The Effect of Organizational Culture on Organizational Performance with the Denison Model: The Case of Ethiopian Construction Works Corporation Building and Housing Construction Sector (ECWC, BHCS)
No Thumbnail Available
Date
2022-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The aim of this research is to investigate the effect of organizational culture (OC) on Organizational Performance (OP) with the Denison Model, among employees of Ethiopian Construction Works Corporation, Building and Housing Construction Sector (ECWC, BHCS). The research approach that was used in this paper is Quantitative Method. The type of research applied was Explanatory Research. Structured Questionnaire was used as a research instrument. The data was collected from 12 construction projects under ECWC, BHCS, which are located in Addis Ababa. 137 questionnaires were distributed and 129 was collected and the responses were analyzed using SPSS V.26 software. The result of the study show, the dominant culture in ECWC, BHCS, was Mission Cultural Trait among Denison`s four cultural traits and Team Orientation Culture index scored the highest mean score among the 12 cultural indexes under the four cultural traits. The findings show, there is a strong correlation between all the cultural traits. More over the independent variables (the four cultural traits) have also a strong correlation with the dependent variable (organizational performance), following that, the results show Mission have a strong relationship with organizational performance with correlation coefficient, r=0.844. In order to detect the effect of OC on OP, and also to identify the predicting power (influence) of the independent variables over the dependent variable, both linear and ordinal regressions were applied in the analysis. The findings revealed organizational culture explains 79.4% (R2=0.794) changes in organization performance. Furthermore, the analysis confirmed Mission traits explains 71.2% of the changes, which implies, the impacting Denison`s Cultural trait was found to be Mission. The implication of cultural traits and key organizational performance metrics of Denison Model was also explained by using Circumplex chart. Core values index have the minimum mean value score of all indexes. Measurements under this index need a critical improvement. ECWC, BHCS need to call out behaviors and actions that are inconsistent with the Core Values, so that to take managerial decisions and actions. Also ECWC, BHCS need to share goals and objectives throughout the organization so that employees at every level understand the key areas of focus. In addition engaging timely discussions with project managers and leaders to assess how well they are meeting plans.
Key words: Organizational Culture, Organizational Performance, Circumplex