AN ASSESSMENT OF THE POSITIVE EFFECTS OF ORGANIZATIONAL POLITICS ON ORGANIZATIONAL PERFORMANCE IN THE BANKING SECTOR IN NIGERIA

CHAPTER ONE

INTRODUCTION

Background of the study 

According to Murray (2018), organizational politics has become a prevalent phenomenon in many corporations worldwide. This view has been supported over the years by personal experience, hunches, and circumstantial evidence. organizational politics, as defined by Kacmar & Ferris (2023), refers to the power dynamics and influential strategies that exist within the workplace. As a result of its influential nature, the concept of organizational politics has emerged as a recent subject of discussion in contemporary management literature. Most studies in this area have been conducted with a focus on organizational politics in relation to certain outcomes and the nature and characteristics of relationships. In addition to the impacts of organizational politics within organizations, it is a field that shows promise for further investigation, as it is widely recognised as a significant barrier to organizational performance (Kacmar & Ferris, 2023).

Organizational politics has been a subject of great interest in the field of management and organizational behaviour for quite some time. organizational politics, often perceived in a negative light, can also have positive impacts on organizational performance, especially in dynamic and competitive industries like banking. Traditionally, the term "organizational politics" connotes manoeuvring and influence strategies that may lead to power struggles and unethical behaviour (Vincenzo, 2019). However, recent research suggests that organizational politics can also foster beneficial outcomes when managed effectively. In the banking sector, where strategic decision-making, stakeholder management, and employee motivation are crucial, it is worth exploring the positive aspects of organizational politics.

Traditionally viewed through a negative lens, focusing on how it undermines organizational effectiveness and employee morale, recent perspectives have begun to explore the potential positive effects of organizational politics, especially in sectors like banking. This shift in focus is crucial as the banking sector, characterised by its dynamic and competitive environment, may benefit from a nuanced understanding of how political behaviour can influence organizational performance positively.

In the banking sector, organizational politics can be perceived as a mechanism for managing power and influence, which may enhance decision-making processes and strategic outcomes. According to an emerging body of research, political behaviour within organizations can lead to the development of networks that facilitate information sharing and resource allocation, thereby potentially improving overall organizational performance (Harris & Ogbonna, 2023). The ability to navigate organizational politics effectively can enable employees to gain access to critical resources and support, which can be advantageous for both individual and organizational success.

Recent studies have emphasised the significance of utilising organizational politics strategically in order to achieve positive outcomes, such as increased effectiveness in leadership and improved cohesion within teams. For instance, Kacmar and Carlson (2022) discovered that when managed constructively, political behaviour has the potential to result in improved alignment of individual and organizational goals, thereby cultivating a work environment that is more collaborative and innovative. This is particularly relevant in the banking sector, as rapid changes and competitive pressures require adaptive and agile organizational practices.

Moreover, it has been demonstrated in various studies that organizational politics can effectively boost performance by facilitating the allocation of resources, fostering innovation, and enhancing problem-solving capabilities (Buchanan & Badham, 2020). According to Kacmar and Ferris (2023), it is argued that political behaviour in organizations frequently encompasses networking and coalition-building. This can result in the strategic alignment of resources and the enhancement of the bank's competitive advantage. In the banking sector, these political activities can assist in navigating regulatory environments, optimising internal processes, and responding to market changes more effectively (Gardner, 2022).

Furthermore, it is important to note that organizational politics can indeed play a significant role in facilitating organizational change and adaptation. In a study conducted by Yang and Liu (2023), it has been demonstrated that political behaviour has the potential to assist in managing resistance to change and aligning the interests of diverse stakeholders. This is particularly crucial for banks that are confronted with regulatory changes and market fluctuations. By leveraging political skills, managers can more effectively manage transitions and drive strategic initiatives that align with the organization’s objectives.

Moreover, it is important to note that organizational politics can have a significant impact on employee motivation and job satisfaction. According to Harris (2021), when employees perceive that political behaviour is utilised to accomplish organizational objectives rather than personal benefits, it can result in heightened engagement and commitment. This is particularly relevant in the banking sector, as employee performance has a direct impact on customer satisfaction and organizational profitability. For instance, managerial practices that incorporate political skills to cultivate relationships and exert influence can foster a more dynamic and responsive organizational culture, thereby exerting a positive influence on performance outcomes (Nabatchi & Leighninger, 2022).

Understanding the positive effects of organizational politics is crucial for individuals seeking to leverage these dynamics to achieve superior performance. As banks in Nigeria navigate a rapidly evolving financial landscape, it is crucial to recognise and adopt strategies that leverage the advantages of organizational politics. By doing so, banks can gain a competitive edge and cultivate a more resilient organizational environment (Akinyele & Akinyele, 2023).

 Statement of the problem

organizational politics, often perceived negatively, can play a significant role in shaping organizational performance, particularly within the banking sector in Nigeria. While existing research predominantly highlights the detrimental impacts of organizational politics, such as reduced employee morale and increased conflict, there is a growing body of evidence suggesting that it can also yield positive effects on organizational outcomes. For instance, recent research has demonstrated that the strategic utilisation of organizational politics has the potential to significantly enhance leadership effectiveness, facilitate optimal resource allocation, and improve the overall quality of decision-making processes (Brewster et al., 2021; Tjosvold, 2022). Despite these potential benefits, there is a notable gap in the literature regarding the positive dimensions of organizational politics, especially in the context of the Nigerian banking sector.

The banking sector in Nigeria, characterised by intense competition and rapid change, presents a unique environment where organizational politics might influence performance outcomes in both beneficial and adverse ways. Previous research has predominantly focused on the negative aspects of organizational politics, neglecting its potential to foster innovation, drive performance improvements, and enhance strategic advantage (Ogunyomi & Bruning, 2019). This oversight creates a critical need for us to explore and assess the positive effects of organizational politics within this sector. Understanding the positive effects of organizational politics is crucial for developing comprehensive management strategies that leverage its benefits while mitigating its potential downsides, hence the need for this study.

1.3 Objectives of the Study 

The primary objective of this study is to assess the positive effects of organizational politics on organizational performance in the banking sector in Nigeria. Specifically the study seeks:

To identify the types of organizational politics prevalent in the banking sector in Nigeria.

To find out whether there are positive effects of organizational politics in the banking sector in Nigeria.

To assess the positive effects of organizational politics on organizational performance in the banking sector in Nigeria.

To identify best practices and strategies for leveraging organizational politics positively to improve organizational performance in the banking sector.

1.4 Research Questions

The following research questions will be answered in this study:

What are the types of organizational politics prevalent in the banking sector in Nigeria?

Are there positive effects of organizational politics in the banking sector in Nigeria?

What are the positive effects of organizational politics on organizational performance in the banking sector in Nigeria?

What practices and strategies are best for leveraging organizational politics positively to improve organizational performance in the banking sector?

1.5 Research Hypothesis

The stated hypothesis will validate this study:

Ho1: There are no significant positive effects of organizational politics on organizational performance in the banking sector in Nigeria.

Ha1: There are significant positive effects of organizational politics on organizational performance in the banking sector in Nigeria.

1.6 Significance of the study

By assessing the positive aspects of organizational politics, this study provides insights into how political behavior can contribute to strategic advantage and improved organizational performance. This understanding can help banking institutions leverage political behavior to align organizational goals with strategic objectives more effectively.

The findings of this study are significant for management and leadership within the banking sector. By recognizing and cultivating the positive aspects of organizational politics, leaders can develop strategies to use political behavior as a tool for fostering collaboration and driving organizational change. 

Finally, the research contributes to the broader academic discourse on organizational behavior and performance. It challenges the prevailing notion that organizational politics is inherently detrimental and opens up new avenues for exploring how political behavior can be positively harnessed. This can inspire further research in other sectors and contribute to the development of a more comprehensive understanding of organizational politics and its impact on performance.

1.7 Scope of the study

The study aims to assess the positive effects of organizational politics on organizational performance in the banking sector in Nigeria. Empirically, this study assesses the types of organizational politics prevalent in the banking sector in Nigeria, whether there are positive effects of organizational politics in the banking sector in Nigeria, the positive effects of organizational politics on organizational performance in the banking sector in Nigeria and best practices and strategies for leveraging organizational politics positively to improve performance and organizational outcomes in the banking sector.

This study will be carried out in Access Bank Plc, Kogi State.

1.8 Limitation of the study

Like in every human endeavour, the researchers encountered slight constraints while carrying out the study. The significant constraint was the scanty literature on the subject owing that it is a new discourse thus the researcher incurred more financial expenses and much time was required in sourcing for the relevant materials, literature, or information and in the process of data collection, which is why the researcher resorted to a limited choice of sample size. Additionally, the researcher will simultaneously engage in this study with other academic work. However in spite of the constraint all these constraint were downplayed to give the best.

1.9 Definition of terms

Politics: Politics is the activity or process of making decisions and governing within a group, organization, or country. It involves managing public affairs, creating laws, and addressing issues related to power and authority.

Organizational politics: Organizational politics refers to the use of power, influence, and maneuvering within a workplace to achieve personal or group goals, often at the expense of others or the organization's overall objectives.

Organizational performance: Organizational performance refers to how well an organization achieves its goals and objectives. It includes various measures of efficiency, effectiveness, and productivity in its operations and can be assessed through financial results, employee performance, customer satisfaction, and other key performance indicators.

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