THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEES’ PERFORMANCE: THE CASE OF INDUSTRIA/L PARKS DEVELOPMENT CORPORATION,

Abstract

The primary objective of this research is to examine The Effect of Organizational Culture on Employees Performance in Industrial parks Development Corporation, HIP Branch Office. The research focuses on common types of cultural variables effect on employee’s performance. Organizational culture is a set of shared values, beliefs, attitudes and policies that shows what are appropriate and inappropriate behaviors in an organization. In the study mixed research approach is applied. Both qualitative and quantitative data were used. Descriptive and explanatory research design was adopted. Close ended and open ended questionnaires were applied as a data collection tools. A sample of 151 was drawn by using precision level from the total populations of the study were 247 employees working in HIP Branch office. The study utilized simple random sampling techniques to draw a sample of 151 employees from the total population. Numerical data and hypotheses testing questions were analyzed by using descriptive statistical Packages for Social Science software (SPSS). Descriptive analysis like; Percentage, Mean and standard deviation were used to organize and summarize the sample data .Based on the descriptive analysis results, the mean values for clan culture, adhocracy culture, market culture and employees performance laid in the range of agreement while the hierarchy culture laid in the range of neutral. The correlation result indicated that two of the organizational culture dimensions do have statistically significant relationship with employees’ performance. Based on the multiple linear regression analysis results, the four independent variables (clan culture, adhocracy culture, market culture, mission culture and hierarchy culture) can explain 79.5 % of the variability of employee’s performance in the company. Furthermore, the regression analysis results showed that there is statistically significant effect of the three organizational culture dimensions (independent variables. Based on the results, a market culture is a most dominant organizational culture type in Hawassa industrial park followed by clan culture, and hierarchy culture. And all of the organizational culture types such as clan culture, adhocracy culture, market culture, and hierarchy culture were positive relationship with employee performance. Based on the result, the organization recommended maintaining good cultural practice by communicating its mission and vision to the newly hired employees consistently in order to enhance employee‘s performance, to have the ability to understand and react to the competitive environment etc…