diagnosing the organisational culture … volume jitbm/6 organisational culture.pdf · diagnosing...

International Journal of Information Technology and Business Management 29

th June 2015. Vol.38 No.1

© 2012-2015 JITBM & ARF. All rights reserved

ISSN 2304-0777 www.jitbm.com

51

DIAGNOSING THE ORGANISATIONAL CULTURE OF THE

UNIVERSITY OF KIGALI, RWANDA

TINEGA HARON CHWEYA1

ONDWARI DAISY NYANGANYI2 KEROSI JOSEPHAT

BOSIRE3

Lecturer in the Department of Information Technology, School of Pure and Applied Sciences, Mount Kenya

University (MKU), Rwanda.1

Lecturer in the Department of Information Technology, Faculty of Science and Technology, University of Kigali -

Rwanda2

Senior lecturer department of finance, Faculty of Business and management, University of Kigali – Rwanda3

[email protected] [email protected] [email protected]

ABSTRACT

Organizations are constantly transforming in order to keep pace with the rapid changes in business environment.

However, if the underlying values remain the same, all the proposed changes might be in vain as people will

continue working in a same way than they are used to. Change is not just adopting new systems and methods, but it

requires changes in underlying assumptions and values, hence organisational culture. This research used Quinn

and Rohrbaugh ‘s Competing Values Framework in diagnosing the overall cultural profile of the organisation and

dominant characteristic traits. By the help of the Organizational Cultural Assessment Instrument (OCAI), the

researchers were able to identify the current and preferred culture that exists in the University of Kigali and the

extent to which this is perceived to be appropriate by those involved at the University. The OCAI printed

questionnaire was filled by thirteen full time academic staff. It was observed that market culture is the most general

culture however, the academic staff feel that adhocracy culture should be preferred.

Keywords: Competing Values Framework, Corporate Culture, Cultural Profile, Organisational

Culture.

INTRODUCTION

In spite the fact that it is difficult to accurately define

what organization or corporate culture is, majority of

researchers agree to the definition that describes

organization culture as deeply held values, beliefs

and assumptions, symbols, heroes, and rituals that

tends to be shared by all or most members of some

social group and are passed from older members to

the younger members [14]. Other researchers define

organization culture as practices established by a

strong organizational belief system and that dictates

what people believe to be the “best” thing to do in

given circumstance [13]. This views are supported by

Kropp who views organization culture as the shared

meanings or assumptions, beliefs, and understandings

that is apprehended by a particular group or a section

in the society about its problems, practices, goals and

even on the way then work as a team[15] [3] [9].

Organisational culture is now considered as the major

determinant of the organization success [1] especially

through improved employee’s morale that results in

creating organization’s competitive advantage [9].

Organization culture has the potential of shaping

employee behavior and structures perceptions of the

organization and it sums up the way the business

functions [5] [12]. Organization culture also called as

corporate culture is organisation-specific [11] and

therefore differs from one organization to the other in

terms of symbols, heroes and rituals [4].

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Organization culture not only emanates from the

founder’s beliefs, national cultures and industry

pressures [9]. It can also originate from the behavior

of leaders among followers [2] and it is thought that

the types of practices involved arise from the basic

assumptions managers make in developing and

attempting to implement visions/philosophies and/or

business strategies necessary for the company’s long-

term survival[11]. When these are adopted by the

owners and employees, the assumptions become part

of the company’s culture [11]. According to this

view, the resulting attitudes and processes reflect the

creator’s view and definition of organisational culture

[18].

Diagnosing Organization Culture in Organization

using the Competing Values Framework (CVF)

The Competing Values Framework (CVF) has

received wide acceptance both in theory and in

practice as one of the most important models in the

history of business study that has proven its worth

since its conception in the mid-1980s in determining

both the type and strength of cultures prevalent in an

organisation. Whilst initially intended primarily as a

tool for undertaking cultural audits, it has been shown

to be also of use as a guide and indicator of cultural

change, employee motivation and development of

leadership skills [16]. According to the competing

Value Framework, culture exists in four forms: Clan,

Hierarchy, Market and Adhocracy forms now widely

used for culture audit and comparison purposes as

shown in figure 1 below [1].

Figure 1: Competing Value Framework [1]

The clan culture is distinctive in organizations that

focus on the internal flexibility, concern of its

employees and sensitivity for customers. Such

organizations emphasize on human relations based on

co-operation, consideration, agreement, fairness and

social equality. Employees find these organizations

as very friendly places to work where people share a

lot of themselves. It is like an extended family where

leaders are thought of as mentors and loyalty and

tradition hold the organisation together. The

employees are committed to the company as well as

the company to its employees. The work is done by

teams that can have quite autonomous roles and the

customers are seen as partners [10] [17].

The hierarchical culture is evidenced in organizations

that focus on internal maintenance. Such

organizations seek to achieve stability and control

through clear task setting and enforcement of strict

rules. In these organizations, leaders are viewed as

coordinators and organizers and they always toe the

party line. It places emphasize is on economy,

formality, rationality, order and obedience. However,

the relatively faster changing environment

emphasizes nowadays other cultural elements [10]

[17]

Organizations that practice the adhocracy culture

seeks to concentrate on the external positioning with

a high degree of flexibility and individuality that is






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supported by an open system that promotes the

willingness to act. Such organizations are very

dynamic, entrepreneurial and creative place to work

where people stick their necks out and take risks. In

these organizations, leaders are viewed as visionary

and innovative. And success is measured by

producing unique and original products and services.

These organizations embrace creativity,

experimentation, risk, autonomy, and responsiveness.

In adhocracy culture, the environment forces the

organizations to be very flexible in their actions.

Employees are motivated to be innovative, creative,

and entrepreneurial. However, the external factors

guide the development of this type of organization

[10] [17]

The Market culture is typical for organizations that

work towards clear and rational goals that are

achieved through high productivity and economical

operation. Tends to be results orientated and

concentrate on getting the job done and its members

value competitiveness, diligence, perfectionism,

aggressiveness, and personal initiative. Its leaders are

inclined to be hard-driving producer’s intent on

outperforming competitors and being at the forefront

of their field of endeavor by maintaining stability and

control. The term Market is not to be confused with

the marketing function or with customers in the

market place. It represents a focus on transactions

with external bodies such as suppliers and customers.

The effectiveness of this type of company is viewed

through, for example, profitability and market shares.

The main values are competitiveness and

productivity, which are measured also between the

organisational units and even between individuals

[10] [17]

Organisational Culture Assessment Instrument

(OCAI)

Majority of the researchers prefer the use of the [19]

Competing Values Framework in diagnosing the

overall cultural profile of the organisation and

dominant characteristic traits that exist in the

organizations. The OCAI has now been used in

almost 10,000 organizations worldwide in sectors

such as private sector, public sector, education,

health care, new start-ups, NGOs [6]. The OCAI was

developed [19] and it seeks to establish the

organization's dominant culture type characteristics

and overall culture profile in terms of the four

cultural forms mentioned above and six key

dimensions of organisational culture that include

1. Dominant Characteristics dimension that seeks to

measure the level of teamwork and sense of

belonging, creativity and dynamism, focus on goals

and competition, reliance upon systems and emphasis

on efficiency [19]

2. Organizational Leadership dimension that

diagnoses the leadership styles and approaches that

permeates the organization [19]

3. Management of Employees dimension seeks to

diagnose how the employees are treated, degree of

consultation, participation and consensus, working

environment [19].

4. Organizational Glue dimension diagnoses the

bonding mechanisms that hold the organization

together such as cohesion and teamwork, loyalty and

commitment, entrepreneurship and flexibility, rules

and policies, goal orientation and competitiveness

[19].

5. Strategic Emphasis dimension that evaluates the

organisational strategy drivers; long term

development of human capital, innovation, stability

and competitive advantage, growth and acquisition,

achievement of goals [19].

6. Criteria for Success dimension that seeks to bring

out how the organisation define success and who gets

rewarded profits, market share and penetration,

sensitivity to customers and concern for people,

development of new products and services,

dependability and optimum cost [19].

METHODOLOGY

The organisation under study is a higher learning

university that was formed in 2013 as an emerging

institution specializing in Higher Learning Education.

By the time of the research, the institution had

employed 13 full time academic staff. This survey

used the Organization Culture Assessment

Instruments (OCAI) tool in data collection [7]. In

answering the questions, the respondents are required

to respond on the current situation and the preferred

situation in the near future. Moreover, The OCAI

questionnaire is divided into six sections: the first

section measures the dominant characteristics, the

second section measures the organisational

leadership, the third section measures the

management of employees, the fourth section

measures the organisation glue, the fifth section






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measures the strategic emphases, and finally the sixth

section measures the criteria of success. Each item

had four alternatives, which correspond with the four

cultural types. The questionnaires were printed and

distributed by the researchers.

The red line represents the preferred culture while the

green line represents the current culture in the

university. In measuring the discrepancy between

present and preferred culture, the differences of over

10 points between the current and the preferred

sections are especially relevant and should induce the

organisation to take action. On other hand, difference

less than 10 points does not mean no action is

required [7].

FINDINGS AND DISCUSSIONS

Organisational characteristics / Dominant

characteristics

Figure 2 below represents the results obtained when

the researcher assessed the dominant characteristics

in the university. It can be observed that the market

culture and hierarchy culture scores the highest (both

at 28 points) in describing the organization

characteristics. This means that the dominant

characteristics are formalized, structured and result-

oriented. Currently, competition, procedures and

getting the job done govern what people do. The

other cultural types are clan culture that scored 26

points and adhocracy culture that scored 20 points.

Figure 2: Organisation dominant characteristics

From the table 1 below, Adhocracy culture difference

between the current and the preferred situation is

equal to +10 points calling for an urgent action on

improving dynamism, entrepreneurship, and

creativity at work place. Clan culture decreases with

7 points and the hierarchy culture decreases by 5

points calling for attention. Market culture increases

by 2 points.

Clan Adhocracy Market Hierarchy






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Now 26 20 28 28

Preferred 19 30 30 23

Table 1: The summary of the dominant characteristics in the organization

Organizational Leadership

From figure 3 below it can be observed that currently

the leaders in the organization are considered to be

hard drivers, producers and competitors (market

culture: 29 points). And they have more qualities to

be considered as coordinators and organizers

(hierarchy culture: 28 points). However, they are

least considered to be innovators and risk takers

(adhocracy culture: 19 points).

Figure 3: Organisation Leadership

From table 2 below, both in adhocracy culture and in market culture the point difference between the current and the

preferred situation is greater than, or equal to, 10 (+11 and -11 points respectively). The clan culture increases by 5

points while the hierarchy culture decreases by 4 points.


Now 26 19 29 28


Table 2: Summary of the organisation leadership

Management of Employees

From figure 4 below it can be observed that market

culture scores 34 points this means that hard-driving

competitiveness, high demands and achievement are

the most prevalent. Both the hierarchy culture and

clan culture scored 23 points meaning that security of

employment, conformity, predictability and stability

in relationships, teamwork, consensus and

participation are not taken seriously into account in

employee management. Adhocracy culture scored the

least on employee management and therefore

individual risk taking, innovation, freedom and

uniqueness are least prevalent on employee

management.






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Figure 4: The management of employees

In addition table 3 below shows that in market culture

the point difference between the current and the

preferred situation is greater than 10 (-11 points)

which means that the employees prefer the

management to reduce on hard-driving

competitiveness, high demands. The clan culture

increases by 6 points, the adhocracy culture increases

by 3 points and the hierarchy culture increases also

by 2 points and therefore clan culture, adhocracy

culture and hierarchy culture does not call for urgent

action.


Now 23 22 34 23


Table 3: Summary of the results on management of the employees

Organization Glue

From figure 5 below, it can be observed that the glue

that holds the organization together is formal rules

and policies. Maintaining a smooth-running

organization is important (hierarchy culture: 29

points). The next to the hierarchy is the loyalty and

mutual trust. Commitment to this organization runs

high: clan culture scores 28 points. Third we see an

emphasis on achievement and goal accomplishment.

Aggressiveness and winning are common themes:

market culture scores 25 points. Finally we see

commitment to innovation and development. There is

an emphasis on being on the cutting edge (adhocracy

culture: 20 points).






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Figure 5: Organisation Glue

From table 4 below it can be observed that there is a

greater than 10 (-11 points) point difference between

the current and the preferred situation on hierarchy

culture. Respondents feel that there is the need to torn

down on maintaining a smooth-running organization

by reducing a bureaucracy in systems. Further the

respondents feel that urgent action is needed in

improving the adhocracy culture. However,

respondents feel that no urgent action is required on

market culture and clan culture. the market culture

increases also by 2 points and the clan culture

difference is 0 points.


Now 28 20 25 29


Table 4: Summary of the results on the organisation glue

Strategic Emphasis

From figure 6 below first we see competitive actions

and achievement: Attaining targets and winning in

the marketplace are dominant (market culture: 30

points). Second, the organization emphasizes

permanence and stability: Efficiency, control and

smooth operations are important. These are strategic

emphases according to hierarchy culture (26 points).

Third, we see acquiring new resources and creating

new challenges by trying new things and prospecting

for opportunities are valued third most important

(adhocracy culture: 25 points). Lastly, clan culture is

the least with 20 points. This means that an emphasis

is on human development; high trust, openness, and

participation persistence are least on strategic

emphasis.






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Figure 6: The strategic emphasis

Using table 5 below, it can be observed that clan

culture, the adhocracy culture and the hierarchy

culture increases by 3points, 5 points and 1 point

respectively, the market culture decreases by 8

points. Therefore the difference between the current

and preferred is less than 10 and therefore it does not

require urgent action that means the respondents are

comfortable with both the current and preferred

findings.


Now 20 25 30 26


Table 5: The findings on strategic emphasis

Criteria of Success

From figure 7 below it can be observed that

employees think that the organization is considered

successful based on winning in the marketplace and

outpacing the competition. Competitive market

leadership is key (market culture: 29 points) in

measuring success of the organisation according to

the respondents. The respondents also define

organisational success on the basis of efficiency:

Dependable delivery, smooth scheduling and low-

cost production are critical (hierarchy culture: 28

points). Third, the organization values having the

most unique or newest products: It is a product leader

and innovator (adhocracy culture: 25 points). Finally,

success is determined based on development of

human resources, teamwork, employee commitment

and concern for people (clan culture: 19 points).






59

Figure 7: Figure showing the criteria on success

In table 6 below, it can be observed that the current

criteria of success is in line with the preferred criteria

as the difference between the current and preferred is

less than 10 and therefore it does not require urgent

action. Specifically, in clan culture, there is an

increase of 6 points. The hierarchy culture decreases

by 5 points. The market culture decreases by 1 point

and finally, the adhocracy culture remains the same

(i.e. there is no difference between the current and the

preferred situations).


Now 19 25 29 28


Table 6: Summary on the findings on the criteria of success

The General Organization Culture

As from figure 8 below, it can be observed that the

market culture (result-oriented, production, goals and

targets and competition) is the most dominant culture

at the institution scoring highest at 29. It is followed

by the hierarchy culture (structure, procedures,

efficiency and predictability) which scored 27.

Finally, the adhocracy culture (a dynamic,

entrepreneurial, and creative place to work) and clan

culture (a very pleasant place to work where people

share a lot of themselves and commitment is high)

are both at 22. From the above results, it can be

observed that there is an apparent mixture of cultures

where an emphasis is placed on result-oriented,

competition and achieving of goals and targets at the

University of Kigali.






60

Figure 8: The general organisation culture: Now and Preferred

Table below measures the discrepancy between

present and preferred culture. It can be observed that

all the differences between the current and the

preferred culture are less than 10 points and therefore

no action is needed on improving the general culture

at the institution. However, there is a need to put

more focus on the adhocracy culture (a dynamic,

entrepreneurial, and creative place to work) and clan

culture (a very pleasant place to work where people

share a lot of themselves and commitment is high)

which scored the lowest.


Now 22 22 29 27


Table 7: The general culture

CONCLUSION

This project revealed that the use of the OCAI in

understanding the employee perception of the

organization culture provides considerable benefits. It

helps the management and the new leaders from an

early identification of the culture they are stepping

into. Furthermore, the management and new leaders

can then assess whether they will be encountering

alignment or misalignment in the future. The tool has

usefulness in coaching situations and can be an

effective way for consultants to help an organization

achieve changes.

The organisational culture in University of Kigali

based on this study, is very market oriented. The key

elements are the productivity and competitiveness.

Individuals are rewarded when the financial result is

good or new market shares have been won. Also the

internal competition between units and individuals is

hard. The power has been centralized, and the tools

and procedures exist for different purposes. The

external market environment guides the actions, but it






61

is seen also as a threat. The preferred situation among

the respondents is also very clear. Academic staff

would like the culture be adhocracy culture (a

dynamic, entrepreneurial, and creative place to

work).

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