Professional Documents
Culture Documents
ETHIOPIAN AIRLINES
AYALEW GIZAW
Addis Ababa University
June, 2014
Organizational Culture: A Survey Study of Ethiopian Airlines
A thesis submitted to the Addis Ababa University College of Education and Behavioral
Studies Department of Educational Planning and Management in partial fulfillment of
the requirements for the Degree of the Master of Arts in Human Resource and
Organization Development in Education.
June, 2014
DDIS ABABA UNIVERSITY
COLLEGE OF EDUCATION AND BEHAVIORAL STUDIES DEPARTMENT OF
EDUCATIONAL PLANNING AND MANAGEMENT
BY
AYALEW GIZAW FELEKE
ADDIS ABABA
JUNE, 2014
ADDIS ABABA UNIVERSITY
I would like to thank all my friends particularly Ato Bekalu, Ato Yikum,
Ato Gizachew, Ato Asrat and Dr. Merid for their material and moral
support.
Table of Contents
Contents Page
No.
Acknowledgements . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . i.
List of Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii.
List of Figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii.
Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv.
Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v.
Chapter One
1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Statement of the Problem . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.3 Objective of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.4 Significance of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.5 Delimitation of the study . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.6 Limitation of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.7 Operational Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.8 Organization of the Study . . . . . . . . . . . . . . . . . . . . . . . . . 5
Chapter Two
2. Review of Related Literature . . . . . . . . . . . . . . . . . . . . . . . . . . 7
2.1 The Concept of Organizational Culture . . . . . . . . . . . . . . . 7
2.1.1 Characteristics of Organizational Culture . . . . . . . . . . 10
2.1.2 Functions of Organizational Culture . . . . . . . . . . . . . 11
2.1.3 Strong and Weak Organizational Culture . . . . . . . . . . 12
2.1.4 Dimensions of Organizational Culture . . . . . . . . . . . . 14
2.2 Approaches to Organizational Culture . . . . . . . . . . . . . . . . 15
2.2.1 The Competing Value Framework . . . . . . . . . . . . . . 15
2.2.2 The Three Levels of Culture Model . . . . . . . . . . . . . 17
2.2.3 The Four Conditions of Culture . . . . . . . . . . . . . . . 18
2.3 The Ethiopian Airlines: An Aviation Business Organization 19
2.3.1 The Inception of Ethiopian Airlines . . . . . . . . . . . . . 20
2.3.2 The Development of Ethiopian Airlines . . . . . . . . . . 22
2.3.3 Pioneer in A Sub Saharan Africa . . . . . . . . . . . . . . . 23
Chapter Three
3. Research Design and Methodology . . . . . . . . . . . . . . . . . . . . . . 25
3.1 Research Design. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.2 Data Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.3 Sample size and Sampling Techniques . . . . . . . . . . . . . . . . 25
3.4 Data Gathering Tools and Procedures . . . . . . . . . . . . . . . . 26
3.4.1 Data Gathering Tool . . . . . . . . . . . . . . . . . . . . . . . . 26
3.4.2 Procedures of Data collection . . . . . . . . . . . . . . . . . 29
3.5 Methods of Data analysis . . . . . . . . . . . . . . . . . . . . . . . . 30
Chapter Four
4. Presentation, Analysis, and Interpretation of Data . . . . . . . . . . 31
4.1 Characteristics of Respondents . . . . . . . . . . . . . . . . . . . . 31
4.2 Analysis and Interpretation of Data . . . . . . . . . . . . . . . . 34
4.2.1 Profiles of Each of the Six Culture Attributes . . . . . 36
4.2.2.1 Dominant Characteristics . . . . . . . . . . . . 37
4.2.2.2 Organizational Leadership . . . . . . . . . . . . 38
4.2.2.3 Management of Employees . . . . . . . . . . . . 38
4.2.2.4 Organization Glue . . . . . . . . . . . . . . . . . . 39
4.2.2.5 Strategic Emphasis . . . . . . . . . . . . . . . . . 40
4.2.2.6 Criteria of Success . . . . . . . . . . . . . . . . . . 41
Chapter Five
5. Summary, Conclusion and Recommendation . . . . . . . . . . . . . . 42
5.1 Summary of Findings . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
5.2 Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
5.3 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Appendices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
List of Tables
The purpose of this study was to identify the dominant and preferred
culture at Ethiopian Airlines as perceived by its employees. A
descriptive survey design was employed. Ethiopian Airlines
employees particularly in human resource management, finance,
maintenance and repair organization, marketing and aviation
academy were sampled. Cameron and Quinn’s (2006) standard
questionnaire was utilized to collect data from sampled respondents
on the dominant as well as preferred culture perception of these
employees. The data obtained through the instrument were analyzed
with graphs drawn what employees believe the existing culture and
what they preferred to be. Profiles of each of the six culture attributes
and their average were analyzed and graphed. The results of the
study revealed that market culture was the dominant culture as
perceived by employees and the preferred culture as perceived by
employees was the clan culture. Ethiopian Airlines leaders firmly
believed that application of market culture was the principal means to
with stand the aggression of the giant carriers particularly the
aggression of the Middle East Airlines. However, employees preferred
the clan culture. Since organizational culture is the most important
agent for the success of an organization the study concluded that the
gap between market culture and clan culture is wider than acceptable
limit which is less or equal to three points. Therefore, to withstand the
domination (market domination) of the Middle east and Gulf carriers
Ethiopian Airlines is advised to adjust the existing culture gap
between the two cultures which is ten points.
CHAPTER ONE
The general objective of the study was to identify the dominant and
the preferred culture at the EAL as perceived by the employees of
the Airlines. Specifically the study indicates that organizational
success depends on the organization’s culture match with the
demands of the competitive environment.
The EAL has got numerous employees in all the countries where it
flies. It is very difficult and very expensive to reach all of them.
Because of the distribution of the population, shortage of money
and time the research is delimited to only some sections of the EAL
situated at Bole. The scope of the study is delimited to HRM,
Finance, MRO, Marketing and Aviation academy.
The study consists of five chapters. The first chapter deals with
introduction, the second chapter consists of the review of the related
literature, the third chapter is about the research design and
methodology, the forth chapter deals with the presentation, analysis
and interpretation of data. Finally, summary, conclusion and
recommendations are forwarded on the basis of analysis.
CHAPTER TWO
Chapter one explored the background to and the motivation for this
study, with specific reference to organizational culture as a main
construct. In this chapter the concept “Organizational Culture” is
explored in more detail.
In a company with a strong culture, one can feel the human energy that
flows from aligned, committed employees.
Strong culture
Weak culture
Clan Adhocracy
Hierarchy Market
The second level consists of espoused values which are strategies, goals
or philosophies that characterize a specific way of thinking with in a
company. An organization’s values will shape why it functions the way it
does. These values are, usually learned and adopted. For example, an
organization may say it believes in team work but the espoused value
shows that most decisions are made without involving employees
(Schein, 1999).
Employee
Condition Effecting Culture outcome
Low control: having too little influence over the way we do our daily work
LOW
Low Reward: not receiving adequate recognition or feedback on performance SATISFACTION
High Effort: having to expend too much mental energy over too long a period
HIGH STRESS
High demand: having too much to do in too little time over too long a period.
According to Habtemariam (2000), the first air show in the history of the
Ethiopian Aviation was 24th September, 1927. The reason for the air
show was the finding of the true cross.
Two planes flown by Letena Maye and Koris participated in the war
between Dejazmach Mulugeta the then war minister and Ras Gugissa
Wolle the then governor of Begemdir and Semen on 30th March, 1932
(LEU LEU Aviation magazine, 1974).
On the contrary, during the battle of Maichew Italian war planes used to
throw poison gas at the front on Ethiopian fighters. After the battle not
only the leaders but also all Ethiopians recognized the importance of
aviation. The following anonymous piece of poem is an example.
When the first TWA contract expired in 1952, there were some
indecision by both parties as to their relationship. Despite the many
operating and management problems, the EAL had shown its potential
for growth. The British and other West European airlines were showing
keen interest to manage the EAL. In 1953 the contract with TWA was
extended for three more years and in 1955 a new general manager, Mr.
Victor Harrell Jr., was appointed (Teffera, 2006).
The availability of TWA’s training facilities has made possible the sound
development of the EAL’s personnel. To qualify as flight captains the
Ethiopian pilots were sent to TWA’s pilot school in Kansas City. This
advanced flight training to achieve the highest pilot grades was later
conducted at the home base in Addis Ababa (Teffera, 2006).
This kind of reputation is not an easy blue riband, rather can only be
found with the highest dedication and struggle. In fact, the achievement
of highest quality, skill and attitude that the profession requires is
mandatory. Captain Alemayehu Abebe, the first Jet pilot of the EAL
(probably the first in black Africa) asserts the following (2004) “The
American Pilots thinking and our condition were incongruent. They
were the only ones to decide everything. Even if we take the case to the
board, technical cases were to be decided by the Americans and nothing
was to be done. The Americans knew this very well and they were
intimidating us”. (Hiwote Be Semay Ena Be Mider, translated by the
researcher).
The Ethiopian Airlines further extended its flight to more cities in Africa,
Middle East, Europe, Asia, North America and South America with a
motto of going to great length to please. And now to a total of 79
international destinations flying this time with a motto of the new spirit
of Africa.
The Airline domestic service also played an important role in the national
integration by providing indispensable links to places that had no other
access. Before the development of significant high way net work, the
EAL transported coffee and other goods to and from such remote areas
like Mizan Teferi and Teppi (Teffera, 2006). The EAL now flies to 18
destinations in the country.
Despite the many operating and management problems, the EAL had
shown its potential growth. Maintenance shops have had spectacular
growth. Facilities and equipment to do complete engine and accessory
overhaul and other types of aircraft maintenance are fulfilled. Fleet wise,
the 1st flight started with DC – 3 and is now in a position to operate and
maintain 787 (dream liner).
From 1945 to 1970 the EAL was consecutively led by people from TWA.
They were seven in number. The 8th leader was an Ethiopian; Col.
Semret Medhane who was a deputy for some time; was the first
Ethiopian to take over the leadership. Since then the general managers
are all Ethiopians.
CHAPTER THREE
The purpose of this study is to identify the dominant culture and the
preferred culture at the Ethiopian Airlines as perceived by employees. To
accomplish this, the design employed was a descriptive survey. Surveys
are concerned with describing, recording, analyzing and interpreting
conditions that either exist or existed. They deal with opinions that are
held processes that are going on effects that are evident or trends that
are developing. Above all, surveys are primarily concerned with present.
On the other hand, every organization’s culture is special and thus
requires flexible research approach in the process (Schein, 1992).
Proportional allocation under which the size of the samples from the
different strata were kept proportional to the size of the strata. A sample
size n = 500 drawn from a population of size N = 3471 which is divided
into five strata of size N1 = 288 where P1 = 500 (288/3471) = 41, N2 =
208 where P2 = 500(208/3471) = 30, N3 = 2700 where P3 =
500(2700/3471) = 389, N4 = 104 where P4 = 500(104/3471) = 15 and
N5 = 171 where P5 = 500(171/3471) = 25. Thus using proportional
allocation, the sample sizes for the five strata were 41, 30, 389, 15 and
25 respectively.
After a research problem has been identified and the research design
checked out what comes in mind is the type of data (primary and
secondary) collection (Kothari, 1995).
There is no right or wrong answers for these items, just as there are no
right or wrong culture (Cameron and Quinn, 2006). Every organization
will most likely be described by a different set of responses. To adopt the
six Organizational Culture Assessment Instrument items in the
Ethiopian Airlines context: each item has four alternatives and the
Ethiopian Airlines employees (respondents) were expected to divide 100
points among these four alternatives depending on the extent to which
each alternative is similar to Ethiopian Airlines. For example, on item
one, if the respondent thinks alternative “A” is very similar to the
Ethiopian Airlines, alternative “B” and “C” are somewhat similar; and
alternative “D” is hardly similar at all, respondents might give 55 points
to “A”, and 20 points each to “B” and “C”, and 5 points to “D”. In fact
respondents should be sure that their total equals 100 for each item.
This is for “Now” column. The same was done for the “Preferred” column.
The responses of the employees produced two independent ratings of
Ethiopian Airlines culture. One as it currently exists and one as
employees (respondents) wish it to be.
There are many different types of validity and different types of reliability.
Hence, there will be several ways in which they can be addressed (Cohen
et. al., 2005).
Reliability
Cronbach alpha coefficients for each of the culture types of this study
were 0.73 for clan culture, 0.63 for adhocracy culture, 0.52 for hierarchy
culture, and 0.63 for the market culture. The results were very
consistent and provide strong support for Cameron and Quinn.
Validity
As outlined in the methods of data analysis two parts are to be dealt with
in this chapter. The first part describes the demographic characteristics
of the respondents in terms of age, sex, academic qualification, service
years and marital status.
In the second part discussed the analysis and interpretation of data that
were gathered through Cameron and Quinn’s questionnaire for
diagnosing organizational culture.
82.2% of the respondents were male and 16.6% of them were female.
1% of the respondents have not indicated their sex. The result of the
study could have been different had the number of female employees
been more than the existing one. Employees differ in gender, race,
ethnic background, and age. Being able to deal with the many issues of
diversity is fundamental to organizational performance (Senn &
Childress, 2000).
Table 3 Characteristics of Respondents by Qualification
Academic Qualification No. of Respondents % of Respondents
Certificate 14 3.28
Diploma 121 28.34
BA degree 247 57.84
MA degree 21 4.92
PHD 1 0.23
Not given 23 5.39
Total 427 100
32% of the respondents served the Airlines more than eleven years.
6.5% of the respondents served the Airlines nine to ten years. Another
6.55% of the respondents served the Airlines seven to eight years. Close
to 20% of the respondents served the Airlines three to four years. There
seems a thinner link between the long service giving (employees) and
younger employees. 1.63% of the respondents have not given their
service years.
Table 5 Characteristics of Respondents on the basis of marital status
Marital Status No. of Respondents % of Respondents
Married 203 47.54
Single 213 49.88
Divorced 7 1.64
Widowed 0 0
Not given 4 0.94
Total 427 100
49.8% of the respondents were single and 47.5% were married. 1.6%
were divorced. There were no widowed. 0.95% of them failed to indicate
their marital status.
4.2 Analysis and Interpretation of Data Gathered by OCAI
Recently giant airlines of the Middle East and Europe are flying to Addis
Ababa and to most African routes of the EAL (to the EAL dominated
routes) to penetrate and share the EAL’s market. In order to block
(withstand) the penetration of the giant airlines and remain leading and
competent the EAL believes works to have future market share by
opening new routes and doing secondement works with some indigenous
African airlines. It seems that it is why the EAL’s leadership is
implementing Market culture which the dominant culture as persived by
the respondents.
What employees filled in the “Now” column indicate that Market culture
was dominant. Market culture is result oriented; its major concern is
getting the job done. Leaders are demanding type. The glue that holds
the organization together is an emphasis on winning. Reputation and
success are common concerns. Long term focus is on competitive
actions and achievement of measurable goals and targets. Competitive
pricing and market leadership are important. The organizational style is
hard-driving competitiveness. It is an organization that focuses on
external positioning with a need for stability and control. In contrast
what employees Preferred is clan culture which is an organization that
focuses on internal maintenance with flexibility, concern for people and
sensitivity to customers. As it is shown in the figure there is a very wide
difference between the current and the Preferred. The management
should be aware of and sensitive of the differences between the two Now
and Preferred which is more than ten points.
What are the definitions of success in the EAL? And which criteria are
used to determine how successful the EAL is? According to the responses
given by respondents the organization currently defines success on the
basis of market share and penetration. Competitive pricing and market
leadership are also important. On the other hand, the response the
respondents gave on what they preferred shows success is determined
based on the development of human resources, teamwork, employees’
commitment and concern for people. Here also as it is shown on the
figure there is a very wide gap between current and preferred criteria of
success. This should alert the management of the EAL in as mach as
possible to correct the gap.
CHAPTER FIVE
This chapter of the thesis presents the summary of the major findings,
conclusions and recommendations. The summary briefly discusses the
study and sums up the findings of the study which is followed by
conclusions. Finally recommendations that are helpful to improve the
situation are presented.
The purpose of this study was to identify the dominant culture and the
preferred culture in the Ethiopian Airlines as perceived by employees. In
the course of the study an attempt was made to answer the following
research questions: What is the dominant culture at the EAL? What is
the preferred culture at the EAL as perceived by employees? What is the
implication to the EAL?
The computed average score for alternative dominant was 33 for market
culture, 27 for hierarchy culture, 21 for clan culture and 19 for
adhocracy culture. And the computed average score for alternative
preferred was 30 for clan culture, 25 for hierarchy culture, 23 for market
culture and 22 for adhocracy culture. Findings pertaining profiles of
each of the six culture attributes was as follows: market culture was
dominant in all cases except organizational glue characteristics.
5.2 Conclusions
In this study the researcher tried to look at the dominant culture at the
EAL and the preferred culture as perceived by respondents and the
impact of each on performance of employees. The EAL leaders believe
that the organization can survive and compete if and only if this culture
is seriously applied. Because of this they are very much demanding.
This of course needs competitive and goal oriented employees. If people
are valued they most likely perform effectively and efficiently. This can
change the result of the competitive environment.
On the other hand, the Clan culture was the preferred culture by
employees. They agreed that clan culture facilitates very friendly place to
work in and people share a lot and also they consider their leaders as
their mentors. An organization with a strong clan culture and a weak
market culture, operating in a fiercely competitive, highly aggressive
industry like the EAL is now operating may find it very difficult to
survive.
5.3 Recommendations
Leaders could make miracle if they involve employees full heartedly in all
phases of strategic planning. Leaders need to form an employee team to
assess growth. They are also advised to increase the benefits from
employee suggestion.
The EAL leadership should vanguard group efforts which often is more
than what the individual can expect on his own. Furthermore, many
would gladly participate if it is deemed to be in the best interest of an
organization to which they belong.
The EAL leaders must be able to make the connections between their
own passion, the organization’s core intension, the organizational
culture, and a connecting set of social values that will motivate the
employees.
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