THE INFLUENCE OF ORGANIZATIONAL CULTURE ON ORGANIZATIONAL PERFORMANCE THE CASE OF DEBRE BERHAN UNIVERSITY

Abstract

The objective of this study was to examine the influence of organizational culture on organizational performance in the case of Debre Berhan University. The conceptual framework of the study was designed as Organizational culture variables, namely, Involvement, consistency, Adaptability, and Mission are taken as independent variables and organizational performance served as dependent variable. The study was adopted quantitative research approach and the nature of the study was descriptive and explanatory. The total sample of the study was 338 respondents with a response rate of 311 respondents. In this study both descriptive and inferential statistics were used to examine the influence of organizational culture on organizational performance. The data were collected using questionnaires in which the researcher used primary and secondary data. The data were analyzed through the device of SPSS version 23. The organizational culture questionnaire was adapted from DOCS (Denison Organizational Culture Survey, 2011). Whereas, questionnaire that measure organizational performance was developed by the researcher in BSC four perspectives (Customer, Financial, Internal Business Perspective, and Learning and Growth perspectives). Before the main data collected for data analysis, a pilot test was conducted and validity and reliability of the instrument were determined. Pearson correlation and multiple linear regression analysis were employed to estimate causal relationship between organizational culture and organizational performance. The finding of the study depicted that mission and consistency culture were strong relationship and influence on organizational performance. Involvement and adaptability culture were moderate relationship with organizational performance. However, adaptability culture was insignificant influence on organizational performance. The finding of the study showed that mission culture was the dominant culture of Debre Berhan University. The level of organizational performance was moderate. The overall finding of this study suggest that organizational culture had influence organizational performance.