The Effect of Organizational Culture on Project Performance: The Case of Action Against Hunger, Ethiopia
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Date
2024-10
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Addis Ababa University
Abstract
The purpose of this study is to assess employee’s perception on the effect of organizational culture on overall project performance in Action Against Hunger, Ethiopia. The objective of the study was to determine the effect of the organizational culture types, as defined by Cameron and Quinn's Competing Values Framework (CVF) namely clan culture, adhocracy culture, market culture, and hierarchy culture on the performance of NGO projects. The research design adopted for this study was a case study in which the research pursued to collect data from a target population of employees working in Action Against Hunger, using a survey questionnaire. This study used two sampling stages. A purposive sampling technique was adopted to select the regions (Amhara, Oromia, and Gambella) including the head office from operational areas of Action Against Hunger. The target population contained 348 employees from the selected regions and the head office. A sample size of 327 was drawn from the overall target population and out of those, 149 responses were valid for analysis. Descriptive Statistics, Pearson correlation, and Multiple Linear Regression analysis were carried out to analyze the data by using SPSS IBM version 26. The results show that Hierarchy culture was the dominant culture type in the organization. In addition, this study found that the organizational culture types namely clan culture, adhocracy culture, and hierarchy culture have a significant and positive relationship with employee performance whereas Market culture does not show statistically significant importance with p-value >0.005. According to the regression analysis result, Adhocracy culture is the most contributing organizational culture type followed by clan and hierarchy culture in the prediction of project performance. The study recommends that the organization should take advantage of the high degree of culture already identified when implementing strategies. Based on the result, it is recommended that the organization continue to prioritize maintaining both Adhocracy and Clan cultures, with a stronger weight on Adhocracy culture due to its significant positive impact on project performance. Additionally, the organization should align Market culture practices, which emphasize competitiveness, goal achievement, and efficiency, with its humanitarian mission to ensure consistency and effectiveness.
Keywords: Adhocracy culture, Clan culture, Hierarchy culture, Market Culture, Organizational culture, and Project performance