A Study Of Effectiveness Of Organizational Culture
Carlvin MBA project
1. ROLE OF ORGANISATIONAL CULTURE ON EMPLOYEE PERFORMANCE:
A CASE STUDY OF POSTAL CORPORATION OF KENYA
CARLVIN S.E MASAKHALIA
A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF COMMERCE
AND ECONOMICS IN THE COLLEGE OF HUMAN RESOURCE AND DEVELOPMENT
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF A
MASTERS OF BUSINESS ADMINISTRATION DEGREE JOMO KENYATTA
UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
FEBRUARY 2015
2. DECLARATION
This project is my original work and has not been presented for a degree in any other any other
University.
CARLVIN S.E MASAKHALIA
REG NO: HD333-C005-2820/2011
……………………………………………………… ………………………………
Signature Date
This project has been submitted for examination with my approval as University Supervisor.
DR. FRED MWIRIGI MUGAMBI
……………………………………………………. ………………………………..
Signature Date
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3. DEDICATION
This work is dedicated to my dearest late mother Edith Phylys Ogeng’o your prayers, love,
encouragement and inspiration have brought me this far. Indeed there is nothing as sweet and
pure as a mother’s love. Thanks a lot and may God bless you through eternity. My sincere
gratitude to my loving wife Cecilia for being there for me at all times. I cannot count the number
of times you have been there for me. Your love, guidance and sacrifice has seen me this far. My
best friends Edwin Okumu and Humphrey Ademba: You have been my brothers from another
mother and the most practical people I have ever met in my life. Thank you.
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4. ACKNOWLEDGEMENT
I am most sincerely grateful to God for the opportunity, knowledge, strength and health given to
me to conduct this research project. I earnestly believe that it would be useful not only for Postal
Corporation of Kenya but also other organizations at large. I am really indebted to so many who
helped me to make this research a success in particular my supervisor Dr Mugambi for the
dedicated and sincere guidance, the HR Manager Mombasa Ms. Fauzia for granting me
permission and freely introducing me to the organization, the human resource department staff
for spending a lot of time explaining to me about the corporation and the great support offered to
me in terms of communication resources with the staff ,the entire staff of the Mombasa for your
cooperation, clarifications and responses this would not be possible without you. I also gratefully
remember my dedicated lecturers Dr Otieno, Dr Kerongo, Mr. Adet, Mr. Njoroge, Mrs. Datche
and all others for their steadfast support and guidance in completing of my course work and this
research work. I sincerely thank you all for granting me the knowledge that I have used in this
study and forever in my career. Last but not least, I gratefully remember everyone who helped in
any way in this research as well as in my studies at the university.
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5. ABSTRACT
Organization culture refers to the specific collection of values and norms that are shared by
people and groups in an organization that control the way they interact with each other and with
stakeholders outside the organization. This study was based on the fact that organization culture
is a key component in every organization especially in strategic management. The study aimed to
understand the role of organization culture on employee performance. There is little doubt
among experts that a relationship exists between organization culture and employee performance
however there has been very little empirical research that exists to support this. The study was
conducted at PCK one of the largest state firms with branches all over the country. This study
also aimed particularly to investigate how organization culture can be useful in improving
employee performance. Specific objectives of the study were examining the elements of
organization culture such as control systems, ritualism, routines, symbols, stories and myths in
relation to how they affect employee performance in. To achieve this aim the research
methodology adopted a descriptive research design. This is usually useful in assessing attitudes
and opinions about events, individuals or procedures. The target population of the study was the
entire staff of PCK. However, due to resource and time constraints the sample frame used in the
methodology only targeted the GPO Mombasa staff. To reduce bias, increase accuracy and
ensure equal representations the study used cluster random sampling as well as purposive
sampling in the sample design. The main research instruments for the study were questionnaires
although observations and record analysis were also used to collect data. Responses gathered
were represented by pie charts, line charts and bar graphs. Data processing and analysis involved
use of SPSS Statistics version 22.0.0.0 that was used to compute percentiles, means, variance
and distributions from the responses gathered. Conclusions found that indeed the various
elements of organization culture: control systems, ritualism, routines, symbols, stories and myths
all play a role in influencing employee performance. Therefore the study recommends that PCK
and other firms both in private and public practice need to appreciate, monitor and recognize the
role organization culture has on employee performance.
TABLE OF CONTENTS
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7. 3.1 Introduction............................................................................................................................25
3.2 Research Design.....................................................................................................................25
3.3 Population...............................................................................................................................25
Table 3.1 Target Population........................................................................................................26
Source: Postal Corporation of Kenya (HR Dept.Est’) [2012]..................................................26
3.4 Sample Design and Sample Size...........................................................................................27
3.6 Research Instruments............................................................................................................29
REASEARCH FINDINGS AND DISCUSSIONS....................................................................33
4.1 Introduction............................................................................................................................33
5.1 Introduction............................................................................................................................66
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8. LIST OF TABLES
Page
Table 3.1 :Target Population.............................................................................................................25
Table 3.2: Sample Design & Sample Size........................................................................................27
Table 4.1: Designation......................................................................................................................33
Table 4.2: Education Background.....................................................................................................36
Table 4.3: Financial Reporting ........................................................................................................39
Table 4.4:Training.............................................................................................................................42
Table 4.5 : Survey of employees.......................................................................................................43
Table 4.6: Survey of customers .......................................................................................................45
Table 4.7: Feedback rewards and levels of risk................................................................................45
Table 4.8: Rites of renewal improve existing social structure..........................................................48
Table 4.9: Job routines/ operations and work procedures.................................................................50
Table 4.10: Status symbols or apparent lack of them...................................................................... 53
Table 4.11: Dress code whether formal or informal ........................................................................55
Table 4.12: Visible awards and recognition.....................................................................................57
Table 4.13: Stories especially suited to tie members of the organization together ..........................60
Table 4.14: Stories conveying interpersonal norms that govern an organization.............................62
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9. LIST OF FIGURES
Page
Figure 2.1: Cultural Web..................................................................................................................10
Figure 2.2: The Conceptual Frame Work.........................................................................................13
Figure 2.3:Graphical View the Difference Btw Performance Appraisal & Management ..............14
Figure 4.1:Gender............................................................................................................................32
Figure 4.2: Department.....................................................................................................................34
Figure 4.3: Duration of Employment................................................................................................35
Figure 4.4: Performance Management..............................................................................................37
Figure 4.5: Budgets...........................................................................................................................38
Figure 4.6 :Renumeration/Rewards..................................................................................................40
Figure 4.7: Quality Systems..............................................................................................................41
Figure 4.8: Psychological dynamics behind culture manifested result of control systems..............44
Figure 4.9: Rites of passage: employees moving to new roles.........................................................46
Figure 4.10: Rites of degradation: employees powers taken away from them.................................47
Figure 4.11: Rites of enhancement: public recognition for an employee’s accomplishments.........48
Figure 4.12: Rites of conflict reduction resolve arguments btw certain members or groups...........49
Figure 4.13: Visual representations of company .............................................................................51
Figure 4.14: Offices; building layout and office allocations............................................................52
Figure 4.15: Organization facilities furnishing equipment plant and machinery.............................54
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10. Figure 4.16: How each person visible interacts with each other & organizational outsiders...........56
Figure 4.17: Members of the organization regarded as role models.................................................58
Figure 4.18: Do stories and myths in the organization affect level ofperformance..........................59
Figure 4.19:Stories used to propagate the managements philosophy among employees.................61
Figure 4.20: Stories maintaining and legitimizing institutional arrangements.................................63
Figure 4.21: Mythical stories of creation of the organization & challenges ...................................64
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11. DEFINITION OF TERMS
Congruent: This is something that agrees with or is in harmony with another (Baumeister, 1997).
Culture: The integrated pattern of human behavior that includes thought speech, action and
artifacts and depends upon the human capacity for learning and transmitting knowledge to
succeeding generations (Adkins & Caldwell, 2004).
Minions: Someone who is not powerful or important and who obeys the orders of a powerful
leader or boss (Cindy, 2008).
Myths: A traditional story, especially one concerning the early history of a people or explaining
some natural or social phenomenon and typically involves supernatural beings or events (Gabriel,
1991).
Norms: A principle of right action binding upon the members of a group and serving to guide,
control or regulate proper and acceptable behavior (Cooke, 1987).
Paradigm: A framework containing the basic assumptions, ways of thinking and methodology that
are commonly accepted by members of a community, such a cognitive framework shared by
members of any discipline or group (Denison, 1990).
Paradoxical: A statement that seems to contradict itself but nonetheless be true (Hofstede, 2001).
Perpetuate: An action that causes something to continue or prevail (Fred, Allan, & Ornstein, 2011).
Symbols: Things that represents or stands for something else especially a material object
representing something abstract (Ouchi & Johnson, 1978).
Systems: A way of working, organizing or doing something which follows a fixed plan or set of
rules (Irving, 1972).
Tacit: Agreeing to something or approving it without actually saying so, often because they are
unwilling to admit to doing so (Becky, 2007).
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12. ACRONYMS
GPO - General Post Office
HR - Human Resource
IBM - International Business Machines
JKUAT - Jomo Kenyatta University of Agriculture and Technology
Ms - Microsoft
OCP - Organization culture Profile
OCAI - Organizational Culture Assessment Instrument
PCK - Postal Corporation of Kenya
SPSS - Statistical Package for the Social Sciences
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13. CHAPTER ONE
INTRODUCTION
1.1 Background
1.1.1 Organizational Culture
Cooke (2010) defines culture as the behaviors that members believe are required to fit in and
meet expectations within their organization. Organizational culture is reflected in the way people
perform tasks, set objectives, and administer the necessary resources to achieve objectives.
Culture affects the way individuals make decisions, feel, and act in response to the opportunities
and threats affecting the organization.
Strong culture is said to exist where staff respond to stimulus because of their alignment to
organizational values. In such environments, strong cultures help firms operate like well-oiled
machines, engaging in outstanding execution with only minor adjustments to existing procedures
as needed. Conversely, there is weak culture where there is little alignment with organizational
values, and control must be exercised through extensive procedures and bureaucracy. Research
shows that organizations that foster strong cultures have clear values that give employees a
reason to embrace the culture. A "strong" culture may be especially beneficial to firms operating
in the service sector since members of these organizations are responsible for delivering the
service and for evaluations important constituents make about firms.
Cooke (2010) describes that organizations may derive the following benefits from developing
strong and productive cultures: better aligning the company towards achieving its vision,
mission, and goals, high employee motivation and loyalty, increased team cohesiveness among
the company's various departments and divisions, promoting consistency and encouraging
coordination and control within the company and shaping employee behavior at work, enabling
the organization to be more efficient
14. Irving (1972) defined group thinking as a quick and easy way to refer to a mode of thinking that
people engage when they are deeply involved in a cohesive in-group, when the members'
strivings for unanimity override their motivation to realistically appraise alternatives of action.
Where culture is strong, people do things because they believe it is the right thing to do, and
there is a risk of another phenomenon, group thinking. This is a state in which even if they have
different ideas, do not challenge organizational thinking, and therefore there is a reduced
capacity for innovative thoughts. This could occur, for example, where there is heavy reliance on
a central charismatic figure in the organization, or where there is an evangelical belief in the
organization' values, or also in groups where a friendly climate is at the base of their identity
(avoidance of conflict). In fact, groupthink is very common and happens all the time, in almost
every group. Members that are defiant are often turned down or seen as a negative influence by
the rest of the group because they bring conflict. Innovative organizations need individuals who
are prepared to challenge the status quo, groupthink or bureaucracy, and need procedures to
implement new ideas effectively.
Organizations should strive for what is considered a healthy organizational culture in order to
increase productivity, growth, efficiency and reduce counterproductive behavior and turnover of
employees. A variety of characteristics describe a healthy culture, including: acceptance and
appreciation for diversity, regard for and fair treatment of each employee as well as respect for
each employee’s contribution to the company, employee pride and enthusiasm for the
organization and the work performed, equal opportunity for each employee to realize their full
potential within the company, strong communication with all employees regarding policies and
company issues, strong company leaders with a strong sense of direction and purpose, ability to
compete in industry innovation and customer service, as well as price, lower than average
turnover rates (perpetuated by a healthy culture) and investment in learning, training, and
employee knowledge
Additionally, performance oriented cultures have been shown to possess statistically better
financial growth. Such cultures possess high employee involvement, strong internal
communications and an acceptance and encouragement of a healthy level of risk-taking in order
to achieve innovation. Also, organizational cultures that explicitly emphasize factors related to
the demands placed on them by industry technology and growth will be better performers in their
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15. industries. According to Kotter (1992), organizations with adaptive cultures perform much better
than organizations with unadaptive cultures. An adaptive culture translates into organizational
success; it is characterized by managers paying close attention to all of their constituencies,
especially customers, initiating change when needed, and taking risks. An unadaptive culture can
significantly reduce a firm's effectiveness, disabling the firm from pursuing all its
competitive/operational options.
1.1.2 History of the Postal Corporation of Kenya
Postal Corporation of Kenya is one of the leading state corporations with a large network base
across the country. It was created in line with government goals of the liberalization of the
communications sector, the Communications Act of 1998 marked a major milestone in the
development of the sector. The then giant Kenya Posts and Telecommunications Corporation
split into three entities separately responsible for Postal and telecommunications development, as
well as regulatory functions. These are Postal Corporation of Kenya, Telkom Kenya Limited and
the Communications Commission of Kenya. Except for a few reserved areas including provision
of letter boxes and production of postage stamps, this has led to opening the postal sub-sector to
full competition. This is particularly evident in the courier and financial services portfolios.
As a result of the above circumstances, Postal Corporation of Kenya is wholly state owned
enterprise created by an Act of Parliament in 1998 to provide postal, financial and distribution
services as a public postal licensee. Since inception in 1999, Postal Corporation of Kenya is the
only entity charged with the provision of universal service obligations in fulfillment of United
Nations declaration on the right to basic communications services as a human right.
The Postal history in Kenya dates from the early years of the 17th century. A Portuguese
governor was appointed in Mombasa in 1592 and official correspondence between the town and
the outside world has been recorded from 1610 onwards, carried by ship to Arabia and India and
transmitted to Europe by the overland route. Early letters from the interior of Kenya date from
about 1848 when the missionaries sent their correspondence by native runners to the Coast for
onward transmission. By 1877 some letters from Coast were being taken north from Lamu to
Aden by ships of the British Steam Navigation Company, although the bulk of mail was being
transmitted via Zanzibar.
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16. Postal Corporation of Kenya is steered by a Board of Directors appointed by the Government of
Kenya as the sole shareholder. Under the leadership of a chairman, also appointed by the
Government the board is charged with the responsibility of strategically guiding the entity. On
the management side, the organization is headed by a Chief Executive Officer under the title
Postmaster General. He reports to the board. The key departments of PCK are Mails, Courier and
Financial Services supported by the following Support departments; Logistics and Facilities
Management, Finance and Strategy, Human Resources Development and Management,
Information and Communications Technology, Legal & Marketing and Customer Service.
The state corporation has had several transformations to keep up with the market dynamics.
These include diversifying their products and services to include modern technology for instance
Posta Pay, the corporations rebranding and change of its logo is an epitome of these
transformations. In view of the rapid changes in the communications sector, the board and
management of PCK are continuously reviewing strategy to give better focus on the
corporation`s major revenue drivers that revolve around three areas: Financial, courier and mail
services. Changes in strategy have an impact on the organization culture and this will affect the
employees during implementation of the policies. In 2003, the Corporation initiated a major
restructuring exercise to transform the organization through scanning the business environment
and implementing strategies that would make it respond appropriately to market dynamics. The
key initiatives are captured in the 2003-2007 Corporate Strategic Plan.
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17. 1.2 Statement of the Problem
Despite organization culture being an important element in strategic management, most
organizations and even scholars have not been a keen to look at its influence on employee
performance. In the recent past, several private firms and state corporations for instance Postal
Corporation of Kenya has endeavored to improve their performance engaging in major restructuring
and reforms initiatives with little focus on the significant role organization culture plays in a firm.
Unfortunately these reforms have yielded very little fruit and these firms continue to struggle. As a
matter of fact, in 2012 Postal Corporation of Kenya did lay off several hundreds of its employees
due to the high wage bill it could not sustain despite having rebranded and restructured the previous
year. Notably, the reforms and rebranding programs had not involved change or improvements of
the organizational values, visions, norms, working language, systems, symbols, beliefs and habits
which all remained the same. Consequently, Postal Corporation of Kenya continues to struggle
losing out to its competitors the new entrant’s courier firms like G4S and bus companies like
Modern coast who also offer similar services. However, before blaming the management on failing
to focus on the significant role of organization culture on employee performance, it is important to
note that role organization culture plays on performance of employees of a firm and firms as a
whole still is not very apparent.
One of the strongest and widely recognized criticisms of theories about organization culture attempt
to categorize or pigeon hole it uses the metaphor of a plant root. Plant root is used to represent
culture, describing that it drives organizations rather than vice versa creating a further argument of
what drives the other. Definitely, there is little doubt among experts that a relationship exists
between organization culture and employee performance however, there has been very little
empirical research that exists to support and draw clear conclusions about it. Research about the
specific elements on organization culture such as control systems, rituals, routines, symbols, stories
and myths and how the each and every individual aspect relates to employee performance are very
few. A research that looks at how these specific elements of organization culture relate and affect
employee performance would provide useful knowledge that will clear any doubt of the role of
organization culture has on employee performance. Further, although organizations are the product
of organizational culture, we are unaware of how it shapes behavior and interaction recognized
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18. through underlying assumptions and challenged how can we categorize it and define what it is.
Moreover today, organization culture not only affects people’s way of perception, thinking and
feeling but also decision making. For instance, hiring on the basis of culture is not a new practice
although the contrast firing is recent. Corporations such as Zappos and Netflix in the U.S also fire
based solely on cultural fit of an employee. This raises management arguments; while critics dispel
such decisions on discrimination grounds management pundits argue there is clearly no
discrimination. They claim that such employees do not accept and desire to be inclusive for the
culture of the organization and thus they do not fit in corporate culture. Uncertainties of this nature
about organization culture can be resolved and put to rest from an empirical study of its role on
employee performance in Postal Corporation of Kenya.
1.3 Objectives
1.3.1 General Objective
The general objective of the study is to investigate the role of organizational culture on employee
performance.
1.3.2 Specific Objectives
The specific objectives of the study are as follows:
1. To examine the relationship between control systems and employee performance in Postal
Corporation of Kenya.
2. To determine the influence of rituals on employee performance in Postal Corporation of Kenya.
3. To examine the relationship of organization symbols and employee performance in Postal
Corporation of Kenya.
4. To investigate the influence of stories, myths on employee performance in Postal Corporation of
Kenya.
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19. 1.4 Research Questions
The research questions of this study are as follows:
1. How do control systems affect employee performance in Postal Corporation of Kenya?
2. How do rituals influence employee performance in Postal Corporation of Kenya?
3. How do organization symbols affect employee performance in Postal Corporation of Kenya?
4. How do stories, myths influence and employee performance in Postal Corporation of Kenya?
1.5 Justification of The Study
Organizational culture is a very important aspect in any organization and may impact the level of
employee creativity, the strength of employee motivation, and the reporting of unethical behavior
and therefore it cannot be ignored or taken lightly. Adkins & Caldwell (2004) found that job
satisfaction was positively associated with the degree to which employees fit into both the
overall culture and subculture in which they worked. A perceived mismatch of the organization’s
culture and what employees felt the culture should be is related to a number of negative
consequences including lower job satisfaction, higher job strain, general stress, and turnover
intent.
The study is useful to Postal Corporation of Kenya and other similar organizations especially
when undergoing transformations to gain competitive advantage ahead of their competitors. Key
stakeholders of the corporation and other firms such the Government of Kenya, owners, top
management, middle managers, section heads and supervisors can use the findings in decision
making and management to enhance employee performance. The study also useful to researchers
and experts aims to clear doubt whether or not a relationship exists between organization culture
and employee performance since very little empirical research exists to support this.
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20. 1.6 Scope of Study
The study covered entire Postal Corporation of Kenya which forms the population for the study.
The state corporation has several branches in the country however due to limitations of time and
resources the study was done only at the GPO Mombasa branch located along Digo Road. The
research was cross-sectional covering all departments. The organization has a functional
organization structure consisting of the several departments as: human resource, accounts, sales,
operations, information technology and transport/logistics. The study also covered the support
staff and messengers in order to ensure it is fully representative and provided accurate findings
on the role of organizational culture on employee performance management for the entire
corporation.
1.7 Limitations of the Study
The limitations of this study are mainly time and financial resources. Research projects are time
consuming. However, being a student and working at the same time constrained the time
available to conduct the study. I was also the sole source of funds for this research project this
limited the research methodology that was conducted. Lastly, the availability of some employees
to be interviewed was a challenge since most field officers travel away from the office most
times.
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21. CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter describes the literature review. It discusses the theoretical framework, cultural web,
models and various types of organization culture, the relationship between organization culture
and employee performance, the conceptual framework, summary of the existing literature,
critique of existing literature and the research gaps.
2.2 Theoretical Framework
2.2.1 Cultural Web
Ravasi & Schultz (2006), state that organizational culture is a set of shared mental assumptions
that guide interpretation and action in organizations by defining appropriate behavior for various
situations. Organizational culture is the collective behavior of humans who are part of an
organization and the meanings that the people attach to their actions. Culture includes the
organization values, visions, norms, working language, systems, symbols, beliefs and
rituals/habits (Schultz, 2006). It is also the pattern of such collective behaviors and assumptions
that are taught to new organizational members as a way of perceiving, and even thinking and
feeling.
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22. Figure 2.1: Cultural Web
Source: Researcher, 2014
A cultural web identifies a number of elements that can be used to describe or influence
organizational culture as follows (Johnson, 1988): The Paradigm, this represents what the
organization is about; what it does; its mission; its values. Control Systems represents the
processes in place to monitor what is going on.
Organizational Structures describe reporting lines, hierarchies, and the way that work flows
through the business. Power Structures focuses on who makes the decisions, how widely spread
is power, and on what is power based on. Symbols represent organizational logos and designs,
but also extend to symbols of power such as parking spaces and executive washrooms (Johnson,
1988).
Rituals and Routines describe management meetings; board reports and so on may become more
habitual than necessary. Stories and Myths describe build up about people and events, and
convey a message about what is valued within the organization. Johnson (1988), these elements
may overlap for instance power structures may depend on control systems, which may exploit
the very rituals that generate stories which may not be true.
2.2.2 Schein Model Of Organizational Culture
Schein (2009), Deal & Kennedy (2000), Denison (1990) and many others state that organizations
often have very differing cultures as well as subcultures. Several methods have been used to
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23. classify organizational culture. While there is no single "type" of organizational culture and
organizational cultures vary widely from one organization to the next, commonalities do exist
and some researchers have developed models to describe different indicators of organizational
cultures.
According to Schein (1992), culture is the most difficult organizational attribute to change,
outlasting organizational products, services, founders and leadership and all other physical
attributes of the organization. His organizational model illuminates culture from the standpoint
of the observer, described by three cognitive levels of organizational culture. The first and most
cursory level of model is organizational attributes that can be seen, felt and heard by the
uninitiated observer collectively known as artifacts (Schien, 1992).
Schein (1992) describes artifacts as the tangible aspects of culture shared by members of an
organization. Included are the facilities, offices, furnishings, visible awards and recognition, the
way that its members dress, how each person visibly interacts with each other and with
organizational outsiders, and even company slogans, mission statements and other operational
creeds. Artifacts comprise the physical components of the organization that relay cultural
meaning. Schein (1992), verbal behavioral and physical artifacts are the surface manifestations
of organizational culture. Language, stories, and myths are examples of verbal artifacts and are
represented in rituals and ceremonies. Rituals, the collective interpersonal behavior and values as
demonstrated by that behavior, constitute the fabric of an organization's culture. The contents of
myths, stories, and sagas reveal the history of an organization and influence how people
understand what their organization values and believe.
The next and the second level of the model are the shared values (Schien, 1992). This deals with
the professed culture of an organization's members. Shared values are individuals’ preferences
regarding certain aspects of the organization’s culture for instance loyalty and customer service.
At this level, local and personal values are widely expressed within the organization. Basic
beliefs and assumptions include individuals' impressions about the trustworthiness and
supportiveness of an organization, and are often deeply ingrained within the organization’s
culture (Schien, 1992). Organizational behavior at this level usually can be studied by
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24. interviewing the organization's membership and using questionnaires to gather attitudes about
organizational membership.
The third and deepest level, the organization's tacit assumptions are found (Schien, 1992). These
are the elements of culture that are unseen and not cognitively identified in everyday interactions
between organizational members. Additionally, these are the elements of culture which are often
taboo to discuss inside the organization. Many of these 'unspoken rules' exist without the
conscious knowledge of the membership. Those with sufficient experience to understand this
deepest level of organizational culture usually become acclimatized to its attributes over time,
thus reinforcing the invisibility of their existence (Schien, 1992). Surveys and casual interviews
with organizational members cannot draw out these attributes rather much more in-depth means
is required to first identify then understand organizational culture at this level. Notably, culture at
this level is the underlying and driving element often missed by organizational behaviorists.
This model, helps to make paradoxical organizational behaviors becomes more apparent (Schien,
1992). For instance, an organization can profess highly aesthetic and moral standards at the
second level of the model while simultaneously displaying curiously opposing behavior at the
third and deepest level of culture. Superficially, organizational rewards can imply one
organizational norm but at the deepest level imply something completely different. This insight
offers an understanding of the difficulty that organizational newcomers have in assimilating
organizational culture and why it takes time to become acclimatized. It also explains why
organizational change agents usually fail to achieve their goals: underlying tacit cultural norms
are generally not understood before would-be change agents begin their actions (Schien, 1992).
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26. 2.3.1 Employee Performance
Employee performance management is a process of establishing a shared workforce
understanding about what is to be achieved at an organization level (Cameron & Quinn, 1990).
It is about aligning the organizational objectives with the employees' agreed measures, skills,
competency requirements, development plans and the delivery of results. The emphasis is on
improvement, learning and development in order to achieve the overall business strategy and to
create a high performance workforce
Figure 2.3: Graphical View of the Difference between Performance Appraisal and
Management
Source: (Becky, 2007)
Noe et al. (2000), performance management and performance appraisal are two important
measures of employee performance. Performance Management is used to ensure that employees'
activities and outcomes are congruent with the organization’s objectives and entails specifying
those activities and outcomes that will result in the firm successfully implementing the strategy
(Noe et al. 2000). Performance appraisal properly describes a process of judging past
performance and not measuring that performance against clear and agreed objectives.
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28. 2.3.1.1 Cameron & Quinn Organization Culture and Performance Model
Cameron & Quinn (1990) made a research on organizational effectiveness and success. Based on
the Competing Values Framework, they developed the Organizational Culture Assessment
Instrument that distinguishes four culture types. Competing values produce polarities like
flexibility vs. stability and internal vs. external focus. These two polarities were found to be most
important in defining organizational success and affect employee performance (Cameron &
Quinn, 1990). The polarities construct a quadrant with four types of culture: clan culture (internal
focus and flexible) describes a friendly workplace where leaders act like father figures;
adhocracy culture (external focus and flexible) describes a dynamic workplace with leaders that
stimulate innovation; market culture (external focus and controlled) describes a competitive
workplace with leaders like hard drivers; hierarchy culture (internal focus and controlled)
describes a structured and formalized workplace where leaders act like coordinators.
Cameron & Quinn (1990) designated six key aspects that will form organizational culture which
can be assessed in the OCAI thus producing a mix of the four archetypes of culture. Each
organization or team will have its unique mix of culture types. Clan cultures are most strongly
associated with positive employee attitudes and product and service quality, whereas market
cultures are most strongly related with innovation and financial effectiveness criteria. The
primary belief in market cultures is that clear goals and contingent rewards motivate employees
to aggressively perform and meet stakeholders' expectations; a core belief in clan cultures is that
the organization’s trust in and commitment to employees facilitates open communication and
employee involvement. These differing results suggest that it is important for executive leaders
to consider the match between strategic initiatives and organizational culture when determining
how to embed a culture that produces competitive advantage (Cameron & Quinn, 1990). By
assessing the current organizational culture as well as the preferred situation, the gap and
direction to change can be made visible as a first step to changing organizational culture.
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29. 2.3.2 Control Systems
Johnson (1988) describes control systems in the cultural web as the ways that the organization is
controlled. These are systems that are used to observe and monitor various aspects of the
organization will make a significant contribution to shaping the organizational culture. They
include budgets, financial reporting, surveys of customers and employees, training, quality
systems and remuneration/rewards including the way they are measured and distributed within
the organization
Controlling is one of the managerial functions like planning, organizing, staffing and directing
(Weber, 1897). It is an important function because it helps to check the errors and to take the
corrective action so that deviation from standards are minimized and stated goals of the
organization are achieved in a desired manner.
The concept of organizational control is implicit in the bureaucratic theory Weber (1897). The
direction for organizational control comes from the goals and strategic plans of the organization.
General plans are translated into specific performance measures such as share of the market,
earnings, return on investment, and budgets.
The process of organizational control is to review and evaluate the performance of the system
against these established norms. Rewards for meeting or exceeding standards may range from
special recognition to salary increases or promotions. On the other hand, a failure to meet
expectations may signal the need to reorganize or redesign.
2.3.2.1Carmazzi Organization Culture Model on Controls
Carmazzi (2007) describes organizational culture based on how control systems affect the
effectiveness and level of commitment of the people and within that culture. In order to break the
cycle and evolve a culture and the commitment of those in it, leaders need to understand their
role in the psychological dynamics behind the culture and make adjustments that will move it to
the next level. Carmazzi (2007) stated five levels of organizational culture. The Blame culture,
this culture cultivates distrust and fear, people blame each other to avoid being reprimanded or
put down, this results in no new ideas or personal initiative because people don’t want to risk
17
30. being wrong. Multi-directional culture, this culture cultivates minimized cross-department
communication and cooperation. Loyalty is only to specific groups (departments). Each
department becomes a clique and is often critical of other departments which in turn create lots
of gossip. The lack of cooperation and multi direction is manifested in the organizations
inefficiency (Carmazzi, 2007).
Live and let live culture, this culture is complacency (Carmazzi, 2007). It manifests mental
stagnation and low creativity. People here have little future vision and have given up their
passion. There is average cooperation and communication and things do work, but they do not
grow. People have developed their personal relationships and decided who to stay away from,
there is not much left to learn. Brand congruent culture, people in this culture believe in the
product or service of the organization, they feel good about what their company is trying to
achieve and cooperate to achieve it (Carmazzi, 2007). People here are passionate and seem to
have similar goals in the organization. They use personal resources to actively solve problems
and while they don’t always accept the actions of management or others around them, they see
their job as important. Most everyone in this culture is operating at the level of group.
Leadership enriched culture, people view the organization as an extension of themselves, and
they feel good about what they personally achieve through the organization and have exceptional
cooperation (Carmazzi, 2007). Individual goals are aligned with the goals of the organization and
people will do what it takes to make things happen. As a group, the organization is more like
family providing personal fulfillment which often transcends ego so people are consistently
bringing out the best in each other. In this culture, leaders do not develop followers, but develop
other leaders. Everyone in this culture operates at the same level of organization.
2.3.3 Rituals
18
31. Johnson (1988) describes rituals and routines as the daily behavior and actions of people that
signal acceptable behavior. This determines what is expected to happen in given situations, and
what is valued by management. Several different kinds of rites that affect organizational culture:
rites of passage: employees move into new roles, rites of degradation: employees have power
taken away from them, rites of enhancement: public recognition for an employee’s
accomplishments, rites of renewal: improve existing social structures, rites of conflict reduction:
resolve arguments between certain members or groups, rites of integration: reawaken feelings of
membership in the organization.
Schein (1985) describes rituals and routines as the third and deepest level, the organization's tacit
assumptions are found. These are the elements of culture that are unseen and not cognitively
identified in everyday interactions between organizational members. Additionally, these are the
elements of culture which are often taboo to discuss inside the organization. Many of these
'unspoken rules' exist without the conscious knowledge of the membership. Those with sufficient
experience to understand this deepest level of organizational culture usually become
acclimatized to its attributes over time, thus reinforcing the invisibility of their existence.
Surveys and casual interviews with organizational members cannot draw out these attributes
rather much more in-depth means is required to first identify then understand organizational
culture at this level. Notably, culture at this level is the underlying and driving element often
missed by organizational behaviorists.
Schein (1985) makes paradoxical organizational behaviors become more apparent. For instance,
an organization can profess highly aesthetic and moral standards at the second level of Schein's
model while simultaneously displaying curiously opposing behavior at the third and deepest
level of culture. Superficially, organizational rewards can imply one organizational norm but at
the deepest level imply something completely different. This insight offers an understanding of
the difficulty that organizational newcomers have in assimilating organizational culture and why
it takes time to become acclimatized. It also explains why organizational change agents usually
fail to achieve their goals: underlying tacit cultural norms are generally not understood before
would-be change agents begin their actions. Merely understanding culture at the deepest level
may be insufficient to institute cultural change because the dynamics of interpersonal
19
32. relationships (often under threatening conditions) are added to the dynamics of organizational
culture while attempts are made to institute change.
20
33. 2.3.4 Organization Symbols
According to Johnsons (1988) symbols are visual representations of the company. The symbols
prevalent in an organization contribute towards its culture and these include the dress code
whether is it a formal or informal, status symbols or the apparent lack of them for instance
parking places, directors dining room, building layout; how are offices allocated and role
models; which members of the organization are regarded as role models.
Schein (1985) describes symbolism as organizational attributes that can be seen, felt and heard
by the uninitiated observer. Included are the facilities, offices, furnishings, visible awards and
recognition, the way that its members dress, and how each person visibly interacts with each
other and with organizational outsiders.
According to Schein (1992), symbols are important in an organization for 2 reasons; external
adaptation and internal integration. External adaptation reflects an evolutionary approach to
organizational culture and suggests that cultures develop and persist because they help an
organization to survive and flourish. If the culture is valuable, then it holds the potential for
generating sustained competitive advantages.
Internal integration on the other hand is an important function since social structures are
required for organizations to exist. Organizational practices are learned through socialization at
the workplace. Work environments reinforce culture on a daily basis by encouraging employees
to exercise cultural values. Organizational culture is shaped by multiple factors, including the
following: external environment, industry, size and nature of the organization’s workforce,
technologies the organization uses and the organization’s history and ownership.
21
34. 2.3.5 Stories and Myths
Clark (1972), storytelling is an important device of human sense-making. We all tell stories
about things that are important to us, that we think are worth being remembered and shared with
others. Seldom are these stories truly accurate accounts of events. Rather, they are selective
accounts that stress certain aspects while downplaying others, usually in accordance with the role
of the narrator (Baumeister, 1997).
Storytelling pervades the world of modern organizations. As an organizational phenomenon,
storytelling was first described by Selznick (1957) and Clark (1972), but subsequent research
failed to follow up their lead. While myths, legends and fables have for long been a legitimate
object of analysis in anthropology, it was the renewed interest in the concept of culture during
the early 1980s that “rediscovered” storytelling in organizations (Martin, 1982). Unfortunately,
the following wave of publications on organizational stories did not lead to a unifying definition
of organizational stories. Most researchers are rather vague on clarifying what distinguishes
organizational stories from other types of stories. While certain motives may be more prevalent
in organizational stories, the distinction between organizational stories and other types of stories
is not one of content. Rather, the concept of an organizational story usually refers to a shared
account as opposed to an individual account.
Gabriel (1991) refers to any story that is told repeatedly in an organization as “organizational.”
This approach appears unsatisfying, because it does not distinguish between individual and
shared accounts. Covin et al. (1994), insist that the motives of a story need to be shared by a
“sufficient” number of members of an organization for the story to become an organizational
story. While this approach seems to be more promising, it still does not answer the question of
how many members constitute a “sufficient” amount. The question becomes even more difficult
when the researcher abandons the view of organizational cultures as monolithic and unifying. If
one takes into account the diverse sub-cultures of an organization, it becomes clear that an
organizational story need not be shared by all, or even the majority of the organization’s
members to be “organizational.
22
35. Stories are especially suited to tie the members of group efficiency, because it acts as a
prescriptive rule that governs employee behavior and to generate a feeling of commitment
among them (Clark 1972; Martin & Powers 1983). They achieve this effect by adding an
emotional element to formal membership in the organization, thereby creating loyalty that on
occasion leads to a quasi-religious dedication to the organization (Tommerup, 1990). It should
have become clear that questions of organizational control occupy a central position in the
literature on organizational storytelling.
2.4 Critique of Existing Literature
Organization culture is an important aspect in most organizations as Schein (2002), suggests that
an organization's culture develops to help it cope with its environment. However unlike what
most writers suggest organizations do not have a single culture and cultural engineering may not
reflect the interests of all stakeholders within an organization.
Parker (2000) has suggested that many of the assumptions of those putting forward theories of
organizational culture are not new. They reflect a long-standing tension between cultural and
structural (or informal and formal) versions of what organizations are. Further, it is reasonable to
suggest that complex organizations might have many cultures, and that such sub-cultures might
overlap and contradict each other. The neat typologies of cultural suggest by various
management writers rarely acknowledge such complexities, or the various economic
contradictions that exist in capitalist organizations.
2.5 Summary of Literature
Based on the literature review it is clear that organization culture is a set of understandings or
meanings shared by a group of people that are largely tacit among members and are clearly
relevant and distinctive to the particular group which are also passed on to new members. It
consists of interrelated elements including power structures, control systems, stories and
symbols as well as rituals and routines that help to make up a "paradigm”. The paradigm
describes the pattern or model of the work environment. By analyzing the elements in each, one
can begin to see the bigger picture of the culture in organization: what is working, what isn't
23
36. working, and what needs to be changed and therefore appreciate the role organization culture on
employee performance in an organization.
2.6 Research Gaps
Based on the literature review, there is little doubt among experts that a relationship exists
between organization culture and individual performance. Organizational culture impacts the
level of employee creativity, the strength of employee motivation, and the reporting of unethical
behavior. However, there is very little empirical research that exists to support this and creates a
knowledge gap therefore more research is needed to support these conclusions. The study aims
to fill this knowledge gap. The findings and recommendations will provide evidence of whether
or not organization culture and employee performance are related. Postal Corporation of Kenya
is also undergoing several transformations rebranding, developing new products and services and
change of management staff aimed to improve performance the findings and recommendations
of the study will fill the knowledge gap on the ways in which organization culture can enhance
performance at the state corporation and other similar institutions.
24
37. CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
The chapter discusses the research design, procedure and strategies that were used in the study.
Success in research depends on whether the researcher specified what to find out and the best
way to do so (Welman & Krugen2001). Therefore, to ensure the success of this study, this
chapter describes the research design, target population, sample (sample frame), data collection
and the data processing, presentations and analysis.
3.2 Research Design
Kothari (2005) describes descriptive research design as a blue print for collection, measurement
and analysis of data. This was used in the study since it is usually useful in assessing attitudes
and opinions about events, individuals or procedures. Descriptive survey designs are used in
preliminary and exploratory studies to allow researchers gather information, summarize, present
and interpret for the purpose of clarification of facts and ideas (Orodho, 2002). It helps to
identify the nature of factors involved in a given situation, determine the degree in which they
exist and discover the links that exist between these factors. In the study this also helped the
researcher to easily analyze the findings.
3.3 Population
Mugenda & Mugenda (1999) defines populations as the entire set of individuals, events or
objects with common observable characteristics. The target population of the study was the
entire staffs of Postal Corporation of Kenya who are 2,266 as shown on Table 3.1. The
organization has a functional organization structure consisting of the several departments as
follows: human resource, finance and accounts, sales, operations, information technology and
transport/logistics. Also, this study targeted and covered all departments including the support
staff and messengers.
25
38. Table 3.1 Target Population
Department Number of
employees
Top management 34
Human resource 186
Accounts 297
Information technology 54
Sales 206
Operations 748
Transport/logistics 473
Support staff & messengers 188
Total 2,186
Source: Postal Corporation of Kenya (HR Dept.Est’) [2012]
26
39. 3.4 Sample Design and Sample Size
This research involved use of cluster and purposive sampling to create the sample design. This
helped to ensure a representative sample is obtained from the population. According to Mugenda
& Mugenda (1999), a representative sample is that in which at least 10% of the population is
represented. Postal Corporation is very expansive geographically and it would be require a lot of
resources to obtain a sample from all its stations country wide. As a result, the cluster sampling
where the primary sampling unit is a geographical area was used. The sample frame for this
study was the entire staff of the GPO Mombasa office which comprises of 218 employees as
shown Table 3.2.
The sample consisted of at least a minimum of 10% of employees from each department who
were selected from different functional areas in the organization. This approach was used
because it best ensures control of the sample size, increases statistical efficiency and provides
data to represent and analyze subgroups.
Purposive sampling was used in the study mainly in obtaining responses from the top
management. In purposive sampling the investigator uses own judgment and prior knowledge to
choose people for the sample that best serve the purpose of the study. In this regard, the
researcher deliberately did seek responses from long serving and experienced management staffs
that were more knowledgeable about the organization.
To provide more accurate findings the researcher also endeavored to obtain at least 50 responses
still ensuring that at least10% representation is maintained for each and every category as shown
in Table 3.2.
27
40. TABLE 3.2 Sample Design & Sample size
Department Sample Sample
frame
Percentage
Sample
representation
Top Management 2 4 50%
Human Resource 4 14 28.6%
Accounts 6 25 24%
Information Technology 4 15 26.6%
Sales 2 9 22.2%
Operations 22 102 21.4%
Transport/Logistics 8 35 22.8%
Support Staff 2 15 13.3%
Total 50 218 22.9%
Source: Researcher, 2014
3.5 Data Collection
The researcher seeked a letter of introduction from JKUAT Mombasa authorizing him to conduct
the study by way of collection of data: a step that helped him to get information a lot more easily
from the respondents compared to if there wasn’t one. The letter was be presented to the HR
Manager who in turn published a memo to the departmental heads alerting them that there
would be a survey conducted in the organization so that the rest of the staff are fully aware in
advance that the researcher would present questionnaires and the purposes of the study. With the
help of an assistant the researcher distributed questionnaires. Making good use of interpersonal
skills the researcher and his assistant endeavored to convince the respondents to fill in the
questionnaires; assisting the respondents where difficulties were envisaged.
28
41. 3.6 Research Instruments
There are several ways of collecting the appropriate data which differ considerably in the context
of financial resources as well as time. Some ways of collecting data are: observation,
questionnaires and record analysis. However, this research was compiled using information
obtained from questionnaires administered by the researcher because this mode is usually
cheaper to administer, does not require training of the researcher to distribute and collect the
questionnaire. Also more elaborate data could be obtained from the questionnaire which has both
structured and subjective questions.
Although the questionnaires cannot be applied to illiterate personnel the researcher still used
them since they cover a large audience and exhibit privacy: especially with questions that cannot
be answered face to face and the respondents would be willing to give information especially
those of sensitive issues. However, according to Kothari (2005) questionnaires have a shortfall
the researcher cannot probe for further information and may not be able to control who fills the
questionnaire. The response rate may therefore have been low.
3.7 Pre-Testing Instruments
Questionnaires were first pretested on 10% of the sample frame to ascertain clarity and
objectivity of data instruments. The purpose of having this pilot study was to reaffirm the
relevance and to ensure fewer flaws of the instruments administered after necessary amendments
if at all any were made.
29
42. 3.7.1 Validity
According to Kothari (2005), validity is the most critical criterion and indicates the degree to
which the instrument measures what it is supposed to measure. It can also be thought of as
utility. In other words validity refers to the extent to which differences found with measuring
instruments reflects true differences among those being tested. The answered the question of how
a researcher could determine validity without reaffirming knowledge
This study considered two types of validity: Content validity provided adequate coverage of the
topic under the study. It related to the researchers ability to predict some outcomes or estimate
the existence of a current situation. Criterion validity related to the degree to which scores on a
test can be accounted for by the exploratory constructs of sound theory. These criteria were tests
conducted and met in order to ensure our measuring instrument were valid and resulted in correct
measurement.
3.7.2 Reliability
Kothari (2005) describes reliability as an important test of sound measurement. A measuring
instrument is reliable if it provides consistent results. A reliable measuring instrument does
contribute to validity, but a reliable instrument needs not to be a valid instrument. Reliability is
therefore not as significant as validity though it is easier to assess. In this research, two aspects of
reliability namely stability and equivalence deserved special mention.
The reliability of this study was improved in two ways one is by standardizing the conditions
under which the measurements takes place .Ensured that the external source of variation such as
boredom, fatigue were minimized to the least possible extent this improved the stability aspect.
Second, by carefully designing directions for measurement with no variations from group to
group improve the equivalence aspect. The reliability aspect was concerned with securing
consistent results in repeated measurement of the same person and with the same instrument. The
equivalence aspect considered how much error may get introduced by different investigators or
different samples of the items being studied.
3.8 Data Processing and Analysis
30
43. According to Cooper & Schindler (2003), where research is concerned with finding out who,
what, where, when and how much, the study is descriptive. The specific objectives of this
research involved examining the relationships that exist between control systems, rituals,
routines, organization symbols, stories, myths and employee performance in Postal Corporation
of Kenya. As a result data processing and analysis mainly involved correlation and regression as
the main descriptive statistical measures. Correlation and regression are useful measures when
investigating relationships between two or more variables which can be either be positively or
negatively correlated. The research endeavored to generate other measures such as mean, mode,
median, percentiles and quartiles that were used in analysis. These measures were to be
generated using SPSS Statistics version 22.0.0.0 and then exported to Ms Word document. The
findings obtained from analysis would then be used to come up with the summary, conclusions
and recommendations. These were to be done as described below:
Once the data started flowing in, attention turned to data analysis. The main steps of the data
analysis were to be. Editing that involved the checking of raw data so that as far practically
possible errors or points of confusion in the data are eliminated. The main purpose here was
setting quality standards on the raw data so that the analysis could take place with minimal
confusion. The researcher would be able to detect errors and omissions, correct and amend where
possible and certify that minimal data quality is achieved. Coding that involved the assigning of
numbers or their symbols to answers so that the responses could be grouped into a limited
number of classes or groups. Finally tabulation that consisted of counting the numbers of
responses that fit each category this would take the form of simple or cross tabulation.
31
44. 3.9 Data Presentation
From the analysis the researcher was able to come up with presentations that were both
quantitative and qualitative. Pie charts were to be used to present the data on the findings of the
study. A pie chart represents the data as a portion of 360 degrees circle. A pie chart is useful for
small amounts of data but not very good for representing a large number of variables. Bar charts
were also to be used in data presentation of the findings of the study. A bar chart represents the
data as a bar- the height of the bar representing the size of the value. In summary, for this study,
qualitative presentation were to be made using statistical methods which included: the
development of instruments and methods of measurement, manipulation of variables, collection
of empirical data, modeling and analysis of data and evaluation of results.
32
45. CHAPTER FOUR
REASEARCH FINDINGS AND DISCUSSIONS
4.1 Introduction
The chapter discusses the findings on tables, bar charts and pies chart generated by SPSS
Statistics version 22.0.0.0for the data collected from the research methodology.
4.2 Findings
4.2.1 Findings on gender
Figure 4.1: Gender
33
46. Source: Researcher 2014
Discussion
According to the survey 69.2 percent of the populations are male while 30.8 are female. This
shows that there are more male employees in the organization than the female employees.
4.2.2 Findings on designations
Table 4.1: Designation
Frequency Percent Valid Percent
Cumulative
Percent
Senior Manager 3 5.8 5.8 5.8
Manager 10 19.2 19.2 25.0
Supervisor 10 19.2 19.2 44.2
Officer 18 34.6 34.6 78.8
Other 11 21.2 21.2 100.0
Total 52 100.0 100.0
Source: Researcher 2014
Discussion
According to the respondents, senior management is represented by 5.8%, managers form
19.2%, officers 34.6% while support staff and drivers is represented by 21.2%. This shows that
majority of the employees are officers and operational level employees compared to in middle
and strategic /executive management levels.
34
47. 4.2.3 Finding on departments
Figure 4.2: Department
Source: Researcher 2014
Discussion
According to the respondents, the operations department has the highest number employees; this
is followed by transport, then the information technology, accounts, human resource and sales
department. This can be explained by the fact that logistics and roles of postal services are
carried out by operations department and therefore need a large number of personnel.
35
48. 4.2.4 Findings on duration of employment
Figure 4.3: Duration of employment
Source: Researcher 2014
Discussion
According to the study, majority of the employees in the state corporation have worked for over
10 years. Fewer have worked for 5-10 years and 0-5 years. This shows that the organization has
a high employee retention rate and low turnover culture.
36
60%
19%
21%
49. 4.2.5 Findings on education background
Table 4.2: Education Background
Frequency Percent Valid Percent
Cumulative
Percent
High school 31 59.6 59.6 59.6
Diploma 17 32.7 32.7 92.3
Graduate 4 7.7 7.7 100.0
Total 52 100.0 100.0
Source: Researcher 2014
Discussion
According to the findings, majority of employees are high school leavers 59.2%, diploma holders
32.7% and graduates are 7.7%. This shows the organization culture is more work based than
knowledge based in achieving the goals of the corporation. As a result focus is on labor intensive
employees who do not have high educational qualifications. However, in the tactical level there
are employees are highly educated to enhance in management issues in the organization.
37
50. 4.2.6 Findings on performance measurement
Figure 4.4: Performance Measurement
Source: Researcher 2014
Discussion
Majority of the respondents claimed that performance is measured against clear goals and
objectives; some however mentioned that it is against past performance. A small percentage of
the respondents were not sure. According to these findings the organization mainly focuses on
performance against clear goals and objectives and has a performance oriented culture.
38
51. 4.2.7 Findings on budgets
Figure 4.5: Budgets
Source: Researcher 2014
Discussion
Majority of the respondents claim that budgets enhance performance, a few claimed that it highly
enhances while very few were not sure and claimed that it inhibits. Generally most respondents
were positive and optimistic about budgets as a control in the organization.
39
60%
10% 10%
8%
12%
52. 4.2.8 Findings on financial reporting
Table 4.3: Financial Reporting
Frequency Percent Valid Percent
Cumulative
Percent
Not sure 6 11.5 11.5 11.5
Highly inhibits 6 11.5 11.5 23.1
Inhibits 2 3.8 3.8 26.9
No effect 3 5.8 5.8 32.7
Enhances 27 51.9 51.9 84.6
Highly enhances 8 15.4 15.4 100.0
Total 52 100.0 100.0
Source: Researcher 2014
Discussion
According to the findings, 51.9 % of the respondents said that financial reporting enhances
performance, 15.4 % said it highly enhances, 11.5 % were not sure. This generally shows that
majority of the respondents agree that financial reporting improves their performance.
40
53. 4.2.9 Findings on remuneration/rewards
Figure 4.6: Remuneration/Rewards
Source: Researcher 2014
Discussion
According to the survey, majority of the respondents claimed that remuneration/ rewards
enhance performance. Also some claimed that it highly enhances while a few percentage were
not sure.
41
54. 4.2.10 Findings on quality systems
Figure 4.7: Quality systems
Source: Researcher 2014
Discussion
According to the survey majority of the respondents claimed that quality systems both enhance
and highly enhances performance. However a few claimed that they not sure, it inhibits or has no
effect on performance.
42
57%
20%
9%
4%
10%
55. 4.2.11 Findings on training
Table 4.4: Training
Frequency Percent Valid Percent
Cumulative
Percent
Not sure 6 11.5 11.5 11.5
Highly inhibits 2 3.8 3.8 15.4
Inhibits 4 7.7 7.7 23.1
No effect 5 9.6 9.6 32.7
Enhances 25 48.1 48.1 80.8
Highly enhances 10 19.2 19.2 100.0
Total 52 100.0 100.0
Source: Researcher 2014
Discussion
According to the responses, 48.1% and 19.2% of the employees claimed that training enhances
and highly enhances employee performance respectively. 11.5% were not sure while 3.8%,
7.7%, 9.6% claimed that training highly inhibits, inhibits and has no effect on employee
performance respectively.
43
56. 4.2.12 Findings on survey of employees
Table 4.5: Survey of employees
Frequency Percent Valid Percent
Cumulative
Percent
Not sure 4 7.7 7.7 7.7
Inhibits 2 3.8 3.8 11.5
No effect 6 11.5 11.5 23.1
Enhances 30 57.7 57.7 80.8
Highly enhances 10 19.2 19.2 100.0
Total 52 100.0 100.0
Not sure 4 7.7 7.7 7.7
Source: Researcher 2014
Discussion
According to the response of the respondents on survey of employees, 57.7% and 19.2% claimed
that it enhances and highly enhances employee performance respectively. However the rest
7.7%, 3.8%, 11.5% claimed that survey of employees in terms of suggestions and feedback were
not sure, claimed that it inhibits, has no effect respectively.
4.2.13 Findings on psychological dynamics behind the culture of the organization
manifested as a result of control systems
44
57. Figure 4.8: Psychological dynamics behind culture manifested as a result of control systems
Source: Researcher 2014
Discussion
According to the responses, majority of the employees claimed that the control systems result in
loyalty only to specific groups’ with minimal cross department communication and cooperation.
Also several claimed that it leads to mental stagnation and low creativity where people have little
future vision. Few were not sure and claimed that it leads to distrust and fear. However, the least
responded that control systems lead people who are passionate and have similar goals with the
organization that they can use personal resources to actively solve organization problems.
4.2.14 Findings on survey of customers
Table 4.6: Survey of customers
45
58. Frequency Percent Valid Percent
Cumulative
Percent
Highly inhibits 4 7.7 7.7 7.7
Inhibits 8 15.4 15.4 23.1
No effect 21 40.4 40.4 63.5
Enhances 19 36.5 36.5 100.0
Total 52 100.0 100.0
Discussion
According to the respondents, 40.4% claimed that surveying of customers for feedback has no
effect on their performance. On the other hand 36.5%, 15.4% and 7.7% claimed that survey of
customers enhances, inhibits and highly inhibits employee performance respectively.
4.2.15 Findings on feedback, rewards and levels of risks
Table 4.7: Feedback, rewards and levels of risks
Frequency Percent Valid Percent
Cumulative
Percent
36 69.2 69.2 69.2
12 23.1 23.1 92.3
4 7.7 7.7 100.0
52 100.0 100.0
Source: Researcher 2014
Discussion
According to the responses, 69.2% of the respondents claimed the organization has a slow
feedback/reward and low risk, 23.1% claimed there is slow feedback/reward and high risk. While
7.7% were not sure.
4.2.16 Findings on rites of passage
46
59. Figure 4.9: Rites of passage: employees moving to new roles
Source: Researcher 2014
47
60. Discussion
Majority of the respondents claimed that rites of passage into new roles either had no effect or
were not sure of if it affected employees’ performance. More the respondents claimed that it
enhances and highly enhances compared to those who claimed that it inhibits performance.
4.2.17 Findings on rites of degradation: employees power been taken away from them
Figure 4.10: Rites of degradation: employee’s powers been taken away from them
Source: Researcher 2014
Discussion
According to the respondents, 50% claimed that rites of degradation employees powers been
taken away from them enhances performance. 25%, 21.2% and 3.8% claimed that it highly
enhances, inhibits and were not sure respectively.
48
50%
25% 21%
4%
61. 4.2.18 Findings on rites of enhancement: public recognition for an employee’s
accomplishment
Figure 4.11: Rites of enhancement: public recognition for an employee’s accomplishments
Source: Researcher 2014
Discussion
According to the survey, 48.1% of the respondents claimed that rites of enhancement: public
recognition of employees accomplishes enhances employee’s performance. 28.8%, 11.5%,
11.5% claimed that it highly enhances, not sure and no effect respectively.
4.2.19 Findings on rites of renewal: improve existing social structures
Table 4.8: Rites of renewal: improve existing social structures
Frequency Percent Valid Percent
Cumulative
Percent
Not sure 14 26.9 26.9 26.9
Inhibits 4 7.7 7.7 34.6
No effect 18 34.6 34.6 69.2
Enhances 12 23.1 23.1 92.3
Highly enhances 4 7.7 7.7 100.0
Total 52 100.0 100.0
Source: Researcher 2014
Discussion
According to the survey, 34.6% of the respondents said that rites of renewal: improve existing
social structures has no effect on employee performance. Further on regard to the rites of renewal
49
62. 26.9%, 23.1%, 7.7% and 7.7% said that they were not sure, inhibits, enhances and highly
enhances employee performance respectively.
4.2.20 Findings on rites of conflict reduction: resolve arguments between certain members
or groups
Figure 4.12: Rites of conflict reduction: resolve arguments between certain members or
groups
Source: Researcher 2014
50
59.6%
3.8%
5.8%
5.8%
7.7%
17.3%
63. Discussion
According to the survey, 59.6% of the respondents claimed that rites of conflict reduction:
resolve an argument between certain members’ enhances employee performance. 17.3% said it
highly enhances while 7.7%, 5.8%, 5.8% and 3.8% said that it inhibits, not sure, highly inhibits
and has no effect employee performance.
4.2.21 Findings on job routines/operations (daily, weekly, monthly, annual) & work
procedures
Table 4.9: Job routines/operations (daily, weekly, monthly, annual) & work procedures
Frequency Percent Valid Percent
Cumulative
Percent
Not sure 8 15.4 15.4 15.4
Inhibits 14 26.9 26.9 42.3
No effect 13 25.0 25.0 67.3
Enhances 9 17.3 17.3 84.6
Highly enhances 8 15.4 15.4 100.0
Total 52 100.0 100.0
Source: Researcher 2014
Discussion
According the responses, 26.9% said that the job routines/operations and work procedures inhibit
employees performance and 25% said it has no effect. 17.3%, 15.4%, 15.4% said that it
enhances, not sure and highly enhances respectively.
4.2.22 Findings on visual representations of the company-logo, trademark, brand nameand
color representation
51
64. Figure 4.13: Visual representations of the company-logo, trademark, brand name and color
representation
Source: Researcher 2014
Discussions
According to 50% and 32.7% of the respondents, visual representations of the company-logo,
trademark, brand name and color representation enhance and highly enhance employee’s
performance respectively. Moreover, 5.8% responded as not sure, highly inhibits and no effect
on employee performance.
52
65. 4.2.23 Findings on offices; building layout and office allocations
Figure 4.14: Offices; building layout and office allocations
Source: Researcher 2014
Discussion
42.3% and 26.9% of the respondents claimed the office building layout and office allocations
inhibit and highly inhibit employee performance respectively. Further, 13.5%, 9.6% and 7.7% of
the respondents said it highly enhances, has no effect and enhances employee performance
respectively.
4.2.24 Findings on status symbols or the apparent lack of them for instance parking places,
director’s dining room
53
66. Table 4.10: Status symbols or the apparent lack of them for instance parking places,
director’s dining room
Frequency Percent Valid Percent
Cumulative
Percent
Highly inhibits 10 19.2 19.2 19.2
Inhibits 32 61.5 61.5 80.8
No effect 4 7.7 7.7 88.5
Enhances 6 11.5 11.5 100.0
Total 52 100.0 100.0
Source: Researcher 2014
Discussion
According to the respondents, 61.5% and 19.2% said that status symbols or the apparent lack of
them for instance parking places, director’s dining room inhibits employee performance. On the
other hand 11.5% and 7.7% said that it enhances and has no effect on employee performance
respectively.
54
67. 4.2.25 Findings on organization facilities- furnishing (furniture), equipment, plant and
machinery
Figure 4.15: Organization facilities- Furnishing (Furniture), equipment, plant and
machinery
Source: Researcher 2014
Discussion
61.5% of the respondents said that organization facilities- furnishing (furniture), equipment,
plant and machinery inhibits employee performance. 23.1% and 15.4% said that it has no effect
and highly inhibits employee performance respectively.
55
68. 4.2.26 Findings on dress code whether formal or informal
Table 4.11: Dress code whether formal or informal
Frequency Percent Valid Percent
Cumulative
Percent
Not sure 4 7.7 7.7 7.7
No effect 8 15.4 15.4 23.1
Enhances 30 57.7 57.7 80.8
Highly enhances 10 19.2 19.2 100.0
Total 52 100.0 100.0
Source: Researcher 2014
Discussion
According to the respondents 57.7% and 19.2% said that the dress code whether formal and
informal enhances and highly enhances the employee performance respectively. Further 15.4% and
7.7% respectively said that it has no effect and were not sure respectively.
56
69. 4.2.27 Findings on how each person visibly interacts with each other and with
organizational outsiders
Figure 4.16: How each person visibly interacts with each other and with organizational
outsiders
Source: Researcher 2014
Discussion
According to the responses, 73.1% of the respondents claimed that how each person visibly
interacts with each other and with organizational outsiders enhances employee performance.
11.5%, 7.7% and 7.7% said that it inhibits, has no effect and highly enhances employee
performance.
57
70. 4.2.28 Findings on visible awards and recognition
Table 4.12: Visible awards and recognition
Frequency Percent Valid Percent
Cumulative
Percent
Not sure 5 9.6 9.8 9.8
Highly inhibits 14 26.9 27.5 37.3
Inhibits 26 50.0 51.0 88.2
No effect 6 11.5 11.8 100.0
Total 51 98.1 100.0 100.0
Source: Researcher 2014
Discussion
According to 50% of the respondents visible awards and recognition inhibits employee
performance. 26.9%, 11.5% and 26.9% claimed that it highly inhibits, has no effect and were not
sure respectively on the effect of visible awards and recognition on employee performance.
58
71. 4.2.29 Findings on members of the organization regarded as role models
Figure 4.17: Members of the organization regarded as role models
Source: Researcher 2014
Discussion
94.2% of the respondents said that members of the organization regarded as role models enhance
employee performance. Further, 3.8% said that it has no effect.
59
72. 4.2.30 Findings on whether stories and myths in the organization affect the level of
employee performance
Figure 4.18: Do stories and myths in the organization affect the level of employee
performance
Source: Researcher 2014
Discussion
According to responses all the respondents agree that stories and myths shared in the
organization affect the level of performance for instance, stories about the history of the
organization, its founders and successful employees in the organization.
60
99%99%
73. 4.2.31 Findings on stories especially suited to tie members of the group together and to
generate a feeling of commitment among them.
Table 4.13: Stories especially suited to tie members of the group together and to generate a
feeling of commitment among them
Frequency Percent Valid Percent
Cumulative
Percent
Ineffective 2 3.8 3.8 3.8
Average 8 15.4 15.4 19.2
Effective 34 65.4 65.4 84.6
Highly effective 8 15.4 15.4 100.0
Total 52 100.0 100.0
Ineffective 2 3.8 3.8 3.8
Source: Researcher 2014
Discussion
According to the responses, 65.4% and 15.4 % of the respondents said that stories especially
suited to tie members of the group together and generate a feeling of commitment among them is
effective and highly effective on employee performance. Further 15.4% and 3.8% claimed that it
averagely influences and is ineffective in influencing employee performance.
61
74. 4.2.32 Findings on stories used to propagate the management’s philosophy among
employees
Figure 4.19: Stories used to propagate the management’s philosophy among employees.
Source: Researcher 2014
Discussion
Majority of the respondents claimed that stories used to propagate the management’s philosophy
are effective in influencing employee performance. 65.4% said that it is effective compared to
25%, 7.7% and 1.9% who claimed that it is average, ineffective and were not sure respectively.
4.2.33 Findings on stories conveying the interpersonal norms that govern an organization.
they are especially suited to introduce newcomers to “how things are done around here”.
62
75. Table 4.14: Stories conveying the interpersonal norms that govern an organization. They are
especially suited to introduce newcomers to “how things are done around here”.
Source: Researcher 2014
Frequency Percent Valid Percent
Cumulative
Percent
Not sure 5 9.6 9.6 9.6
Effective 35 67.3 67.3 76.9
Highly effective 12 23.1 23.1 100.0
Total 52 100.0 100.0
Discussion
According to the responses majority of the responded said that stories conveying the
interpersonal norms that govern an organization. They are especially suited to introduce
newcomers to “how things are done around here” are effective in influencing employee
performance. 67.3% and 23.1% said that it is effectively and highly effective respectively which
is more compared to 9.6% who claimed were not sure.
63
76. 4.2.34 Findings on stories maintaining and legitimizing institutional arrangements
Figure 4.20: Stories maintaining and legitimizing institutional arrangements
Source: Researcher 2014
Discussion
According to the respondents, 42.3% and 9.6% said that stories maintaining and legitimizing
institutional arrangements are effective and highly effective in influencing employee performance. On
the other hand 32.7% and 15.4% said it is average and were not sure respectively.
64
77. 4.2.35 Findings on mythical stories of creation of the organization and challenges faced.
Figure 4.21: Mythical stories of “creation of the organization” and “challenges faced
Source: Researcher 2014
Discussion
Majority of the respondents claimed that mythical stories of “creation of the organization” and
“challenges faced and overcome” are effective in influencing employee performance where 73.1% of
the respondents claimed that it is effective. On the other hand 13.5% and 13.5% were not sure and
average respectively.
CHAPTER FIVE
65
78. CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
The chapter discusses the summary of major findings, conclusions and recommendations of the
study.
5.2 Summary of Major Findings
The main objective of the study is to investigate the role of organization culture on employee
performance. The summary of the major findings provides answers to the research questions
based on the responses obtained from conducting the study at postal corporation in order to meet
the specific objectives of the study.
5.2.1 Control Systems
On employee performance majority of the respondents said that performance is measured against
clear goals and objectives; some however mentioned that this is against past performance. On
budgets most respondents said budgets enhance employee performance, although a few
respondents claimed that it highly enhances while very few were not sure and claimed that it
inhibits. About financial reporting majority of the respondents said financial reporting enhances
employee performance. Further, on remuneration /rewards majority of the respondents claimed
that remuneration/ rewards enhance employee performance although, a small percentage was not
sure on the relationship between remuneration/rewards and employee performance. On quality
systems, most respondents claimed that quality systems enhance employee performance however
a few claimed that they not sure, it inhibits or has no effect on employee performance.
About training, most respondents claimed that training enhances employee performance a few
were not sure, a few claimed that it inhibits and has no effect on employee performance. On
66
79. survey of employees, majority of the respondents claimed that it enhances employee
performance however a small percentage claimed not sure, it inhibits, has no effect on employee
performance. Regarding surveying of customers, most respondents claimed that surveying of
customers for feedback has no effect on their performance although a few had different claims
for instance it enhances, inhibits and highly inhibits employee performance.
Lastly, in regard to control systems and employee performance as a whole, majority of the
employees claimed that the control systems result in loyalty only to specific groups’ with
minimal cross department communication and cooperation. Some claimed that it leads to mental
stagnation and low creativity where people have little future vision while a few were not sure and
claimed that it leads to distrust and fear. Regarding feedback/ reward and risk, majority of the
respondents claimed the organization has a slow feedback/reward and low risk.
5.2.2 Rituals
Regarding the rites of passage into new roles, majority of the respondents claimed it had no
effect or were not sure of if it affected employees’ performance although more the respondents
claimed that it enhances compared to those who claimed that it inhibits performance. About rites
of degradation many respondents claimed that it enhances employee performance while a very
small percentage claimed that it inhibits and were not sure. On rites of enhancement: public
recognition of employees most respondents claimed that it enhances employee’s performance
however a few were not sure on its effect on employee performance.
On rites of renewal majority of the respondents said that it has no effect on employee
performance although few respondents had different views some claimed it inhibits, enhances
and others were not sure. Regarding rites of conflict reduction: resolve an argument between
certain members’ many respondents claimed that it enhances employee performance while a very
small percentage had mixed views that it they were not sure, it inhibits, and has no effect on
employee performance.
5.2.3 Organization Symbols
67
80. Generally the findings on, visual representations of the company-logo, trademark, brand name
and color representation as organization symbols show that majority of the respondents claim
that they enhance employee’s performance respectively although a very small percentage of
respondents had different opinions as not sure, highly inhibits and no effect on employee
performance. Regarding office building layout and office allocations most respondents claimed it
inhibits employee performance respectively while a few the respondents had different views
claiming enhances and has no effect on employee performance.
On status symbols or the apparent lack of them for instance parking places, director’s dining
room most respondents said inhibits employee performance although a small percentage said that
it enhances and has no effect on employee performance. Regarding organization facilities-
furnishing (furniture), equipment, plant and machinery majority of the respondents said that it
inhibits employee performance despite a few respondents saying that it has no effect and highly
inhibits employee performance.
About dress code whether formal and informal several respondents said it enhances employee
performance although a small number of respondents said that it has no effect and were not sure.
Regarding how each person visibly interacts with each other and with organizational outsiders
majority of the respondents claimed it enhances employee performance despite a few having
different views that it inhibits and has no effect employee performance. On visible awards and
recognition most respondents claimed it inhibits employee performance while a small fraction of
respondents had different views that it has no effect and were not sure of its effect on employee
performance. Lastly on members of the organization regarded as role models majority of the
respondents said it enhances employee performance although a very small percentage said that.
68
81. 5.2.4 Stories, Myths
Based on the research findings on stories and myths, all the respondents said that stories and
myths shared in the organization affect the level of employee performance. On stories especially
suited to tie members of the group together and generate a feeling of commitment majority of the
respondents said is effective on influencing employee performance although a few claimed that it
averagely influences and is ineffective in influencing employee performance. Regarding stories
used to propagate the management’s philosophy many respondents claimed that is effective in
influencing employee performance despite a small percentage claiming that they were not sure
and is averagely ineffective.
Regarding stories conveying the interpersonal norms that govern an organization suited to
introduce newcomers to “how things are done around here” majority of the respondents said that
are effective in influencing employee performance however a very small percentage were not
sure. Further on stories maintaining and legitimizing institutional arrangements most respondents
said are effective in influencing employee performance although a few were not sure. Finally on
mythical stories of “creation of the organization” and “challenges faced and overcome” majority
of the respondents claimed that are effective in influencing employee performance despite a
small percentage not being sure.
69
82. 5.3 Conclusions
From the findings and the summary of findings the following conclusions can be made on the role
of organizational culture on employee performance a case study of Postal Corporation of Kenya.
5.3.1 Demographic Factors and Employee Performance
Based on the findings of the research study the followings facts can be concluded about
demographic factors and employee performance in postal corporation of Kenya:
Gender: Majority of the employees at the state corporation are male compared to female
counterparts.
Department: The organization has a functional organization structure. The operations
department has the highest number employees; this is followed by transport, then the
information technology, accounts, human resource and sales department. This can be
explained by the fact that logistics and roles of postal services are carried out by operations
department and therefore need a large number of personnel.
Education background: A majority of employees are high school leavers and diploma
holders. The organization has very few university graduates attributing the organization
culture is more work based than knowledge based in achieving the goals of the corporation.
Performance measurement: The organization has a performance oriented culture and
performance is mainly measured against clear goals and objectives and not against past
performance as can be assumed with most state corporations.
5.3.2 Control Systems
Based on the findings of the research study the followings facts can be concluded about the
relationship between control systems and employee performance in postal corporation of Kenya:
The organization employs controls systems which form part of the organization culture and this
affect employee performance.
70
83. Control systems enhance employee performance in an organization.
Control systems examined in this study: budgets, financial reporting, quality systems, training,
and surveying of customers and surveying of employees are appreciated by employees to
enhance employee performance.
There is a positive correlation between control systems and employee performance in the
organization. The more control tools are used for example budgets, financial reporting, quality
systems, training, and surveying of customers and employees the better the employee
performance.
Although controls enhance employee performance there are areas in the control systems that
draw dissatisfaction by some employees for instance surveying of customers and need
improvement.
5.3.3 Rituals
Based on the findings of the research study the followings facts can be concluded about the
relationship between rituals and employee performance in postal corporation of Kenya:
The organization has rituals which form part of the organization culture of the corporation.
Rituals mainly enhance employee performance however a few rituals have no noticeable effect.
Rites of degradation, rites of enhancement: public recognition of employees and rites of conflict
reduction: resolve an argument between certain members’ are regarded to enhance employee
performance. On the other hand, rites of passage and rites of renewal of employees into new
roles have no noticeable effect.
71
