incentive system or
hierarchy of authority. Therefore, to improve culture the key
structures supporting confirmed culture must be changed. Others,
such as Ouchi (1981) and Peters and Waterman (1982), believe
that culture can be changed by creating a new set of values,
or "management school of thought, " which is then inculcated into employees.
The change process will involve the development of new
company goals and ideals and the socialization of both old and
new employees to this new group of values. The creation of new
symbols as a big change strategy in addition has been reviewed by Peters
(1978). He argues that market leaders can transform culture simply by
changing their activities, agendas, or interpersonal styles to reinforce
new manners. Thus, the management of symbols and
their accompanying meanings is the agent of ethnic change.
Other writers, such as Silverzweig and Allen (1976), Baker
(1980), Schwartz and Davis (1981), and Sathe (1983), have also
outlined similar strategies that might be used to change organizational
While these writers present a number of potentially useful
approaches to controlling culture change, they tend to focus immediately
on specific techniques or approaches for change somewhat than
first attempting to uncover the root operations of culture
change. Instead of present simply another strategy for managing
culture change, the purpose of this section is to spell it out the
conditions and techniques under which such change occurs.
After we are able to describe the process of culture change, we
can then get started to explore meaningfully how it might be managed.
The style of culture change that'll be described was
derived by analyzing the histories of five organizations that
have experienced significant changes in their ethnicities: General
Tn ssummary, culture is hard to improve when it is deeply
held. Because of long experience, people often cannot see
alternatives easily. Many will are suffering from personal stakes in
the current way of operating and therefore do not need to change.
And when those who have both an extended history and a personal
stake in current ways are powerful, they do not have to improve,
and they can enforce their reticence on the business.
The implication of the explanation of culture is the fact that culture
is most powerful when it's least apparent; that is, when it
is overlooked because it spent some time working before as a way
of seeing the globe and working within it. Further, unless culture
is changed in any way three levels-assumptions, beliefs, and practices-
and especially at the amount of assumptions, an organization's
culture has not really been modified.
As we consider the elements creating an "ideal culture, "
we will concentrate on assumptions, because they are the component
of culture most difficult to change. However, our examples
will also suggest worth and practices regular with the
assumptions of a great culture.
What Are Adaptive Civilizations?
Even if we allow the idea that the term culture will always
be a little vague and unwell defined, unlike a lot more superficial
and tangible areas of organizations, it is still important to consider
what makes a culture good or bad, adaptive or dysfunctional,
Wallach (1983, p. 32) provides a conclusion of what cultures
do for the organization: "You will discover no good or bad
cultures, per se. A culture is good-effective-if it reinforces the
mission, purposes and strategies of the organization. It could be
an asset or a liability. Strong social norms make an organization
efficient. Everyone know what's important and how things
are done. To be effective, the culture must not only be reliable,
but appropriate to the needs of the business enterprise, company,
and the employees. "
Why does indeed one organization have a very adaptive culture
while another has a culture that shows only days gone by? Is one a
case of fortune, and the other due to misfortune? To the
contrary, it seerns that any group will get itself with an
outdated culture if its culture is not explicitly supervised.
If left exclusively, a culture eventually becomes dysfunctional.
Human fear, insecurity, oversensitivity, dependency, and paranoia
Managerial efforts to build, reinforce, or change culture
will have a high probability of success only when such initiatives are
accompanied by parallel efforts to create (or redesign) the organizational
reward system for ethnical compatibility. The reason
for this is the fact if the incentive system is in tranquility with the
culture, it will reinforce and invigorate the culture, but if it is
inconsistent with the culture, then it'll undermine and stultify
the culture. On this chapter, a construction of four types of
cultures and their corresponding reward systems have been defined.
Managers can use this platform to diagnose the current
situation in their organizations and create appropriate
Also We Can Offer!
- Argumentative essay
- Best college essays
- Buy custom essays online
- Buy essay online
- Cheap essay
- Cheap essay writing service
- Cheap writing service
- College essay
- College essay introduction
- College essay writing service
- Compare and contrast essay
- Custom essay
- Custom essay writing service
- Custom essays writing services
- Death penalty essay
- Do my essay
- Essay about love
- Essay about yourself
- Essay help
- Essay writing help
- Essay writing service reviews
- Essays online
- Fast food essay
- George orwell essays
- Human rights essay
- Narrative essay
- Pay to write essay
- Personal essay for college
- Personal narrative essay
- Persuasive writing
- Write my essay
- Write my essay for me cheap
- Writing a scholarship essay