Effect of Organizational Transparency on Organizational Performance: A Survey of Insurance Companies in Lagos State Nigeria

The main objective of the study is to examine the effect of organizational transparency on organizational performance. The type of survey research design used for the study is cross sectional survey research design technique. The sample size for the study is 200 employees from four selected insurance companies in Lagos State. The study adopted the simple random sampling technique in the selection of the insurance companies whose employees participated. Stratified random sampling technique was also used. Data was collected through the use of structured questionnaire. To establish the reliability of the instrument, a test-retest method was used. The statistical techniques of data analysis applied includes: descriptive statistics, correlation and multiple regression analysis. All analysis was done by using the statistical package for social sciences (SPSS) software version 23 Findings showed that information disclosure, adherence to explicit values and people-centered leadership has significant positive relationship with organizational transparency. The study concluded that organizational transparency has effect on organizational performance. The study recommended that in order to transform the insurance industry into a greater height the key players should always disclose relevant information, adhere to explicit values and practice people-centered leadership. The study established that information disclosure, adherence to explicit values and people-centered leadership are very good measures of organizational transparency. The implication of the finding is that information disclosure is considered to enable observability, accountability, certainty and better conduct. When organizations deliver clarity and insight, stakeholders can see through the organization this will create trust. Organizations become predictable, dependable and trustworthy when they adhere to explicit value. People-centered leaders care about both results and employees—they know the only way to obtain results are through the employees.