Abstract:

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.