AN INVESTIGATION INTO IMPLICATION OF OFFICE POLITIES ON ORGANIZATIONAL CULTURE IN MULTI-NATIONAL FIRMS IN NIGERIA.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Organizational culture is a critical component of any company, particularly in multinational firms where diverse workforces come together under a unified corporate identity. Organizational culture shapes the behaviors, attitudes, and values within a firm, directly influencing employee morale, productivity, and overall organizational effectiveness (Steveson & Mirable, 2020). According to Donatus (2019) organizational culture refers to the shared values, beliefs, norms, and practices that shape the behaviors and attitudes of individuals within an organization. It represents the collective way in which members of the organization interact with each other, approach their work, and relate to the organization's goals and objectives. In essence, organizational culture serves as the social glue that binds members of the organization together, providing them with a sense of identity and guiding their actions. It is deeply embedded in the organization's structure and operations, influencing everything from decision-making processes to communication styles and employee relationships (Cameron & Quinn, 2021).

In multinational companies, organizational culture takes on added complexity due to the diverse backgrounds and cultural perspectives of the workforce. Multinational firms operate across different countries, bringing together employees from various cultural backgrounds, each with their own set of values and norms. As a result, the organizational culture in multinational companies must accommodate this diversity while maintaining a coherent and unified corporate identity (Hofstede, 1980). This often involves the integration of global corporate values with local cultural practices, creating a hybrid culture that reflects both global and local influences. The ability to manage and harmonize these cultural differences is crucial for the success of multinational companies, as it directly impacts employee collaboration, organizational cohesion, and overall performance (Adler & Gundersen, 2018).

 In Nigeria, multinational companies (MNCs) have made significant contributions to Nigeria's economic development, particularly in areas such as job creation, technology transfer, and infrastructure development. These companies have played a pivotal role in driving industrialization by investing in various sectors, including oil and gas, telecommunications, manufacturing, and financial services (Ihua, 2020). Through their operations, MNCs have provided employment opportunities to thousands of Nigerians, contributing to the reduction of unemployment and the improvement of living standards. Additionally, MNCs have facilitated the transfer of technology and managerial expertise, enhancing local capacity and promoting innovation within the Nigerian economy (Akinlo, 2022). The presence of MNCs has also led to the development of critical infrastructure, such as roads, power, and communication networks, which are essential for economic growth and Development. However, one of the factors that significantly impacts organizational culture, yet often goes under-explored, is office politics. 

Office politics refers to the use of power and social networking within an organization to achieve changes that benefit individuals or groups, often at the expense of others (Vigoda-Gadot, 2007). Conversely, in the opinion of Ferdinand (2020) power and workplace politics manifest in organizations public sector, from governing how decisions, are made to how employees interact with one another. Similarly, Chaudhary (2022) observed that organizational politics is endemic to organizations because people come to work situations with many goals, not just one unified goal. These goals invoke conflict and competition among workers in the organization, thus he argued that organizational politics involves amassing organizational power for personal benefits, rather than organizational objectives which when these expectations are not met, triggered negative emotions and dissatisfaction. However, the impact of power and politics depends on whether employees use positive or negative power to influence others in the workplace. Office politics, defined as the use of power and social networking within an organization to achieve personal goals (Bacharach, 2019), can create a challenging work environment that affects employee

According to Hofstede (2020) the prevalent of oofice politics in multinational firms, can have profound implications due to the complex interplay of cultural differences, power dynamics, and organizational hierarchies. These firms operate in diverse environments, with employees from various cultural backgrounds, which can lead to differing interpretations of organizational norms and values. As a result, office politics in these settings can become a significant force that shapes organizational culture, either positively or negatively. 

1.2 Statement of the Problem

In recent times, the relationship between office politics and organizational culture is a complex and often contentious issue, particularly in multinational firms where cultural diversity and power dynamics are pronounced. In Nigeria, multinational firms face the additional challenge of navigating a socio-cultural environment characterized by hierarchical structures and varying cultural norms. Office politics in such settings can lead to the development of subcultures within the organization, where different groups of employees adhere to different values and behaviors. This can result in conflicts, reduced collaboration, and ultimately, a fragmented organizational culture that undermines the firm's overall effectiveness (Ogungbamila, 2023).

For instance, in a study by Kacmar and Baron (2019), it was found that office politics could lead to a competitive work environment where employees are more focused on individual gains than collective goals, thereby undermining the cohesion and shared values essential for a strong organizational culture.  According to Onyeizugbe (2023) in multinational firms, these dynamics can be further complicated by the presence of expatriates and the need to align local practices with global corporate standards. Consequently, office politics can lead to the creation of subcultures within the organization, where different groups of employees adhere to different sets of values and behaviors, potentially leading to conflicts and a fragmented organizational culture. A literature by  Gbadamosi (2020) revealed that office politics can lead to perceptions of favoritism, inequity, and distrust among employees, all of which can erode the shared values and norms that constitute a healthy organizational culture. In the Nigerian context, where issues of corruption and favoritism are already prevalent in the broader society, Ogungbamila, (2023) also pointed that office politics can further exacerbate these issues within multinational firms, leading to a toxic work environment that hampers organizational performance. This underscores the importance of understanding the implications of office politics on organizational culture, particularly in multinational firms operating in Nigeria.

Despite the critical role that office politics plays in shaping organizational culture, there has been limited research on this topic within the context of multinational firms in Nigeria. Most existing studies have focused on the broader aspects of organizational culture or the general impact of office politics on employee behavior, without specifically examining how these dynamics interact in a multinational setting. This study seeks to address this gap by investigating the implications of office politics on organizational culture in multinational firms in Nigeria, providing insights that can inform management practices and contribute to the development of more cohesive and productive organizational cultures in these firms.

1.3 Objectives of the Study

The broad objectives of this study is focused an investigation into implication of office polities on organizational culture in multi-national firms in Nigeria. Specifically, the study seeks:

To examine the prevalence of office politics in multinational firms in Nigeria.

To identify the factors that contribute to the development of subcultures within multinational firms as a result of office politics.

To assess the effects of office politics on organizational performance in multinational firms.

To provide recommendations for managing office politics to foster a positive organizational culture in multinational firms in Nigeria.

1.4 Research Questions

The research questions guiding this study are:

What is the extent at which office politics occur in multinational firms in Nigeria?

What factors contribute to the development of subcultures within multinational firms due to office politics?

What are the effects of office politics on organizational performance in multinational firms?

What strategies can be implemented to manage office politics and foster a positive organizational culture in multinational firms in Nigeria?

1.5 Hypotheses

Ho: Office politics has no significant impact on organizational culture in multinational firms in Nigeria.

Hi: Office politics has a significant impact on organizational culture in multinational firms in Nigeria.

1.6 Significance of the Study

The significance of this study lies in its potential to provide both practical and theoretical contributions to the understanding of organizational culture and office politics in multinational firms. Practically, the findings of this study can inform managers and HR practitioners in multinational firms about the implications of office politics on organizational culture. By understanding how office politics influences employee behaviors and organizational norms, managers can develop strategies to mitigate the negative effects of office politics and promote a more cohesive and positive work environment. This is particularly important in the Nigerian context, where cultural diversity and power dynamics play a significant role in organizational life.

Theoretically, this study contributes to the existing literature on organizational behavior by addressing a critical gap in the research on office politics and organizational culture in multinational firms. By focusing on the Nigerian context, the study provides a unique perspective on how office politics interacts with cultural diversity and power dynamics to shape organizational culture. The findings can serve as a basis for further research on the role of office politics in multinational firms, particularly in developing countries, and contribute to the development of more effective management practices in these settings.

1.7 Scope of the Study

The scope of this study is limited to the investigation of office politics and its implications on organizational culture in multinational firms operating in Nigeria. Geographically, the study focuses on multinational firms in major cities such as Port Harcourt, where these firms are predominantly located. The content scope includes an examination of the factors contributing to office politics, the development of subcultures, and the impact on employee morale and organizational performance.

1.8 Limitations of the Study

Like every academic endeavor, the study is not without limitation. One of the limitations of this study is the potential for bias in the responses of employees and managers regarding their experiences with office politics. Due to the sensitive nature of the topic, some respondents may be reluctant to share their true opinions or may provide socially desirable responses. To mitigate this limitation, the study will ensure the anonymity of respondents and use a mixed-methods approach to triangulate data and enhance the reliability of the findings.

Another limitation is the focus on multinational firms in selected cities in such as Porharcourt, Nigeria, which may limit the generalizability of the findings to other regions or types of organizations. However, the study aims to provide a detailed and contextualized analysis of office politics within the selected firms, which can serve as a valuable case study for understanding similar issues in other contexts. Future research could expand on this study by exploring office politics in different organizational settings or regions

1.9 Definition of Terms

Office Politics:  This is the use of power and social networking within an organization to achieve changes that benefit individuals or groups, often at the expense of others.

Organizational Culture: Organizational culture is the shared values, beliefs, and norms that influence the behavior of individuals within an organization.

Subculture: A group within an organization that holds distinct values, beliefs, and behaviors that differ from the dominant organizational culture.

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