University of Ghana http://ugspace.ug.edu.gh UNIVERSITY OF GHANA EMPLOYEES’ PERCEPTION OF THE IMPACT OF ORGANISATIONAL CULTURE ON PERFORMANCE. A CASE STUDY OF PROCESS & PLANT AUTOMATION LIMITED BY WINNIE WEKETE SINABISI (10206791) A DISSERTATION SUBMITTED TO THE DEPARTMENT OF ORGANISATION AND HUMAN RESOURCE MANAGEMENT, UNIVERSITY OF GHANA BUSINESS SCHOOL IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS ADMINISTRATION (HUMAN RESOURCE MANAGEMENT OPTION) DEGREE. MAY 2019 University of Ghana http://ugspace.ug.edu.gh DECLARATION This is to certify that this research is my own work produced under Supervision in accordance with laid down procedures by the University and has not been presented by anyone for any academic award in this or other universities. All references used in the work have been fully acknowledged ………………………….. …………………………… Winnie Wekete Sinabisi Date (Student) ………………………….. …………………………… Dr. Obi Berko Damoah Date (Supervisor) i University of Ghana http://ugspace.ug.edu.gh DEDICATION To my family. ii University of Ghana http://ugspace.ug.edu.gh ACKNOWLEDGMENT I wish to acknowledge my Supervisor, Dr. Obi Berko Damoah for his support and contribution to this work. Also, the Management and staff of Process and Plant Automation Limited (PPA LTD) for their support and participation in this study. iii University of Ghana http://ugspace.ug.edu.gh TABLE OF CONTENTS DECLARATION ................................................................................................................. i DEDICATION .................................................................................................................... ii ACKNOWLEDGMENT .................................................................................................. iii TABLE OF CONTENTS .................................................................................................. iv LIST OF TABLES ............................................................................................................ vii LIST OF FIGURES ........................................................................................................ viii ABSTRACT ...................................................................................................................... ix CHAPTER ONE ................................................................................................................. 1 INTRODUCTION .............................................................................................................. 1 1.1 Research Background .......................................................................................... 1 1.2 Statement of the Research Problem ..................................................................... 5 1.3 Research Objectives ............................................................................................. 6 1.4 Research Questions .............................................................................................. 7 1.5 Justification of the study ...................................................................................... 7 1.6 Research Significance .......................................................................................... 7 1.7 Thesis/Research Structure .................................................................................... 8 CHAPTER TWO ................................................................................................................ 9 LITERATURE REVIEW ................................................................................................... 9 2.1 Introduction ............................................................................................................... 9 2.2 Definition of Concepts .............................................................................................. 9 2.2.1 Employee Perception .......................................................................................... 9 2.2.2 Organisational Culture ..................................................................................... 10 2.2.3 Organisational Performance ............................................................................. 12 2.3 Theoretical Review ................................................................................................. 13 2.3.1 Schein's theory of organisational culture.......................................................... 13 iv University of Ghana http://ugspace.ug.edu.gh 2.3.2 Theory of Organisational culture and Effectiveness by Denison and others ... 16 2.4 Empirical Literature ................................................................................................ 20 2.4.1 Organisational culture and performance. ......................................................... 20 2.5 Conceptual Framework ........................................................................................... 26 CHAPTER THREE .......................................................................................................... 27 METHODOLOGY ........................................................................................................... 27 3.1 Introduction ............................................................................................................. 27 3.2 Organisational Profile of Process and Plant Automation Limited .......................... 27 3.3 Research Design ...................................................................................................... 29 3.4 Research population ................................................................................................ 30 3.5 Sampling Techniques & Sample Size ..................................................................... 31 3.6 Types and Sources of Data...................................................................................... 31 3.7 Data Collection Tools ............................................................................................. 31 3.8 Data Analysis .......................................................................................................... 33 3.9 Ethical considerations ............................................................................................. 33 CHAPTER FOUR ............................................................................................................ 34 DATA ANALYSIS & DISCUSSION .............................................................................. 34 4.1 Introduction ............................................................................................................. 34 4.2 Analysis of Demographics of Respondents ............................................................ 35 4.2.1 Gender Distribution .......................................................................................... 35 4.2.2 Age Distribution of Respondents ..................................................................... 36 4.2.3 Numbers of Years worked Analysis ................................................................. 37 4.3 Analysis of Research Question One (Organisational Culture at PPA LTD) .......... 37 4.3.1 Involvement Trait ............................................................................................. 38 4.3.2. Consistency Trait ............................................................................................. 39 4.3.3. Adaptability Trait ............................................................................................ 41 v University of Ghana http://ugspace.ug.edu.gh 4.3.4. Mission Trait ................................................................................................... 42 4.4. Analysis of Research Question two (Employees’ view of organisational Performance) ................................................................................................................. 44 4.5 Analysis of Research Question three (The Impact of organisational culture on organisational Performance) ......................................................................................... 45 4. 6 Analysis of data from the interviews with Management ....................................... 47 4. 7 Summary of the findings ........................................................................................ 49 CHAPTER FIVE .............................................................................................................. 50 SUMMARY, CONCLUSION AND RECOMMENDATION ......................................... 50 5.1 Summary ................................................................................................................. 50 5.2 Conclusion .............................................................................................................. 50 5.3 Recommendation .................................................................................................... 52 5.3.1 Engage Employees on the result of the survey ................................................. 52 5.3.2 People development & succession planning .................................................... 53 5.3.3 Enshrining the organisation’s purpose and direction ....................................... 53 5.3.4 Fostering shared values and beliefs .................................................................. 53 5.3.5 Change management ........................................................................................ 55 5.3.6 Develop the Employee Value proposition ........................................................ 55 5.3.7 Monitor and evaluate organisational culture .................................................... 55 5.4 Recommendations for Future Research .................................................................. 56 5.5 Limitations of the Study .......................................................................................... 56 REFERENCES ................................................................................................................. 57 APPENDICES .................................................................................................................. 61 Appendix I: Structured Questionnaires ......................................................................... 61 Appendix II: Structured Interview Guide ..................................................................... 65 Appendix III: Transcribed Interview ............................................................................ 67 vi University of Ghana http://ugspace.ug.edu.gh LIST OF TABLES Table 1: Analysis of the involvement trait ....................................................................... 38 Table 2: Analysis of the consistency trait ......................................................................... 39 Table 3: Analysis of the Adaptability trait ....................................................................... 41 Table 4: Analysis of the Mission trait ............................................................................... 42 Table 5: Employee perception of organisational performance ......................................... 44 Table 6: Employee perception of the impact of organisational culture on performance .. 46 vii University of Ghana http://ugspace.ug.edu.gh LIST OF FIGURES Figure 1: A depiction of Edgar Schein’s model of organisational culture ....................... 16 Figure 2: Denison’s model of organisational culture and effectiveness ........................... 19 Figure 3: Conceptual framework ...................................................................................... 26 Figure 4: Organisational structure of PPA LTD ............................................................... 28 Figure 5: Gender distribution of respondents ................................................................... 35 Figure 6: Age distribution of the respondents .................................................................. 36 Figure 7: Length of Service of respondents ...................................................................... 37 Figure 8: Analysis of the involvement trait ...................................................................... 38 Figure 9: Analysis of the consistency trait ....................................................................... 40 Figure 10: Analysis of the adaptability trait ..................................................................... 41 Figure 11: Analysis of the Mission trait ........................................................................... 43 Figure 12: Employee perception of organisational performance ..................................... 44 Figure 13: Employee perception of the impact of organisational culture on performance. .......................................................................................................................................... 46 viii University of Ghana http://ugspace.ug.edu.gh ABSTRACT The concept of organisational culture and its role and effect on organisational performance gained a lot of popularity in the 1980s and has remained a subject matter of great interest. Scholars and organisations are interested in organisational culture for many reasons, most commonly, how it affects employee commitment, satisfaction on the job, retention, and performance. Organisational culture has a lot of implications for strategy development, implementation, and organisational performance. It is therefore little wonder that managers are also seeking to understand more and more what organisational culture is and ways to leverage it for performance. This study’s objectives were to understand the organisational culture of Process and Plant Automation Limited, the organisation’s view of performance and the perception of the way organisational culture and performance relate to one another. This study employed a mixed method approach using structured questionnaires and structured interviews to understand the culture of PPA LTD premised on four cultural elements namely; adaptability, involvement, mission and consistency. Organisational performance based on financial and non -financial measures of performance and the effect organisational culture has on performance are also explored. The study found that the culture of the organisation is one of high involvement and mission. The study also found organisational culture to related positively with organisational performance and organisational performance to be a combination of both financial and non-financial indicators. ix University of Ghana http://ugspace.ug.edu.gh CHAPTER ONE INTRODUCTION 1.1 Research Background It is generally known that culture is essential in determining how people behave, their worldview, their attitude towards work and achievement. As culture is commonly defined to be the way a group of people live and interact, organisational culture is how people in an organisation co-exist and go about their business. According to Deal and Kennedy (2000), organisational culture is simply “the way things are done around here”. Rashid et al. (2003) and Mannion et al. (2005) found that the culture impacts an organisation and many studies have shown that culture significantly affects an organisation’s output. Culture influences an organisation’s approach to work and many aspects of work including management decisions as to how to organise work, what work systems are needed, what caliber of people are needed to work with, how promotions are done, who gets rewarded and for what, among other things. These decisions and their outcomes ultimately affect organisational performance. Organisational culture serves as a “cognitive map” by which group members find the systems, rules, and values to internalize and live by (Jones, 1983). As the culture guides what and how, it also impacts on the results. Kotter and Heskett, (1992) note that culture of any organisation is its management philosophy and the way in which organisations are managed to improve overall performance and effectiveness. Organisational culture thus impacts and informs an organisation’s management style and practices as well as employees’ attitude towards work and performance. Gallagher and Brown (2007) assert that culture is the dominant predictor of exceptional organisational performance. According to Moorman (1995), earlier research shows that organisational culture impact organisational performance in terms of; what a firm considers its outcomes 1 University of Ghana http://ugspace.ug.edu.gh to be and the means by which these outcomes are attained including how the organisation structures itself and processes and procedures it adopts. Performance is an important subject for every organisation be it for profit or not for profit and managers are continuously seeking ways to improve upon performance. Researchers, Managers and Human Resource Department have long been interested in the factors that influence organisational performance. Indeed, Organisational performance is of key interest to researchers as a dependent variable in management (organisational) studies (Richard et al, 2009). Organisations define their mission, vision and core values to shape employee behaviour and guide organisations towards the attainment of their strategic goals. Human Resource departments are tasked to nurture desirable organisational cultures and orient their employees to adopt the desired cultures. Managers of organisations are identifying high performance cultures as desirable and seeking to develop these to impact organisational performance. Employees, on the other hand, are looking for a great organisational climate to thrive. To develop high performance cultures, organisations are developing strategic goals at the top, cascading these goals to lower levels to meet performance expectations without a wholistic appreciation of determinants of performance such as culture. As someone once said, “culture eats strategy for breakfast”. However, culture can be managed for positive results. Groysberg, Lee, Price and Cheng (2018) assert that the first and most important step leaders can take to maximise the value of culture and minimize its risk is to become fully aware of how it works. Understanding the influence of culture on organisational practices and management style and how it 2 University of Ghana http://ugspace.ug.edu.gh affects employee output is key to increasing organisational overall performance. Good organisational culture has been shown to produce positive performance. According to Barney (1986), Organisational culture is characterized by a set of core managerial values that provides a firm competitive advantage resulting in sustained superior financial performance. Examining conditions under which a culture brings competitive advantage to an organisation, Barney (1986) concludes that culture should have three characteristics. It should be valuable in that the culture enables members of the organisation to do act in ways that will result in high sales, high margin or add financial value; the culture should also be rare such that its characteristics and attributes are not common to any other organisation’s culture and finally, it should be impossible to imitate because if imitable, its advantage can be replicated in other firms and the advantage will be lost. Chein (2004) identified human resource policies, organisational culture, job design, motivation, leadership style and the environment as drivers of organisational performance. From a layperson point of view, culture is said to give a group of people an identity which is not technically different from O'Donnell and Boyle (2008) view about the relevance of culture to the organisation. Besides, the realisation of culture and its typologies informs management to be circumspect since every style adapted in running the activities of the organisation corresponds to different expectations. Researchers have long thought and sought to prove that Organisational culture affects effectiveness in any organisation. Numerous studies have been conducted in this regard to understand the effect organisational culture has on organisational effectiveness or 3 University of Ghana http://ugspace.ug.edu.gh performance. (Hofstede, 1980); (Deal & Kennedy, 1982); (Peters & Waterman, 1982); (Schein, 1984, 1985); (Denison, 1990); (Kotter & Heskett, 1992); (Denison & Mishra, 1995); and many others. According to Kotter and Heskett (1992), the 1980’s witnessed the emergence of the term corporate or organisational culture. Interest in organisational culture as a business phenomenon in the 1980’s was triggered by the works of: (Ouchi, 1981); (Deal & Kennedy, 1982); (Pascale & Athos, 1982) and (Peters & Waterman, 1982). (Baker, 2002). Ouchi and Wilkins (1993) assert that organisational culture has become a dominant topic in organisational studies and attribute the rise in studies of organisational culture to the perception in the late 1970’s and 1980’s that Japanese firms had superior operating characteristics. Thus, many scholars sought to examine organisational culture comparing Western cultures with the Japanese culture and trying to draw a relationship between national cultures and organisational cultures. Organisational culture is important for many reasons. (Nelson & Quick, 2011) identify functions of organisational culture to include giving members a sense of identity; increasing commitment among members; reinforcing the values of the organisation and shaping behaviour of members being a control mechanism. Organisational culture also enables problem solving, telling group members acceptable ways to behave, thinks, believe and act even when faced with challenges. Schein (1984) states that culture provides stability for the internal and external environment of an organisation. Problems of external and internal adaptation exist in every group. External adaptation is that which deals with the problems of a group’s basic survival. These are the conditions in the external environment that no group can exercise control over, and which can to an extent determine 4 University of Ghana http://ugspace.ug.edu.gh the existence or survival of the group. Problems of internal adaptation on the other hand deal with a group’s ability to bond and function as a group. A group cannot exist unless it can manage itself. Kotter (2012) states that organisational culture can increase employees’ satisfaction on the job and may improve organisational performance. Organisational culture also provides certainty to the organisation about problem solving. Organisational culture is a “soft tool” for enhancing organisational performance. Even as leaders and organisations consciously seek to influence organisational culture for performance, employees’ perception of and acceptance of the organisational culture as it is and how it impacts performance is also important. 1.2 Statement of the Research Problem Business leaders understand strategy. It is the logical way that they determine how to attain their goals and objectives. It is expressed in the strategic plans they develop, these plans are communicated and executed with timelines and accountabilities specified. Culture on the other hand “is more elusive because much of it is anchored in unspoken behaviours, mindsets and social patterns” (Groysberg et al, 2018). According to Groysberg et al (2018), culture and leadership are inseparable and yet many leaders are confounded by culture. Leaders and by extension organisations can shape the culture consciously and unconsciously. Therefore, it is necessary that organisations are fully aware of how cultures develop and affect employees and ultimately impact organisational performance. Organisational culture as a concept is central in organisational research and theory (Harris & Ogbonna, 2002). Studies on culture and performance and or effectiveness date back decades and are varied. Many of these studies have been about how to define and measure 5 University of Ghana http://ugspace.ug.edu.gh organisational culture and performance or effectiveness. Marcoulides and Heck (1993); Petty et al. (1995); Daniel and Mishra (1995); Van den Berg and Wilderom (2004) and Piercy et al., (2004). Van den Berg and Wilderom (2004) recognize a gap in previous studies of organisational culture, remarking that organisational culture is like the glue that bonds an organisation and gets its people committed and performing. However, the literature on how to make this “glue” work is scarce. At the same time, performance is of great importance for every organisation whether that organisation exist to make profit or not and managers of organisations are consistently seeking strategies to improve performance. Culture and performance are no doubt current and relevant to organisations and yet, how many organisations in Ghana recognise this? How do employees perceive culture and its effect on performance? Achieving effectiveness (performance) is vital to managers and employees as this is how they can measure the attainment of the organisation’s mission through its core strategies (McCann, 2004) and as Olughor (2014) points out, doing so will be beneficial to the business from the understanding of organisational culture as an essential and contributing factor to organisational performance. Organisations need to understand the concept of culture, its potential to affect performance positively or negatively and they need to leverage culture for the desired organisational performance. 1.3 Research Objectives The study sought to understand what Managers and Staff of Process and Plant Automation Limited perceive the culture of the organisation to be, how they measure performance and what impact they perceive culture to have on organisational performance. 6 University of Ghana http://ugspace.ug.edu.gh Specifically, the study will seek: 1. To understand what Management and Staff consider to be the culture of the organisation 2. To investigate the organisation’s view of performance 3. To examine the extent to which the elements of organisational culture influences organisational performance. 1.4 Research Questions The study answers the following research questions: 1. What do Management and Staff consider to be the culture of the organisation? 2. What is performance in the view of the organisation? 3. To what extent do the elements of culture influence performance? 1.5 Justification of the study This study will explore employee’s perception of how their organisational culture impacts performance. At the end of this research, what managers think of their culture verses what employees think will be explored for recommendations to fill any gaps. Again, a mixed methods approach will be used to not only look at the numbers and percentages but to also provide rich descriptive data behind these figures. At the end of this study, the finding should contribute to knowledge in the area of study and practical application in organisations. 1.6 Research Significance The research findings will seek at influencing research, policy and practice. In the area of research, the findings of the study will add to existing data in this field as not much 7 University of Ghana http://ugspace.ug.edu.gh research has been conducted on the impact of organisational culture on performance in Ghana. What is unique about this study is that, it will assess the viewpoint of what pertains and how employees see and feel about the impact that organisational culture has on performance. In terms of policy, the study findings can be used to develop policies that will educate and guide organisations on how to build the desired culture for improved performance. The practice significance is that the relevance and impact of organisational culture will be explored and any gaps identified will be go a long way to help organisations appreciate the importance of organisational culture and ways to leverage it for performance. 1.7 Thesis/Research Structure The study is grouped into five (5) chapters. The first chapter covers the introduction to the study and includes the research background, statement of the research problem, research objectives and questions, research justification and significance. The second chapter of the study constitutes the literature review focusing on the theoretical knowledge that have previously been introduced on organisational culture and organisation performance, measures of performance and impact of organisational culture. The viewpoints of other researchers are presented in a logical manner. The study’s third chapter focuses on the methodology that is employed in the research including the research strategy, processes, data collection and analysis methods, sampling and ethical considerations will be discussed. Chapter four of the study report contains the findings of the study, the presentation, analysis of data collected and discussions. Conclusions of the literature review is also compared with the research findings. The last chapter, which is chapter five concludes with a summary of the study to determine the extent to which the research objectives have been met. Also, the conclusion is presented alongside recommendations. 8 University of Ghana http://ugspace.ug.edu.gh CHAPTER TWO LITERATURE REVIEW 2.1 Introduction This chapter conducts a theoretical review of organisational culture and performance. It also conducts an empirical review of previous studies on culture and performance. The review seeks to provide additional information in the quest to answer the research questions. Articles, research works and some books in the areas of employee perception, organisational culture and performance have been examined in this chapter. 2.2 Definition of Concepts The following are the definition of key concepts that will be used in this study: 2.2.1 Employee Perception Perception is the process by which an individual makes meaning of his/her environment and thus, it influences significantly his/her workplace behaviour. Underlying an individual’s behavior are the perceptions, emotions and experiences they have as well as the personalities they encounter (Langton & Robbins, 2006). It is suggested that how people perceive their work circumstances influences their behavior, attitudes and ultimately performance on the job. Thus, whether employees accept or reject change and indeed any management style, initiative or activity depend on their perception (Coghlan, 1993, Galpin, 1996). Research shows that employees do not always show the same behavior even when they receive the same Human Resource practices (Nishii, Lepak & Schneider, 2008). Therefore, it is likely that the perceptions of employees also differ. 9 University of Ghana http://ugspace.ug.edu.gh 2.2.2 Organisational Culture For Schein (1984) organisational culture is defined as: A pattern of basic assumptions that a given group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration, and that have worked well enough to be considered valid, and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. (Schein, 1984, p. 3) Organisational culture is also defined as “shared perceptions of organisational work practices within organisational units that may differ from other organisational units”. (Van den Berg & Wilderom, 2004, p. 571). For Hofstede (1980) organisational culture is “the collective programming of the mind that distinguishes the members of one organisation from another”. The distinct features of any group’s culture are its values, beliefs and practices. Denison (1990) sees organisational culture refers as those values that underlie behaviour, and the beliefs and principles that guides an organisation’s management behaviours and practices. Researchers also use corporate culture to mean organisational culture. Corporate culture is used to commercialize organisational culture. (Deal & Kennedy, 1982). The culture of every organisation is made up of the rules or norms, values, customs, ethics and beliefs, which are often expressed and perpetuates in the organisation’s signs, rituals and rites. (Daft, 2000). Organisational culture should not be defined on the basis of mere values because, not only are values not very different across various cultures, values are also invisible for most people, but they are often seen in the practices of an organisation. 10 University of Ghana http://ugspace.ug.edu.gh Thus, culture should be focused on organisational practices rather than mere values. (Van den Berg & Wilderom, 2004). Although the concept of organisational culture has varied meanings attached to it, organisational culture can be seen to simply be the way people behave because of the values, norms, practices that the organisations are governed by and the influence of the leadership and management practice in those organisations. Campbell et al. (2002) identify the following elements of organisational culture: 1. The philosophy of the organisational founder 2. The business activities undertaken by the organisation 3. The relationships established in the work environment 4. The management and control systems used in the organisation. 5. The influence of National culture 6. The organisational structure, and 7. Technological advancement of the organization Rameezdeen and Gunarathna (2003) asserted that, organisational culture is synonymous to the real self of an individual, which underpins the reason why culture defers from one organisation to the other because every individual is unique. Organisational culture can be aid an organisation in its quest to attain its goals. (Denison, 1990). Organisational culture also provides an organisation sustained competitive advantage resulting in superior performance (Barney, 1986; Hall, 1993). 11 University of Ghana http://ugspace.ug.edu.gh O'Donnell and Boyle, (2008) recommended that, the success story achieved by the organisation in solving its problems and what the organisation is capable should be used to define the culture of the organisation. To appreciate organisational culture, it is also important to know the elements of organisational culture. There is no unanimous agreement among researchers on the elements of organisational culture. Researchers have identified varied, though similar elements or component. Schein (1984) identified elements of culture to be artifacts & symbols, values and underlying assumptions. Deal and Kennedy (1982) identified components such as history, values & beliefs, stories, cultural network, heroic figures and rituals & ceremonies. Kotter and Heskett (1992) broadly identified behaviour patterns and values as elements of organisational culture. Denison (1990) talks of four cultural traits in his model of organisational culture and effectiveness. Barney (1986) identified a strong set of core managerial values (how employees. Customers and supplier among other are treated) for sustained financial performance. 2.2.3 Organisational Performance Organisational performance has been defined variously to suggest the ability of an organisation to efficiently and effectively attain its goals. (Daft, 2000; Ricardo 2001). Organisational performance is also defined to suggest productivity. According to Ricardo (2001), performance and productivity do not mean the same thing. Performance is a broad indicator including productivity, quality. Consistency among other factors whereas productivity is a ratio of the volume of work done, in a set amount of time. 12 University of Ghana http://ugspace.ug.edu.gh Organisational performance is of great interest as a dependent variable in management studies (Richard et al, 2009) and yet it is remains one of the most unclear and loosely defined concepts (Rogers et al., 1998). Measuring organisational performance is difficult, and more so when what must be measured is not constant (Hubbard, 2006). Thus, many researchers have adopted various measures of performance. Performance is an important issue for every organisation be it for profit or not for profit. Managers are constantly looking for ways to increase performance. Researchers have long been interested in the factors that influence organisational performance. Hansen and Wernerfelt (1989) identified two major determinants of performance: the economic which looks at the external market factors within the industry in which the firm finds itself and the organisational factors such as the management style, organisational and human resource policies, organisational culture and organisational climate. Gallagher and Brown (2007) found that a strong market culture characterised by an understanding of the market in which the firm operates and creating value for customers is a requirement for superior organisational performance. 2.3 Theoretical Review The theoretical framework for this study will focus on two theories on culture and performance. The two theories are: the Schein's theory of organisational culture and Denison framework on Organisational culture and Effectiveness. 2.3.1 Schein's theory of organisational culture Schein developed a theory of organisational culture looking at how culture is learned, taught to new members and altered based on three main domains: the visible aspects, the 13 University of Ghana http://ugspace.ug.edu.gh invisible aspects and the underlying assumptions. These domains tell the right ways members ought to think and feel in relation to the problems that face the group. The visible aspects (artifacts), i.e. the constructed environment of any organisation such as the architecture, technology, office layout, dressing and visible behaviour, documents made public among others which are easily observed but hard to interpret. The invisible aspects are the values that govern behaviour. These underlie the behavior of people in any organisation. Values are difficult to directly observe and so should be deduced through interviews with key members of the organisation. However, this approach will normally reveal only the manifest or espoused values. The manifest or espoused values are defined to be those values that people claim are responsible for their behaviour; which they prefer to be responsible for their behaviour and their way of rationalizing why they do what they do. The third domain lies the underlying assumptions. These are typically unconscious; they originate as values and are transformed over time as the values begin to solve the problems for which they came about. Values become unconscious learned responses as they repeated, which form the underlying assumptions. If not taken deliberately, assumptions can drop out of awareness because no one debates them or argues about them. The distinction between values and assumption therefore is that assumptions are values that have become deeply rooted in a group to the extent that they are no longer questionable. They become “ultimate”. Values on the other hand are more “overt” and “debatable”. Schein argues that as certain acts and thought processes get repeated and solve the group’s problems, they become established and unconscious and awareness can easily be lost. To bring back awareness to assumptions, a focused inquiry is needed using an insider and an outsider who will help to expose the assumption through asking the right questions. The assumptions can become cultural paradigms because of humans need for order and consistency. 14 University of Ghana http://ugspace.ug.edu.gh Schein argues that to understand organisational culture, one must look beyond the level of artifacts because merely focusing on artifacts is to deal with what appears to be the culture rather than the culture itself. Schein identifies the process of socialization as very important in any group. If any people in organisations are provided a cultural paradigm on what the world is, they will teach this to new members. He argues that the process of passing on is also a process of testing, ratifying and re-affirming the validity of it. The basic assumption of culture cover all aspects of human life and even though an organisation’s culture may not develop to control every aspect of the member’s life, it is still very pervasive. The more we live in a culture, the more it influences our feelings, perceptions and thoughts. A person’s behavior is a result of inherent characteristics in that individual as well as factors in the environment in which they live and operate. It is important to understand the cultural portions of the individual’s characteristics, perceptions, feelings and thoughts. 15 University of Ghana http://ugspace.ug.edu.gh Artifacts Espoused Values Underlying Values Figure 1: A depiction of Edgar Schein’s model of organisational culture 2.3.2 Theory of Organisational culture and Effectiveness by Denison and others Denison and his colleagues developed a model of organisational culture on the basis of four aspects or traits of organisational culture and found a relationship between organisational culture and effectiveness of performance. These aspects of culture are involvement, consistency, adaptability and mission. Denison’s model sought to explain how culture relates to organisational effectiveness; identify a board set of traits to understand the relationship that culture and has with effectiveness; and provide further insights as to the way in which these traits facilitate or hinder effectiveness. (Yilmaz & Ergun, 2008). 16 University of Ghana http://ugspace.ug.edu.gh Denison & Mishra (1989) present a model on Organisational culture and effectiveness based on the study of four implicit hypothesis (of involvement, consistency, adaptability and mission) regarding the relationship. Involvement is the extent to which member of a group participate in decision making and the sense of responsibility and commitment that that participation enables. Here, increasing the contribution of organisational members also increases the quality of decisions and implementation through their involvement in these processes. A high level of involvement helps organisations attain internal integration in that all members feel responsible and have a high sense of ownership. The relationship between involvement leading to commitment and then effectiveness has been studied by several researchers. Denison and Mishra (1989) noted that these studies have many precedents in organisational behavior, including the classic work of McGregor (1961) and Likert (1961) and more recent works (Lawler, 1986; Walton, 1986; Ouchi, 1981; Peters & Waterman, 1982). They also observe that many of the studies found little supporting evidence. (Locke & Schweiger, 1979) yet, the hypothesis is compelling and central. (Denison & Mishra, 1989). Consistency is the extent to which all members hold the values, beliefs and expectations of the group. This stresses the need to have a strong culture and the role values, beliefs and symbols hold in helping group members to reach an agreement and coordinate. Consistency also helps with internal integration through stability. The fundamental concept here is that once members internalized the values of the group, it becomes a more effective control system than written rules and laws (Pascale, 1984; Weick, 1987). Several researchers have found a positive impact on organisations when the members operate from a system of shared beliefs and values (Frost et al., 1985; Martin et al., 1983). 17 University of Ghana http://ugspace.ug.edu.gh Adaptability is the extent to which the group can change or cope with changes in behavior, structures and systems. Denison & Mishra (1989) opined that adaptability has three features that are likely to affect an organisation's effectiveness: these are the ability to comprehend and take on external environment; the ability to be responsive to internal customers within the same organisation; and finally the ability to respond to either internal or external customers through “capacity to restructure and re-institutionalize a set of behaviors and processes that allow the organisation to adapt” Denison & Mishra (1989, p.169 ). An organisation cannot be effective without these. Mission is the sense of purpose and direction; it relates to the organisation’s strategic goals and vision. A mission serves two purposes for an organisation. The first is that it provides a sense of purpose and meaning by “defining a social role for an institution and defining the importance of individual roles with respect to the institutional role”. This contributes to commitment which leads to effective performance. Secondly, a mission provides clarity and direction, and this can contribute to making employee goal oriented. Success has a better chance when it is goal-directed (Locke, 1968). Denison’s theory has been tested in similar firms in the US and Russia (Fey & Denison, 2001); in North America, South America and Asian Nations (Denison at al, 2003a. 2003b) and these studies have found considerable evidence in favour of its fundamental premise (Yilmaz & Ergun, 2008). This study is influenced by the theory of organisational culture by Edgar Schein and Denison’s organisational culture and effectiveness framework. This is because of the influence of Schein’s theory on Denison’s work and the emphasis that both theories place on looking beyond the visible manifestations of culture and digging deeper into the values and underlying assumptions if one is to truly understand the culture in any organisation. 18 University of Ghana http://ugspace.ug.edu.gh According to Yilmaz and Ergun (2008), influenced by Schein (1984), Denison’s model has at its core, “underlying beliefs and assumptions that represent the deepest level of organisational culture”. (Yilmaz & Ergun, 2008, p. 292). Figure 2: Denison’s model of organisational culture and effectiveness In Schein’s theory is the variable: organisational culture. This variable is the independent variable in this study and in Denison’s organisational culture and effectiveness (performance) framework is the dependent variable, organisational performance as well as the independent variable, organisational performance. I seek to understand the concept of organisational culture based on the four elements of culture developed in Denison’s theory and to explore employees’ perception of the relationship or effect organisational culture has on performance. 19 University of Ghana http://ugspace.ug.edu.gh 2.4 Empirical Literature 2.4.1 Organisational culture and performance. Many studies have sought to study organisational culture and performance and the relationship between the two. Organisational culture teaches members the right way to perceive things, and to think and feel. These according to Marcoulides and Heck (1993) are how members function to attain the objectives of the organisation. Therefore, organisational culture influences the attitudes people have and behaviours they exhibit as well as the corresponding performance they achieve. The role of organisational factors such as leadership is emphasized for being key in those times a group faces a new challenge or need a solution. According to Schein (1984), in those times, leadership is required to ensure the group not only develops new and better responses, but also deal with the anxiety of giving up old responses. Kotter & Heskett (1982) found a link between an organisation’s founder or early leaders and its historical culture. Schein (1999) noted that organisational culture emerged in the early stages of the creation of the organisation and was based on the early achievements and impact of the leaders of the organisation. In Hofstede’s (1980) view, national cultures influence the actions of an individual and by extension, organisational culture. Thus, Organisational culture affects the organisation’s definition of who its relevant stakeholders are and how the organisation interact with these stakeholders (Louis, 1983). Gallagher and Brown (2007) add that what an organisation does, where its focus lies, how its operations are organized and how it treats its stakeholders and manages stakeholders’ expectations are influenced by its culture. They assert that organisational culture is foremost factor of organisational performance. 20 University of Ghana http://ugspace.ug.edu.gh Kopelman, Brief and Guzzo, (1990) state that there clearly exists a link between organisational culture and performance. Although some researchers have questioned the evidence of same. Denison (1990) noted that regardless of the fact that it widely held that culture impacts an organisation, few authors have clearly shown a relationship between the two variables. Kanter (1988) studying organisational changes noted that an organisational culture that emphasizes diversity, promotes integration, collaboration, teamwork, collective pride in people’s work, faith in people’s talents among others supports innovation and consequently performance. On the other hand, a culture that discourages employees from taking initiatives and being innovative is an impediment. Kravetz (1988) surveyed human resource management in 150 companies, many of them Forbes 500 companies establishing a human resources progressiveness score to compare with measures of financial success. Premised on technological change and its effect on employees, Kravetz (1988) showed progressive human resource practices that fostered open communication; participative management; emphasis on people in company culture; creativity and excellence; career development and training; maximizing job satisfaction; rewarding good performance, flexibility of work and a flat structure correlated significantly with good financial performance. More research in recent times have also established a link between organisational culture and performance. Barker (2004) notes a relationship to some extent between organisational culture and performance. Schneider (2012) however notes that this link has not been exhaustively researched. Kotter (2012) states that the variables such as level of employee commitment, beliefs, values, interpersonal relationships and norms within the group 21 University of Ghana http://ugspace.ug.edu.gh influences organisational performance. Sorensen (2002) also noted a link between the financial performance of a firm and its culture. Organisations with a culture that is keen on continuously improving itself, has visionary leaders and a strong set of core values have been shown to perform better financially in the long-term. The opposite is also true as the culture can also spell doom for an organisation’s performance. (Kotter & Heskett, 1992). Thus, culture of an organisation can either be positive or negative and the impact on performance will depend on the nature of the organisation’s culture. Deal and Kennedy (1982) researched company history, values & beliefs, rituals & ceremonies, stories, heroic figures and cultural network and found a strong link between organisational culture and the success of the company based on four different types of cultures. The “tough-guy, Macho” culture where people are individualistic and enjoy risk taking; the “work hard, play hard” where employees maintain a high level of energy, work as a team and are competitive; the “bet your company” culture where high risk is encourages and feedback on performance takes very long; and the “process culture” where its takes longer to get feedback and risk is also low. Here, it is more difficult to appraise what an employee does so emphasis tends to be on how or the methods they adopt in performing their duties or tasks. Deal and Kennedy (1982) note that the type of culture that emerges in any organisation from the components they identified depends on the circumstances within the organisation or industry. Nelson (1983) asserts that Deal and Kennedy (1982) do a very good job of demonstrating how the various components of culture work to preserve the philosophy and objectives of the organisation. Kotter and Heskett (1992) conducted studies from 1987 to 1991 to examine the impact of organisational culture on the long-term economic performance of a firm. Culture is defined 22 University of Ghana http://ugspace.ug.edu.gh broadly to include patterns of behaviour in an organisation and values that are shared by the members. Using performance indicators such as net income, appreciation in stock prices, average returns on invested capital, they found a significant impact of organisational culture on a firm’s long-term performance. Firms focused on managing customers, stakeholders and employees and leadership from all managers at all levels perform better than those that did have these traits by far. (Kotter & Heskett, 1992). Denison & Mishra (1989) in a preliminary empirical test of the four cultural traits in the Denison model using CEO’s of 969 companies as primary data, found that an organisation’s mission and involvement had the strongest link to effectiveness. They also found Adaptability to be a significant predictor of effectiveness and consistency to be a less significant predictor of effectiveness. In a subsequent study of these four traits, comparing CEO’s perception of culture with effectiveness, in 764 companies, mission and consistency were found to strongly predict profitability; adaptability and involvement were predictors of innovation whereas adaptability and mission predicted sales growth. They also found mission to be the strongest predictor of overall organisational performance. Denison, Haaland and Goelzer (2003) conducted two studies on organisational culture and effectiveness in different countries. The first study was of 230 organisations in North America, Asia and Europe. The first study showed similar trends across the three regions, however, the researchers argue that the similarity does not mean that the behaviours related to every trait is the same in all the three regions, rather, though the traits may be expressed differently across the regions, “the model probably says much more about the presence of a desirable set of traits than it does about how these traits are expressed” (Denison, Haaland & Goelzer ,2003, p. 219). The second study was of 213 supermarkets in Canada, Jamaica, 23 University of Ghana http://ugspace.ug.edu.gh United States, South Africa, Japan, Australia and Brazil. In the second study, a similar pattern was also prevalent across the United States, Brazil, South Africa, Canada and Australia. However, Jamaica showed a weak relationship between organisational culture and performance whiles Japan has a mixed result. Altogether, both Studies showed that organisational culture and its relationship with performance can be measured and compared across different countries and continents. The results also provided empirical support for Denison’s framework. Fey and Denison (2003) conducted a study of 179 foreign-owned firms in Russia using the Denison organisational culture model, seeking to compare results of that study with results previously obtained in the United states that found mission to be the strongest predictor of organisational performance for firms in the united studies. In the Russian organisational culture, they found adaptability to be the strongest influencer performance for firms in Russia. The importance of adaptability for Fey and Denison (2003) stems from the unpredictability inherent in Russia’s environment. They also found involvement to important for effectiveness in Russia and this could be explained by Russia’s history with communism with discourages competition. Yilmaz and Ergun (2008) adopting Denison’s organisational culture survey conducted a study of 100 manufacturing firms in 18 different industries in Turkey to establish the relationship between Denison’s four organisational culture traits of involvement, consistency, adaptability and mission and organisational performance. Organisational performance was assessed by new product development, quality improvements, increase sales and market share, employee satisfaction, return on assets, and overall performance. They found that all four traits are positively and significantly correlated with 24 University of Ghana http://ugspace.ug.edu.gh organisational performance. They also found the mission trait to be most prominent of the cultural traits for organisational performance. They also found other traits to be important for specific measures of performance such as: a firm’s ability to be innovative and new products dependent on the adaptability and consistency traits and employee satisfaction dependent on the involvement trait. These, they assert are more important for a firm’s long-term performance. An organisation seeking overall performance should therefore not focus on any one trait but all of the traits because the study found the sum of an organisation’s score on all four traits has a strong positive relationship with all performance indicators. Olughor (2014) also found that culture was positively related to performance in a study of one hundred and eight (180) respondents who worked in commercial banks in Nigeria. Using questionnaires drawn from the Denison Organisational Culture survey, the objective of the study was to find the relationship between organisational culture and effectiveness. The findings of the study pointed to a significant relationship between organisational effectiveness and the element of mission, adaptability, consistency and involvement. Mission was found to be the greatest contributor to organisational performance amongst the four cultural traits propounded by Denison. Zakari, Poku, and Owusu-Ansah (2013) conducted a study of nine universal commercial banks in Ghana jointly constituting 60% of the industry’s market share adopting the Denison’s organisational culture survey. Questionnaires were administered to two hundred and ninety-six (296) respondents of varied departments and positions within the banks. The study also found a positive relationship between organisational culture and 25 University of Ghana http://ugspace.ug.edu.gh performance. In this study, mission was found to be the most significant predictor of organisational performance in all cases. 2.5 Conceptual Framework Organisational culture (Traits)  Involvement trait  Consistency trait  Adaptability trait Organisational Performance  Mission trait Figure 3: Conceptual framework 26 University of Ghana http://ugspace.ug.edu.gh CHAPTER THREE METHODOLOGY 3.1 Introduction This chapter discusses the profile of the case study organisation, the research design, population, sample size, sampling technique as well as the types and sources of data, data collection tool, data collection procedures, treatment, presentation and analysis of data. The limitations and scope of the study are also presented. 3.2 Organisational Profile of Process and Plant Automation Limited Process and Plant Automation Limited (PPA Ltd) an Engineering Solutions provider of Industrial and Building Automation, design and installation of electrical power systems. PPA Ltd is a limited liability company, wholly Ghanaian company started in 2003 by its founder Ing. Kweku Asmah. The company started small with just three (3) workers undertaking primarily industrial installations, repairs and services. The organisation presently employs one hundred and twelve (112) permanent and full-time employees comprising Engineers, Technicians, Marketing, Human resources, Finance and other professionals. The majority of its employees are in the field of engineering. PPA Ltd operates in the Engineering sector with 15 years’ experience in delivering varied complex engineering solutions, projects, products and services across companies, institutions and industries in West Africa. The company has expertise in providing industrial solutions and services to make industries efficient. 27 University of Ghana http://ugspace.ug.edu.gh At the top of its Management is the Board of Directors of the Company. The Board is represented in the day to day Management of the company by the Chief Executive Officer who heads the Senior Management Team comprising heads of its five (5) departments. Figure 4: Organisational structure of PPA LTD VISION The vision statement of PPA LTD is “To Be West Africa's Choice for Smart Solutions”. MISSION The company’s states its mission as “To transform the lives of stakeholders by providing unique electrical and automation services through innovation, training, and exceptional customer service”. CORE VALUES The core values of PPA LTD are broadly classified under Customer satisfaction and One Family. 28 University of Ghana http://ugspace.ug.edu.gh Customer Satisfaction • Respect • Trust • Integrity One family • Respect • Trust • Integrity • Discipline • People development • Sharing • Knowledge Seeking 3.3 Research Design The study adopts the mixed methods research design. This method of research design affords the research to combine quantitative and qualitative research methods in order to obtain good data and research findings to answer a research problem. Mixed methods research requires that both quantitative and qualitative data are collected and analysed. According to Creswell (2013), mixed research methods ideally includes the advantages of the two main research methods (quantitative and qualitative). Quantitative makes use of statistics, whereas qualitative offers narrative details to answer the research questions. While quantitative data may be collected using data collection tools such as questionnaires, qualitative methods makes use of interviews (structured or semi-structured), focus groups discussions, among others (Creswell, 2013). 29 University of Ghana http://ugspace.ug.edu.gh With the mixed research methods, a researcher is able to gain deeper insights into the subject matter and this allows for a more meaningful interpretation of the data and phenomenon being studied (Teddlie & Tashakkori, 2003). Combining the two methods allows each type of data to mirror the other so as to confirm the findings. This way, the mixed methodology can benefit from advantages of both the quantitative and qualitative research methods. In spite of these advantages, conducting research using the mixed research requires training and mastery of the methodology and it can take a lot of time to conduct the research. The choice of the mixed method research design for the study is founded on the view that the quantitative data alone may only just be scratching the surface of the organisation’s culture. Combining the quantitative and qualitative methods will enable the study to gain more insights into the culture of the organisation (Cohen, et al. 2007). The main assumption in this regard is that management and staff of the case study organisation is single and objective. This study fits into the positivist orientation because it allows the researcher to be independent of and distant from the phenomenon under study. The researcher did not allow her values to influence her throughout this study and the findings will be determined by an objective criterion rather than personal values, beliefs and interests. The researcher was neutral towards the data gathered and this will go further to improve the objectivity, reliability and validity of the results. 3.4 Research population Population is the total number of all the objects, subjects or members that the research focused on. The population is all management and staff of Process and Plant Automation Limited. The study focused on these because the members have the characteristics and knowledge required for realising the research objectives and for answering the research questions. 30 University of Ghana http://ugspace.ug.edu.gh 3.5 Sampling Techniques & Sample Size In order to select the above sample size, the researcher used purposive sampling techniques in selecting the management members and staff, categorising Staff as Technical, Non- Technical and Semi – Skilled/ Not Skilled. The sample size for this study is eighty-six (86) research participants made up of the following: a) Six (6) management members of Process and Plant Automation Limited b) Eighty (80) staff of Process and Plant Automation Limited 3.6 Types and Sources of Data The study relied on primary and secondary data. The primary data is a collection of facts gathered from the respondents for the first time for the sole purpose of this study whilst the secondary data are the sets of facts and figures which other people had already gathered for specific purposes. They were sourced from previous research work, journals, research articles, books among others. 3.7 Data Collection Tools Both a structured interview guide and a questionnaire were used to collect primary data from the respondents. The structured interview guide was administered to Management whereas the questionnaires were administered to staff. The decision to use both self- administered and a structured interview questionnaire was informed by the fact that, the study employs the mixed research method. A self-administered questionnaire allows the researcher to reach out to the considerable number of staff members based in different locations at a reasonable cost and provides anonymity and a sense of privacy or 31 University of Ghana http://ugspace.ug.edu.gh confidentiality. The use of questionnaires also ensures uniformity of questions - every respondent is given the same set of questions phrased in exactly the same way. This enhances standardisation since the questionnaire is structured and administered properly under controlled conditions. Since the members of the research population are literates, they were able to complete the self-administered questionnaire by themselves. In spite of the above-mentioned advantages, a few problems arising from some disadvantages of self- administered questionnaires such as provision of invalid and unreliable data due to misunderstandings and low response rate are encountered. The interviewer guide was administered to Management of the case study organisation. The use of a structured interview guide was to allow for a one-on-one or personal interaction with the Management team to offer more insights into what the management team considers the culture of the organisation and the key ingredients in the organisational culture for enhanced performance. It also explored the relationship between organisational culture and performance. There is rapport between the researcher and the respondents, and the presence of the researcher allowed her to observe facial expressions, gestures and any other body language of the respondents. However, there are some disadvantages associated with using an interview guide as a data collection tool. A lot of time is required for administration of the interview guide and makes it expensive (i.e. cost related to time and energy). There may be some interviewer biases as well. The self-administered questionnaires were made up of closed-ended questions as it was necessary to prevent inclusion of unknown and irrelevant responses whereas the structured interview guide was made up of open-ended to allow the respondents to generate and provide their own responses freely. In spite of the disadvantages of both the self- 32 University of Ghana http://ugspace.ug.edu.gh administered questionnaire and the interview guide, they were found to be the most appropriate data collection tools as the strength of each tool will complement each other. 3.8 Data Analysis All the completed questionnaires and transcribed interviews were collected, serial numbered and grouped. The responses were coded, presented and analysed descriptively vis-à-vis the research objectives and questions using the Microsoft excel. With the help of statistical tools such as figures and tables the data gathered is presented in the next chapter. 3.9 Ethical considerations Privacy of staff who complete the questionnaire was protected. Staff were only be presented the questionnaire if they agreed to. No employee was coerced into participating. Consent of the CEO was sought for this study and consent of all managers who were interviewed. All data gathered will be used only for academic purposes. 33 University of Ghana http://ugspace.ug.edu.gh CHAPTER FOUR DATA ANALYSIS & DISCUSSION 4.1 Introduction This chapter analysis the data collected from the field of study to answer the questions of this study.  What do Management and Staff consider to be the culture of the organisation?  What is performance in the view of the organisation?  To what extent does the elements of culture influence performance? The data was collected using two tools, questionnaires and structured interviewed. Questionnaires were administered to 80 employees to collect data on the organisational culture prevailing at Process and Plant Automation Limited (PPA LTD), employees’ perception of organisational performance and the relationship employees perceived to exist between organisational culture and performance. Denison’s organisational culture survey was adopted to collect data on the culture at PPA LTD. The organisational culture section had sixty (60) questions in all, fifteen (15) questions each addressing the four traits of organisational culture: involvement, consistency, adaptability and mission. The questionnaire also contained eight (8) financial and non-financial measures of organisational performance for employees to indicate the organisational measures of performance and the relationship between the organisational culture and performance from their viewpoint. The structured interviews took place with six (6) Managers of the organisation. Questions posed to them were: what are the key features of PPA LTD’s culture? What does Management consider great about the culture? What is organisational performance in the view of Management? And Does management see any relationship 34 University of Ghana http://ugspace.ug.edu.gh between organisational culture and organisational performance? An analysis of the questions asked are presented in this chapter. This chapter also discusses the findings relative to objectives of the study and the literature reviewed. 4.2 Analysis of Demographics of Respondents This section presents the demographic information of the respondents discussing their gender, age and length of service in the organisation. 4.2.1 Gender Distribution Distribution of the respondents’ gender is shown in figure 5 below GENDER DISTRIBUTION OF RESPONDENT FEMALE, 34% MALE, 66% Figure 5: Gender distribution of respondents Source: Field data (2019). From figure 5 above, it is observed that 34% of the respondents were female and 66% males. This can be explained by the fact that PPA LTD is male dominated (75% of the population is male). 35 University of Ghana http://ugspace.ug.edu.gh 4.2.2 Age Distribution of Respondents Age distribution of the respondents is shown in figure 6 below Figure 6: Age distribution of the respondents Source: Field data (2019). From the figure above, 72% of the respondent identified as between the ages 21 – 30 years, 4% fell within the 41-50-year group and another 4% within the 51-60-year group. Given that PPA LTD’s average age is 33 years, this is expected. 36 University of Ghana http://ugspace.ug.edu.gh 4.2.3 Numbers of Years worked Analysis An analysis of the length of service of respondents is provided in figure 7 below. LENGTH OF SERVICE OF RESPONDENTS 6 AND ABOVE, 8% LESS THAN ONE YEAR, 22% 1 – 5 YEARS, 70% Figure 7: Length of Service of respondents Source: Field data (2019). From figure 7 above, 70% of the respondents identified as having worked between 1- 5 years, 22% have worked less than a year and only 8% more than 6 years. With the majority of employees within the 1 – 5year bracket, it is expected that the respondents understood the organisation’s culture well enough to express it. Also, majority of the 22% who worked less than a year identified as National Service Personnel (who have worked in the organisation for the last 8 months). 4.3 Analysis of Research Question One (Organisational Culture at PPA LTD) This section presents an analysis of the prevailing culture traits at PPA LTD based on the four culture traits or elements namely involvement, consistency, adaptability and consistency. This seeks to explain the organisational culture of PPA LTD in accordance with the research question; What do Management and Staff consider to be the culture of the organisation? 37 University of Ghana http://ugspace.ug.edu.gh 4.3.1 Involvement Trait Analysis of the involvement traits is presented in table 1 and figure 8 below. Table 1: Analysis of the involvement trait Variables Frequency Percentage strongly agree 16 20% Agree 46 57% not sure 13 16% Disagree 4 5% strongly disagree 1 1% TOTAL 80 100% Source: Field data (2019). INVOLVEMENT TRAIT 57% 20% 16% 5% 1% strongly agree agree not sure disagree strongly disagree Figure 8: Analysis of the involvement trait Source: Field data (2019). The data of table 1 and figure 8 shows that 20% of the respondents strongly agreed that the organisation has a culture of involvement, 57% agreed, 16% were not sure and only 38 University of Ghana http://ugspace.ug.edu.gh 1% disagreed. Combining responses that agree and strongly agree to the involvement trait, the involvement trait has the highest level of acceptance by respondents at 77%. This implies that employees generally perceive the culture of the organisation to be one of involvement. Involvement is about empowerment, team orientation and capability development. According to Denison and Mishra (1995), a high level of the involvement trait implies participation and ownership of responsibility among members. This increases their commitment and input in boosting the quality of decisions and implementation. Involvement shows internal integration. The involvement trait affects all aspects of organisational performance though it’s impacts on Sales Revenue and market share is weaker than on quality, employee satisfaction and overall performance. (Denison & Neale, 1996). 4.3.2. Consistency Trait Analysis of the consistency trait are presented below in table 2 and figure 9 below. Table 2: Analysis of the consistency trait Variables Frequency Percentage strongly agree 12 16% Agree 46 57% not sure 13 16% Disagree 7 9% strongly disagree 2 2% TOTAL 80 100% Source: Field data (2019). 39 University of Ghana http://ugspace.ug.edu.gh CONSISTENCY TRAIT 57% 16% 16% 9% 2% strongly agree agree not sure disagree strongly disagree Figure 9: Analysis of the consistency trait Source: Field data (2019). Table 2 and figure 9 show 16% of the respondents strongly agreeing to the consistency trait as prevailing in the culture of PPA LTD, 57% agree, 16% are not sure and 11% disagreeing and strongly disagreeing. This implies that employees generally view the organisation’s culture to have a high level of consistency with 73% of the respondents strongly agreeing or agreeing. Consistency shows internal focus. The consistency trait addresses coordination and integration, agreement and core values. A high level of consistency shows that organisation members have shared values, beliefs and attitudes. These embody a strong culture serve as an implicit control greater than any other form of control (Denison & Mishra, 1995). The consistency trait has the highest impact on quality and employee satisfaction. (Denison & Neale, 1996). 40 University of Ghana http://ugspace.ug.edu.gh 4.3.3. Adaptability Trait Table 3 and figure 10 present an analysis of the responses for the adaptability trait. Table 3: Analysis of the Adaptability trait Variables Frequency Percentage strongly agree 13 16% Agree 40 51% not sure 18 22% Disagree 7 9% strongly disagree 2 3% TOTAL 80 100% Source: Field data (2019). ADAPTABILITY TRAIT 51% 22% 16% 9% 3% strongly agree agree not sure disagree strongly disagree Figure 10: Analysis of the adaptability trait Source: Field data (2019). 41 University of Ghana http://ugspace.ug.edu.gh Table 3 and figure 10 show that 16% of the respondents strongly agree on the adaptability trait, 51% agree, 22% are not sure and 11% disagree and strongly disagree. Combining responses that agree and strongly agree to the adaptability trait, the involvement trait has the least level of acceptance by respondents at 67%. 67% is still high however, implying decent level of the adaptability trait. Adaptability addresses change, customer focus and organisational learning. A high level of adaptability shows external focus and affects all measures of organisational performance except profitability and return on asset in the short run. (Denison & Neale, 1996). 4.3.4. Mission Trait Analysis of respondents’ assessment of the mission trait is presented below in table 4 and figure 11. Table 4: Analysis of the Mission trait Variables Frequency Percentage strongly agree 19 24% Agree 41 51% not sure 14 18% Disagree 4 5% strongly disagree 2 2% TOTAL 80 100% Source: Field data (2019). 42 University of Ghana http://ugspace.ug.edu.gh MISSION TRAIT 51% 24% 18% 5% 2% strongly agree agree not sure disagree strongly disagree Figure 11: Analysis of the Mission trait Source: Field data (2019). 24% of the respondent strongly agreed to the mission trait, 51% agreed, 18% were not sure and 7% disagree. The mission trait has the highest level of strongly agree. However, combining number of respondents who strongly agree to those who agree, a total acceptance of the mission trait will amount to 75%. 2% short of the involvement trait. The mission trait is thus the second strongest culture trait in PPA LTD per the views of employees. The mission trait encompasses strategic direction and intent, goals and objectives and vision. The mission trait provides purpose and a strong sense of direction. Several studies have found the mission trait to be the strongest t predictor of organisational performance. (Fey &Denison, 2003; Yilmaz & Ergun ,2008; Olughor, 2014; Zakari, Poku & Owusu-Ansah, 2014). The mission trait affects all areas of performance with the exception of product development and innovation (Denison & Neale, 1996). 43 University of Ghana http://ugspace.ug.edu.gh 4.4. Analysis of Research Question two (Employees’ view of organisational Performance) This Sections presents an analysis of what employees see organisational performance to be, seeking to answer the research question; What is performance in the view of the organisation? Field data on employee perception of the organisation’s measure of performance is shown on table 5 and figure 12. Table 5: Employee perception of organisational performance strongly strongly Variables agree Agree not sure disagree disagree Sales Revenue 34% 58% 6% 2% 0% Profitability 52% 45% 3% 0% 0% Market Share Growth 43% 46% 11% 0% 0% Quality Improvement (product & services) 49% 46% 3% 2% 0% Delivery & Reliability 48% 45% 5% 3% 0% Product Development & Innovation 58% 38% 2% 2% 0% Customer Satisfaction 54% 42% 3% 2% 0% Employee Satisfaction 55% 35% 6% 3% 0% Source: Field data (2019). Employee Perception of Organisational Performance 70% 60% 50% 40% 30% 20% 10% 0% strongly agree agree not sure disagree strongly disagree Figure 12: Employee perception of organisational performance Source: Field data (2019). 44 University of Ghana http://ugspace.ug.edu.gh From the responses above, it is clear that employees perceive the organisation’s measures of performance to include financial and non-financial measures. 58% of employee strongly agree to product development as opposed to 34% who strongly agree to sales revenue. Again 55% and 54% strongly agree to employee satisfaction and customer satisfaction respectively as compared to 52% strongly agreeing to profitability and 43% strongly agreeing to market share and growth. 49% also strongly agree to quality improvement and 48% strongly agree to reliability. The involvement trait found to be the dominant trait in PPA LTD’s culture according to Denison and Mishra (1995) greatly impacts performance in all areas though it has a lesser impact on sales revenue and market share. Yilmaz and Ergun (2008) found that employee satisfaction is determined to a large extent by the involvement trait. They also found the mission trait to be the biggest influencer of organisational performance in all areas. 4.5 Analysis of Research Question three (The Impact of organisational culture on organisational Performance) This Sections presents an analysis of what employees see the relationship of organisational culture and performance to be, seeking to answer the research question; To what extent do the elements of culture influence performance? Table 6 and figure 13 present employee perception of the impact of organisational culture on performance. 45 University of Ghana http://ugspace.ug.edu.gh Table 6: Employee perception of the impact of organisational culture on performance strongly not strongly Variables agree agree sure disagree disagree Sales Revenue 34% 45% 20% 2% 0% Profitability 35% 45% 14% 6% 0% Market Share Growth 31% 52% 14% 3% 0% Quality Improvement (product & services) 34% 46% 15% 5% 0% Delivery & Reliability 23% 51% 18% 6% 2% Product Development & Innovation 25% 60% 14% 0% 2% Customer Satisfaction 28% 55% 11% 6% 0% Employee Satisfaction 31% 48% 15% 6% 0% Source: Field data (2019). Employee Perception of Impact of culture on Performance 70% 60% 50% 40% 30% 20% 10% 0% strongly agree agree not sure disagree strongly disagree Figure 13: Employee perception of the impact of organisational culture on performance. Source: Field data (2019). 46 University of Ghana http://ugspace.ug.edu.gh When asked what employees perceive the impact of organisational culture to be on performance, interestingly, profitability ranked highest at 35% for employees who strongly agree, followed by sales revenue and quality improvement at 34%, market share and employee satisfaction at 31%, customer satisfaction at 25%, product development and innovation at 25% and delivery and reliability at 23%. Generally, employees agree that organisational culture affects all aspect of organisational performance. 4. 6 Analysis of data from the interviews with Management To gain additional insights into the views of the non-management employees and explore the views of management on the organisational culture of PPA LTD, organisational performance and impact of organisational culture on performance, six managers were interviewed. Managers were asked the key features of the organisation’s culture. The Head of Engineering talked of a semi- formal work culture with open communication and employee engagement. The General Manager ((Sales and Marketing) described an environment where there is not so much structure, allowing innovation and creativity. The Head of finance mentioned a first-name basis culture and the Compliance Manager pointed out that employees are friendly, have a spirit of “one family” and show empathy across levels. The Compliance Manager also pointed out team spirit as one great thing about PPA LTD’s culture. The openness, flexible, informality makes room for “self-discovery” as opined by the General Manager (Sales and Marketing) and account for employee perception that the organisational culture is highly involved. 47 University of Ghana http://ugspace.ug.edu.gh Another key feature many of the managers mentioned of the culture is that, it is “young at heart”, “young”, “driven” with a “can do spirit”, giving opportunities to young graduates, allowing people find themselves, adopting innovative approaches and encouraging of “risk taking”. This again supports a high involvement where people are giving the opportunity to see themselves as key contributors to the organisation’s success. Another key feature is one of high capability development, again pointing to a high level of involvement. Many of the managers considered the culture of continuous learning and skill development as a great feature of the organisation’s culture. The inventory Manager talked of continuous learning to bridge skills gaps as something great about the culture. The Head of Engineering also mentioned emphasis on “Continuous skill development through on-the-job training and formal training programs”. The compliance Manager talked of the encouragement of training and personal development for everyone. This culture of capability development is what appears to give employees the confidence to get highly involved in decision making and implementation. When managers were asked about the organisation’s measures of performance, they talked of a mix of financial and non-financial measures. Indeed, the General Manager (Sales & Marketing) states that “performance is not one way. It is “taking the opportunity to excel in whichever way it presents itself. It’s doing a good job for the customer to be satisfied and to give you referrals because of your excellence”. The commonest measure of performance mentioned was profitability. Customer satisfaction was also a common measure of performance and employee satisfaction was mentioned by the Operations Manager and Compliance Manager. Generally, the financial measure received more attention from management. As the Head of Engineering put it, “It is the measure of our 48 University of Ghana http://ugspace.ug.edu.gh financial performance, how well we are doing on the market and how much value we are creating for shareholders”. Finally, when the Managers were asked if they saw any relationship between organisational culture and performance, they were unanimous in stating yes. According to the Head of Engineering, “there is a direct relationship. A great organisation culture promotes organisational performance.” The Inventory Manager also stated that “culture drives us towards efficiency, which is important to satisfy customers, increase revenue and drive profits up”. For the Head of Sales, Organisational culture plays a key role in retaining talents required for organisational performance. 4. 7 Summary of the findings The findings based on the qualitative data support the quantitative data analysis that the organisational culture is one of high involvement and mission with appreciable levels of adaptability and consistency. The finding also points to a high perception that organisational performance culture has a positive impact on performance. This supports the conceptual framework presented that an organisational culture based on traits such as involvement, consistency, adaptability and mission will have a positive impact on organisational performance. 49 University of Ghana http://ugspace.ug.edu.gh CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION 5.1 Summary The potential and impact organisational culture has or could have on any organisation cannot overstated. Organisational culture drives management policies, decisions, implementation, employee behaviour, commitment and ultimately organisational performance. This study sought to understand the organisational culture of PPA LTD based on four culture elements; involvement, consistency, adaptability and mission. The study also sought to understand organisational performance in the view of the organisation and the relationship between organisational culture and performance. Using a mixed methods approach, questionnaires were administered to staff and interviews conducted with managers. The questionnaire was adopted from Denison’s organisational culture survey based on the four culture elements listed above. For organisational performance, the respondents were given a mix of financial and non-financial performance indicators. The findings of both the qualitative and quantitative data analysed point to an organisational culture with a high level of involvement and mission, followed by adaptability and consistency. The study also found organisational performance to be a combination of financial and non-financial measures. There exists a strong relationship between organisational culture and performance according to the views of the organisation’s members. 5.2 Conclusion Based on the findings, it can be concluded that the culture of PPA Ltd is one of a high level of involvement and mission. 50 University of Ghana http://ugspace.ug.edu.gh Involvement suggest that team members have a strong sense of belonging leading to ownership and responsibility. This results in a high level of commitment to the organisation’s goals and objectives which is a pre-requisite for organisational performance. The mission culture trait or element is the next strongest trait in the organisation. This implies that the organisation’s members have a strong sense of purpose and direction. The strategy intent, goals and objectives and vision of the organisation has been clearly communicated and understood by the organisation’s members. This provides focus for planning, implementation and attainment of the organisation’s mission and goals. Given that a high level of involvement suggests an internal focus whereas mission suggests external focus, it can be concluded that the culture has a balance of both internal and external focus and is thus not skewed towards one to the detriment of the other. The adaptability trait is also quite evident in the organisation’s culture and this is good for coping with change. It suggests that members are quite aware of the external environment and will devise strategies to deal with forces within that environment. The consistency trait is also evident in the organisation’s culture suggesting that members share in the same values, beliefs and expectation of the group and they hold these dear. The organisation’s members also perceive non-financial measures such as product development and employee satisfaction to be the strongest indicators of performance. This may stem from the high level of involvement in the organisation which foster internal focus. Nonetheless, the organisation’s members are clearly aware of the financial measures of performance such as profitability and market share. Members of the organisation also clearly see the positive influence organisational culture has on performance and especially 51 University of Ghana http://ugspace.ug.edu.gh on performance indicators such as product development, employee satisfaction, customer satisfaction and profitability. 5.3 Recommendation In view of the finding of this study, it is recommended that the organisation’s leadership should look at the strength and weaknesses in the culture of the organisation in order to leverage organisational culture for performance. They following recommendation are made for this purpose. 5.3.1 Engage Employees on the result of the survey Given that the culture of this organisation is one of high involvement, employees should be engaged on the findings of the survey. To do this, it is recommended that the survey results are published using the organisation’s internal communication media. Once this is done, more extensive engagement is called for in the following steps outlined below: Step 1. Meet with the organisation’s members to explain results of the survey to them Step 2. Engage employees to identify the strengths and weaknesses in the organisation’s culture Step 3. Discuss with employees the implications of the results for organisational performance Step 4. Ask employees how the survey results can be enhanced. How can the advantages be sustained, and the weaknesses improved upon to increase organisational performance. 52 University of Ghana http://ugspace.ug.edu.gh Step 5. Secure the commitment of all employees to help develop and implement strategies for culture enhancement. 5.3.2 People development & succession planning Again, given that the culture is one high in involvement, it is important that that organisation develop individuals to support and sustain this culture. The organisation’s people feel included and responsible for its development, this level of commitment should be further developed through positioning and equipping talents for succession planning. They organisation must look internally to fill vacant positions through promotion because, its people feel empowered and responsible, they must be positioned and equipped otherwise, the organisation risk losing them. Again, the organisation has invested in their capability development and must make use of their competence for its development. 5.3.3 Enshrining the organisation’s purpose and direction Again, the organisation’s high level of mission should be sustained. The organisation must maintain a clear purpose and strategic direction and this should be well known to employees. The vision of the organisation, that is currently being driven by its founder and CEO should be well documented and the organisation’s history and heroes must be enshrined. A long-term documented strategy or strategic plan is thus recommended. 5.3.4 Fostering shared values and beliefs It is recommended that the organisation focuses on fostering and bringing to live its shared values and beliefs through developing leaderships behaviours, recruiting based on values and further promoting values during on-boarding of new members, promoting and rewarding accordingly. 53 University of Ghana http://ugspace.ug.edu.gh It is important that the organisation’s members align their behaviours with the shared values and what better way to do this than leadership by example? The organisation’s values should be expanded and developed into Leadership behaviours. There should be a dialogue among the organisation’s leaders on what the organisation stands for and how this creates value for all its stakeholders. This exercise should seek to bring the values to live through practice by the organisation’s own leaders who should be held accountable for living the values. The organisation’s on-boarding programme should also be evaluated and aligned to ensure new organisational members are imparted the core values and shared beliefs of the organisation. All training sessions should commence with a discussion on what the organisation stands for, its values and the linkages with value creation for all stakeholders. Again, the performance management system should incorporate the core values of the organisation. Appraisal forms should include an assessment of the extent to which the employees adopt the values as an approach to their work. The core values should also be incorporated into the organisation’s system such that all departments, through their processes and employees should be able to clearly see the core values in practice. The Human Resource Department must champion the values ensuring all organisational and human resource policies align and reflect same. 54 University of Ghana http://ugspace.ug.edu.gh 5.3.5 Change management The organisation will also do well if it positions itself to manage change effectively for results. This can be done by extensively engaging employees on change management efforts, appointing internal change agents and continuously monitoring and evaluating change efforts. 5.3.6 Develop the Employee Value proposition In order that the organisation is able to attract and retain people who fit into its culture, and to further enhance the positive aspects, it is recommended that the organisation develops its employee value proposition. The value proposition will clearly state what makes people want to work at the organisation. Once this is developed, employees themselves become ambassadors who can clearly articulate what makes your company unique to others. Developing the Employee value proposition will also further re-enforce the core values, shared beliefs and attitudes to existing and prospective employees. To design the value proposition, ensure participation of the team. Also build upon and align the current benefits and human resource programmes of the organisation to ensure they are competitive and attract. Once these are done, the value proposition should be launch with an effective internal and external communications plan. 5.3.7 Monitor and evaluate organisational culture It is important that the organisational culture is monitored and evaluated periodically to assess the impact of the programmes and initiative proposed above and for continuous improvement. The Human Resource Department should conduct regular culture surveys and interviews to have the necessary data and be on top of the organisational culture at all times. Feedback from employees gained in these surveys and interviews should be 55 University of Ghana http://ugspace.ug.edu.gh analysed for areas where improvement is required. Also, periodic evaluation of the impact organisational culture has on performance will help to ascertain whether objectives are being meet, positive impact is achieved and the sustainability of these impacts. The various initiatives and programmes suggested above should also be monitored by collecting data regularly and evaluated continuously to assess their impact vis a vis, the pre-determined. 5.4 Recommendations for Future Research The study focused on organisational culture of PPA Ltd and employees’ perception of the relationship between culture and performance, using a mix of financial and non- financial measures of performance. Previous studies in Africa (Olughor, 2014; Zakari, Poku, & Owusu-Ansah, 2013) were of the banking sector. Future studies should consider extending the study to organisations in the non-financial / banking sector. 5.5 Limitations of the Study The study was conducted in one organisation. Also, financial records and the market share and position of the organisation was not examined. This study was limited to what employees of the study organisation consider their culture to be and how the perceive culture to relate to the performance of the organisation. 56 University of Ghana http://ugspace.ug.edu.gh REFERENCES Chien, M. H. (2004) A Study to Improve Organisational Performance. A View from SHRM. Journal of American Academy of Business, .4(1/2), 289. Daft, R.L. (2000). Organisation Theory and Design. (7th ed.). Thomson Learning. U.S.A: South - Western College Publishing. Cohen, L., Manion, L., & Morrison, K. (2007). Research Methods in Education (6th ed.). Abingdon: Routledge. Creswell, J. W. (2013). Research design: Qualitative, quantitative, and mixed methods approaches. 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(1984) Coming to a New Awareness of Organizational Culture, Sloan Management Review, 25(2), 3. Schein, E. (2004) Organisational Culture and Leadership. (3rd ed.) San Francisco, CA: Jossey- Boss Sorensen J.B. (2002) ―The Strength of Corporate Culture and the Reliability of Firm Performance. Administrative Science Quarterly, 47 (1), 70-91. Teddlie, C., & Tashakkori, A. (2003). Major issues and controversies in the use of mixed methods in the social and behavioural sciences. In A. Tashakkori & C. Teddlie (Eds.), Handbook of mixed methods in social & behavioural research (pp. 3–50). Thousand Oaks, CA: Sage Publications. Thompson, L. (2003). Improving the creativity of organisational work groups (Electronic version) Academy of Management Executive, 17 (1), 96–111. Van den Berg, P. T., & Wilderom, C. P. M. (2004). Defining, Measuring, and Comparing Organisational Cultures. Applied Psychology: An International Review, 53(4), 570–582. Weick, K.E. (1987). 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International Journal of Business, Humanities and Technology, 3(1) 60 University of Ghana http://ugspace.ug.edu.gh APPENDICES Appendix I: Structured Questionnaires UNIVERSITY OF GHANA BUSINESS SCHOOL DEPARTMENT OF ORGANIZATION AND HUMAN RESOURCE MANAGEMENT Dear Respondent, I am a student of the University of Ghana Business School undertaking a research on “Employees’ Perception of The Impact of Organisational Culture on Performance, A Case Study of Process & Plant Automation Limited.” as part of the requirement for the award of a Master’s degree in Human Resource Management. The questionnaire is made up of three sections and will not take more than 20 minutes to complete. Your honest opinion on how you perceive the culture of workplace as well as its impact on organisational performance is hereby solicited for in this questionnaire. You are highly assured of confidentiality since all information given on this questionnaire will be used for research purposes only. Thank you in advance. __________________________________________________________________________ SECTION A- DEMOGRAPHICS (Please tick [√] in the box that best describes you) 1. Gender: Female [ ] Male [ ] 2. Age 21 – 30yrs [ ] 31 – 40yrs [ ] 41 – 50yrs [ ] 51 – 60yrs [ ] Above 60yrs [ ] 3. Marital status: Married [ ] Single [ ] Divorced [ ] 4. Highest level of education achieved: Basic level education [ ] SSCCE/WASSCE/Technical Certificate [ ] Higher National Diploma [ ] Bachelor’s Degree [ ] Masters' Degree [ ] other(s) [ ] Please specify: ………………………….. 5. How long have you been working with the company? Below 1 year [ ] 1-5years [ ] 6-10years [ ] 11-16years [ ] 6. Terms of Employment Permanent Worker [ ] Contract worker [ ] National Service personnel [ ] 7. Job category of Respondent Manager [ ] Technical (Engineer/ Technician) [ ] Non- Technical ( Officer, Coordinator, Assistant) [ ] Junior Staff [ ] Other [ ] Specify………………… 61 University of Ghana http://ugspace.ug.edu.gh SECTION B (ORGANISATIONAL CULTURE SCALE) Listed below are a number of statements. Please read each statement carefully and indicate the extent to which you AGREE or DISAGREE with each statement by ticking the appropriate number on the following scale. 1-Strongly Disagree 2-Disagree 3-Not Sure 4-Agree 5-Strongly Agree INVOLVEMENT TRAIT Empowerment 1 2 3 4 5 1. M ost employees in this organization are highly involved in their work. Decisions in this organization are usually made at the level where the best 2. in formation is available. Information is widely shared in this organization so that everyone can get the 3. in formation s/he needs when it is needed. 4. E veryone in this organization believes that s/he can have a positive impact. Business planning in our organization is ongoing and involves everyone in the 5. p rocess Team Orientation 1 2 3 4 5 Cooperation and collaboration across functional roles are actively encouraged in 1. th is organization. 2. W orking in this organization is like being part of a team. Work is sensibly organized in this organization so that each person can see the 3. re lationship between his/her work and the goals of the organization 4. T eams are the primary building block of this organization. This organization relies on horizontal control and coordination to get work done, 5. ra ther than hierarchy. Capability Development 1 2 3 4 5 1. T his organization delegates authority so that people can act on their own. The capability of the people in this organization is viewed as an important source 2. o f competitive advantage. 3. T his organization continuously invests in the skills of its employees. The "bench strength" (i.e. the quality and number of workers) of this 4. o rganization is constantly improving. Problems often arise in my organization because we do not have the skills 5. n ecessary to do the job CONSISTENCY TRAIT Coordination and Integration 1 2 3 4 5 1. O ur approach to doing business is very consistent and predictable. 2. T here is good alignment of goals across levels of this organization. 3. P eople from different organizational units still share a common perspective. It is easy to coordinate projects across functional units in this organization. 4. Working with someone from another part of this organization is like working 5. w ith someone from a different company. Agreement 1 2 3 4 5 1. W hen disagreements occur, we work hard to achieve "win-win" solutions. 62 University of Ghana http://ugspace.ug.edu.gh 2. T his organization has a strong culture. There is clear agreement about the right way and the wrong way to do things in 3. th is organization. 4. It is easy for us to reach consensus, even on difficult issues. 5. W e often have trouble reaching agreement on key issues. Core Values 1 2 3 4 5 There is a clear and consistent set of values in this company that governs the way 1. w e do business This company has a characteristic management style and a distinct set of 2. m anagement practices 3. T he managers in this company "practice what they preach”. This organization has an ethical code that guides our behavior and tells us right 4. fr om wrong 5. Ig noring the core values of this organization will get you in trouble. ADAPTABILITY TRAIT Creating Change 1 2 3 4 5 1. T his organization is very responsive and changes easily This organization responds well to competitors and other changes in the 2. e xternal business environment 3. T his organization continually adopts new and improved ways to do work. 4. A ttempts to change this organization usually meet with resistance. 5. D ifferent units in this organization often cooperate to create change Customer Focus 1 2 3 4 5 Customer comments and recommendations often lead to changes in this 1. o rganization. 2. C ustomer input directly influences our decisions. All members of this organization have a deep understanding of customer wants 3. a nd needs. 4. W e encourage direct contact with customers by members of the organization. 5. T he interests of the final customer often are ignored in our decisions. Organizational Learning 1 2 3 4 5 1. T his organization encourages innovation and rewards those who take risks. 2. W e view failure as an opportunity for learning and improvement. 3. L ots of things "fall between the cracks" (are overlooked) in this organization. 4. L earning is an important objective in our day-to-day work. 5. W e make certain that the "right hand knows what the left is doing." MISSION TRAIT Strategic Direction and Intent 1 2 3 4 5 This organization has a clear mission that gives meaning and direction to our 1. w ork. 2. T his organization has a long-term purpose and direction. 3. T he strategic direction of this organization is unclear to me. 4. T his organization has a clear strategy for the future. Our organization’s strategy is leading other firms to change the ways that they 5. c ompete Goals and Objectives 1 2 3 4 5 1. T here is widespread agreement about the goals of this organization. 2. T he leaders of this organization set goals that are ambitious, but realistic. The leadership of this organization has "gone on record"(has made known) about 3. th e objectives we are trying to meet. 63 University of Ghana http://ugspace.ug.edu.gh 4. W e continuously track our progress against our stated goals. The people in this organization understand what needs to be done for us to 5. su cceed in the long run Vision 1 2 3 4 5 1. W e have a shared vision of what this organization will be like in the future. 2. T he leaders in this organization have a long-term orientation. 3. S hort-term thinking often compromises long-term vision. 4. O ur vision creates excitement and motivation for our employees. We are able to meet short-term demand without compromising our long-term 5. v ision. Source: Denison’s Organizational Culture Survey SECTION C (PERCEPTION OF ORGANISATIONAL PERFORMANCE AND ITS RELATIONSHIP WITH CULTURE) i. Listed below are a number of organisational performance measures. Please indicate the extent to which you AGREE or DISAGREE with each statement by ticking the appropriate number on the following scale. 1-Strongly Disagree 2-Disagree 3-Not Sure 4-Agree 5-Strongly Agree I perceive this organisation to be doing well when I see increase in 1 2 3 4 5 Sales Revenue 1. Profitability 2. Market share growth 3. Quality improvements (product & services) 4. Delivery and Reliability 5. 6. P roduct Development and Innovation 7. C ustomer Satisfaction 8. E mployee satisfaction ii. Listed below are a number of organisational performance measures. indicate the extent to which you AGREE or DISAGREE with each statement by ticking the appropriate number on the following scale. 1-Strongly Disagree 2-Disagree 3-Not Sure 4-Agree 5-Strongly Agree Our organisational cultures has a positive effect on the following measures of organisational performance 1 2 3 4 5 Sales Revenue 1. Profitability 2. Market share growth 3. Quality improvements (product & services) 4. 5. Delivery and Reliability 6. Product Development and Innovation 7. Customer Satisfaction 8. Employee Satisfaction 64 University of Ghana http://ugspace.ug.edu.gh Appendix II: Structured Interview Guide INTERVIEW GUIDE Hello, my name is Winnie Sinabisi and I am a student of the University of Ghana Business School undertaking a research on “Employees’ Perception of The Impact of Organizational Culture on Performance, A Case Study of Process & Plant Automation Limited.” as part of the requirement for the award of a Master’s degree in Human Resource Management. You are highly assured of confidentiality since all information given on this questionnaire will be used for research purposes only. Section A: Socio Demographics 8. Gender: Female [ ] Male [ ] 9. Age 21 – 30yrs [ ] 31 – 40yrs [ ] 41 – 50yrs [ ] 51 – 60yrs [ ] Above 60yrs [ ] 10. Marital status: Married [ ] Single [ ] Divorced [ ] 11. Highest level of education achieved: Basic level education [ ] SSCCE/WASSCE/Technical Certificate [ ] Higher National Diploma [ ] Bachelor’s Degree [ ] Masters' Degree [ ] other(s) [ ] Please specify: ………………………….. 12. How long have you been working with the Company Below 1 year [ ] 1-5years [ ] 6-10years [ ] 11-16years [ ] 13. Terms of Employment Permanent Worker [ ] Contract worker [ ] National Service personnel [ ] 14. Job category Manager [ ] Technical ( Engineer/ Technician) [ ]Non- Technical ( Officer, Coordinator, Assistant) [ ] Junior Staff [ ] Other [ ] Specify………………… 65 University of Ghana http://ugspace.ug.edu.gh Section 2: Research Questions 4. What are the key features of PPA’s culture? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… 5. What does management consider great about PPA’s culture? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… 6. What is organisational performance in the view of management? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… 7. Does management see any relationship between organisational culture and organisational performance? ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… ……………………………………………………………………………………………………… THANK YOU 66 University of Ghana http://ugspace.ug.edu.gh Appendix III: Transcribed Interview Respondent 1 1. Gender: Female 2. Age 31 – 40yrs 3. Highest level of education achieved: Masters' Degree 4. How long have you been working with the Company: 1-5 years 5. Position: Head of Finance 6. What are the key features of PPA’s culture?  There is a clear vision, Management is committed to the vision. 7. What does management consider great about PPA’s culture?  Addressing each other by first names.  Encourage innovation in our approaches  Having a young at heart attitude 8. What is organisational performance in the view of management?  Achieving set goals in a profitable manner 9. Does management see any relationship between organisational culture and organisational performance?  Yes. A good organisational culture enhances increased performance Respondent 2 1. Gender: Male 2. Age: 31 – 40yrs 3. Highest level of education achieved: Masters' Degree 4. How long have you been working with the Company: 6-10 years 5. Position: Inventory Manager 6. What are the key features of PPA’s culture?  Our people have Can do spirit, here everything is doable  We place a lot of focus on profitability – reduce cost of production/service in our day to day activities and decision making  We are continuous learning to bridge skill gaps 7. What does management consider great about PPA’s culture? 67 University of Ghana http://ugspace.ug.edu.gh  The continuous learning attitude we possess  Team spirit 8. What is organisational performance in the view of management?  Increased revenue  High profit orders  Customer satisfaction 9. Does management see any relationship between organisational culture and organisational performance? Yes – culture drives us towards efficiency, which is important to satisfy customers, increase revenue and drive profits up. Respondent 3 1. Gender: Male 2. Age: 31 – 40yrs 3. Highest level of education achieved: Masters' Degree 4. How long have you been working with the Company: 11-16 years 5. Position: Head of Engineering 6. What are the key features of PPA’s culture?  A mix of Formal and Semi-Formal work environment Continuous skill development through on-the-job training and formal training programs  Open Communication where employees can largely voice out their opinions and communicate freely with superiors  A mix of management by objective and micromanagement  Continuous skill development through on-the-job training and formal training programs  Continuous employee engagement 7. What does management consider great about PPA’s culture?  A culture that promotes a healthy working environment where employees are developed to their benefit and to achieve the bottom line. 8. What is organisational performance in the view of management?  Organizational performance is the output of the PPA relative to its goals and objectives.  It is the measure of our financial performance, how well we are doing on the market and how much value we are creating for shareholders. 68 University of Ghana http://ugspace.ug.edu.gh 9. Does management see any relationship between organisational culture and organisational performance?  Yes, there is a direct relationship. A great organisation culture promotes organisational performance. Respondent 4 1. Gender: female 2. Age: 31 – 40yrs 3. Highest level of education achieved: Masters' Degree 4. How long have you been working with the Company: 11-16years 5. Position: General Manager - Sales & Marketing 6. What are the key features of PPA’s culture?  PPA ltd is fast paced. A lot of self learning is required in addition to the organisation’s efforts. As an individual, PPA ltd gives the opportunity for one to find him or herself. PPA is not very well structured, allowing for flexibility and innovation but we are also developing structures as we go along. 7. What does management consider great about PPA’s culture?  This environment allows for self discovery. This is a great place for risk takers also 8. What is organisational performance in the view of management  Performance is not one way here (financial). It is taking the opportunity to excel in which ever way it presents itself. It’s doing a good job for the customer to be satisfied and to give you referrals because of your excellence. 9. Does management see a relationship between organisational culture and performance?  Yes. The culture determines the people we retain. If we retain the best, we realise our performance objectives. Respondent 5 1. Gender: female 2. Age: 21– 30yrs 3. Highest level of education: Bachelor' s Degree 4. How long have you been working with the Company: 1 -5 years 5. Position: Compliance Manager 69 University of Ghana http://ugspace.ug.edu.gh 6. What are the key features of PPA’s culture?  Young driven and energetic workforce  Friendliness and a spirit of one family  Concern and empathy at all levels for one another  Training and personal development encouraged for everyone  Employee recognition  Formidable workforce 7. What does management consider great about our culture?  Emphasis on people development  Employee recognition  Driven workforce 8. What is organisational performance in the view of management?  Achieving year targets of sales and revenue  Achieving training targets  High score on employee satisfaction and customer satisfaction surveys 9. Does management see a relationship between organisational culture and performance?  Yes. A good culture motivates people to give off their best, stay on and align their personal goals with those of the company. Respondent 6 1. Gender: male 2. Age: above 60yrs 3. Highest level of education: Master’s Degree 4. How long have you been working with the Company: 1 -5 years 5. Position: Operations Manager 6. What are the key features of PPA’s culture?  Emphasis on training and development  Constantly thinking innovation  Giving opportunities to young graduates 7. What does management consider great about our culture?  Innovating constantly 8. What is organisational performance in the view of Management?  Profitability 70 University of Ghana http://ugspace.ug.edu.gh  Satisfied customers  Satisfied employee 9. Does Management see any relationship between organisational culture and performance? Yes. If the organisation is succeeding, then its culture is good and vice versa. 71