NATIONAL COLLEGE

POSTGRADUATE PROGRAM

IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE

PERFORMANCE: THE CASE OF KIRKOS SUB CITY WOREDA 08
ADMINISTRATION

BY

Surafel Tadesse

SUBMITTED TO THE GRADUATE SCHOOL OF NATIONAL COLLEGE IN PARTIAL

FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTERS OF
BUSINESS ADMINISTRATION (MBA).

ADVISOR: D.r Yilkal Wassie

JUNE, 2023

Addis Ababa, Ethiopia

1
 Declaration

I, the undersigned, declare that this thesis is my original work, prepared under the guidance
of D.r yilkal Wassie. All sources of materials used for the thesis have been duly
acknowledged. I further confirm that the thesis has not been submitted either in part or in
full to any other higher learning institution for the purpose of earning any masters degree.

Name: Surafel Tadesse

Signature: ___________________

Date: _______________________

2
 NATIONAL COLLEGE

POSTGRADUATE PROGRAM

MASTERS OF BUSINESS ADMINISTRATION (MBA)

IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE

PERFORMANCE: THE CASE OF KIRKOS SUB CITY WOREDA 08
ADMINISTRATION

BY

Surafel Tadesse

ADVISOR: - D.r Yilkal Wassie

Approved By: Board of Examiners

1. _______________ __________ _____________

Research Advisor Signature Date
2. _____________ ___________ ____________
Internal Examiner Signature Date
3. _______ _______ _____________ _____________
External Examiner Signature Date
3
4
 Acknowledgments
I would like to express my appreciation to the management and staff of kirkos sub city woreda
08 administration employees, for their cooperation in filling the research questionnaires. I would
like to acknowledge and thank my supervisor, Dr. Yilkal Wassie, for his invaluable comments
and guidance and my best friend Yohanes Solomon for his support on the SPSS of the paper.

My special thanks go to all of my families especially my beloved mother Nefisa Nasir, my

father, Tadesse Berga, my two brothers Natnael Tadesse and Kirubel Tadesse, for their
encouragement and unreserved support through the successful journey of my life.

Moreover, I would like to acknowledge the participants and individuals who have been
contributing to the study for their willingness, participation and valuable information.

Finally, those individuals who have been contributing a lot for the entire work deserve to be
acknowledged.

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Table of Contents
Declaration......................................................................................................................................ii
Acknowledgments............................................................................................................................i
Abstract...........................................................................................................................................vi
CHAPTER ONE..............................................................................................................................1
1. INTRODUCTION.......................................................................................................................1
1.1. Background of the study.......................................................................................................1
1.2. Background of the organization............................................................................................3
1.3. Statement of the problem......................................................................................................3
1.4. Objectives of the Study.........................................................................................................5
1.4.1. General Objective..........................................................................................................5
Specific Objective....................................................................................................................5
1.5. Research questions................................................................................................................5
1.6. Significance of the study......................................................................................................5
1.7. Scope of the study.................................................................................................................6
1.8. Limitation of the study..........................................................................................................7
1.9. Definition of terms................................................................................................................7
1.10. Organization of the study....................................................................................................8
CHAPTER TWO.............................................................................................................................9
2. LITERATURE REVIEW............................................................................................................9
2.1. Theoretical Literature...........................................................................................................9
2.1.1. Definition of Organizational Culture.............................................................................9
2.1.2. Levels of organizational culture..................................................................................11
2.1.3. Importance of Organizational Culture.........................................................................13
2.1.4. Employee performance................................................................................................13
2.1.5. Factors affecting employee performance.....................................................................15
2.1.6. Influences on the Development of Organizational Culture.........................................18
2.1.7. Models of Organizational Culture...............................................................................20
2.2. Empirical literature.............................................................................................................27
2.3. Conceptual framework........................................................................................................30
CHAPTER THREE.......................................................................................................................31

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3. RESEARCH METHODOLOGY..............................................................................................31
3.1. Research Approach.............................................................................................................31
3.2. Research Design.................................................................................................................31
3.3 Population and Sampling.................................................................................................32
3.3.1. Target Population.........................................................................................................32
3.3.2. Sample Design.............................................................................................................32
3.3.3. Sampling Size Determination......................................................................................32
3.4. Data Types and Sources......................................................................................................33
3.5. Data collection Instruments................................................................................................33
3.6. Data Collection Procedure..................................................................................................33
3.7. Methods of Data Analysis..................................................................................................33
3.8. Validity and Reliability.......................................................................................................34
3.9. Ethical Considerations........................................................................................................35
CHAPTER FOUR.........................................................................................................................36
4. DATA PRESENTATAON, ANALYSIS AND INTERPRETATION.....................................36
4.1. Response Rate.....................................................................................................................36
4.2. Demographic profile of Respondents.................................................................................37
4.2.1 Gender Distribution of Respondents............................................................................38
4.2.2 Age Distribution of the Respondents............................................................................38
4.2.3 Employment Category of the Respondents..................................................................38
4.2.4. Qualification/Educational Level of the Respondents..................................................38
4.2.5. Work Experience of the respondent............................................................................39
4.3. Descriptive Analysis...........................................................................................................39
4.3.1 Research Objective One:..............................................................................................39
4.4. Correlation Analysis...........................................................................................................48
4.5. Regression Analysis............................................................................................................49
4.5.1. Checking the Assumption............................................................................................49
4.5.2. Linear Regression Analysis.........................................................................................51
4.5.3. Multiple Linear Regression Analysis..........................................................................52
4.5.4. Regression Coefficients...............................................................................................52
4.6. Discussion of results on Organizational Culture................................................................54
4.7. Hypothesis Testing.............................................................................................................55
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CHAPTER FIVE...........................................................................................................................57
5. FINDINGS, CONCLUSIONS AND RECOMMENDATIONS...............................................57
5.1. Summary of Major Findings...............................................................................................57
5.2. Conclusion..........................................................................................................................58
5.3. Recommendations...............................................................................................................60
5.4. Limitations and Suggestions for Future Research..............................................................60
REFERENCE................................................................................................................................62
Appendix I.....................................................................................................................................66
Appendix II....................................................................................................................................68
Appendix III...................................................................................................................................72

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 List of Figure

Figure 2.1.The Denison Model of organizational culture.................................................25

Figure 2.2 Conceptual Framework...................................................................................30
Figure 4.1.P-plot graph....................................................................................................50

List of Table

Table 3.10.1 Validity and Reliability............................................................................................34

Table 4.2 General Information of Respondents.............................................................................37
Table 4.3. Involvement Cultural Dimension.................................................................................40
Table 4.4 Involvement Cultural Dimension by frequency............................................................41
Table 4.4 Consistency Cultural Dimension...................................................................................43
Table 4.5 Adaptability Culture Dimension....................................................................................44
Table 4.6 Mission Cultural Dimension..........................................................................................45
Table 4.7 Employees' Performance...............................................................................................46
Table 4.8 Correlations Result........................................................................................................48
Table 4.9. Multicollinearity Diagnosis..........................................................................................51
Table 4.10Analysis of Variance (ANOVA)..................................................................................51
Table 4.11: Model Summary.........................................................................................................52
Table 4.12 Coefficients..................................................................................................................52
Table 4.13 Summary of Tested Hypothesis...................................................................................56

v
 Abstract

This study's aim was to investigate how organizational culture affected workers' performance in
the Kirkos sub-city woreda 08 administration. To unbiasedly respond to the stated research
questions, the study used a quantitative research methodology and an explanatory research
design. By categorizing uniform employees from the four field locations, a sample size of 160
people was chosen using stratified random selection procedures. The data was gathered using
structured questionnaires that had 57 statements and a five-point Likert scale. The
questionnaires were analyzed using the Statistical Package for Social Science (SPSS) 20
program. The central tendency was quantified using descriptive statistics, which used mean
scores, percentages, and tables to illustrate the data. The association between the variables in
the study was established using regression analysis. According to the report, Kirkos Sub City
woreda 08 administration practices all four organizational culture dimensions: engagement,
consistency, flexibility, and missions. Organizational practice that is consistent with the mission
is practiced most frequently. Regression analysis results indicate that organizational culture is
responsible for 40.1% of the variation in employee performance. Performance of employees is
specifically impacted positively and significantly by involvement and purpose subculture
characteristics. Major recommendations, such as maintaining significant cultures, mission, and
involvement and introducing them to newly hired employees consistently, improving employees'
capacity development, rewarding and encouraging innovation, and encouraging a risk-taking
culture were suggested by the researcher for possible consideration by Kirkos sub city woreda
08 administration based on the research findings and research conclusions.

Key words: Organizational Culture, Involvement, Consistency, Adaptability, Mission, Employee

Performance.

vi
 List of Acronyms

OCAT Organization Culture Assessment Tools

SPSS Statistical Package for Social Science
OC Organizational Culture
EP Employee Performance
SD Standard Deviation
ANOVA Analysis of Variance

vii
 CHAPTER ONE

1. INTRODUCTION
1.1. Background of the study
The culture of a business has a significant impact on productivity (Ogbor, 2003; Schein, 2004).
The unwritten traditions, norms, and values that establish the "rules of the game" for authority,
structure, and decision-making make up an organization's culture. It is built on the organization's
shared history and traditions as well as current leadership beliefs. In this sense, organizational
culture can be viewed as a collection of unique traits that define a particular organization.
Therefore, the current culture, which differs from organization to organization, has an impact on
every organization. The environment, vibe, style, personality, charm, and feel that each company
has when you enter it will be different from other businesses, and this will have an impact on
how its staff interact with customers. Impacting how we conduct business here and the
organizational survival strategies that promote assimilation and individual achievement is culture
(Hofferberth and Urich, 2011).

On the other hand, organizations do not exist in a vacuum; they are embedded in a specific cultur
e or sociocultural context.The collection of significant, frequently unstated presumptions that all
members of an organization adhere to is known as organizational culture. Beliefs and values are
the two main assumptions that are shared. Beliefs are derived from and strengthened by
experience. They are assumptions about reality. Values are presumptions about desired
objectives that are worthwhile pursuing. When beliefs and values are shared in an organization,
they create a corporate culture (Azhar, 2003). Schein (2004) defined organizational culture as a
dynamic force within the organization which is revolving, engaging and interactive and it shapes
up by the employees and managements gestures, behaviors and attitudes. It is a commonly held
perception of the organization that is fairly uniform, descriptive, has common features, can tell
one organization from another, and incorporates information about individuals, groups, and
organizational systems.

Organizational development has certain factors that improve sustainability on basis of

effectiveness. The system of organization is based upon effective establishment of culture that
keeps learning environment strong. Suwarni, as cited in Pangewa (2015) suggests “the
1
organizational culture plays an important part that can build a conducive atmosphere for creating
a climate of school organization that supports the educational and learning process with a high
level of achievement."

On the other hand, employee performance is a strategy and integrated approach to increasing the
effectiveness of organizations by improving the performance of the people who work in them by
developing the capability of team and individual contributors. (Armstrong and Baron, 1998).
According to (Cascio, 2006) performance is the degree of an achievement to which an
employee’s fulfil the organizational mission at work place. If every individual performs as per
their expected standard, then organizational performance will increase. Brooks (2006), added
that employee’s loyalty relies upon knowledge and awareness of culture that improves behaviour
of organization.

As pointed out by Denison (1990), decisions made without awareness of the operative cultural
forces may have unanticipated and undesirable consequences. Research indicates that
organizational culture is associated with the success of the organization (Darmawan, 2013). That
indicates every organization should take keen attention to employees performance with
organizational culture to improve their productivities. Thus, employee performance would be
considered as backbone of the organization as it leads to development if employee’s performance
will be improved through establishment of a strong and positive culture.

Organizational culture has a significant impact on how employees view their organizational
responsibilities and their commitment. The pioneering work of Deal and Kennedy (1982) incited
the interest of researchers and consultants to the concept of corporate culture, and how these
values and philosophy guide the employees’ behaviour in the organization towards greater
success. Leaders affect their subordinates both directly through their interactions and also
through the organization's culture (Li, 2004).

The commitment and performance of the employees in the organization is crucial to ensure the
successful accomplishment of the organizational goals and objectives. Many researchers argued
that shaping the appropriate values or culture of the organization to ensuring the necessary level
of commitment and performance among employees or manager to ensure successful
implementation of the organizational goals and strategies this paper enables the organization to

2
achieve its goals by aligning corporate culture with their performance Management system in
adopting a collaborative culture in the execution of its activities empowers its employees to
exercise greater control/autonomy over their work thus influencing their job performance,
commitment, self-confidence and self-esteem.

1.2. Background of the organization

Addis Ababa, the political capital and the most important commercial and cultural center of
Ethiopia, is geographically located at the heart of the nation. And it occupies a total of 540 sq.km
land area surrounded by mountainous landscape. The city is divided in to 11 sub cities called
kifle-ketema or sub city and 116 woredas, which are the lowest administrative units. From the 11
sub city Kirkos Sub City is one of the 11 sub cities found in Addis Ababa and kirkos sub city
Werda 8 Administration is one of the 116 woredas found in 11 sub cities, which has 29 different
public organization that organized to provide and address services to the local community. Thus,
Kirkos sub city woreda 8 administrations has total of 482 employees in the administrative
services. From these 482 employee which give services in different public sectors 307 (63.69) %
are women and 175 (36.31) % are men. There are 44 team leader position in woreda 8
administration. 29 (65.9) % of team leader positions are covered by men whereas 15 (34.1) % are
covered by women. There are also 39 different leader positions 8(20.51) % are women whereas
31(79.49) % of leaders position is covered by men.

1.3. Statement of the problem

It is impossible to dismiss the importance of organizational culture as a human resource strategy.
Based on elements like the level of risk of violence, the importance of the team, and the support
of individuals, employees build an overall subjective opinion of the company. The culture or
personality of the organization is in fact determined by the overall perception. Strong cultures
have a tendency to remain steady throughout time, much like people's personalities do. Strong
cultures are challenging for managers to modify because of this. Management will desire to
change a culture if it starts to conflict with its surroundings. However, as the argument and
counterpoint show, altering an organization's culture is a protracted and challenging process.
Managers should treat their organization's culture as largely fixed as a result, at least in the short
term.

3
The selection processes are one of the most significant managerial consequences of
organizational culture. Hiring people whose values do not coincide with those of the organization
is likely to result in the hiring of unmotivated, uncommitted, and disgruntled workers.
Additionally, we shouldn't ignore how socialization affects an employee's performance.

Senior management in most organizations considers themselves to be more important than their
subordinates. Because of this, they avoid interacting with them and, even when they do, they
speak to them rudely. Even when employees perform effectivelye in their assigned duties, some
management staff does not give them praise.

Understanding these notions and giving them the attention they require are essential for
management. In light of these, the study aimed to investigate how organizational culture affected
workers' performance in the Kirkos Sub City Woreda 08 Administration. Defining and putting
your finger on the most important elements of organizational culture can be quite a challenging
feat for a lot of people. Yet no matter what the nature of your organization is, building a culture
of success and communication is vital if you want to stay relevant in today's market. In fact
employees with more positive experiences at work are much more likely to report significantly
higher levels of discretionary effort. Organizational culture is intangible and made complex
components, which makes it so hard to define and even harder to put into action one important
point to drive home though is that strong organizational culture doesn’t happen unless you have
strong employee connection. So nowadays this thing organizational culture is in doubt in
governmental institutions.

Thus, this study aims to investigate the impact of organizational culture has on employees’
performance in Kirkos sub city woreda 08 administration by using appropriate scientific model
and organizational culture assessment tools, in this study, the relationship between organizational
culture and performance is examined, culture is treated as an internal variable, and is defined as
the shared values and norms of the organization. This is appropriate, as the study is primarily
concerned with the cause-effect relationship between culture and performance.

In order to discover a cultural feature that has a higher impact on employee performance, the
researcher attempted to determine employees' perceptions and assumptions regarding the impact
of corporate culture on employees' performance in kirkos sub city woreda 08 administration.

4
1.4. Objectives of the Study
1.4.1. General Objective
The general objective of this study is to access the impact of organizational culture on employee
performance in the case of kirkos sub city woreda 08 administrations.

Specific Objective
 To examine the type of organizational culture dimension currently practiced in Kirkos
Sub-City Woreda 08 administration.

 To examine the impact of organizational culture dimensions; (Commitment, Consistency,

Adaptability and Mission) to employee performance in the Kirkos sub City Woreda08
Administration.

 To determine organizational culture dimension types has a statistically significant

contribution to employee performance in Kirkos Sub-City Woreda 08 administration.

1.5. Research questions

 What type of organizational culture dimension currently practiced in Kirkos Sub-City
Woreda 08 administration?

 What are the impacts of organizational culture dimensions; (Commitment, Consistency,

Adaptability and Mission) to employee performance in Kirkos sub City Woreda
08Administration?

 What are the organizational culture dimension types has a statistically significant
contribution to employee performance Kirkos Sub-City Woreda 08 administration?

1.6. Significance of the study

Every organization's progress requires a commitment to organizational culture. A well-executed
culture fosters a sense of belonging among the workforce. They have a great deal of respect for
the company and are ready to give it their all. A company that wishes to stay in business, gain a
competitive edge over its competition, and increase its market share must be able to adopt an
excellent culture by involving people in it and making them feel like their treasure. Employees
won't put in the necessary effort to boost productivity and, consequently, profitability unless this
is done effectively. The research for this project adds to the ongoing discussion of how
5
organizational culture affects productivity at work. The study uses data from sources inside the
organization to assess the relationship between kirkos sub city woreda 08 administration
employees' pre- and post-organizational culture-related work performance. As a professional, I
understand that intrinsic as well as extrinsic motivations are both important for motivating
people to work hard.

The study is expected to provide adequate information on how organizational culturecan affect
employee’s performance at a place of work. The study’s finding can be used to enrich the
thinking of top management on how to develop good image of the company through enriching
the company’s organizational culture and values among its employees. The study will also be a
source of information for improvement effectiveness of the kirkos sub city woreda 08
administration Management and employees in general. Furthermore, the findings will strive to
re-orient the thinking and identifying a number of issues as being particularly important to the
relationship between how people are managed and the performance of the business

1.7. Scope of the study

This research is using kirkos sub city woreda 08 administration employees as the target
population and also the research is using a questionnaire to get response form target population.
Both closed-ended and open-ended questions are included in the survey; the closed-ended
questions will assist limit responses so that respondents do not provide extraneous information,
while the open-ended questions will force respondents to provide in-depth justifications for their
answers.

The purpose of the study was to investigate the relationship between organizational culture and
employee performance using Denison's Organizational Culture model from 1990 as a
framework. The model was chosen because it was behavior-based, relevant at all organizational
levels, and made it easier to identify organizational cultural traits than other models.

The study looked at how institution culture affected employees' performance based on how they
saw and judged their own performance. In terms of technique, the study used a quantitative
research strategy to look at the correlation between two or more study variables. Additionally,
explanatory research approaches were used.

6
1.8. Limitation of the study
In carrying out the study, several limitations were encountered among which, during data
collection the concept of organizational culture might not be clear for some of respondents. On
the other hand the researcher faces problems such as, shortage of finance, shortage of sufficient
sources documents, shortage of time, and a lack of cooperation from few respondents. Moreover,
since respondents‟ mainly senior officers, might be so busy and engaged in meetings of different
programs, the data collection took long time and was very difficult. Beyond these and other
constraints that raise during the research, the researcher tried to find sound results pertaining to
the objectives of the study.

1.9. Definition of terms

Under this topic conceptual definition of terms used in this study are presented.

Employee performance: refers to the degree to which an employee performs the duties assigned
to him by the organization in question in accordance with the standards set by the business.
(Nasution, Mariatin, and Zahreni, 2018; Byars and Rue).

Organizational Culture: is the collection of shared values, beliefs, and standards that affects
how employees feel, act, and think at work (Schein, 2011).

Mission: relates to an organization's goals and objectives, and it shows a focus on stability and
the outside world (Denison, Nieminen, and Kotrba , 2014).

Adaptability: refers to staff members' capacity to ascertain what customers want, acquire new
abilities, and adjust as necessary (Denison, Nieminen, and Kotrba , 2014).

Consistency: relates to common ideals, effective systems, and procedures, and shows a steady
internal focus (Denison, Nieminen, and Kotrba , 2014)

Involvement: focuses on the internal dynamics of the company and on flexibility and is
concerned with the personal engagement of individuals within the organization. (Denison,
Nieminen, and Kotrba , 2014).

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1.10. Organization of the study
This study was organized in to five chapters. The first chapter dealt with the background,
statement of the problem, research questions, and objectives of the study, significance of the
study, scope of the study, limitation of the study, definition of key terms and organization of the
study. Chapter two covered review of the literature on the link between organizational culture
and employees’ performance. The third chapter covered the research design and method of the
study. The forth chapter discuses about data presentation, analysis and interpretation of the data.
Finally, chapter five included conclusions from the study, a summary of the findings and
recommendations.

8
 CHAPTER TWO

2. LITERATURE REVIEW
This section of the study examines pertinent literature. The researcher made an effort to draw
conclusions about organizational culture and how it affects workers' performance from both a
theoretical and an empirical perspective. The conceptual framework of the study is described at
the end of this chapter. Various researchers' works on the relationship and impact of
organizational culture on employee performance were reviewed.

2.1. Theoretical Literature

2.1.1. Definition of Organizational Culture
The cultural dimension is central to all aspects of organizational life, even in those organizations
where cultural issues receive little explicit attention. Even in those organizations where cultural
issues receive little explicit attention, how people in a company think, feel, value, and act are
guided by ideas, meanings, and beliefs of a cultural (socially shared) nature. Organizational
culture is one of the major issues in academic research and education, in organization theory as
well as in management practice. Senior organizational members are constantly "managing
culture," highlighting what is crucial and what is less crucial, and defining how the business
world should be interpreted. Organizations that engage in intense "numbers management" may
cultivate and perpetuate a culture that values performance indicators and rituals centered around
their use. Corporate culture is a topic that attracts a lot of attention and is prioritized in the
majority of modern firms. Top managers frequently lack a deeper knowledge of how people and
organizations function in terms of culture, even in circumstances where they are acutely aware of
the importance of culture. Culture is important and complex, and it can be challenging to
comprehend and "use" in a thoughtful way. Managers and businesses differ in their awareness of
an interest in culture. Achieving a high level of cultural understanding to inform decisions is
frequently challenging. Many management books and ideas are counterproductive in their focus
on rapid fixes (Alvesson, 2002).

As a result, culture gives organizations a sense of identity and establishes how "things are done
around here" through the stories, rituals, beliefs, meanings, values, standards, and language of
the organization. The culture of an organization encapsulates its past successes and successful
9
strategies. Long-standing employees of a business are frequently willing to accept these practices
without inquiry. Some of the company tales are among the first things a new employee learns.
Legends are capable of remaining with a company and assimilating into the norm. "Norms," or
established (normal) expected behavior patterns inside the company, will develop over time. A
norm is an accepted behavioral pattern that is a component of a culture (Donnell and Boyle
2008).

The requirement for good management lies at the core of organizational growth and increased
performance. The function of management is to operate as an integrating activity, coordinate
member activities, and lead and direct them in the direction of goals and objectives. However,
the management process does not occur in a vacuum but rather within the framework of the
organizational setting. Applications of organizational behavior and efficient human resource
management therefore depend not only on the type of business or industry, but also on the
distinctive qualities of the particular organization and its culture. Therefore, organizational
processes like decision-making, structure design, group behavior, work organization, motivation
and job satisfaction, and management control will be significantly impacted by the pervasive
nature of culture in terms of "how things are done around here" and shared values, beliefs, and
attitudes (Mullins, 2005). Individuals do not all possess the same level of cultural understanding.
Intra-cultural diversity is caused by individual differences, which may result from various
family, educational, and microsocial environments. Therefore, distinctions occur within every
culture, including subcultural groups. The majority of civilizations are accepting of such
disparities; in fact, it might offer a catalyst for cultural dynamism or development. . National
subcultures, for instance, can be categorized according to factors like socioeconomic class,
ethnicity or religion, or even occupation. These factors can spark debate and conflict, which can
lead to opportunities for growth and change. Culture is dynamic and always changing, even
though it is formed and maintained in social environments like an organization. In contrast to
how educational systems, the media, history, political processes, and other factors influence
national culture, recruits learn organizational culture through the process of socialization, which
includes training and managerial interventions (Brooks, 2006). Organizational culture, according
to Sinha (2008), is the entirety of a company's distinctive traits that are concentrated on how
workers regard and value their work and relate to one another in comparison to other non-work-

10
related concerns. Both organizational culture and work culture are jointly influenced by the
surrounding societal and global cultures.

Organizational climate differs from organizational culture in that the former consists only of an
organization's perceptual configurations. Depending on the levels of similarity between
subcultures and the traits within them, an organization may have an integrated, differentiating, or
fragmenting culture. To identify various corporate cultures, experts take distinct samples of basic
beliefs, norms, and practices. The founder and his group of influential executives take the effort
to create the organization and hire staff members who join them in defining the organizational
culture.

2.1.2. Levels of organizational culture

Shared assumptions
Shared assumptions can be defined as the generally held, ingrained, distinctive, and deeply
ingrained beliefs that people take for granted and hold to be true and that influence their
opinions, feelings, and perceptions of the world and how it works (Brown, 1995: 22; Hellriegel
et al., 2004).

Shared values

Cultural values, according to Hofstede (1999: 35), are the general propensities of people to favor
some states of affairs over others. These cultural values are about "what is evil and what is good,
dirty and clean, immoral and moral, irrational and rational," among other things. Values are
described as fundamental ideas and precepts about things that are significant to employees,
constant through time, and very important by Hellriegel et al. (2004) and Deal and Kennedy
(1982: 14).

Shared socialization and norms

Norms are general rules or patterns of behaviors of groups of members, and become an element
of the organization’s culture when they are shared throughout an organization (Hellriegel et al.,
2004: 359; Martin, 2001: 589). Norms can be seen as standard expectations about what are
appropriate attitudes and behaviors within an organization (Hellriegel et al., 2004: 359; Martin).
Individuals enter into the organization and are introduced to the organization’s cultural norms

11
and are expected to follow them (Hellriegel et al., 2004: 359; Martin, 2001: 589; O’Reilly, 1989:
12; Sathe, 1983). This systematic process in which new members of an organization are brought
into a culture is known as socialization (Hellriegel et al., 2004: 359). Socialization is a very
important aspect of introducing new employees to the culture of the organization (Hellriegel and
others. 2004: 357; Rowe et al., 1994: 472).

Shared symbols, language, narratives and practices

A symbol is an object that can be used to represent an underlying meaning, beyond its intrinsic
context (Hellriegel et al., 2004: 359; Greenberg and Baron, 2003: 523). Symbols could be words,
objects and gestures that get their meaning from socializing (Hofstede, 1994: 1). Organizations
often rely on symbols because they are the simplest and basic observable form of expressing
culture (Hellriegel et al., 2004: 359; Greenberg and Baron, 2003: 523). A symbol can be
anything as simple as a uniform or logo, to open versus closed office door norms, office size and
layout (Hellriegel et al., 2004: 359).

Everyday language that is used is not purely a way to communicate, but also a fundamental
determinant of how people understand the world they live in (Brown, 1995: 12). Hellriegel et al.,
(2004: 359) define language, from a cultural perspective, as a shared system of vocal sounds,
written signs, as well as gestures that are used to convey special meanings among employees.
The idea that words generate understanding has important implications for the study of
organizational culture (Brown, 1995: 12).

Narratives are drawn from the organization’s history, and focus on a unified, single event
(Brown, 1995: 13). Individuals tell narratives because they assist in influencing others’
understandings of situations and events, as well as illustrating knowledge and insight into how
their organization works (Brown, 1995: 13). Brown (1995: 13) states that narratives are also
important indicators of “cultural values and beliefs; formal and informal rules and procedures;
the consequences of deviance from, and compliance with, the rules; and social categories and
status, and thus the power structure of an organization. “Shared practices allow organizations to
show the values and beliefs of the organization to the employees, and therefore define the
organization’s culture through these (Rowe et al., 1994: 472). Shared practices include taboos,
and rights and ceremonies. Taboos are behaviors within an organization that are forbidden,

12
Rights and ceremonies are elaborated and formal activities that have been designed to generate
strong emotions from employees such as formal prize-giving functions for employees who have
achieved high standards of service (Hellriegel et al., 2004: 360).

2.1.3. Importance of Organizational Culture

The requirement for good management lies at the core of organizational growth and increased
performance. The function of management is to operate as an integrating activity, coordinate
member activities, and lead and direct them in the direction of goals and objectives. However,
the management process does not occur in a vacuum but rather within the framework of the
organizational setting. Therefore, the practical applications of organizational behavior and the
efficient management of human resources depend not only on the nature of the business or
sector, but also on the distinctive qualities of the particular organization and its cultureDecision-
making, structure design, group behavior, work organization, motivation and job satisfaction,
and management control are organizational processes that will be significantly impacted by the
pervasive nature of culture in terms of "how things are done around here" and shared values,
beliefs, and attitudes (Mullins, 2005).

2.1.4. Employee performance

2.1.4.1. Definition of Performance

Different Authors agreed on the concept of performance by differentiate between an action (i.e.,
behavioral) aspect and an outcome aspect of performance (Campbell, 1990; Campbell, Mc Cloy,
Oppler, & Sager, 1993; Kanfer, 1990; Roe, 1999).

The behavioral aspect refers to what an individual does in the work situation and “Performance
is what the organization hires one to-do, and do well” (Campbell et al., 1993, p. 40). Thus,
performance is not defined by the action itself but by judgmental and evaluative processes (cf.
Ilgen and Schneider, 1991.

2.1.4.2. Performance as a Multi-Dimensional Concept

Performance is a multi-dimensional concept, Borman and Motowidlo (1993) distinguish between
task and contextual performance. Task performance refers to an individual’s proficiency with
which he or she performs activities which contribute to the organization’s ‘technical core’. This
contribution can be both direct (e.g., in the case of production workers), or indirect (e.g., in the
13
case of managers or staff personnel). Contextual performance refers to activities which do not
contribute to the technical core but which support the organizational, social, and psychological
environment in which organizational goals are pursued. Contextual performance includes not
only behaviors such as helping coworkers or being a reliable member of the organization, but
also making suggestions about how to improve work procedures.

Three basic assumptions are associated with the differentiation between task and contextual
performance (Borman and Motowidlo, 1997; Motowidlo and Schmit, 1999): (1)Activities
relevant for task performance vary between jobs whereas contextual performance activities are
relatively similar across jobs; (2) task performance is related to ability, whereas contextual
performance is related to personality and motivation; (3) task performance is more prescribed
and constitutes in-role behavior, whereas contextual performance is more discretionary and
extra-role Based on this assumption they described both concept below.

2.1.4.3. Task performance and contextual performance

Task performance in itself is multi-dimensional. For example, among the eight performance
components proposed by Campbell (1990), there are five factors which refer o task performance
(cf. Campbell, Gasser, and Oswald, 1996; Motowidlo and Schmit, 1999): (1) job-specific task
proficiency, (2) non-job-specific task proficiency, (3) written and oral communication
proficiency, (4) supervision—in the case of a supervisory or leadership position—and partly (5)
management/administration. Each of these factors comprises a number of sub factors which may
vary between different jobs. For example, the management/administration factor comprises sub
dimensions such as (1) planning and organizing, (2) guiding, directing, and motivating
subordinates and providing feedback, (3) training, coaching, and developing subordinates, (4)
communication effectively and keeping others informed (Borman and Brush, 1993).

Contextual performance by itself is a multi-dimensional concept (Van Dyne and LePine,

1998).This behaviors include organizational citizenship behavior with its five components
altruism, Conscientiousness, civic virtue, courtesy, and sportsmanship (Organ, 1988), some
aspects of organizational spontaneity (e.g., helping coworkers, protecting the organization,
(George and Brief, 1992) and of pro social organizational behavior (Brief and Motowidlo, 1986).

14
 2.1.4.4. Relevance of individual performance
According to (Van Scotter, Motowidlo, and Cross, 2000). Organizations need highly performing
individuals in order to meet their goals, to deliver the products and services they specialized in
and finally to achieve competitive advantage. Performance is also important for the individual.
Accomplishing tasks and Performing at a high level can be a source of satisfaction, with feelings
of mastery and pride. Low performance and not achieving the goals might be experienced as
dissatisfying or even as a personal failure. Moreover, performance if it is recognized by others
within the organization it is often rewarded by financial and other benefits. Performance is a
major although not the only prerequisite for future career development and success in the labor
market. Although there might be exceptions, high performers get promoted more easily within an
organization and generally have better career opportunities than low performers (Van Scotter,
Motowidlo, and Cross, 2000).

2.1.5. Factors affecting employee performance

While there may be differences in the elements that influence employee performance in for-
profit and nonprofit firms, in the latter most often the factors come from the employer
organization or the socioeconomic environment. Swanepoel et al (1998) Performance reviews,
pay, organizational leadership style, technical training, and career mobility are some of these
variables. Here is a description of those elements.

2.1.5.1. Performance evaluations or appraisals

An effective and good performance appraisal system can identify weaknesses and result in
corrective actions being taken (Cheminais et al., 1998:269).as Cheminais et al., 1998:269, 309-
12; Cronje and others2001:454-5; Erasmus and others2005:308-12, 350-1) Explained the
performance appraisal can also help to sustain contented workers through: The
acknowledgement of individual employee performance, Remuneration options, Promotions and
career movements, Structured training, and Disciplinary decisions.

The researchers agreed on, constructive appraisal system can assist in motivating employees, as
well as ensuring clear expectations and the desired actions needed to achieve organizational
outputs.

15
 2.1.5.2. Remuneration
The term "remuneration" refers to the financial and non-financial extrinsic or intrinsic rewards
given by an employer in exchange for an employee's time, talents, and effort in meeting job
requirements in order to forward company goals (Dowling et al., 2011:162-175, Swanepoel et al
1998:510).

Armstrong and Murlis (2004:3) define "The formulation and implementation of strategies and
policies that aim to reward people fairly, equitably, and consistently in accordance with their
value to the organization" is how reward management is defined Cheminais et al., (1998:161)
assert that there is a strong relationship between extrinsic or intrinsic remuneration and an
employee’s motivation. Armstrong and Murlis (2004:11) advocate a total or holistic reward
approach by using multiple reward strategies such as “self-management, self-awareness, social
awareness and relationship management within an organization in the pursuit of significantly
raised performance”.

This approach complements Maslow’s theory of the hierarchy of needs in acknowledging

different types of motivational needs within each individual as mentioned in section as asserted
by Armstrong and Murlis (2004:10-11), Cheminais et al (1998:42-47, 159-60), Cronje et al
(2001:156-7), Erasmus et al (2005:375, 381-3), Globe (1970:62) and Maslow (1943:91-93, 370-
96), monetary factors such as a high salary can inspire someone to be highly motivated only up
to a certain extent. Beyond that, other “self-actualization” and motivational reasons such as
recognition, status, greater individual growth or responsibility, which are referred to as intrinsic
remuneration, may be required to keep an employee loyal and passionate about the organization
they work for or their job in addition to extrinsic remuneration. Extrinsic remuneration
(Armstrong and Murlis 2004:56-8; Cheminais et al., 1998:158-9; Cronje et al 2001:457) is
normally related to the benefits received by the employee in addition to his or her actual job’s
basic salary. This is further separated into financial rewards and non-financial rewards.

2.1.5.3. Leadership style

The leadership style within an organization has a bearing on encouraging or inhibiting
employees performance (Armstrong and Murlis 2004:46-49; Cronje et al 2001:144). It could be
challenging for the organization to comprehend why employees behave in a certain way if

16
management does not properly study the needs of the firm and its employees. The researcher
comes to the conclusion that an employee's level of motivation at work can be influenced by how
they feel about and trust the organization's leadership. Employees are more willing to invest their
future job plans in a company they believe has promising future prospects.

2.1.5.4. Training
Performance is a significant, multifaceted construct that aims to produce results and is closely
related to an organization's strategic objectives (Mwita, 2000). Better organizational performance
simply refers to the capacity of the organization to produce desired results or output more
successfully and efficiently. Performance is tied to quantifiable results or accomplishments that
primarily address the needs and issues of the community. Staff underperformance in the
workplace is mostly caused by a lack of staff training and development (Muhammad, 2009).

The goal of training, according to Muhammad (2009), is to maximize employees' acquisition of

new abilities, information, attitudes, and behaviors in order to meet the demands of dynamic
contexts. Organizations should encourage and promote these crucial human resource
management responsibilities because of how these employee training concepts help to overall
organizational development (Hartel et al., 2007).

2.1.5.5. Career movements

Various options exist for employee career progression within an organization (Cheminais et al.,
1998:309-12; Erasmus et al., 2005:308). These include: lateral moves within or outside of the
organization, but at the same salary, grade level and benefits, vertical moves through promotion
or demotion, diagonal moves within the same organization but across Similar or different
disciplines and outward moves outside the organization, also known as separation.

Employee productivity and loyalty to the company may suffer when employees lack appropriate
motivation. This demonstrates how the availability and regularity of the different career
opportunities inside the business are directly related to performance improvement. The
researcher used employee performance variables in the study because the kirkos sub city woreda
08 administration is a nonprofit organization and the researcher believes that those factors are
appropriate given the nature of the organization. The aforementioned employee performance
affecting factors primarily affect the employee's performance in nonprofit organizations.
17
2.1.6. Influences on the Development of Organizational Culture
An organization's culture and structure evolve throughout time in response to a wide range of
variables. However, we can pinpoint a few major factors that are probably going to be crucial in
the formation of any company culture. History: The culture of an organization will be influenced
by the cause and circumstances of its founding, its age, and the owners' and the earliest senior
management' philosophies and ideals. Principal Duty and Technology: The principal purpose and
type of an organization's "business" have a significant impact on its culture. This covers the
selection and caliber of the goods and services offered, the value of a company's reputation, and
the nature of its clients. aims and purposes. Profitability may be the goal of a corporate
organization, but this is not a clear or sufficient criterion for managerial success on its own. Size.
Larger organizations typically have more structured cultures and organizational structures. The
likelihood of having separate departments and possibly split-site operations increases with
growth. Location. The physical attributes and geographic location of an organization, such as
whether it is in a busy city center or a calm rural area, can have a significant impact on its
culture. The clients and the personnel that are hired may be affected by this. It may also have an
impact on the type of services offered, the perception of "boundary" and distinctive character,
and development chances (Mullins, 2005).

2.1.6.1. Strong and Weak Organizational Cultures

Organizational culture can be strong or weak; in a strong culture, the company's essential values
are firmly held and broadly accepted. The conduct of organizational members is greatly
influenced by strong organizational cultures (Martins & Martins, 2003). The reverse of a strong
culture is what is meant by a weak culture, which is when organizational members do not adhere
to the common views, values, and standards (O'Reilly, Chatman, & Caldwell, 1991).

2.1.6.2. Changing Organizational Culture

All organizations must deal with the constant, enduring situation of change. Managers must deal
not only with ongoing change but also with acceleration in the pace of change. Some people
have called the increase in the rate of change that organizations must deal with exponential.
Successful managers must consider managing change as a core duty rather than a supplementary
one. In order to develop their careers, increase their productivity, and fulfill a range of
responsibilities inside organizations, people today need to shift and adapt. In order to maintain
18
their uniqueness, maintain market share, and expand new businesses, strategies, and possibilities,
organizations must also be adaptable, inventive, and responsive. 2014's (John M. et al.)

2.1.6.3. Function of Organizational Culture

Culture defines the rules of the game. First, it has a boundary-defining role: It creates distinctions
between organizations. Second, it conveys a sense of identity for organization members. Third,
culture facilitates commitment to something larger than individual self-interest. Fourth, it
enhances the stability of the social system. Culture is the social glue that helps hold the
organization together by providing standards for what employees should say and do. Finally, it is
a sense- making and control mechanism that guides and shapes employees’ attitudes and
behavior. A strong culture supported by formal rules and regulations ensures employees will act
in a relatively uniform and predictable way. Today’s trend toward decentralized organizations
make culture more important than ever, but ironically it also makes establishing a strong culture
more difficult. When formal authority and control systems are reduced through decentralization,
culture’s shared meaning can point everyone in the same direction. However, employees
organized in teams may show greater allegiance to their team and its values than to the
organization as a whole (Robbins &Judge, 2015).

2.1.6.4. The Consequences and Implications of Organizational Culture

Depending on how strong it is, an organization's organizational culture can significantly affect
how effectively it operates. According to DuBrin (2019), there are six main effects and
implications of organizational culture on both competitive advantage and organizational
effectiveness. Gaining a competitive edge can be accomplished in a number of ways, including
increasing market share, profit, and efficient operation of the company.

Productivity, quality, and engagement: A culture that prioritizes productivity, including

excellent quality, motivates employees to be productive and engaged, which frequently results in
competitive advantage and organizational effectiveness.

Creativity and innovation: A major contributor to innovation is a corporate culture that

encourages creative behavior.

Compatibility of mergers and acquisitions: A reliable predictor of success in merging two or

more firms is the compatibility of their respective cultures.
19
Person–organization fit: An important success factor for the individual is finding an
organization that fits his or her personality

Pointing to direction of leadership activity: Much of a top-level manager’s time is spent

working with the forces that shape the attitudes and values of employees at all levels.

Emotional and physical safety of workers: An organizational culture in which rudeness,

incivility, and sexual harassment are discouraged and punished increases the probability of
workers feeling safe emotionally and physically.

2.1.7. Models of Organizational Culture

There is no one "type" of organizational culture, and cultures can differ greatly from one
organization to the next, but there are commonalities, and various models have been proposed by
researchers up to this point explaining organizational culture. Other researchers have also
developed models to describe various indicators and dimensions of organizational cultures. The
following are well-known researchers who study organizational culture:

2.1.7.1. Edgar Schein’s Model of Organizational Culture

According to Schein (2011), there are three levels in an organization culture and his model
focuses on artifacts, values, and assumptions.

Art facts: The first level is the characteristics of the organization which can be easily viewed,
heard and felt by individuals collectively known as artifacts.

The workplace culture is mostly determined by artifacts, such as the dress code for employees,
office furnishings, facilities, employee conduct, and the organization's mission and vision. The
tangible artifacts that show distinct cultural predispositions provide the simplest view of culture,
which is provided by this component of corporate culture.

Values: The values of the employees and the standards of conduct are the next level in this
paradigm, which makes up the organizational culture. The organizational culture is significantly
influenced by the values of the people who work there. The way that employees think and
behave greatly influences the culture of any given firm. The culture of the workplace is
influenced by the mindset of each employee connected to a given firm.

20
Assumed Values: The third level consists of the employees' presumptive values, which cannot
be quantified but do affect the culture of the company. There are some ideas and information that
are kept secret but have an impact on an organization's culture. The third level of organizational
culture includes the fundamental elements of human nature. Organizations adhere to specific
practices that are infrequently stated yet are harder to infer from observational data alone. These
are unspoken presumptions that influence how people behave and communicate. They play a
significant but frequently unnoticed role.

According to Schein (1992), learning about an organization's culture might begin by looking at
its artifacts, such as its physical surroundings, workplace interactions, corporate policies,
incentive programs, and other observable traits. However, focusing only on these outward
manifestations is unlikely to provide a complete picture of the organization because a significant
portion of culture occurs below one's level of awareness.

By seeing how employees interact and the decisions they make, as well as by asking them about
their ideas and impressions of what is right and appropriate behavior, it is possible to identify the
values and deeper, underlying assumptions that create the culture of the firm.

2.1.7.2. Robert A. Cooke’s Model of Organizational Culture

According to Cooke (1987), the culture of an organization is the way employees behave at the
workplace to ensure stable future and growth. And he proposed the following three types of
culture in the organization:

Constructive Culture: There are several businesses that support productive employee contact.
Individuals are free to discuss issues, exchange ideas, and gather information in order to come up
with a novel solution that will benefit everyone. Conflicts occur when workers feel ignored and
aren't given the opportunity to voice their opinions. A positive workplace culture promotes
communication and idea sharing among staff members, inspires them, and ultimately gets the
greatest performance out of them. The essential characteristics of a positive culture are:

Achievement: A constructive culture helps the employees to achieve the targets within the
stipulated time frame.

Self-Actualizing: In this kind of culture, an employee stays motivated and realizes full potential.

21
Encouragement: A constructive culture encourages employees to deliver their level best and
strive hard for furthering the image of the organization.

Affinitive: The employees avoid conflicts and unnecessary disputes and promote a positive
ambience at the workplace.

Passive Culture: Employees that work in a passive culture act in ways that go against what they
believe to be right and ideal behavior, and their primary goal is to win over their superiors and
secure their place within the company. Employees that work in such a culture grudgingly follow
the rules and regulations in order to keep their jobs. Those are the traits of a passive culture:

Approval: In such a culture employee can’t take decisions on their own. They need to take their
supervisor’s approval before implementing any idea.

Conventional: Employees are bound by rules and regulations of the organization and act
according to the prescribed standards only.

Dependent: In such a culture, the performance of the employees is dependent on the superior’s
decisions and they blindly follow their boss’s orders.

Avoidance: Employees tend to avoid their own personal interests, satisfaction and simply act
according to the company’s policies.

Aggressive Culture: organizations following an aggressive culture promote competition

amongst the employees. They encourage the employees to compete against each other so that
each one performs better than his fellow worker.

In such a culture, employees seeking their colleague’s assistance are often called as incompetent
employees. Every individual vies for power, attention and strive hard to win appreciation. The
key features of such a culture are opposition, power, perfectionist and competitive.

2.1.7.3. Hofstede’s Model of Organizational Culture

According to Hofsted (1980), various ideologies, beliefs and practices of an organization which
make it different from others. The culture of any workplace decides how employees would
behave with each other or with the external parties and also decide their involvement in
productive tasks. Accordingly, there are majorly six factors which influence the culture of the
workplace.
22
Power Distance Orientation: Power distance describes the variations in workplace cultures
according to the amount of authority given to employees. Some businesses adhere to the idea of
selecting team managers or team leaders, who are in charge of their individual teams and are
tasked with getting the most out of their employees. The team members must also respect their
team captains and follow their instructions and counsel. Every employee is, nevertheless,
responsible for his or her own performance in some businesses. There isn't a specific individual
in control of the staff. The individuals are answerable to none except for themselves. Every
employee gets an equal treatment from the management and has to take ownership of his /her
own work.

Masculinity and Femininity: this refers to the impact of differences in male and female values
on the culture of the organization. Organizations where male employees dominate their female
counterparts will follow different policies as compared to organizations where females have a
major say in the decision making process of the organization. Male employees would be more
aggressive as compared to the females who would be more caring and soft-hearted. The
responsibilities also vary as per the sex of the employees.

Individualism and Collectivism: It could be described as the degree to which an organization

integrates a group mentality and promotes a strong sense of community (as opposed to
independence) within the organization. There are some organizations which strongly rely on
team work. Here individuals with a common interest come together and work as a team.

These organizations believe that the output is always more when individuals exchange their
ideas, discuss things among themselves to come out with innovative ideas. In such a scenario the
employees share a healthy relationship and take each other’s help when required.

Uncertainty Avoidance Index: uncertainty avoidance describes an organization's comfort level

with risk-taking. As risk and return are largely correlative in the business environment, it is
particularly important for organizations to instill a consistent level of comfort with taking risks.
Uncertainty avoidance index refers to a culture where employees know how to respond to
unusual and unforeseen circumstances. It deals with the tolerance level of the employees in both
comfortable and uncomfortable situations.

23
Long Term Orientation: this is the degree to which an organization or culture plans
pragmatically for the future or attempts to create short-term gains. There are some organizations
which focus on long term relationship with the employees. In such organizations people have a
steady approach and strive hard to live up to the expectations of the management. Employees get
attached to the organization and do not look at short term objectives. On the contrary, some
organizations have employees who are more concerned with their position and image. They
follow a culture where people move on in a short span of time and nothing is done to retain them.
The employees are concerned only with their profits and targets and leave as and when they get a
better opportunity.

Tolerance and Restraint: this pertains to the amount (and ease) of spending and fulfilment of
needs. For example, a restrained culture may have strict rules and regulations for tapping
company resources.

2.1.7.4. Denison’s Framework of Organizational Culture

The values and beliefs of an organization give rise to a set of management practices, which are
concrete activities usually rooted in the values of the organization (Dension D. , 1990). These
activities stem from and supplement the dominant values and beliefs of the organization.
Accordingly, Denison’s model states that the four broadly defined cultural traits of involvement,
consistency, adaptability, and mission, collectively facilitate an organization’s capabilities for
integrating and coordinating internal resources as well as its adaptation the external environment,
thereby leading to exceptional organizational performance. Organizations with strengths in two
of the attributes often share certain orientations and outcomes. An organization with a strong
internal focus is focused on the flow of the internal integration of systems, structures, and
processes. It values its people and honors itself on the quality of its products or services. A
strong internal focus has been associated to higher levels of quality, fewer defects and less
rework, good resource utilization, and high employee satisfaction.

The Denison Model of organizational culture high lights four key traits that an organization
should master in order to be effective. At the center of the Model are the organization’s “Beliefs
and Assumptions." These are the deeply held aspects of an organization's identity that are often
hard to access.

24
 Figure 2.1.The Denison Model of organizational culture
(Source: overview of introduction of Denison model).
Involvement According to the first cultural factor, effective organizations are built around
teams, provide employees autonomy, and maximize human potential at all levels. Executives,
managers, and employees are committed to their jobs and feel a stake in the business. According
to Denison (2000), people at all levels think they have some say in decisions that may effect their
work and that their actions directly advance the goals of the company.The engagement
dimension indices consist of three components: empowerment, team orientation, and competence
development. The power, initiative, and capacity for self-management of an individual are the
main topics of the first stage of empowerment. Team orientation places a strong emphasis on
working together to accomplish common goals for which all employees feel responsible.
Capability development defines how the firm consistently invests in the skill development of its
personnel in order to preserve its competitiveness and satisfy continuing business needs.

Consistency is the second aspect of organizational culture that states strong, highly consistent,
well-coordinated, and well-integrated cultures are key components of effective organizations.
Behavior is based on a set of fundamental principles, and leaders and followers are skilled at
coming to an understanding despite divergent points of view. A common mindset and a high
level of conformity produce this kind of consistency, which is a potent source of stability and
internal integration (Denison, 2000).

25
The agreement, fundamental values, coordination, and integration indices are all part of the
consistency dimension. As a result, coordination and integration demonstrate how successfully
various organizational functions and units can work together to achieve common goals.
Organizational boundaries do not impede work flow. The second indicator, called agreement,
measures the degree of underlying agreement and the capacity to resolve disagreements when
they occur. The organization's final fundamental value is that its members share a set of
principles that develop a feeling of identity and a certain set of expectations.

Adaptability is the third organizational dimension, which is motivated by customer

requirements, takes risks and learns from them, and is able to effect change due to its capacity
and experience. In order to improve the organizations' total ability to provide value to their
consumers, the system is continuously changed (Denison, 2000).
The organizational learning, customer focus, and bringing about change indices are related to the
adaptability dimensions. What is meant by "creating change" is the capacity of an organization to
create flexible methods to satisfy changing needs. in order to read the corporate environment,
react swiftly to new trends, and anticipate changes in the future. The second statistic, customer
focus, measures how well a company comprehends, addresses, and foresees the demands of its
customers. The final aspect of organizational learning is how a business receives, evaluates, and
converts external signals into chances to promote innovation, learn, and develop capabilities.

Mission gives the organization a deliberate long-term orientation, which is the fourth dimension.
An organization's mission statement provides a clear direction and set of goals that serve to
identify the best course of action for both the organization and its members. It offers life and
meaning to the organization by defining a social function and external goals. When an
organization has a strong sense of mission, it can change current behavior by visualizing a
desired future state. Successful organizations have a strong sense of direction, which defines
organizational goals and strategic objectives and articulates a future vision for the organization.
According to Denison (2000), when an organization's fundamental mission changes, so do other
aspects of its culture.

Strategic direction, vision and intent, goals and objectives are the mission dimension's
indications. Strategic direction and intent place a strong emphasis on establishing distinct
strategic intentions that convey the organization's mission because everyone can contribute in
26
some way. The importance of having specific goals and objectives that can be linked to the
purpose, vision, and strategy and provide everyone working on them with a clear path of action
is emphasized by the second set of indicators, goals and objectives. A vision for the organization
ensures that everyone in the organization has a common knowledge of the ideal future state. It
provides guidance and leadership while upholding fundamental principles and winning over the
hearts and minds of the workers within the firm.

2.2. Empirical literature

Organizational culture has been studied empirically in a variety of ways. However, the
researcher employed empirical investigations to address the problem found in the study. As a
result, go over a few examples of studies that support the theories covered in the earlier section.
OluOjo (2010) analysed and assesses empirically the impact of corporate culture on employee
job performance as well as organizational productivity using Kirkos sub city woreda 08
administration as the case study. The major objectives of the study were to ascertain if
organizational culture affects employee job performance, and to formulate recommendations
regarding corporate culture and employee job performance. In order to achieve the above
objectives, I designed the following research questions:
Does corporate culture have any impact on employee job performance?
What way does corporate culture impacts employee job performance?
The two following theories were presented: In the government sector, (i) there is no relationship
between corporate culture and organizational productivity, and (ii) there is no relationship
between organizational culture and employee job performance.
To assess the issues, the study uses a survey research methodology. Employees at certain banks
were divided into three strata: management staff, senior staff, and junior staff. A simple random
selection process was used to select 160 employees in total, which satisfies the sample size
requirement.
The required information is correctly and successfully collected. The main method of data
collection was used in this study. A structured questionnaire that includes several of the
components that make up the primary data was presented to the respondents. The survey's name
is "Corporate Culture and Employee Job Performance Questionnaire".

27
The results of the questionnaire's data collection were evaluated, condensed, and interpreted in
accordance using descriptive statistical approaches like total score and simple percentage. Chi-
square was employed to quantify the differences between observed and expected frequency as
well as to demonstrate the degree of significance in evaluating the proposed hypotheses.
With data from the Kirkos Sub City woreda 08 Administration, the researcher attempted to
examine the effect of corporate culture on employee job performance in this study. The study
found that corporate culture is crucial in every organization and that it positively affects
employee job performance. In addition, the study demonstrates a positive relationship between
organizational culture and employee job performance. Additionally, corporate culture has a
favorable impact on the degree of organizational productivity.
The study's findings indicate that every individual has a unique culture and set of beliefs with
which he interacts, and that when he joins a company with a completely different culture and set
of beliefs from his own, he should be given the opportunity to internalize the company's culture
and values first to determine whether he can handle them or not. How well a person performs at
work depends on his capacity to adapt to the organizational culture.
When an organizational culture needs to change, employees must first be informed and made
aware of the new culture because it will impact their performance. The company's organizational
culture must be adhered to by every employee because doing so will promote uniformity among
employees, which will increase dedication and teamwork.
Finally, the study makes a suggestion to management of case study institutions and other
businesses interested in changing their organizational culture in order to boost worker
productivity. Even though empirical finding of OluOjo (2009) realized, there is a positive
relationship between organizational culture and employee job performance in kirkos sub city
woreda 08 administration, the study lacks the dominant and preferred organization culture of
those institutions were not identified well rather, the nature of the corporate culture of the
institutions was analyzed through simply designed structured questioner but if they tried to
identify the preferred and dominant culture of those institutions by using cultural assessment
tools they can recommend more ideas for the organization managers and other concerned bodies.
How ever since the focus area of the study is governmental sector it is very important literature
for this study.

28
Austin O. Oparanma (2010) investigated the impact of organizational culture on employee job
performance in Nigeria (Daewoo Nigeria Limited) company. The main objective of the study
were to show the way the organization effectively manage organizational cultural differences and
to make appropriate recommendations for an effective resolution, aimed at ensuring
organizational development, productivity, and business growth.
In order to do the study, they adopted the descriptive pattern and used questionnaire in collecting
the data. A total of 80 copies of questionnaire were distributed to company officers and
personnel. Since the data were based on nominal scale, simple percentage and Chi-square
methods were used to compute and analyze the stated hypotheses. The findings reveal among
others; the managerial policies, the behavior of the managers toward the employees and their
chances and information gap are the major factors that influence the impact of culture on
employee performance in the selected company in Nigeria.
By the other hand the study done by woinshet taye (2019), from the findings above we can also
conclude that strong organizational culture is not developed in DBE due to weak attention of top
executives for changing the culture of the organization and there is also weak attention to
improve the human aspects of the reform in the organization. That is why the social relationship
between employees is poor in the organization and most employees are not interested to stay in
the organization for the rest of their time. In addition, there was a problem in achieving the goals
of the organization because a shared beliefs, values and collective thinking not developed.
Moreover, due to weak team spirit between employees they are not committed to work hard at
weekend and using fulltime in the organization to accomplish tasks as well as they are not
interested and satisfied by their delivery of services to customers of the organization.
Moreover, employees of the organization do not have sufficient knowledge on reform and
culture development. The relationship between working groups for creating a healthy
competition among employees with a shared organizational culture is weak. Good organizational
culture is important because it shapes; what the organization considers being “right decisions”
what employees consider to be appropriate behavior and how they interact with each other within
the organization, how individuals, work groups and the organization as a whole deal with work
assigned to them, the speed and efficiency with which things get done, the organizations capacity
for and receptiveness to change and the attitudes of outside stakeholders to the organization

29
The results of the study have provided important implications on the relationship between
organizational culture and performance. Previous studies have shown the impact of corporate
culture on performance (Kotter and Heskett, 1992; Denison, 1990; Van der Post et al., 1998) but
did not show the potential relationships of these two factors (organizational culture and
performance) in an integrated way. This study, therefore, has shown the important relationships
of these two factors in an organizational setting, particularly in a developing country like
Ethiopia. This research has also provided us with a better understanding of the relationships of
these factors in order to enhance managerial effectiveness and organizational success.

This study shows that there is a positive relation among organizational culture and employee’s
job performance. This research demonstrates that everyone in the organization comes from
diverse culture and they try to tune their norms and values with organization’s norms and values.
When an employee accepts the culture of organization then he/she performs well. According to
Gallagher (2008), positive employee performance can cause the profit of an organization.

2.3. Conceptual framework

Denison, (1990) organizational culture model served as the primary conceptual framework for
the study. The Denison organizational culture model includes four essential elements:
adaptability, mission, consistency, and involvement

Figure 2.2 Conceptual Framework

Mission

Consistency

Employee
Involvemen performance
t

Adaptability

30
 CHAPTER THREE

3. RESEARCH METHODOLOGY
This chapter provided a thorough breakdown of the study's methodology. It explains the target
population, sample design, data analysis and methodologies, data kinds and sources, data
gathering strategies, and study design and methodology.

3.1. Research Approach

The study is to adopt quantitative approach to quantify respondents’ evaluation following the
impact of organizational culture on employee performance at kirkos sub city woreda 08
administrations. According to Tucker and et al. (1990, p. 5), “Quantitative methods provide an
opportunity to maximize the values of precision, systematization, repeatability, comparability,
convenience, unobtrusiveness and cost effectiveness”.

The quantitative analysis is utilized to gather information from the standard questionnaire
developed to measure organization cultural framework focuses on cultural dimensions of
Involvement, Consistency, Adaptability, and Mission and employees performance.

3.2. Research Design

The study employed an explanatory design to look into how staff performance at Kirkos Sub City
woreda 08 administration was impacted by organizational culture. Organizational culture serves as an
independent variable for this purpose, and employee performance serves as the dependent variable.
Explanatory research designs assist in testing the hypotheses relating to causal links and their
influence on factors such as organizational culture and employee performance. Causal research types
are used to determine the type and strength of relationships between independent variables and
dependent variables. Employee performance is a dependent variable that depends on organizational
culture of the woreda administration, whereas organizational culture is an independent variable. To
make it easier to explain the dominant cultural type and how it affects the performance of the
administrative staff in Kirkos Sub City Woreda 08, a quantitative research methodology were used in
this study. In order to get information from participants, research problems were developed using
qualitative methods like observation. Population and Sampling

31
3.3 Population and Sampling
3.3.1. Target Population
The target population was employees of kirkos sub city woreda 08 administrations. These
employees are located at locations in Addis Ababa. The target population is the whole employees
of kirkos sub city woreda 08 administration. But studying the whole population is impossible due
to high cost and time requirements. Accordingly, the target population was outlined based on
human resource department staff data base.

For the purposes of this study, employees who are graded at or above grade (6) and are regarded
as unskilled labor, such as cleaners, cooks, guards, and similar level employees, are not included
in the target population because they may not have a thorough understanding of organizational
culture, how it relates to employee performance, and how it affects that performance. This is
because organizational culture is a complex topic.
3.3.2. Sample Design
Stratified sampling procedures were used to create the study's sample. In order to ascertain the
parameters or features of the entire population, sampling is the process or technique of choosing
a suitable sample, or subset, from a larger population (Saunders & et al., 2009). The population
was divided into strata, or smaller populations, under the stratified random sampling method.
Each stratum was more homogeneous than the whole population.

3.3.3. Sampling Size Determination

At the time of the study (January 2023) there were 389 total employees working for the Kirkos
Sub City Woreda 08 administration, excluding non-skilled personnel. Yamane (1967:886) offers
a formula that can be used to quickly calculate the sample size for a study. The sample size for
the study has been established using the following formula as a result.
n = __N__
1 + N (e)2
Where: N=Population, n = sample size, e= level of precision, Margin of Error, 95% confidence
level and 5% standard of error.
N = total number of the target population is 389, e=5%
n = __N__

1 + N (e)2 n= 334 = 334 = 182 1+334 (0.05)2 1.835

32
Therefore, a total of 334 employees were considered as a target population from which 182 were
considered as a sample size of the study. Simple random sampling technique was adopted to
draw the sample from each stratum.
3.4. Data Types and Sources
Both primary and secondary sources of data were used in this investigation. Employees of the
Kirkos Sub City Woreda 08 Administration are the main sources of data, which are gathered
using standardized surveys.

To support the study's conclusions, secondary data were used to analyze earlier research projects,
relevant books, publications, and journal articles that were online. Assessing employee data also
aims to determine employees' positions.

3.5. Data collection Instruments

Three sections made up the questionnaire. The goal of the first section is to gather demographic
information from respondents. A total of 39 questions were taken from Denison (1990) to measure
the independent variables, including Involvement (14 things), Consistency (9 items), Adaptability
(10 items), and Mission (6 items). On a 5-point Likert scale, from strongly disagree (1) to strongly
agree (5), 18 items from Omondi, (2014) were modified to assess employee performance.

3.6. Data Collection Procedure

The questionnaire's ease of use, clarity, and manageability were all topics of conversation among
study participants. The questionnaire was personally distributed and collected from the chosen
respondents within each department's jurisdiction by each department office. To maintain the
confidentiality of the data collection, the due date for submission of the questionnaires was
announced to all respondents during the distribution of the questionnaire. The researcher
received the completed questionnaires from each department office by the due date and shared
them with her for additional analysis.

3.7. Methods of Data Analysis

After the data gathering is complete, analysis is done in order to interpret the data and present it
in a useful way. In light of the research goals and objectives, the data collected through
structured questionnaires and pertinent documents were interpreted and summarized in
accordance with the applicable subject.
33
The collected questionnaires were reviewed for accuracy and consistency after which they were
coded to enable classification into several groups. Both descriptive and inferential studies use the
SPSS 23 statistical package for the social sciences. Mean, standard deviation, frequency, and
percentage are used in descriptive statistics to describe the respondents' demographic features.
While correlation and regression analysis used in inferential analysis are used to assess the
strength of the association and the influence of the independent factors on the dependent
variables, respectively.

3.8. Validity and Reliability

To ensure validity, the researcher is making pre-test on a sample respondents before conducting the
data collection. The pre-test study was guide to modify and improve the research questionnaires. In
addition, the items on the questionnaire will face validate by senior colleagues in research area, from
advisor of this research, who assessed and reviewed the appropriateness of questions and the scales
of measurement. Feedbacks on questionnaires were to focus on the standard questionnaires in order
to maintain its meaning will consider. The total questionnaire consisted of 61 closed-ended questions.
The Cronbach alpha reliability test/method used as a diagnostic measure to ascertain the reliability of
the research measuring instrument. Cronbach's alpha coefficients were used to establish internal
consistency and resultant reliability of the instruments used to collect the data. According to
(Davidson, 2003) a reliability coefficient of between 0.60 and 0.90 is recommended. Any coefficient
below this scale was rejected as having the characteristics of inter inconsistency.
Table 3.10.1 Validity and Reliability
Variable Cronbach Alpha No. of Items

Involvement 0.936 14
Consistency 0.928 9
Adaptability 0.991 10
Mission 0.989 6
Employee Performance 0.976 18
Total questions 57

Source: own survey, 2023

34
3.9. Ethical Considerations
In this study, every ethical rule was taken into account as precisely as possible. In order to justify the
need for assistance in delivering the questionnaire, the company requested authorization to allow this
research to be done at the company. The goal of the research was clearly explained to the
respondents prior to the distribution of the questionnaire. Additionally, the questionnaire's
instructions fully informed participants both orally and in writing about the study's goal and its
request for their voluntary involvement. Nobody was forced to take part in the study; everyone who
took part did so voluntarily. The researcher made sure that none of the responses from respondents
were personalized during the presentation, analysis, and interpretation of the data. The privacy of the
data is maintained throughout the research procedure. Since names of participants were not needed to
be entered when answering questions, anonymity was preserved.

35
 CHAPTER FOUR

4. DATA PRESENTATAON, ANALYSIS AND INTERPRETATION

This chapter focuses on data analysis, discussion, and findings about the impact of organizational
culture on employee performance in the case of kirkos sub city woreda 08 administration based
on information gathered from questionnaires given to the organizations staff.

There are three components in this chapter: descriptive, correlational, and regression analysis. The
data gathered through questionnaires and interviews are presented in the first subsection, which is a
descriptive analysis, employing tables, graphs, and charts. The acquired data has also been examined
and explained by the researcher. Additionally, correlation analysis was used in the second subchapter
to determine how closely the two variables are related. Regression analysis is used in the final section
to ascertain the statistical influence organizational culture has on organizational effectiveness.

The data collected through questionnaires and interviews are presented in this section using tables,
charts and graphs. As stated in chapter three i.e. research methodology, 154 questionnaires were to be
distributed. The researcher chose to distribute 160 questionnaires in order to decrease the gap
because of unreturned questionnaires.

2
4.1. Response Rate
Table 4.1 Response of Respondents
Description Respondents

Sample size 182

Questionnaire Distributed 180

Questionnaire Returned 160

Response rate % 90%

Usable response 160

36
4.2. Demographic profile of Respondents
Table 4.2 General Information of Respondents
No. Items Response
No. %
1. Gender of the respondents
a) Male 86 54%
b) Female 74 46%
Total 160 100
2. Age of Respondents
a) 23- 29 47 30%
b) 30-39 52 32%
c) 40-49 39 24%
d) Greater than 50 22 14%
Total 160 100
3. Employment Category
a) Clerical 13 8%
b) Professional 86 54%
c) Managerial 61 28%
Total 160 100
4. Educational level of the respondents
Diploma 18 11%
Degree 112 70%
Masters and above 30 19%
Total 160 100
5 Experience in kirkos sub-city woreda 08 administration
a) 1-3 27 17%
b) 4-6 54 34%
c) Above 7 79 49%
Total 160 100
Resource: own survey 2023
37
For the purposes of this study, the first section of the research questionnaire provided the
demographic profile of the respondents to be used as a building frame for the interpretation of the
results. The respondents profile is organized in terms of gender, age, employment Category,
qualification and, experience in the organization. The result of this demographic presentation is
stated below using descriptive statistics analysis using graphs and pie charts. The respondents’
demographic profile are captured and analyzed in below table.
4.1.
4.2.
4.2.1 Gender Distribution of Respondents
As shown in the above table 4.2 gender category, most of the respondents, 86 (54%) are male, and 74
(46%) are female. Gender is considered as an important attribute while reviewing the employee
performance variations between men and women as they have different perceptions on organizational
culture and its impact on performance.

2.1.3
4.2.2 Age Distribution of the Respondents
As depicted in table 4.2 above, the respondents’ age groups were categorized into four groups. The
first group ranges between 23-29 years, the second is 30-39 years, the third is 40-49 years, and the
last age group is above 50 year. The 47 results showed that 30% of the respondents were between the
ages of 23-29. The age group between 30-39 years age formed majority part of the response which
were 52 (32%). 40-49 age group is the third majority group which were 39 (24%) beside the age
group above 50 years of respondents have 22 (14%) of the total respondents.

The organization under study has a young workforce that has the capability of promoting and
directing the existence of the desired corporate culture at kirkos sub-city woreda 08 administration.
Also, the age group has characteristics to career development and performance oriented; accepting
challenging assignments and adopts constant change.

4.2.1.
4.2.3 Employment Category of the Respondents
As depicted in the table 4.2 above, the research obtained 13 responses (8%) response from the lower
level, Clerical positions. The researcher obtained 86 responses (54%) from the professional
employees while 61 (28%) of the respondent fall under managerial position.

38
4.2.4. Qualification/Educational Level of the Respondents
Looking at the educational qualification of respondents, the highest number of respondents, 112
(70%) have first Degree followed by 30 (19%) were Master’s Degree holders, 18 (11%) are Diploma
holders. Therefore, it is possible to say that academically, majority of respondents hold First Degree
and above.

4.2.5. Work Experience of the respondent

The descriptive data analysis of experience levels of the respondents in kirkos sub city showed that
27 (17%) had from 1 to 3 years of experience with their current organization followed by 54 (34%)
with 4 to 6 years, and finally 79 (49%) with above 6 years of experience. This may have implied that
most of the employees were not hired in recent years but stayed in the organization above four years.

Generally, the analysis of the demographic statistics demonstrated that, the work force comprises
with larger number of male and productive employees while majority of the respondents represented
undergraduates and above. On top of this, the result showed that quite a number of employees stay in
the organization more than four years.

4.3. Descriptive Analysis

4.3.1 Research Objective One:

To assess the organizational culture being practiced at kirkos sub city woreda 08 administration.
As per the research objective stated above, understanding the existing organizational culture at
kirkos sub city woreda 08 administration, employees were asked to give their extent of
agreement to the statements with regard to the four organizational cultural dimensions.
Therefore, the respondents were asked to rate how they felt about the organizational culture
dimensions of Involvement, Consistency, Adaptability and Mission on their performance using
five point Likert scale were then analyzed with descriptive statistics of mean score and standard
deviation. Quantitative data analyses were used based on the collected data from the
questionnaires. The questionnaires were closed ended. It should be noted that the questions were
opinion based which seek to find out views, opinions and perceptions of respondents. The
standard deviation measures how concentrated the data are around the mean; the more
concentrated, the smaller the standard deviation and according to Zaidaton and Bagheri (2009)
the mean score below 3.39 was considered as low, the mean score from 3.40 up to 3.79 was
considered as moderate and mean score above 3.8 was considers as high. A 5-point Likert scale
39
was used to rate the various indicators whereby 1 point was accorded to ‘Strongly disagree’, 2
point as ‘Disagree’, 3-point as ‘Neither agree nor disagree’, 4-point as ‘Agree’, and 5-point as
‘Strongly Agree’. Thus, detail of the analysis was presented as follows.

The following subsections present the results of descriptive analysis as per the research
objectives.
4.3.1.1. Involvement as Organizational Culture Dimension.
Table 4.3. Involvement on Cultural Dimension
Item Statistics
Mean Std.Deviation N
Empowerment
In Kirkos Sub City Woreda 08 Administration most employees 4.47 .615 160
are highly involved in their work.
In Kirkos Sub City Woreda 08 Administration, decisions are 3.46 1.23 160
usually made at the level where the best information is available.
In Kirkos Sub City Woreda 08 Administration, information is 3.00 1.11 160
widely shared so that everyone can get the information s/he need
when it is needed.
Everyone in Kirkos Sub City Woreda 08 Administration believes 3.41 .881 160
that’s/he can have a positive impact.
Business planning is ongoing and involves everyone in the 3.68 1.06 160
process to some degree.
Average 3.60 0.97 160
Team orientation
In Kirkos Sub City Woreda 08 Administration, cooperation 3.11 1.25 160
across different parts of the organization is actively encouraged.
In Kirkos Sub City Woreda 08 Administration, I feel like I am 3.30 1.31 160
part of a team
In Kirkos Sub City Woreda 08 Administration, team work is used 3.42 1.28 160
to get work done, rather than hierarchy.
In Kirkos Sub City Woreda 08 Administration, work is organized 3.13 1.44 160
in a way everyone can easily see the relationship with the goal of
the organization.
Teams are given primary building blocks. 3.00 1.26 160
Average 3.19 1.30 160
Capability development 160
Authority is delegated so that people can act on their own. 3.03 1.19 160

40
I believe, the capability of people is constantly improving 2.93 1.19 160
I agree that Kirkos Sub City Woreda 08 Administration is 3.11 1.33 160
constantly working on developing its employee’s capability.
In my opinion, capabilities of employees within Kirkos Sub City 3.16 1.25 160
Woreda 08 Administration are viewed as an important source of
capability development.
Average 3.05 1.24 160
Involvement 3.28 1.17 160
Source: Own survey, 2023

As showed in the above table 4.3, involvement dimension has three sub section: Empowerment,
Team Orientation and Capacity Development. Empowerment has got the highest mean score of
(M=3.60 with SD=0.97) and followed by Team orientation (M=3.19 and SD=1.30), capacity
development, (M=3.05, SD=1.24).

All mean score for involvement cultural dimension has got moderate mean score 3.28, SD=1.17
that confirmed team orientation and empowerment culture practice is well adopted in kirkos sub
city woreda 08 administration and employees feels that they are part of a team and highly
involved in their work. In regards to capability development, employees believed that there is a
need of exercising consistent employees’ capacity development intervention as indicated from
the respondent from the lowest mean score.

By the other hand when the researcher see the frequency of the Likert scale as follows

Table 4.4 Involvement Cultural Dimension by frequency at kirkos sub city woreda 08
administration
Scale N Percent
Empowerment Strongly disagree 32 4%
Disagree 111 13.8%
Neutral 164 20.5%
Agree 287 35.8%
Strongly agree 206 25.7%
Team orientation Strongly disagree 102 12.7%
Disagree 160 20%
Neutral 180 22.5%
Agree 196 24.5%

41
 Strongly agree 162 20.2%
Capability Strongly disagree 64 10.3%
development Disagree 188 29.3%

Neutral 126 19.6%

Agree 168 26.2%
Strongly agree 94 14.6%
Source own data (2023)

As showed in the table 4.4 involvement dimension by frequency at kirkos sub city woreda 08
administration the data shows that by the empowerment sub section the highest scale is agree N=287
p=35.8% followed by strongly agree which is N=206 P=25.7% the third stage is get by the scale of
neutral by the N=164, P=20.5% the fourth stage is disagree by the N=111 P=13.8% followed by
strongly disagree by the N=32 P=4%. Depending on the above data shows that most of employee at
kirkos sub city woreda administration agree that the empowerment the one dimension of involvement
organizational culture beside they are working and believe by empowerment can do a lot change in
organizational culture.

The other dimension the researcher see in involvement dimension the frequency rank is put as follow
from the highest to the lowest as follows agree get the first rank which is N=196 P=24.5% the second
highest rank is neutral by getting N=180 P=22.5% the third highest score is get by strongly agree
N=162 P=22.5% the fourth rank is get by disagree which is N=160 P=20% the last rank is get by
strongly disagree by the score if N=102 P=12.7%. From the above data shows that most of employee
at kirkos sub city woreda administration agree that the team work one dimension of involvement
organizational culture beside they are working and believe by team work.

The last involvement dimension is capability development, which is the frequency shows that the
highest scale is disagree N=287 p=29.3.8% followed by agree which is N=168 P=26.2% the third
stage is get by the scale of neutral by the N=126, P=19.6% the fourth stage is strongly agree by the
N=94 P=14.6% followed by strongly disagree by the N=64 P=10.3%. Depending on the above data
shows that most of employee at kirkos sub city woreda 08 administration agree that the capability
development the one dimension of involvement organizational culture beside they are working and
believe by the capability development can do a lot change in organizational culture.

42
 2.1.3.2. Consistency as organizational culture dimension
Table 4.4 Consistency Cultural Dimension in Kirkos Sub City Woreda 08 Administration
Item Statistics
Mean Std. N
Deviation
Core value
The core value of Kirkos Sub City Woreda 08 Administration is 2.78 1.26 160
shared widely to everyone and accessible as needed.
In our organization, managers and supervisors are usually doing 3.03 1.27 160
what they are saying in practice.
In our organization, there is ethical value that guides our 3.26 1.25 160
behavior and tells us right or wrong.
Kirkos Sub City Woreda 08 Administration has a clear and 3.36 1.20 160
consistent set of values that dictates the way I do my work.
Average 3.10 1.24 160
Agreement
Different departments and division of Kirkos Sub City Woreda 3.23 1.20 160
08 Administration are able to work together well to achieve
common goals.
I think Kirkos Sub City Woreda 08 Administration has a strong 2.76 1.34 160
organizational culture.
In our organization, when disagreement occurs, employee work 3.28 1.36 160
hard to achieve a ‘win-win’ solutions, reaching consensus,
conflicting issues
Average 3.09 1.30 160
Coordination and integration
In our organization, the approach to doing business is very 3.28 0.55 160
consistent and predictable
In our organization, there is a good alignment of goals across 3.45 0.67 160
level
Average 3.36 0.61 160
Average 3.18 1.05 160
Source: Own survey, 2023

Consistency is the other organizational culture dimension which was intended to evaluate the degree
of the Kirkos Sub City Woreda 08 Administration consistency culture in terms of three sub items
namely: Core values, Agreement and Coordination and Integration.

43
Hence, nine questions were presented to assess the opinion and agreement level of the sampled
employees. While evaluating the perception of respondents on whether Kirkos Sub City Woreda 08
Administration’s core values are shared among the members in the organization, and the average
mean and standard deviation rate was displayed. Among the queries, a question asked about the
existence of ethical code has got the highest mean score (M=4.10; SD=0.92), their perception
revealed that they are familiar with the kirkos sub city woreda 08 administration’s existing core
values.

The overall mean score for the three sub dimensions of consistency culture: Core Value, Agreement,
Coordination and Integration are (M=3.89; SD= 0.72, M=3.71; SD=0.76, and M=3.51; SD=0.70),
respectively. All of the consistency sub-dimensions mean score falls under moderate range except
core value. While comparing their mean score, both agreement, coordination and integration were
lower than core values, this tends to indicate that the organization may have a relatively moderate
intentions in resolving work related disagreement occurs, reaching consensus in conflicting issues or
differing opinions whenever arises. It also have a positive implication that the employees perceived
that there is good alignment of goal across level and the level of enforcement throughout
departments/section may relatively consistence. This indicated that consistency organizational
culture enhance employees productivity having shared value, well-coordinated and integrated
implementation of the organizational objectives.

4.3.1.3. Adaptability as organizational culture dimension

Table 4.5 Adaptability Culture Dimension in Kirkos Sub City Woreda 08 Administration
Item Statistics
Mean Std. N
Deviation
Creating changes
In our organization, the way things are done is very flexible 3.11 1.45 160
and easy to change
Kirkos Sub City Woreda 08 Administration responds well to 3.22 1.26 160
competitors and other changes in the business environment.

New and improved ways of doing works are continually 3.20 1.25 160
adopted in Kirkos Sub City Woreda 08 Administration.
Average 3.17 1.32 160
Customer focus
Customer comments and recommendation often lead to 3.07 1.07 160

44
changes
Customer input directly influence our decision 3.41 1.47 160
All members in Kirkos Sub City Woreda 08 Administration 3.12 1.17 160
have a deep understanding of customer want and needs
Average 3.25 1.23 160
Organizational learning
Learning is an important objective in our day-to- day work. 3.86 1.11 160
In our organization, highest priority and support is given to 3.57 1.34 160
meet the needs of clients and customers and solving their
problems.
We view failure as an opportunity for learning and 3.25 1.21 160
improvement.
In Kirkos Sub City Woreda 08 Administration, innovation and 2.88 1.35 160
risk taking are encouraged and rewarded.
Average 3.39 1.25 160
Adaptability 3.27 1.26 160
Source own data (2023)
The above table 4.5 sought that majority of the respondents agreed that organizational learning is
a key adaptability culture dimension on employee’s performance as shown by a mean of 3.39
and a standard deviation of 1.25. Customer focus and Creating changes has also got moderate
mean score (M=3.25, SD=1.23), and (M=3.17, SD=1.32) respectively.

The highest mean score presented from employees response regarding flexibility and easy
change when doing things, giving highest priority and support to clients and customers to meet
their needs and solve problems and learning as important objectives on day to day work.
However, lower mean score shows innovation and risk taking practices were encouraged and
rewarded among the other questions. In general, the importance and practice of adaptability
cultural dimension in Kirkos Sub City Woreda 08 Administration was indicated as a moderate
mean score of (M=3.27, SD= 1.26)

4.3.1.4. Mission as Organizational Culture Dimension

Table 4.6 Mission Cultural Dimension at Kirkos Sub City Woreda 08 Administration
Item Statistics
Mission Mea Std. N
n Deviatio
n
Strategic direction and intent
45
There is a clear mission that gives meaning and direction to our 3.02 1.33 160
work in Kirkos Sub City Woreda 08 Administration.
There is a clear strategy for the future in Kirkos Sub City Woreda 3.33 1.33 160
08 Administration
Average 3.17 1.33 160
Goal and objective 160
The goal of the organization is widespread among employees of 3.40 1.16 160
Kirkos Sub City Woreda 08 Administration.
We continuously track our progress against ourstated goals 3.46 1.17 160
Average 3.43 1.65 160
Vision 160
We have shared the vision of what Kirkos Sub City Woreda 08 3.23 1.31 160
Administration will be like in the future.
Kirkos Sub City Woreda 08 Administration Vision always make 3.08 1.42 160
me happy and motive me to accomplish my work.
Average 3.15 1.38 160
Mission 3.25 1.45 160
Source own data(2023)

The mean score for mission was high (3.43). Vision and strategic direction, sub-cultural dimensions
of mission, has got the highest score; (M=3.43, SD= 1.65) and (M= 3.17 SD=1.33) followed goal and
objectives, (M=3.15, SD=1.38). Most of the respondents were in agreement with widely speeded
company’s goal and objectives and clarity of the vision and long term strategy that motivated
employees to perform well. This indicates that employees give more value and agree with the
measure of mission statements.

4.3.1.5. Employee Performance

Table 4.7 Employees' Performance in kirkos sub city woreda 08 administration
Item Statistics
Mean Std. N
Deviation
I have a complete knowledge and understanding of my 3.18 1.47 160
tasks.
I have the required skills to perform my task. 3.62 1.18 160
I have the required level of motivation to perform the 3.23 1.22 160
tasks with minimum will and efforts.
I am able to manage my time and allocate resources 3.25 1.27 160
effectively.
My organization examines targets given for employees or 3.58 1.13 160
teams against the planned objectives.
46
 I perform my work to the expected standards. 3.71 0.90 160
I complete in all areas of my job handling tasks with 3.80 0.68 160
proficiency.
I receive regular performance reviews. 3.10 1.50 160
I always reach my objective set (performance target). 4.13 0.67 160

I understand how my performance is evaluated. 3.43 1.17 160

I understand the link between my performance and my 3.11 1.45 160
pay.
I do my job independently. 3.67 1.13 160
I am able to make quick judgments with limited 3.38 1.35 160
information.
I am effectively communicate toper form my job 3.62 1.08 160
I trust the feedback I receive from my Supervisor. 3.51 1.24 160
I am able to judge a given work situation and respond to it 3.71 1.02 160

I delivered my work assignments timely 4.02 0.87 160

I think carefully before responding to customers and 3.91 0.98 160
project activates
Average 3.60 1.16 160
Source: Own Survey, 2023
The above table shows at the mean of employees’ performance 4.10 and standard deviation of 0.38.
Employees’ of Kirkos Sub City Woreda 08 Administration ’s performance response rate was
assessed with eighteen performance indicator parameters. The sampled employees were asked to
indicate whether they agreed or disagreed with the statements to rate with a five-scale agreement and
it was presented in the above table.

As shown in the Table 4.7 above, it is evident from the respondents that the performance levels of
employees were all good starting with the required skills of employees to perform the task with a
mean of 4.50, followed by employees’ timely delivery of work assignments supported by a mean of
4.47. Employees’ effective time and resource management by a mean of 3.60 On the other hand, the
lower mean score shown for the questions about regular performance reviews and examining targets
given for employees or teams against the planned objectives, 3.39 and 3.47 respectively. The overall
mean score for employee performance is 4.01, with standard deviation of 0.38 which is high.
Majority of the respondents agreed that employee performance towards their task was generally very
good as per their perception.

47
All in all, from statistic mean score (M= 4.02; SD=0.44) Mission has got the highest among the other
three cultural dimension. Followed by consistency (M=3.75; SD=0.65), Involvement (M=3.63;
SD=0.64.), and Adaptability (M=3.72; SD= 0.46) respectively. It means that mission organizational
culture is predominantly practice in the organization. The mean score for dependent variables,
employee performance mean score shown also a high score.

4.4. Correlation Analysis

Research Objective Two: Impact of Involvement, Consistency, Mission and Adaptability of
cultural dimensions on employee’s performance.

In order to examine the impact of organizational culture on employee performance, inferential

statistics i.e. correlation and regression analysis, have been considered and the results are
interpreted as follows.

Correlation analysis is used to measures association and confirms the relationship between the
variables. Accordingly Person correlation coefficient was used to examine the magnitude
(intensity of relationship -1 to +1) and the direction of the relationships (+ve/-ve) (Mark et. al.,
2009). Likewise, the significance level, p-value, is labeled as “Sig.” in the SPSS output and
helped to statistically determine the significance of the results during a hypothesis test. If the
significance value is less than 0.05 (p<0.05) then the relationship is statistically significant. If the
significance value is greater than 0.05 (p>0.05) then the relationship is not statistically
significant.

Table 4.8 Correlations Result

Variables Involvement Consistency Adaptability Mission Employee
Performance
Involvement Pearson 1
Correlation
Sig. (2-tailed)
N 160
Consistency Pearson .950** 1
Correlation
Sig. (2-tailed) .000
N 160 160
Adaptability Pearson .954**
.992** 1
Correlation
48
 Sig. (2-tailed) .000 .000
N 160 160 160
Mission Pearson .955**
.979**
.988** 1
Correlation
Sig. (2-tailed) .000 .000 .000
N 160 160 160 160
Employee Pearson .949**
.979**
.983 **
.985** 1
Performance Correlation
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Own Survey: 2023
According to Marczyk, Dematteo and Festinger, (2005) correlations of 0.01 to 0.30 are
considered small, correlations of 0.30 to 0.70 are considered moderate, correlations of 0.70 to
0.90 are considered large, and correlations of 0.90 to 1.00 are considered very large.

From the Pearson correlation analysis; employee performance was found to have a moderate
positive correlation with the organizational culture dimensions. Involvement dimension with
(r=0.596, P < 0.05) followed by consistency dimension (r=0.552, P<0.05), Mission (r=0.531, P <
0.05) and adaptability with (r=0.437, P < 0.05).

From this correlation output obtained sig.(2- tailed) of 0.000 < 0.05 it can be concluded that there
is statistically positive significant relationship between organizational culture dimensions and
employees performance practices in KIR-KOS SUB CITY WOREDA 08 ADMINSTARION .

4.5. Regression Analysis

In the application of regression analysis, the first step is to check assumption in order to ensure
the appropriateness of data for a regression analysis.

4.5.1. Checking the Assumption

4.5.1.1. Normality and Linearity Test

Linearity refers to the degree to which the change in the dependent variable is related to the
change in the independent variables. To determine whether the relationship between the
independent variable organizational culture (Involvement, Consistency, Adaptability and
Mission) and the dependent variable that is employee performance linear; Normal probability
plots of the regression residual through SPSS software had been used.

49
 Figure 4.1.P-plot graph

Source: Own survey: 2023

The scatter plot of residuals shows no larger difference in the spread of the residual as you look
from left to right on figure 4.1. This result suggests the relationship we are trying to predict is
linear. Similarly, the above figure shows the normal distribution of residuals around its mean of
zero. Hence the normality assumption is fulfilled as required based on the above figure, it is
possible to conclude that the inference that the researcher made about the population is
somewhat valid.

4.5.1.2. Multicollinearity
Multiple linear regression analysis was employed in addition to linearity and normality test to
examine the significant impact of the independent variables on the dependent variable. This is
because the study comprises one dependent variable and two or more independent variables
(Kothari 2004). Multicollinearity verifies that the independent variables are not highly correlated
with each other, tested using VIF/Variance Inflation Factor and tolerance. If the results of VIF are
below 10 and the tolerance value greater than 0.1 then there is no possibility of multicollinearity
among this variables (Hair et al., 2006).

50
 Table 4.9. Multicollinearity Diagnosis
Coefficients
Model Collinearity Statistics
Tolerance VIF

1 (Constant)
Involvement .083 12.110
Consistency .017 60.483
Adaptability .009 105.269
Mission .022 46.108
Source: Own survey: 2023

The above table 4.9 displays that the multicollinearity tests by computing tolerance values and
Variance Inflation Factor (VIF) for each independent variables. In this case, all the tolerance values
are greater than 0.10 and VIF is less than 10. Hence, the researcher assumed Multicollinearity was
not a problem so that regression analysis can be conducted.

4.5.2. Linear Regression Analysis

4.5.2.1. Analysis of Variance (ANOVA)

The key purpose of ANOVA test is to show whether the model is significantly better at
predicting the dependent variable, employee performance or using the means.

Table 4.10Analysis of Variance (ANOVA)

ANOVAa
Model Sum of df Mean Square F Sig.
Squares
1 Regression 147.284 4 36.821 1554.259 .000b

Residual 3.672 155 .024

Total 150.956 159

a. Dependent Variable: Employees Performance

b. Predictors: (Constant), Mission, Adoptability, Involvement, Consistent
Source: Own Survey, 2023
The overall statistical acceptability or significance of the model was proved as indicated in the
above ANOVA table. Accordingly, the findings in Table 4.10 established the independent
variables significantly predict the dependent variables, F=36.821, p value .000, i.e. p<.005

51
inferring that the model was significant. This can be concluded that accepting at least one of the
cultural dimensions (i.e. involvement or consistency or adaptability or mission) had a significant
influential relationship on employees’ performance.

4.5.3. Multiple Linear Regression Analysis

Multiple regression models attempt to determine whether a group of variables together predict a
given dependent variable. A multiple regression model separates each individual variable from
the rest allowing each to have its own coefficient describing its relationship to the dependent
variable. Multiple regression models were used to determine the causal relationship between
organizational culture and employees’ Performance.

4.5.3.1 Model summary

Table 4.11: Model Summary
Model Summary
Mod R R Adjusted R Std. Error Change Statistics
el Square Square of the R Square F df1
Estimate Change Change
1 .988a .976 .974 .15646 .976 752.061 4

a. Predictors: (Constant), mission, adoptability, involvement, consistency

b. Dependent Variable: employee’s performance
Source: Own survey: 2023
In the above table 4.11, R Square is the coefficient of determination of the two variables which
shows the percentage of total variation of the dependent variable explained by the independent
variable. The analysis shows, R2 = 0.976 (97%), which is a high coefficient and clearly implies that
97% variation in employees performance are explained by organization culture. The remaining 3 %
variation is explained by stochastic error term (e) meaning that 15% of changes in employees
performance changes are explained by factors that are not explained in the model

4.5.4. Regression Coefficients

Table 4.12 Coefficients
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
1 (Constant) .799 .093 8.608 .000
Involvement .038 .048 .034 .780 .437
52
 Consistency .257 .103 .243 2.492 .014
Adaptability .115 .102 .144 1.123 .263
Mission .444 .066 .572 6.728 .000
a. Dependent Variable: Employee performance
Source: Own survey: 2023
The regression coefficients in table 4.12 demonstrate that the relative extent of the influence that
each independent variable has on the dependent variable and through which the most
contributing predictor/independent variable is revealed. The results of the analyses presented
above allow us to answer the second and third research questions. Standardized beta coefficient
was considered to compare the strength of each predictor/independent variable influence on the
criterion employee performance.
The above table describes involvement and mission had significant contribution in predicting
employee performance (β=0.034, P<0.05) and (β=0.247, P>0.05) respectively. The significance
levels of mission 0.000 and consistency 0.014, which was less than 0.05. Thus, mission is the
most contributing organizational culture dimension in the prediction of employee performance
with beta value 0.572, followed by consistency r=0.247 that make statistically significant to the
prediction of employee performance. Hence, the overall result established that mission cultural
dimension have the greater rate of influence than the other predictors considered in this study.

Therefore, the hypotheses related to mission and involvement were accepted, but the significant
level of consistency is 0.490 and 0.822 for adaptability, which is greater than 0.05. This implies
both consistency and adaptability variables were statistically insignificant relationship between
employee’s performance as per this study and hypotheses were rejected. In general, the two
cultural dimensions i.e. mission and involvement have statistically significant influential
relationship (contribution) to employees’ performance. But consistency and adaptability have
positive but statistically insignificant influential relationship (contribution) to employees’
performance as it is explained by the significance level p>0.05 according to this study. This
indicates that, though the company tries to maintain a strong culture by being highly maintain a
strong culture through involvement and mission culture, this doesn’t significantly contribute to
the level of consistent and high adaptability with employees’ performance based on this study.

53
4.6. Discussion of results on Organizational Culture
The respondents of the study expressed varied opinions towards the existence and preference to
involvement, consistency, adaptability and, mission culture. However, it was evident that, in
most cases, the existence of involvement culture was rated the highest and the preference to
achievement culture was rated high as well. Involvement culture had the highest mean of 3.28,
which is attributed to the fact that the respondents of the study perceive that there is a strong
presence of Involvement culture currently in kirkos sub city woreda 08 administration. This type
of culture, according to Harrison and Stokes (1992:23) has an involvement of an organization
refers to coordinating people within the organization and creating a sense of ownership,
responsibility, and autonomy. This makes employees feel more like they’re a part of the
organization. This component is based on flexibility and internal focus. Involvement also
consists of the following three components: Empowerment says something about the areas in
which employees can make their own decisions, and where they can’t. Team focus says
something about the support for employees to achieve individual and shared goals through
teamwork. Team focus can either be encouraged, or employees only work for their own results.
Capability development is about training, coaching, and developing employees, for instance by
trying out new roles and responsibilities. These are important tools for developing new
competencies and developing employees.

The preferred culture as indicated by the respondents is consistency culture Consistency refers to
integrating activities, coordination, and monitoring when setting up an internal governance
system. Consistency is the final component of the Denison organizational culture model and is
rooted in stability and internal focus. Consistency further consists of the following components:
Core values refer to the set of values that aid consistent decision making. Through dialogue and
by looking at a problem from multiple angles, employees and management can achieve
agreement on difficult issues. Employees understand how their work impacts the work of others
and vice versa. Employees therefore make sure that they coordinate the work to better serve the
organization it appears, from the response of the target population that most of them want to
make a meaningful contribution to this organization, as indicated by the highest average mean
for preferred culture (3.18).
54
The adaptability culture type is also widely preferred, as is indicative by the average mean of
3.27, Indicates that the respondents would also prefer the extent to which an organization can
observe organizational processes and change them if needed. Adaptability is part of the
flexibility quadrant in the Denison model for organizational culture, which also contains the
following components. Creating change refers to the welcoming and encouraging of new ideas
and the willingness to actually implement change within the organization. Companies might
have a certain aversion against change, but successful businesses actually see change as
opportunity. They make it a regular part of the way they do business. Customer focus refers to
the focus on new and existing customers and the willingness to explore new and improved ways
and methods to better serve these customers. A successful organization remains focused on its
customers and tries to find ways to meet customer expectations. Organizational learning is about
acquiring knowledge about the organization’s successes and failures and taking risks. The core
question of this component is: What can we learn to serve our customers in a more focused
manner?

The fourth culture that have the third preferred culture that find by the employee is mission
culture and it is the mean of (3.25). The mission culture is an organization’s mission refers to the
question why the organization’s daily activities contribute to shared goals and results. The
mission component is based on stability and is externally oriented. The following components
are related to the mission: The strategic direction & intention refers to the strategies an
organization uses to determine the right long-term priorities, and that are used to realize the
vision. The component goals and objectives is about creating both short-term and long-term
goals (SMART). These objectives are created to aid and motivate employees. They help
employees gain a better understanding of how their employer’s mission and vision is related to
their daily activities. The vision is the ultimate reason for an organization to do business. It
shows the organization’s long-term goal; what it hopes to achieve.

4.7. Hypothesis Testing

The four hypotheses which were developed earlier in chapter two were tested based on the
regression coefficient data.

55
 Table 4.13 Summary of Tested Hypothesis

No Developed Hypothesis Test Result

1 Consistency has a significant and positive impact on Accepted
employees’ performance
2 Adaptability has a significant and positive impact on Rejected
employees’ performance.
3 Mission has a significant and positive impact on Accepted
employees’ performance.
4 Involvement has a significant and positive impact Rejected
on employees’ performance.

56
 CHAPTER FIVE

5. FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents a summary of the study findings, conclusions, recommendations, limitation
of the study and future research direction. Based on the key findings and results, conclusions are
drawn and recommendations were made. The recommendations included interventions to
improve employee performance in the studied organization and pave the way for further studies.

5.1. Summary of Major Findings

The findings derived from the data analyzed by using descriptive statistics, correlation and
regression were presented below:

 From the arithmetic mean values generated by the descriptive statistics, it shows that the three
independent variables, Adaptability (M=3.27; SD=1.2), Mission (M=3.25; SD= 1.25) and
Consistency (M=3.16; SD=0.92.), ranges under moderate mean score but Involvement culture
(M= 3.30; SD=0.87), got high mean score and highest among the three cultural dimensions.
This indicates that organizational cultural dimensions were practiced in kirkos sub city woreda
08 administration in which involvement cultural dimension were predominantly practice
among others dimensions. Moreover, its importance contribution to employees’ performance
that confirmed as per the perception of employees in this study.

 Lowest mean were depicted from the response from consistency cultural dimension, core
value, and goal and objective from mission cultural dimension. This implies that the need to
exercising consistent employees’ capacity development intervention and encouraging and
rewarding the practice of innovation and risk taking adaptability culture were indicated.

 The Employee Performance variable has got a highest mean score of (M=3.55, SD=0.97)
however lower mean scored learned from the response on regular performance reviews and
examining targets given for employees or teams against the planned objectives.

 From the Pearson correlation analysis; employee performance was found to have a moderate
positive correlation with the organizational culture dimensions. Mission dimension with
(r=0.985; p < 0.01) followed by adaptability dimension (r=0.983; p < 0.01), consistency
(r=0.979; p < 0.01) and involvement with (r=0.949; p < 0.01). From this correlation, it can be

57
 inferred that consistency, involvement, adaptability and mission culture dimensions have
statistically moderate positive correlation with employees’ performance. This finding was
consistent with early research studies (Senit L, (2017); Bethelhem H, (2017)woinshet K.
(2021).

 The regression coefficient result of Involvement dimension in kirkos sub city woreda 08
administration was indicated as (β=0.034, P<0.05), implying a 3.4% of increase in employee
performance is due to the change in the mission culture practices, which entails that
involvement culture dimension has a positive relationship and significant impact on employee
performance. P is less than 0.05 statistically significant.
 The regression coefficient result of Mission in kirkos sub city woreda 08 administration was
defined with (β=0.572, P>0.05), which infers that 57.2% of increase in employee performance
is explained or justified by due to the changes in Mission culture dimension.
 The regression coefficient result of adaptability culture dimension was denoted as (β = 0.144,
P>0.05) and consistency culture dimension has got a Beta coefficient with (β = 0.243 P>.05)
in this relation, consistency and adaptability culture positive relationship with employees
performance but insignificance coefficient result which were above the p value of 0.05.
 As per the finding of this research, involvement cultural dimension has statistically positive
impact on employee performance. This indicates that when involvement culture dimensions is
practical, performance of employees would increase.

5.2. Conclusion
The study was intended to examine the impact Organizational Culture on employees’
performance in the case of kirkos sub city woreda 08 administration. The study was also
explored the impact of the four types of Organizational Cultural dimension; Involvement,
Consistency, Adoptability and Mission on employee performance. Based on summary of the
findings of this study, the researcher derived the following conclusions in order to address the
research questions that this study sought to answer.
The results indicated that all the variables of Organizational culture (Consistency, Adaptability,
Mission and Involvement) have positive relationship with employee‘s performance. The study
shows that mission culture dimension has been a dominant cultural practice within the selected
organization, kirkos sub city woreda 08 administration among the other three organizational
58
cultural as per the descriptive analysis. This is consistent with other research, (Messeret N, 2018;
Bethelehem H, 2017).
As inferred from descriptive analysis, employees’ high involvement in their work resulted to feel
that they are part of the team in the organization and team work was highly encouraged and
employees’ perceived gaps in organizational cultural practice in their performance particularly
the provision of employees’ capacity development, encouraging and rewarded innovation and
risk taking culture, plan objectives and targets given to employees, regular performance review
as per employees perception. This result was consistent with studies of (Omondi D, 2014).
The regression analysis also revealed that involvement and mission culture showed statistically
significant cultural dimension that affected employee performance. Whereas, adaptability and
consistency cultural dimension, indicated a positive but insignificant relation with employees
performance based on the Beta coefficient result in this study. This is inconsistent with the
research by Meseret N (2018) indicated that Consistency and Adaptability sub culture
dimensions have a positive and a high significant impact on employees’ performance.
Moreover, different researches finding were revealed on practices of organizational cultural
dimensions that differ from one organization to another. For instant Mission and Adaptability
cultural dimension has got statistically significant impact on performance practice in ECA while
involvement has negative impact. (Senit L, 2017). According to (Mousavi, Hosseni, and
Hassanpour 2015), results of the study showed that between the components of organizational
culture, just involvement and adaptability affect the performance of the organizationwhile the
other components have indirect impact on the performance. The results of the study have
provided important implications on the relationship between organizational culture and
employees performance practices and has also provided us with a better understanding of the
relationships of organization culture and employees performance as one of the factors to increase
effectiveness and success of organizations unlike the previous studies. (Kotter and Heskett, 1992;
Denison, 1990).
In general, organizational cultural dimensions, Involvement, consistency, adaptability and
mission have proven a positive relationship with organizational culture. Moreover, influence of
each dimensions of organizational culture practice varies from one organization to another as
shown in above researches. Therefore, it is vital to understand the organizational culture and
different aspects of employee performance (Ratnawat, 2014). Studies have also shown that the
59
relationship between many cultural attributes and employees’ performance has not been
consistent over time (Denison, 1990); (Sorenson, 2002).
Therefore, it can be concluded that organizational culture is practiced in the organization and
believed it is very important in improving the level of employees’ performance which was
asserted by the statistically significant contribution of mission and involvement towards
employees’ performance. However, consistency and adaptability have positive but statistically
insignificant contribution towards employees’ performance with p>0.05. Finally, we can
conclude that not all cultural measures have significant contribution towards employees’
performance but there might be other factors which are not included in this study.

5.3. Recommendations
In this section, some important suggestions were made on the basis of the findings of the study.
Therefore, in view of finding of the study, the researcher recommends the followings.
 As per the finding of this study, mission and involvement cultural dimension have significant
impact on employees performance that kirkos sub city woreda 08 administration needs to
maintain good cultural practice by communicating its mission and vision to the newly hired
employees consistently in order to enhance employee’s performance.
 As organizations are expected to have the ability to understand and react to the competitive
environment, kirkos sub city woreda 08 administration requires to encourage and reward
innovation and risk taking adaptability strategy to enhance employees’ confidence and
organization be more proactive for changes.
 As it is observed from the result of this research paper, 97.7% of the variation of employees’
performance were predicted by the independent variables of the study (i.e. involvement,
consistency, adaptability, and mission). This implies that there were also other contributing
factors (indicated by the remaining 3.3% of variation) which were related to employee’
performance. These may be job satisfaction, employee rewards, employee’ motivation,
employee’ engagement etc.

5.4. Limitations and Suggestions for Future Research

 The study of the research is confined with only one organization and even with limited sample
size; therefore, future researchers should also make their researches to consider other sectors
so as broaden empirical evidences in the area.
60
 Future researchers can also apply various types of organizational culture models formulated
by different authors other than the Denison model.
 The study should also incorporating responses of participants from other job categories such
as Consultants, Individual Contractors, Fellows and Interns who have a contract of a
temporary nature.
 Researchers are recommended to make their research based on the employees performance
appraisal result other than on the employees’ perception and opinion.

61
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 Appendix I
Questionnaire to be filled by Employees of Kirkos Sub City Woreda 08 Administration.

Dear Participant,

I am Surafel Tadesse a graduate student at National College. As part of my Master’s Degree

requirement, I am expected to successfully conduct a research paper on a relevant topic in my
area of concentration. Therefore, I am undertaking a research to identify the ‘Impact of
Organizational Culture on Employee’s Performance’. The result of the study will assist the
case study of the organization; Kirkos sub city woreda 08 administration.

Hence, this questionnaire is designed to collect relevant information to conduct the study. Your
participation in this survey is voluntary. You may refuse to participate or leave blank any
questions you don’t want wish to answer. You are not required to write your name to maintain
anonymity and your responses will remain confidential and the information you provide will be
used only for the purpose of the study. Results will be reported as aggregate and there is no way
a response can be traced to any individual respondents. Hence, there is no harm in participating
in this study.

If you agree to participate, please answer the questionnaire to the best of your knowledge. It only
takes about 15 minutes to fill out questions under General profile, Organizational Culture and
Employees’ performance category. Please take into consideration that the soundness and the
validity of the findings will highly depend on your genuine responses.

Thank you in advance for your kind cooperation and your support is highly appreciated.

Yours sincerely,

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Part I: General Profile (Please put ☑mark using the check box that best describes you).

1. Gender : ☐ Male ☐ Female

2. Age between : ☐ 23-29☐30-39 ☐40-49 ☐>50

3. Employment category:☐Clerical ☐Professional ☐Managerial

4. Qualification : ☐Diploma ☐Degree ☐Masters & above

5. Experience in the organization:-☐ 1 - 3 ☐4 – 6 ☐above 7 years

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 Appendix II

National collage

DEPARTEMENT OF BUSSINESS ADMINISTRATION (MBA)

MASTERS PROGERAM

PART II: ORGANIZATIONAL CULTURE SECTION

Please indicate the degree of your agreement/disagreement with the following statements
associated with the four dimensions of organizational culture; Involvement, Consistency,
Adaptability and Mission to what extent each statement fits the culture of your organization,
Kirkos sub city woreda 08 administration?

(Please click on the check box to put  mark that best describes your view by using the scale of
1-5 where,

(1) Strongly Disagree (SD) (3) Neutral (N)

(2) Disagree (D) (4) Agree (A) (5) Strongly Agree (SA)

Questions on organizational culture Dimension (1) (2) D (3)N (4) A (5) SA

NO. SD

Involvement

I. Empowerment

1 In Kirkos Sub City Woreda 08 Administration most

employees are highly involved in their work.
2 In Kirkos Sub City Woreda 08 Administration, decisions are
usually made at the level where the best information is
available.
3 In Kirkos Sub City Woreda 08 Administration, information is
widely shared so that everyone can get the information s/he
need when it is needed.
4 Everyone in Kirkos Sub City Woreda 08 Administration
believes that’s/he can have a positive impact.

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NO. Questions on organizational culture Dimension (1) SD (2) (3)N (4) A (5) SA
D

5 Business planning is ongoing and involves everyone in the

process to some degree.
II Team Orientation
6 In Kirkos Sub City Woreda 08 Administration cooperation
across different parts of the organization is actively
encouraged.
7 In Kirkos Sub City Woreda 08 Administration I feel like I am
part of a team
8 In Kirkos Sub City Woreda 08 Administration team work is
used to get work done rather than hierarchy.
9 In Kirkos sub city woreda o8 administration, work is
organized in away everyone can easily see the relationship
with the goal of the organization.
10 Teams are given primary building blocks.
III Capability Development
11 Authority is delegated so that people can act on their own.
12 I believe the capability of people is constantly improving
13 I agree that Kirkos Sub City Woreda 08 Administration is
constantly working on developing its employee’s
capability.
14 In my opinion capabilities of Employees within Kirkos
Sub City Woreda 08 Administration are viewed as an
important source of capability development.
Consistency
IV Core Value
15 The core value of Kirkos Sub City Woreda 08
Administration is shared widely to everyone and
accessible as needed.
16 In our organization managers and supervisors are usually
doing what they are saying in practice.
17 In our organization there is ethical value that guides our
behavior and tells us right or wrong.
18 Kirkos Sub City Woreda 08 Administration has a clear and
consistent set of values that dictates the way I do my work.
V. Agreement
19. Different departments and division of Kirkos Sub City
Woreda 08 Administration are able to work together well
to achieve common goals.
20 I think Kirkos Sub City Woreda 08 Administration has a
strong organizational culture.
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21 In our organization, when disagreement occurs employee
work hard to achieve a ‘win-win’ solutions reaching
consensus conflicting issues
VI Coordination and Integration
22 In our organization the approach of doing business Is very
consistent and predictable
23 In our organization there is a good alignment of goals
across level
Adaptability
VII Creating Change
24 In our organization the way things are done is very flexible
and easy to change
25 Kirkos Sub City Woreda 08 Administration responds well
to competitors and other changes in the business
environment.
26 New and improved ways of doing works are continually
adopted in Kirkos Sub City Woreda 08 Administration.
VIII Customer Focus
27 Customer comments and recommendation often Lead to
changes
28 Customer input directly influence our decision

29 All members in Kirkos Sub City Woreda 08 Administration

have a deep understanding of customer want and needs

XI Organizational Learning

30 Learning is an important objective in our day-to-day work.

31 In our organization highest priority and support is given to
meet the needs of clients and customers and solving their
problems.
32 We view failure as an opportunity for learning and
improvement.
33 In Kirkos Sub City Woreda 08 Administration innovation
and risk taking are encouraged and rewarded.
Mission
X Strategic Direction and Intent

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34 There is a clear mission that gives meaning and direction to
our work in Kirkos Sub City Woreda 08 Administration.
35 There is a clear strategy for the future in Kirkos Sub City
Woreda 08 Administration
XI Goal and Objectives
36 The goal of the organization is wide spread among
employees of Kirkos Sub City Woreda 08 Administration.
37 We continuously track our progress against our Stated goals

XII Vision
38 We have shared the vision of what Kirkos Sub City
Woreda 08 Administration will be like in the future.
39 Kirkos Sub City Woreda 08 Administration Vision always
make me happy and motive me to accomplish my work.

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 Appendix III
Part III. Employee performance section
This part of the questionnaire consists of questionnaires which are designed to assess your
perception about the level of your Performance accomplishment within your organization,
Kirkos Sub City Woerda 08 Administration.

Please indicate with a tick mark  or (x) the extent to which you agree or disagree with the
following statements by using the scale of 1-5 where (1) for Strongly Disagree (SD), (2)
Disagree (D), (3) Neutral (N), (4) Agree (A) and (5) for Strongly Agree.

NO. Questions on organizational culture Dimension (1) (2) (3) (4) (5) SA
SD D N A

1 I have a complete knowledge and understanding of my

tasks.
2 I have the required skills to perform my task.
3 I have the required level of motivation to perform the
tasks with minimum will and efforts.
4 I am able to manage my time and allocate
resources effectively.
5 My organization examines targets given for employees
or teams against the planned objectives.
6 I perform my work to the expected standards.
7 I complete in all areas of my job handling tasks with
proficiency.
8 I receive regular performance reviews.
9 I always reach my objective set (performance target).

10 I understand how my performance is evaluated.

11 I understand the link between my performance and my
pay.
12 I do my job independently.
13 I am able to make quick judgments with limited
information.
14 I am effectively communicate to perform my job
15 I trust the feedback I receive from my Supervisor.

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NO. Questions on organizational culture Dimension (1) (2) (3) (4) (5) SA
SD D N A

16 I am able to judge a given work situation and respond to

it.
17 I delivered my work assignments timely.

18 I think carefully before responding to customers and

project activities.

THANK YOU VERY MUCH FOR YOUR TIME AND WILLINGNESS!

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