the impact of organizational culture on employee performance:...

Int. J. Adv. Multidiscip. Res. (2017). 4(8): 89-99

89

International Journal of Advanced Multidisciplinary ResearchISSN: 2393-8870www.ijarm.com

DOI: 10.22192/ijamr Volume 4, Issue 8 -2017

Research Article

The impact of organizational culture on employee performance:case study from University of Somalia (Uniso) in Mogadishu-Somalia

Hassan Bedel KhalifEmail: [email protected] Student, Master of Arts in Peace and Conflict Studies, Kenyatta University

Abdulkadir Mohamud DahieGraduate Student, Master of Developmental Study, Kampala UniversityE-mail: [email protected]

Ali Abdi Mohamed (Aligees)Email: [email protected] Student, Master of Education in Educational Management, Kenyatta University

Mohamud Abdi Eid-Ga'ameyEmail: [email protected] Student, Master of Project Management, Open University Malaysia (OUM)

Abstract

This current study attempts to examine the impact of Organizational Culture on Employeeperformance at University of Somalia in Mogadishu-Somalia. The paper had three mainobjectives which are: 1) to determine the relationship between entrepreneurial culture andemployee performance. 2) To identify the relationship between competitive culture andemployee performance. 3) To examine the relationship between consensual culture andemployee performance. The researchers utilized convenient sampling to collect 90questionnaires from University of Somalia in Mogadishu, Somalia. Employees wereprovided a questionnaire with four main construct which measuring competitive culture,entrepreneurial culture, consensual culture and employee performance. However, usingcorrelation coefficient, the study found that employee performance (Dependent variable)had significant positive influence with three independent variables namely: competitiveculture, entrepreneurial culture and consensual culture. Also, the result of regressionanalysis found that two constructs had statistically significant, positive, and straight effectson employee performance

Keywords

Organizational Culture,Employee Performance..

DOI: http://dx.doi.org/10.22192/ijamr.2017.04.08.010


90

Introduction

In the developed countries, the topics that suggestrelationship between the culture and performance ofsocial organizations have been a routine in the socialsciences over 50 years (Denison & Mishra, 1995). Theterm organizational culture was used for the first timein the academic literature by Pettigrew in 1979 in thejournal “Administrative Science Quarterly” (Ilies &Gavrea, nd). In the late 1970s and early 1980s, thetopic of “organizational culture” confined managersand scholars attentions. A series of poplar books,academic conferences, and special issues of scholarlyjournals highlighted the promise of organizationalculture as a way to understand how organizationsoperate and succeed ( Caldwell, Chatman, Doerr & III, nd). According to Aluko (2003) culture is a universalobservable fact as there is no society in history withouta culture, but culture varies from one society toanother. And studies of formal organizations in bothWestern and non-Western societies have shown theimplications of varying cultures for organizationaloperations and performance.

The organizational culture proposed employees theway things should be done. Most of the time peopleexercise word culture to express the pattern ofindividual behavior. Before 1980s in the study oforganizational behavior, culture is considered as amost important factor. Businesses show interest incultural dimensions that was the extreme effect ratherthan the other fragments of organizational behavior.Peter & Waterman's (1982) supposed that culture isthe key to the success of organization. In manybusiness journals and in business articles, publishedperiodically claimed that culture was fundamental tothe organizational success, and it was recommendedfor the managers, should deal with his work byfollowing their organizational culture, which help torise in the growth of organization (Moorhead andGriffin, 1995).

Researchers have linked a culture in the organizationwith many different organizational behaviors. Theyhave also recognized the correlation between cultureof organization & employee job performance(Sheridan, 1992), decision making (Gamble & Gibson,1999) and productivity (Kopelman, Brief and Guzzo,1990). As per statement of Luthans (1998),organizational culture has always presented within theorganization, but most of the time businesses paid lessattention towards it. The culture of organization comesinto view to permeate every important component ofthe organization.

To understand the association between employee’s jobperformance and culture of the organization is animperative research subject because it is proven bydifferent studies that individuals work performance iscrucial for success of organization particularly in thesoftware industry. Software developers and engineersare the highly rising group of the global economy. Sothat why they are in need of an open environmentwhere they can easily share their ideas, makeparticipation in the decision and can provide help toeach other. This environment can be developed by theculture of their organizations. Strong culture will makeit easy to communicate openly and participate inefficiently and effectively in the decision making toexplore their ideas and skills.

There has been significant research in the literature toexplore the impact of organizational culture onemployee performance and productivity. For instance,scholars (Hofstede, 1980; Ouchi, 1981; Hofstede &Bond, 1988; Kotter and Heskett, 1992; Magee, 2002)claim that organizational culture could be used formeasuring economic performance of an organization.However, organizational excellences could be variedsince cultural traits differ from organization toorganization and certain cultural traits could be sourceof competitive advantages through causal ambiguity(Barney, 1991 and Peters and Waterman, 1982).

Organizational culture is the set of importantassumptions-often unstated-that members of anorganization share in common. There are two majorassumptions in common; beliefs and values. Beliefsare assumptions about reality and are derived andreinforced by experience. Values are assumptionsabout ideals that are desirable and worth striving for.When beliefs and values are shared in an organization,they create a corporate culture (Azhar, 2003).

Robbins (1986) defines organizational culture as arelatively uniform perception held of the organization,it has common characteristics, it is descriptive, it candistinguish one organization from another and itintegrates individuals, groups and organizationsystems variables. Organizational culture refers to aset of some commonly experienced stablecharacteristics of an organization which constitutes theuniqueness of that organization and differentiates itfrom others.

Organizational culture has been defined as the specificcollection of values and norms that are shared bypeople and groups in an organization and that controlthe way they interact with each other and withstakeholders outside the organization. Organizational


91

values are beliefs and ideas about what kind of goalsmembers of an organization should pursue and ideasabout the appropriate kinds or standards of behaviororganizational members should use to achieve thesegoals. From organizational values developorganizational norms, guidelines, or expectations thatprescribe appropriate kinds of behavior by employeesin particular situations and control the behavior oforganizational members towards one another (Black &Richard, 2003).

Organizational culture is conceptualized as sharedbeliefs and values within the organization that helps toshape the behavior patterns of employees (Kotter andHeskett, 1992). Gordon and Cummins (1979) defineorganization culture as the drive that recognizes theefforts and contributions of the organizationalmembers and provides holistic understanding of whatand how is to be achieved, how goals are interrelated,and how each employee could attain goals. Hosftede(1980: 25) summarizes organization culture ascollective process of the mind that differentiates themembers of one group from the other one. Thus theabove concept asserts that organizational culture couldbe the means of keeping employees in line andexhilarating them towards organizational objectives.

Performance on the other hand refers to be the ability(both physical & psychological) to execute a specifictask in a specific manner that can be measured as high,medium or low in scale. The word ‘performance’ canbe used to describe different aspects such as societalperformance, organizational performance, employeeperformance, and individual performance etc.Researchers (Roe, 1999; Campbell, McCloy, Oppler,& Sager, 1993; Campbell, 1990; Kanfer, 1990) tend toidentify two dimensions of performance: an actiondimension (i.e. behavioral aspect) and an outcomedimension (i.e. performance aspect). Here, thebehavioral aspect of performance is assumed to bematched with work situation and job specifications.Then this selective behavioral aspect turns into ameans of achieving organizational goals andobjectives that is the outcome dimension orperformance aspect. Although there is a range ofbehaviors that could be used for measuringperformance, Motowidlo, Borman, & Schmit (1997)emphasize judgmental and evaluative processes thattake a great deal along with action itself while definingperformance.

Employee Performance refers to the degree ofachievement of the mission at work place that buildsup an employee job (Cascio, 2006). Different

researchers have different thoughts about performance.Mostly researcher’s used the term performance toexpress the range of measurements of transactionalefficiency and input & output efficiency (Stannack,1996).

According to Barney (1991) performance is acontinuous process to controversial issue betweenorganizational researchers. Organizationalperformance does not only mean to define problem butit also for solution of problem (Hefferman and Flood2000). Daft (2000), said that organizationalperformance is the organization’s capability toaccomplish its goals effectively and efficiently usingresources. As similar to Daft (2000), Richardo (2001)said that achieving organizational goals and objectivesis known as organizational performance. Richardo(2001) suggested that organizations success showshigh return on equity and this become possible due toestablishment of good employees performancemanagement system.

According to Prawirosentoso (2000), performance iswork results that achieved by someone or group inorganization, suitable with the authority andresponsibility, in effort to reach the organizationalgoals legally, not violate the law, and suitable withmoral and ethics. Mangkunegara (2005), employeeperformance is work outcome in quality and quantitythat achieved by someone in conducting hisresponsibility.

It is very important for organizations to makeperformance measurement system to evaluate theperformance of the employees, which is very helpfulto evaluating the achievement of organizational goalsand in developing strategic plans for the organizations(Ittner and Larcker, 1998). Nowadays organizationsare more focusing on the management of non financialor intangible assets like customer’s link, services,quality and performance, not on the assets which arefinancial in nature (Kaplan and Norton, 2001). Sothere is a need for proper performance measurementsystem to measure and evaluate the performance ofemployee either financial or non financial.

Literature review

This section highlights review articles aboutOrganizational Culture and Employee Performance.That was published in different international journals.This report also compares the findings of the articlessince these studies were conducted in unlike situationsaccording to the environment.


92

This paper discussed organizational culture andemployees’ performance in the National Agency forFood and Drugs Administration and Control(NAFDAC), Nigeria. It views organizational cultureas shared values, beliefs and norms that influence theway employees think, feel and behave in theWorkplace. It assumes that a positive organizationalculture will enhance employees’ performance. Datacollected were analyzed using descriptive andinferential statistics. Results from the data analysisindicated that significant relationship exists betweenorganizational culture and increased employeescommitment/productivity in NAFDAC andrecommends among others: continuous staff training,increased government funding, continuousimprovement of employees’ condition of service,continuous improvement of employees’ condition ofservice, sustenance of the prevailing organizationalculture of decentralization and current team buildingefforts. (Agwu, 2014)

Another study was held to assess the correlationbetween the type of work culture and various variablesof impact of culture on performance. The data wasanalyzed by using Microsoft Excel and the StatisticalPackage for Social Sciences (SPSS). In order toconduct the study, a structured questionnaire was used.The results of the regression show that various typesof culture impact on the motivation level andtherefore, the organization needs to nurture anddevelop the right type of culture in the organization tofoster the motivation level of the employees workingin the organization. The goal is not just to survive, butalso to prevail, prosper, and achieve something muchbroader and bigger than mere survival. (Sinha, Kr.,Gupta, & Dutt, 2010)

This article is on defining and measuring oforganizational culture and its impact on theorganizational performance, through an analysis ofexisting empirical studies and models link with theorganizational culture and performance. The objectiveof this article is to demonstrate conceptualization,measurement and examine various concepts onorganization culture and performance. After analysisof wide literature, it is found that organizationalculture has deep impact on the variety of organizationsprocess, employees and its performance. This alsodescribes the different dimensions of the culture.Research shows that if employee are committed andhaving the same norms and value as per organizationshave, can increase the performance toward achievingthe overall organization goals. Balance Scorecard issuggested tool to measure the performance in the

performance management system. More research canbe done in this area to understand the nature andability of the culture in manipulating performance ofthe organization. Managers and leaders arerecommended to develop the strong culture in theorganization to improve the overall performance of theemployees and organization. (Shahzad, Luqman,Khan, & Shabbir, 2012)

This research was conducted to identify the variationin cultural values had a significant effect on the ratesat which the newly hired employees voluntarilyterminated employment. The relationship between theemployees' job performance and their retention alsovaried significantly with organizational culture values.The cultural effects were stronger than the combinedexogenous influences. The result indicated positiverelationship between organizational culture andemployee performance. (Sheridan, 1992)

The primary aim of this paper is to examine the impactof organizational culture on employee performanceand productivity from the perspectives ofmultinational companies operating especially underthe telecommunication sector of Bangladesh in SouthAsia. The paper has applied qualitative methodologyfocusing on a case study of Gramenphone (GP) (asubsidiary of Teleron in Norway), the leadingtelecommunication based subsidiary in Bangladesh.The paper argues that organizational culturesignificantly Influences employee performance andproductivity in the dynamic emerging context. (Uddin,Luva, & Hossian, 2013)

The purpose of this article is to propose and test amodel concerning how an organization's cultureaffects organizational performance. Analysis of datafrom 392 respondents who participated in the studyconfirms the fit of the proposed model to the data. Themodel presented in the study represents an initialattempt to describe and evaluate the effects of variousdimensions of organizational culture. It appears thatthe comparison of visible aspects of culture across andwithin organizations can provide useful informationfor guiding the directions of organizations.(Marcoulides & Heck, 1993)

The specific objectives of the study were to establishthe link between competitive culture and performancein Non-Governmental Organizations, to explore theeffect of entrepreneurial culture on performance inNon-Governmental Organizations, to assess the levelof bureaucratic culture and its influence on overallperformance in Non-Governmental Organizations, to


93

examine the influence of consensual culture onperformance in Non-Governmental Organizations, andfinally to identify the preferred cultural integrations inNon-Governmental Organizations in Kenya. Data wasanalyzed qualitatively and quantitatively and throughuse of statistical package for social scientists (SPSS).The study concluded that organization culture has agreat influence on performance as it dictates howthings are done, organization’s philosophy, workenvironment, performance targets and organizationsstability. At World Vision Kenya there is anintegration of cultures ranging from competitiveculture, entrepreneurial culture, bureaucratic cultureand consensual culture. Of the four cultures,employees prefer integration to consensual andentrepreneurial or competitive and entrepreneurialcultures. (wanjiku & agusioma, 2014)

This research aimed at analyzing and revealing theinfluence of organization cultural and organizationalcommitment to employee performance direct orindirectly to the job performance. Data collection wasdone by questionnaire. The research samples were 127employees. The research used descriptive analysis todetermine characteristic and description of respondentfor each variable indicator. While to test the relationamong variable by using inferential analysis withPartial Least Square (PLS) method and Sober Test,The results showed that organizational culture doesnot influence directly to the employee performance.Organizational culture able to influence performance ifmediated by job satisfaction, While organizationalcommitment influence significantly to employeeperformance directly or indirectly through worksatisfaction (Syauta, Troena, Setiawan, & Solimun,2012)

Another research was conducted to find the influenceof organizational culture on employee performancewithin software houses working in Pakistan. Primaryand secondary data were used in this study. Primarydata was gathered via questionnaire and formal &informal interview. Customer service, employeeparticipation, reward system, innovation & risk-takingand communication system, are considered variablesfor this study. Sample size is (n=110) therefore,descriptive statics, correlation and regression analysishave been used. The overall results support thatculture of organizations has the significant positiveimpact on employee’s job performance at selectedsoftware houses in Pakistan. Employee’s participationis a most important factor for achieving organizationalgoals. (Iqbal, 2013)

This research study assesses empirically the impact ofcorporate culture on employee job performance aswell as organizational productivity using Nigerianbanking industry as the case study. The study usessurvey research method. The case study companieswere selected using stratified and simple randomsampling techniques; while our respondents wereselected using simple random sampling technique. Thefindings of this study are that a large number ofrespondents strongly agree that corporate culture haseffect on employee job performance. (Ojo, 2009)

Another research was conducted to study the impact oforganizational culture on employee performance, it isvital to understand the organizational culture anddifferent aspects of employee performance. Thoughthere are varying perspectives on organizationalculture resulting into different model, there is nounanimity about what constitutes an organizationalculture. It was found that the researchers haveconsidered varying dimensions of culture on one handand different criteria to assess employees’performance. A conceptual model is proposed towardsthe end to study the structural relationship betweenorganizational culture and employee performance.(Ratnawat, 2014)

This paper explores what is entailed in an institutionalculture, measurement of an institutional culture,measurement of an institutional performance and theeffect of an institutional culture on its performance.There is a close relationship between an organization’sculture and its performance. The survival of anyorganization solely rest on its effectiveness andefficiency in utilizing the resources supplied by taxpayers in serving her constituency. (Ng’ang’a &Nyongesa, 2012)

This study examined the impact of moderating effectsof organizational culture on HRM and employee’sperformance in an attempt to contribute to the pool ofknowledge and practice. This is empirically proventhrough quantitative and qualitative approach in non-governmental organization in Nigeria. The studyfinding suggested certain factors influence themoderating effects of organizational culture; they havepositive influence on increasing employee’sperformance and human resource management. Thiswas indicated in the mean value of ten items whereeight has significant relationship, except two items.(Nyameh, 2013)


94

Another study examined the relationship betweenorganizational culture and performance has been studyand a clear link between them has been identified bycertain researcher’s research. The main aim ofresearch article is to identify and measure strongrelationship between performance and organizationalculture. Literature review is adopted as methodologyto assess the culture of an organization impacts uponprocess, employees and systems. Certain dimensionsof culture have been identified so far and researchshows that value and norms of an organization werebased upon employee relationship. The goal of anorganization is to increase level of performance bydesigning strategies. The performance managementsystem has been measured by balance scorecard andby understanding nature and ability of system cultureof an organization have been identified. (Mohamad &Mohammed, 2013)

This article attempts to provide some insights into theorganizational culture and how it might assist inincreasing organizational performance. A total of 240questionnaires were mailed to the respectivecompanies and only 133 completed questionnaireswere received giving a responses rate of 55%. Thecollected data was coded and analyzed using SPSS forwindows. The findings revealed that American andEuropean MNCs are skewed towards a culture ofindividualism, low power distance, low uncertaintyavoidance, and femininity. On the other hand,collectivism, high power distance, high uncertaintyavoidance, and masculinity best describe the culture ofJapanese and Malaysian MNCs. (Rose, Kumar, &Abdullah, 2008)

This research aimed at investigating the relationshipthat exists between organizational culture, employeemotivation and performance. The domains oforganizational culture (organizational values,individual beliefs, working environment, and employeerelationships) and employee motivation andperformance were investigated. In order to find theculture and motivation link, mixed method approachfor data collection and analysis has been used. Byusing Pearson’s and Spearman’s Correlationmethods, a positive correlation has been foundbetween the two variables. The study revealed thatorganizational culture has a direct impact onemployee motivation and indirectly on organizationalperformance as well. (Sokro, 2012)

The objective of this study is to assess the influence oforganizational culture and market orientation onPerformance. The study used descriptive cross-

sectional survey design. We collected primary datausing structured questionnaire. The partial mediationeffect of market orientation on the relationshipbetween organizational culture and performance wasconfirmed. The complimentary effect oforganizational culture on market orientation impliesthat organizations need to spend more resources innurturing market orientation to create sustainablecompetitive advantage through delivery of superiorcustomer experience. (Joseph & Francis, 2015)

This study aims to explore the effect of humanresource management (HRM) practices andorganizational culture on employee performance. Thedata collected through questionnaires from 479employees from 5 different manufacturing firmsoperating in Turkey. The result indicated that there ispositive relationship between organizational cultureand employee performance. (Kaya, Ergün, & Kesen,2014)

The present study examines the multidimensionalimpact of culture on employee Performance inselected textile firm from Lagos, Asaba and Kano inNigeria. The data were collected using both qualitativeand quantitative methodologies. The former werecollected through interviews and observations whilethe latter were collected via structured questionnaireand from documents. The main finding of the studywas that irrespective of their cultural backgrounds,workers in the textile industry appeared to haveimbibed the industrial way of life. The results of theanalysis of the cultural variables showed a high levelof commitment to work, low level of labor turnoverand absenteeism, positive beliefs about work, positivework values, attitudes, and norms in all the firmsstudied. (Awolowo, 2003)

This research was conducted to test the hypothesis thatsuggested that there is a relationship betweenemployee’s job performance behavior and the culturewhich is cultivating in the organization and itscollaborative impact on organizational productivity.Using stratified and simple random samplingtechnique and survey questionnaire, results werederived that were tested against the two possiblehypotheses; (a) organizational culture has no impacton employee’s job performance and organizationalproductivity, (b) organizational culture has strongimpact on employee job performance. The findingssuggested the contrary and thus alternative hypothesiswere selected, and null hypothesis was rejected. 90%of the employees strongly agreed with the findings andaccepted that there is impact of organizational culture


95

on employee’s performance and organizationaloutcome. (Raza, Anjum, & Zia, 2014)

This article aims at presenting the general culturalfeatures of major banks operating in Vlora Region,and their impact on the performance of these banks.This research paper will aim to analyze whether thesecultural profiles are similar to the cultural profile thatcontributes to the organization high-performance. Thepaper methodology is based on the combinationbetween primary and secondary research. The findingsshowed positive relationship between organizationalculture and employee performance. (Leskaj, Lipi, &Ramaj, 2013)

This research has examined the impact of CSRactivities and employee performance in presence oforganizational culture. This was an exploratoryresearch based on primary and secondary data. Theprimary data of employees of banks collected whilesecondary data were collected from articles, reportsand website of the corporation. The data wereanalyzed using correlation, regression and analysis ofvariance by SPSS version 16. The study foundrelationship between awareness of corporate socialresponsibility activities and organizationalperformance. In addition, the study found relationshipbetween organizational culture and organizationalperformance for the banking sector of Pakistan.(Malik, Ali, & Ishfaq, 2015)

This study examines how much influenceorganizational culture, job satisfaction, organizationalcommitment and organizational citizenship behavior(OCB) to employee performance. The studypopulation was employees of small and mediumenterprises (SMEs) in East Java Province shoe-ranking

supervisor to manager. The sampling technique used isa collection of sample (stratified cluster sampling)samples totaling 174 respondents. Selection of sampleareas is based on the areas that have the potential forindustrial development (industrial district). Results ofthis study indicate that organizational culture and jobsatisfaction and organizational commitment affectOrganizational citizenship behavior (OCB).Organizational commitment and OrganizationalCitizenship Behavior (OCB) effect on employeeperformance. Simultaneously organizational culture,job satisfaction, organizational commitment andorganizational citizenship behavior (OCB affectsemployee performance (Purnama, 2013)

This study is aimed to determine the effect of theemployee’s personality and organizational culturetoward the employee’s performance through the BPROCB throughout the Gianyar district of Bali province.This study used a quantitative approach to test thehypotheses by the sampling technique proportionalsimple random sampling of the 105 respondents whoare employees not the leader of BPR in Gianyar Bali,the data collecting used in this study is aquestionnaire. The data analysis technique used SEManalysis. The results showed that the employee’spersonality and organizational culture have an indirecteffect on employee performance through OCB of allof BPR in Gianyar Bali. (Darsana, 2013)

After reviewing these articles, most of the researchersfound that organizational culture had great influenceon employee performance especially thecontribution((Raza, Anjum, & Zia, 2014).Organizational culture indicated significantrelationship with employee performance.. With thelight of the result organizational culture factor is theone that most impact positively on employeeperformance.

Conceptual Framework

EntrepreneurialCulture

Consensual Culture

Employee Performance

Competitive Culture


96

However it is further research is needed to beconducted about the effect of Organizational cultureon employee performance. Researchers generated thefollowing hypothesis:

H1: there is significant relationship betweencompetitive culture and employee performance atUniversity of Somalia in Mogadishu-Somalia.

H2: there is significant relationship betweenentrepreneurial culture and employee performance atUniversity of Somalia in Mogadishu-Somalia.

H3: there is significant relationship betweenconsensual culture and employee performance atUniversity of Somalia in Mogadishu-Somalia.

Methodology

This study conducted through survey method toexamine the relationship between Organizationalculture and Employee performance; the study utilizedregression, correlation analysis to answer the researchobjectives and to test the research hypothesis. Theresearchers utilized convenient sampling to collect 90respondents from University of Somalia inMogadishu, employees were provided a questionnairewith four main construct which measuringentrepreneurial culture, competitive culture,consensual culture and employee performance. Theresearchers utilized Cronbach alpha to investigate theinternal consistency of the questionnaires collectedfrom the respondents.

All variables of the study gained high inside reliabilityas shown in below table 1 this allows as to makefurther analysis and discussion.

Table 1: Reliability test

Variables Items Cronbach AlphaEntrepreneurial Culture 7 0.811

Competitive Culture 7 0.815

Consensual Culture 7 0.766Employee Performance 7 0 .808

Data Analysis and Discussion

Demographic profile

According to the gender respondents 85.6% were malewhile 14.4% was female; 27.8% of the respondent’sage was between 18-25 years old, 43.3% wererespondents between 26--35 years old, 22.2% of the

respondents reported that they are between 36-45years while only 6.7% were above forty six years old.In terms of marital status of the respondents, 50.0%were married while 50.0% were single. Interns ofeducational background, 7.8% of the respondents haddiploma certificate 43.3% of the respondents werebachelor degree, while 48.9% were master degreelevel.

Table 2: profile of the respondents

Variable Frequency PercentageGender

Male 77 85.6Female 13 14.4

Total 90 100.0Age18-25 25 27.826-35 39 43.336-45 20 22.246 and above 6 6.7Total 90 100.0


97

Marital statusSingle 45 50.0Married 45 50.0Total 90 100.0

Level of Education

7.8Diploma Certificate 7 43.3Bachelor DegreeMaster Degree

3944

48.9

Total 90 100.0

Correlation between the variables

The first objective of this study was to determine therelationship between competitive culture and

employee performance at University of Somalia inMogadishu, Somalia.

Table 3: Correlation Analyzes

Variables 1 2 3 4Entrepreneurial Culture 1Competitive culture .679 1Consensual Culture .310 .485 1Employee Performance .255 .418 .607 1

Table 3 shows the result of correlation analyzes of therelationships among entrepreneurial culture,competitive culture, consensual culture and employeeperformance. Entrepreneurial culture has positiverelationship with employee performance(r=.255 andp<0.01). Entrepreneurial culture actively participateemployee performance. Organizations with goodentrepreneurial culture tend to enhance employeeperformance at University of Somalia in Mogadishu,Somalia. The second objective of this study was toidentify the relationship between competitive cultureand employee performance at University of Somalia inMogadishu, Somalia. Competitive culture has positiveeffect on employee performance(r=.418 and p<0.01).The third objective was to examine the relationshipbetween consensual culture and employeeperformance at University of Somalia in Mogadishu,Somalia. (r=.607 and p<0.01).

Hypothesis test

This study investigated the impact of OrganizationalCulture on Employee performance at University of

Somalia in Mogadishu, Somalia. Three hypotheseswere developed after reviewing the literature, to testthe research hypotheses were employed the linearregression analysis. The researchers checkedregression hypothesis before taking place to furtheranalysis. The dependent variable Employeeperformance was normally distributed across allindependent variable.

Three hypotheses were developed after reviewing theexisting literature; H1 confirmed that there issignificance relationship between entrepreneurialculture and employee performance at University ofSomalia in Mogadishu-Somalia. H2 asserted that thereis positive relationship between competitive cultureand employee performance at University of Somaliawhile H3: there is insignificant relationship betweenconsensual culture and employee performance inMogadishu, Somalia.

Table 4: Regression Analysis

Variables Value Beta T PEntrepreneurial Culture .321 3.933 .000Competitive Culture .477 4.316 .000Consensual Culture .133 1.221 .226

R .811aR square .658F change 48.763


98

Conclusion and Recommendation

From the study it can be concluded that organizationculture has a great influence on performance as itdictates how things are done, organization’sphilosophy, work environment, performance targetsand organizations stability. At University of Somaliathere is a mixture of cultures ranging from competitiveculture, entrepreneurial culture, and consensualculture. This owes to the fact that employees seekwork environment that maximizes on their ability tobe innovative, creative, and independent of macro-management, cohesion with fellow colleagues amongothers.

This study was based on University of Somalia, futurestudies need to be carried out in other sectors todetermine the influence of Organization culture onperformance. Further studies can also be carried out toidentify the various levels of Organization Culture,their relevance to Organizations and how these levelscan be embedded into the Organization Culture. Thereare several higher education institutions which need tobe further researched on. This will give a morecomprehensive answer to the culture issues.

This study found a positive moderate correlationbetween organizational culture and employees’performance. From the above findings, it is clear thatthe organizational culture of the universities havesignificantly influence on the employees’ performancein Mogadishu universities in Somalia. The suggestionfor management is that they should develop effectiveemployees’ performance.

The paper has covered an extensive range of culturaltraits which include from behavioral aspects togestural attributes. The paper also asserts thatorganizational culture is an open system approachwhich has interdependent and interactive associationwith organizations performance. The sophisticated andextensive nature of the paper would add value toorganization studies discipline by providing animportant qualitative perception towardsorganizational culture and performance and wouldinitiate further discussions to create an effectiveframework between organizational culture and itsimpact on performance.

References

Agwu, M. O. (2014). Organizational Culture andEmployees Performance in the National Agencyfor Food and Drugs Administration and Control

(NAFDAC) Nigeria. Global Journal ofManagement and Business Research , 14 (2), 1-11.

Awolowo, O. (2003). The impact of Culture onEmployee Performance in selected Textile Firms inNigeria. Nordic Journal of African Studies , 12 (2),164–179.

Darsana, M. (2013). The Influence Of Personality AndOrganizational Culture On Employee PerformanceThrough Organizational Citizenship Behavior. TheInternational Journal of Management , 2 (4), 35-42.

Iqbal, Z. (2013). Impact of Organizational Culture onEmployees Job Performance: An Empirical Studyof Software Houses in Pakistan. Journal ofBusiness Studies Quarterly , 5 (2), 1-9.

Joseph, O. O., & Francis, K. (2015). The Influence ofOrganizational Culture and Market Orientation onPerformance of Microfinance Institutions in Kenya.International Journal of Business and Management, 10 (8), 204-211.

Kareshki, H., & Hajinezhad, Z. (2014). A MultilevelAnalysis of the Role of School Quality and FamilyBackground on Students’ MathematicsAchievement in the Middle East. UniversalJournal of Educational Research , 2 (9), 593-602.

Kaya, N., Ergün, E., & Kesen, M. (2014). The Effectsof Human Resource Management Practices andOrganizational Culture Types on OrganizationalCynicism: An empirical study in Turkey. BritishJournal of Arts and Social Sciences , 17 (1), 43-61.

Leskaj, E., Lipi, I., & Ramaj, R. (2013). Features ofOrganizational Culture and Their Impact onBanking System Performance. InternationalJournal of Economic Practices and Theories , 3(4), 288-293.

Malik, M. S., Ali, H., & Ishfaq, A. (2015). CorporateSocial Responsibility and OrganizationalPerformance: Empirical Evidence from BankingSector. Pakistan Journal of Commerce and SocialSciences , 9 (1), 241-247.

Marcoulides, G. A., & Heck, R. H. (1993).Organizational Culture and Performance:Proposing and Testing a Model. OrganizationScience, , 4 (2), 209-225.

Mohamad, A. A., & Mohammed, A. S. (2013). Impactof Organizational Culture on EmployeePerformance. International Review of Managementand Business Research , 2 (1), 168-175.

Ng’ang’a, M. J., & Nyongesa, W. J. (2012). TheImpact of Organisational Culture on Performanceof Educational Institutions. International Journalof Business and Social Science , 3 (8), 211-217.


99

Nyameh, J. (2013). Moderating effects oforganizational culture on human resourcemanagement and employee’s performance. AfricanJournal of Business Management , 7 (28), 2767-2774.

Ojo, O. (2009). Impact Assessment Of CorporateCulture On Employee Job Performance. BusinessIntelligence Journal , 2 (2), 388-397.

Purnama, C. (2013). Influence Analysis ofOrganizational Culture OrganizationalCommitment Job and Satisfaction OrganizationalCitizenship Behavior (OCB) Toward ImprovedOrganizational Performance. International Journalof Business, Humanities and Technology , 3 (5),86-100.

Ratnawat, R. (2014). Impact Organizational Cultureon Employee Performance: Review and ResearchAgenda. ZENITH International Journal of BusinessEconomics & Management Research , 4 (12), 186-197.

Raza, H., Anjum, M., & Zia, S. M. (2014). TheImpacts of Employee’s Job Performance Behaviorand Organizational Culture on OrganizationalProductivity in Pharmaceutical Industries inKarachi. Interdiscplinary Journal of Contemporaryresearch in Business , 5 (12), 385-400.

Rose, R. C., Kumar, N., & Abdullah, H. (2008).Organizational Culture as a Root of PerformanceImprovement: Research and Recommendations.Contemporary Management Research , 4 (1), 43-56.

Shahzad, F., Luqman, R. A., Khan, A. R., & Shabbir,L. (2012). Impact of Organizational Culture onOrganizational Performance: An Overview.Interdisciplinary Journal of contemporaryResearch in Business , 3 (9), 975-985.

Sheridan, J. (1992). Organizational Culture andEmployee Retention. Academy o/ MonogemenIJournal , 35 (5), 1036-1056.

Sinha, S., Kr., A., Gupta, N., & Dutt, R. (2010).Impact of Work Culture on Motivation andPerformance Level in Private Sector Companies.Acta Oeconomica Pragebsia , 18 (6), 49-67.

Sokro, E. (2012). Analyze of the relationship thatexists between Organizational Culture, Motivationand Performance. Problems of Management in the21 Century , 3, 106-119.

Syauta, J. H., Troena, ,. E., Setiawan, ,. M., &Solimun. (2012). The Influence of OrganizationalCulture, Organizational Commitment to JobSatisfaction and Employee Performance (Study atMunicipal Waterworks of Jayapura, PapuaIndonesia). International Journal of Business andManagement Invention , 1 (1), 69-76.

Uddin, M. J., Luva, R. H., & Hossian, S. M. (2013).Impact of Organizational Culture on EmployeePerformance and Productivity: A Case Study ofTelecommunication Sector in Bangladesh.International Journal of Business and Management, 8 (2), 63-77.

wanjiku, N. A., & agusioma, N. L. (2014). Effect ofOrganisation Culture on Employee Performance inNon Govermental Organizations. InternationalJournal of Scientific and Research Publications , 4(11), 1-12.

.Access this Article in Online

Website:www.ijarm.com

Subject:EducationalManagementQuick Response

CodeDOI:10.22192/ijamr.2017.04.08.010

How to cite this article:Hassan Bedel Khalif, Abdulkadir Mohamud Dahie, Ali Abdi Mohamed (Aligees), Mohamud Abdi Eid-Ga'amey. (2017). The impact of organizational culture on employee performance: Case study from Universityof Somalia (Uniso) in Mogadishu-Somalia. Int. J. Adv. Multidiscip. Res. 4(8): 89-99.DOI: http://dx.doi.org/10.22192/ijamr.2017.04.08.010

the impact of organizational culture on employee performance:...

Documents