Organizational Culture and Its Influence on Employees’ Performance: The Case of Ethiopian Insurance Corporation
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Date
2019-06
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Addis Ababa University
Abstract
The aim of the study is to examine the influence of organizational culture on employee performance in Ethiopian Insurance Corporation. Organizations do not exist in a vacuum but in a specific culture or socio-cultural environment that influence the way their employees think, feel, and behave. Work place culture is a very powerful force that influences an employee’s work life. The conceptual framework was designed, taking organizational culture as independent variables and employee performance as dependent variable. The organizational culture questionnaire was adopted from Denison (1990) and the employee performance questionnaire was adopted from Linda Koopmans & Claire (2014).For the study the researcher deployed explanatory research design and Simple random sampling was used to draw sample respondents from the six offices and ten directorates of EIC’s head office functions. The primary data was gathered through structured questionnaire from 150 current employees of EIC Head office and an interview with office managers and directors in EIC. The collected data was analyzed using statistical package for social science (SPSS) version 24. Both descriptive and inferential analysis was used to see the percentage, mean and standard deviation of demographic states and organizational culture dimensions and was used to see relationship and influence of independent variables on dependent variable respectively. Research findings revealed the significant influence of four dimension of organizational culture such as involvement, consistency, adaptability and mission on employee performance. Thus, the study showed that involvement, consistency and mission were positive relation with employee performance but adaptability was negative relation with employee performance and recommended that the organizations should give emphasis to improve the adaptability dimension of organizational culture by increasing workers creativity and innovation with designing adequate training.
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A thesis submitted to the Department of Public Administration and Development Management of Addis Ababa University in partial fulfillment of the requirements for the Degree of Masters in Public Management and Policy (MPMP)
Keywords
Employee performance, Organizational culture