1.1     BACKGROUND OF STUDY        

All organizations need to establish proper governance, management, administration as well as financial structures and systems to ensure that they achieve their goals and objectives effectively and efficiently in the short term, and develop sustainable programme in the long-term (Ukpaka and Olukotun, 2008:1). Organizational Development (OD) is simply the way organizations change and evolve (Evereth, 2008:2). In this wise, organizational change can involve personnel, technology, competition and other areas. Employee learning and formal training, transfers, promotions, terminations and retirements are all examples of personnel related changes. Thus, in the broadest sense, organizational development means organizational change. Organizational development is concerned with the analysis and diagnosis of the factor that determine organizational effectiveness, and the planning and delivery of programmes to increase that effectiveness (Ojo, 2009:389). Organizations want to obtain the commitment of their employees. Management would like its employees to identify with the values, norms and artifacts of the organization, hence the need for organizational culture. Management needs to explain and imbibe its culture in its employees; this will enable the employees to get familiar with the organizational system. During this process of explanation, the employees learn about the organizational culture and decide whether she can cope with it or not. This means that each organization is a learning environment. It is the proper understanding of the organizational culture that the performance of the employees in the organization can be enhanced effectively. Performance is the extent to which an individual is carrying out assignment or task. It refers to the degree of accomplishment or task that makes up an employees job (Cascio, 2006:14). Job performance is the net effect of an employee’s effort as modified by abilities and roles or task perception (Jones, 2003:29). The culture of the organization should be developed to support continuous improvement, improve employee’s style of performing their jobs and thus develop quality awareness. To operate successfully across cultures, it is important to be able to recognize cultural differences and be adaptable (Deter, Schroeder, and Mauriel, 2000:12). Organizational culture finds expression through the thoughts, intentions, actions and interpretations of members of the Organization (Hallett, 2003:1280.This study therefore evaluated the effects of organizational development in Nigerian banking industry.



The introduction of organizational development (OD) is with the view to enhancing employee job performance in the banking industry. Though the advantages and opportunities organizational development offers are very great, but this is not without some problems. The followings are what the study intends to investigate.



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