Organizational Culture, Psychological Well-Being, And Performance: A Study of Nepalese Banks
Keywords:
Organizational Culture, Psychological Well-being, Employee Performance, Nepalese Banks, Mental Health at Work, Merger Integration, Job PerformanceAbstract
This study examines the mediating role of psychological well-being in the relationship between organizational culture and employee performance within the Nepalese banking sector. Against the backdrop of rapid consolidation, heightened competition, and evolving workforce expectations, understanding how cultural dynamics influence both mental health and productivity has become imperative. Synthesizing findings from existing literature and secondary data, this paper develops and evaluates a conceptual model wherein organizational culture dimensions—involvement, consistency, adaptability, and mission—influence employee performance both directly and indirectly through their impact on psychological well-being. The analysis reveals that while Nepalese banks exhibit diverse cultural characteristics, many continue to operate within traditionally hierarchical frameworks that may compromise employee well-being. The findings suggest that organizational cultures characterized by high involvement, strong support systems, and clear mission alignment contribute positively to psychological well-being, which in turn enhances performance outcomes. However, the ongoing wave of mergers and acquisitions presents significant challenges to cultural stability and employee mental health. The study concludes that for Nepalese banks to achieve sustainable performance, they must adopt a holistic approach that recognizes psychological well-being as a critical pathway through which organizational culture drives performance. Practical recommendations for fostering psychologically healthy workplaces are provided for bank management and policymakers.References
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