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The relationship between organisational culture and organisational performance: a study conducted within a large South African retail organisation

Thesis (MA) -- University of Stellenbosch, 2000. / ENGLISH ABSTRACT: The underlying problem that prompted this study was to determine whether a
relationship existed between organisational culture and organisational
performance within a South African organisation. The research problem,
furthermore, not only focused on establishing a relationship between aspects of
organisational culture and performance, but also on whether variations in the
perception of organisational culture are related to organisational performance,
i.e. whether the degree to which the organisational culture is widespread or
shared among members of the organisation, is related to organisational
performance. To answer this question, six hypotheses were formulated with the
intention of subjecting them to statistical analysis.
The Competence Process of Jay Hall (1996) was used to provide a theoretical
framework in terms of which the relationship between the constituent
dimensions of organisational culture and organisational performance may be
explained. Based on the competence theory it is hypothesised that the
dimensions of organisational culture or competence - collaboration,
commitment, creativity and the supporting conditions thereof, are directly
proportional to the potential for performance.
The 40-item Organisational Competence Index (OCI), which forms part of the
Organisation Culture Analysis (OCA), is designed to assess the conditions for
competence within an organisation. The sampling process finally produced a
sample of 988 respondents that completed the organisational culture
questionnaires (OCls). The organisation was divided into 60 areas or business
units that were stratified throughout the organisation. A stratified sampling
technique was therefore used, and the above mentioned geographical subdivisions
were used as strata. Because of the all-pervasive nature of accounting as the language of business,
financially based indicators are universally adopted to measure organisational
performance. Taking the various arguments and proposed measures into
consideration, it was decided to use the following three objective performance
criteria: 1) financial profits; 2) stock losses; and 3) labour turnover - (indicative
of the voluntary survival rate). Commercial organisations ultimately have one
important "bottom line", to create wealth for all associated with the organisation
and therefore to be financially successful. Thus, the indicators of organisational
performance that were used are all directly relevant and based on the so-called
financial "bottom line" of the organisation.
To determine the relationship between the average organisational culture scores
and the performance indicators, the product moment correlation coefficients
were computed between each area's average organisational culture dimension
scores and the three indicators of performance.
Commuting the coefficient of variation arrived at the variation in average culture
dimension scores per area. To establish the relationship between the variation in
average culture dimension scores and the performance indicators, the correlation
coefficients were computed between the coefficient of variation and the
performance measures.
All of these relationships were found to be significant, at least at the 0.05 level.
The findings and conclusions arrived at, may be summarised as follows:
The first conclusion that can be drawn is that the business units in which the
members experience collaboration and the supporting conditions thereof to a
greater degree are likely to be more profitable, to experience fewer stock
losses and lower labour turnover, compared to those business units where
members experience the collaboration dimension to a lesser degree. The second conclusion that can be drawn is that the business units in which
the members experience commitment and the supporting conditions thereof
to a greater degree are likely to be more profitable, to experience fewer stock
losses and lower labour turnover compared to those business units where
members experience the commitment dimension to a lesser degree.
The third conclusion that can be drawn is that the business units in which the
members experience creativity and the supporting conditions thereof to a
greater degree are likely to be more profitable, to experience fewer stock
losses and lower labour turnover compared to those business units where
members experience the creativity dimension to a lesser degree.
The fourth conclusion that can be drawn is that the business units in which
the members experience the dimensions of competence and the supporting
conditions thereof to a lesser degree of variance are likely to be more
profitable, to experience fewer stock losses and lower labour turnover
compared to those business units where members experience the culture
dimensions to a greater degree of variance.
In more practical terms, it would seem that the dimensions of competence might
well explain why some business units (possibly organisations) are more
successful than others. / AFRIKAANSE OPSOMMING: Die onderliggende vraag wat tot hierdie studie gelei het, was om te bepaal of
daar 'n verband bestaan tussen die organisatoriese kultuur en die organisasie
prestasie van 'n Suid Afrikaanse maatskappy. Die navorsingsprobleem het
verder nie net gefokus op die vestiging van 'n verband tussen aspekte van
organisasie kultuur en prestasie nie, maar ook probeer om te bepaal of die
variansie in die persepsie van organisasie kultuur ook verwant is aan prestasie.
Om hierdie vrae te beantwoord is ses hipoteses geformuleer met die intensie om
hulle statisties te toets.
Die Bevoegdheidsproses van Hall (1996) is gebruik as die teoretiese raamwerk
wat die verband tussen die samestellende dele van organisasie kultuur en
organisasie prestasie verduidelik. Hierdie teorie veronderstel dat die dimensies
van organisasie bevoegdheid - samewerking, toevertrouing, kreatiwiteit en die
onderskeie ondersteunende kondisies van elk, direk proporsioneel is aan die
potensiaal vir prestasie.
Die 40-item Organisasie Bevoegdheidsindeks (OCI), wat deel vorm van die
Organisasie Kultuur Analise (OCA), is ontwerp om die kondisies VIr
bevoegdheid in die organisasie te meet. Die steekproef het bestaan uit 988
respondente wat die organisasie kultuur vraelyste (OCI) voltooi het. Die
organisasie is verdeel in 60 areas of besigheidseenhede wat regdeur die
organisasie gestratifiseer is. 'n Gestratifiseerde steekproef trekkingstegniek is
dus gebruik.
Finansieel gebaseerde indikatore word universeel gebruik om orgamsasie
prestasie te meet. In die keuse van prestasie indikatore, is verskeie argumente en
voorgestelde indikatore in ag geneem, en is daar besluit om die volgende
objektiewe kriteria te gebruik: 1) finansiële winste, 2) voorraad verlieste en 3)
arbeidsomset. Kommersiële organisasies het uiteindelik een hoof doel, om
rykdom te skep vir sy aandeelhouers en dus om finansieel suksesvol te wees. Die indikatore van prestasie is dus so gekies dat hulle relevant is en op hierdie
doelwit gebaseer is.
Om die verband te bepaal tussen die organisasie kultuur-tellings en die prestasie
indikatore, is die produk moment korrelasie koëffisiënt bereken tussen die
gemiddelde organisatoriese kultuur-tellings vir elke area en die area se tellings
op die drie prestasie indikatore.
Die variansie in die gemiddelde kultuurmeting per area was bereken deur middel
van die koëffisiënt van variansie. Die korrelasie koëffisiënt is bereken tussen
hierdie meting, en die prestasiemeting vir elke area.
Al hierdie verhoudings was ten minste op die 0.05 vlak betekenisvol. Die
bevindinge en gevolgtrekkings van hierdie studie sluit die volgende in:
Die eerste gevolgtrekking wat gemaak is, was dat die besigheidseenhede
waar die werknemers die samewerkingsdimensie, en die ondersteunende
kondisies daarvan, tot 'n groter mate ervaar het, meer wins gemaak het, laer
vooraadverliese gely het en 'n laer arbeidsomset gehad het in vergelyking
met die besigheidseenhede wat die samewerkingsdimesie tot 'n mindere
mate ervaar het.
Die tweede gevolgtrekking wat gemaak is, was dat die besigheidseenhede
waar die werknemers toevertrouing, en die ondersteunende kondisies
daarvan tot 'n groter mate ervaar het, meer wins gemaak het, laer vooraad
verlieste gely het en 'n laer arbeidsomset gehad het in vergelyking met die
besigheidseenhede wat die toevertrouingsdimensie tot 'n mindere mate
ervaar het.
Die derde gevolgtrekking wat gemaak is, is dat die besigheidseenhede waar
die werknemers die kreatiwiteitsdimensie, en die ondersteunende kondisies
daarvan, tot 'n groter mate ervaar het, het meer wins gemaak, laer vooraad
verlieste gelyen 'n laer arbeidsomset gehad in vergelyking met die besigheidseenhede wat die kreatiwiteitsdimensie tot 'n mindere mate ervaar
het.
Die vierde gevolgtrekking wat gemaak is, was dat die besigheidseenhede
waarby 'n kleiner mate van variansie in die kultuurmetings gevind is, het
daardie besigheidseenhede meer profyt gemaak, laer vooraadverliese gelyen
'n laer arbeidsomset gehad in vergelyking met die besigheidseenhede waar
daar 'n groter mate van variansie in die kultuurrnetings was.
In meer praktiese terme wil dit voorkom of die dimensies van bevoegdheid tot 'n
mate kan verduidelik hoekom sekere besigheidseenhede (moontlik organisasies)
meer suksesvol is as ander.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/52008
Date03 1900
CreatorsSchlechter, Anton Francois
ContributorsTromp, Dave, Stellenbosch University. Faculty of Economic and Management Sciences. Dept. of Industrial Psychology.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
Format233 p.
RightsStellenbosch University

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