Professional Documents
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Research Proposal
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2017-2018
Abstract
Purpose
The central part of this research study aims to examine the main effects of organizational
cultural activities as participative decision making, continuous improvement and leadership
& management and also examine the moderating influence of psychological capital as
optimism and resilience lead to being an innovative organization from the employees
perspective in public and private banks operating in Punjab Pakistan
Design/Methodology/Approach
The snowball sampling technique and purposive sampling technique research approach and a
qualitative and quantitative approach utilizing questionnaires, semi-structured interviews and
involved 167 white collar participants usually managers, sales officers and front desk bank
employees in different cities of Punjab of Pakistan
Findings
The paper shows that organizational cultural activities like participative decision making,
continuous improvement and leadership & management and psychological capital like
optimism and resiliency were the main factors in promoting innovation in banking sector of
Punjab Pakistan
Limitations
Time restriction, it is limited to the public and private banking sector in Punjab Pakistan
Practical Implications
HRD practitioners must create culture and innovation in the entire process to create
competitive advantage. Organizational cultural like ambiguous policies & procedures, poor
coordination and lack of proper feedback and guidance to minimize the effects on employees
Originality/Value
The creativity, psychological capital and innovation developed through HRD involvement.
This will help in increasing financial performance which is important for industry sector
which enhance customer satisfaction and customer retention
Key Terms
Organizational culture, psychological capital, innovative organization, banking, employment
and Pakistan
1. Introduction
1.1- Banking Sector and its Application to Economic development
The different economists have different views about the banking sector and its application to
economic development in Pakistan. The acceptance of deposits and the heart of banking is
TRUST. The banking sector plays an important role in the growth of Pakistani economy. A
critical role of banking in economic position and development. The factors like capital
formation, mobilization of savings, availability of funds, implementation of modern
technology, development of agriculture and industrial sector, research & development,
remove budget deficit and surplus in balance of payment play a major role in economy of any
country. Finance is the life blood of production and banking sector is the departmental stores
of finance. The economic development without banking sector not possible Cooper &
Kleinschmidt (1987).
1.2- Banking sector and its Application to Economic Growth
The link between banking sector and its application to economic growth is largely missing in
Pakistan because it is far from an integral part of an economic growth. The factors of
economic conditions may be categorized in any country like low growth, high inflation, large
fiscal deficit, FDI, increasing debt level, unbalanced security situation and growing energy
crisis may badly effect on economic development. Due to low economic environment, the
governments generally depend on the banking sector to fulfill the problem of borrowing.
Banking sector of Pakistan is not maintaining to high long term economic growth. It is only
averaging 7% per annum in poverty levels and living standards of population Roberts & Amit
(2003).
1.3- Role of Pakistani Government and its Application to Policy Development Since 1947
After independence of Pakistan in 1947, the government plays an important role in economic
development of this country. The high percentage of economic growth to take out of
population from poverty. The concept of rapid industrialization is very important in the
development of its economy. In the late 1960s, the Pakistani country was considered as an
example for other developing countries. The important concept of income distribution is very
important and distribution of income is a compulsory goal of government policy. The
economy and industry was dominated by the muhajirs bought capital and by using their own
resources major part of investment and after this they start trading firms and moved into an
industry in the 1950s Ahmed (1998).
1.4- Pakistani Economic Growth and its Application to Living Standards of Human
In the late 1960s, dissatisfaction with economic conditions and distribution of income, wealth
and economic power problems that always decrease the living standards of human in the
country. The famous chief economist named Mahbubul Haq of the Planning Commission
argued that in the late 1960s this problem happened because many economists indicated that
the 42% of the public industrial assets was owned by the 40 industrial groups and more than
50% of the private domestic assets and also controlled the commercial banks. The Pakistani
economy growth has improved the living standards of human. The trickle down approach to
development (TDAD) technique is used to develop the economic growth Ahmed (1998).
1.5- Pakistani Government and its Application to Economic Development
The Pakistani government plays a critical role in liberalizing in economy and a problem of
growing budget deficit occurs which leads a loss of confidence in foreign aid donors. A
former vice president named Moeen Qureshi of World Bank argues that the nation was near
bankruptcy and to save from bankruptcy it requires a number of measures to improve fiscal
problems. For this issue, the government takes a necessity steps like an increase in utility
prices, new taxes and reduction in government spending Ahmed (1998).
1.6- Banking Sector Contribution and its Application to GDP and FDI as a Service Sector
It is estimated that the public and private banking sector to GDP is about 7.7% of total GDP
and banking sector intermediation measured by total loan as a GDP is 30% and the banking
sector generated employment about 1.5 millions. The average GDP is about 3.7% in year
2014 and average FDI is about 1.45 billion in year 2014 State Bank of Pakistan (SBP) Report
(2013-2014).
1.7- Organizational Culture and its Application to Innovation
In various organizations adopted hierarchical culture in which the employees are known what
work they performed. The effective leaders and formal rules and regulations in the
organizations but in this paper adopt adhocracy culture in which the work is creative. The
leadership takes the organization towards innovation and long term sustainability and depend
on rapid growth and continuous changes Cameron & Quinn (2006). Creativity and innovation
are closely relationship with each other but both is an opposite term. Many organizations put
many ideas but not implemented Hussey (1997). The creativity is termed as originality
Mascarenhas (2011). Innovation put new proposals into a new product, process and services
which results in profit of business Kuniyoshi, John & Tadao (1988). The concept of
innovative organization is that the employees share information and confidence with each
other Zhou & Shalley (2008). It is a challenge for the Pakistani banking sector to improve
their weaknesses to create the competitive advantage to survive in a competitive world. As a
result innovation is a very important role in getting competitive advantage and is an important
tool for maintaining future sustainability Denton (1999); Drucker (1985); Lin & Liu (2005);
Tran (2008). The previous studies about the organizational culture shows that it is an
important tool in organizational success and positive impact on innovation Tushman &
OReilly III (1997). The characteristics of the organizational culture are very important
concept in organizational innovation. The characteristics of organizational culture are
participative decision making, continuous improvement and leadership & management and
innovation. To attain this goals in organization by examining the top ten banking sector of
Punjab.
1.8- Psychological Capital and its Application to Innovation
Psychology is the treatment of mental illness and in the late 20 th century psychology termed
into positive psychology which relates that to guide a more productive and meaningful life in
a human being. The positive and development state of an individual by self efficacy, hope,
optimism and resiliency, in the previous paper worked on self efficacy and hope but in this
current study focus on optimism and resiliency. Optimism as an important concept what an
employee can do or cant do so about the organizational tasks and optimism strengthens the
hope and efficacy. Resiliency as an important concept in PsyCap that an ability to take out
from stress, conflict, failure, change or increase in responsibility Bandura (2012).
2. Working Title
Combined effects of organizational cultural activities and Psychological capital on the
innovation
3. Theoretical Framework
Research Framework
The conceptual framework examines the relationship between organizational cultural
activities with innovation and also examines the moderating effect of the PsyCap on
innovation of the company.
Psychological Capital
Optimism
Resiliency
Continuous Improvement
4. Research Question
The current study will explain the combined effect of organizational culture and PsyCap on
innovation in top 10 banking sector in Pakistan. The following research questions to be
addressed:
5. Methodology
The mixed method approach quantitative and qualitative approach will be used, where
structured questionnaires and structured interviews would be based on the study. This survey
will be cross-sectional in nature.
5.1. Rationales of Mixed Method Approach
Mixed method research provides more evidence for studying a research problem than either
qualitative or quantitative research alone and quantitative approach shows the organizational
culture & innovation and qualitative approach shows the management of the organization
which play an important role in adopting these strategies
6.2 Sample
The unit of analysis is the private and public banking sector of Punjab Pakistan. The
population of this study will be the banking sector of Punjab Pakistan from both public and
private sectors of Punjab Pakistan. Snowball and purposive sampling technique will be used
to generalize the finding to ensure equal representation of both the genders i.e. males and
females.
Purposive Sampling Technique
Sample with a purpose in mind, specific groups are seeking (stop various people and asking
you could interview them), thats why conducting a purposive technique.
Snowball Sampling Technique
It is a very popular technique in which the respondents are contacted and know anybody with
the characteristics that for beneficial for research.
Marketing Administration (2006).
7. Theoretical Contributions
Asian banks play an important role in global economy. The management and HRD
practitioners doubt about the implementation of PsyCap concept in Pakistan. This study
shows that the drivers of the organizational culture and innovation affect the organizational
performance and marketing fit. The organizational culture and innovation and the moderating
role of PsyCap positively affects innovation and future sustainability. The study provides
empirical evidence of the effects of culture and PsyCap on employee performance. The
innovation and PsyCap of employees take place in organization and increases the market
share and enjoys the profit which ensures the future sustainability.
7.2. Managerial Implications
The managerial implication of the present future is the need for a company to understand the
nature of its competitive environment. The companies need excellence and in preparing
themselves for the day after tomorrow. It is the greater chance for organizations to check
again the organizations hiring methods of individuals characteristics as optimism and
resiliency. It gives the employees to get the psychological resources of employees that will be
beneficial for stressful working environments. The managers should realize that the
organization enjoys and ensuring the companys future sustainability which is an important
goal of all organizations.
7.3. Strengths
The concept of PsyCap is significantly impact on employee performance and gives strong
factor of PsyCap on innovation and employee performance. The PsyCap plays a neutral role
for the understanding of employees mentality and organizational effectiveness.
8. Room for Change
There is a room for change in organizational culture and psychological capital be a part of
organizational culture so that if PsyCap of employees maintain then employees perform
effectively and efficiently to improve their worth.
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