Effects of Organizational Culture on Employee Job Performance: A Case Study of Ericsson Kenya Limited

A Research Project Report by Judith Mumbi Githui, Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Masters in Business Administration (MBA).The purpose of this study was to examine the effects of organizational culture on employee job performance. The study sought to answer the following research questions: To what extent does involvement dimension of organizational culture affect employee job performance? To what extent does consistency dimension of organizational culture affect employee job performance? To what extent does adaptability dimension of organizational culture affect employee job performance? A descriptive survey research design was adopted to carry out the study. The target population for the study was 204 employees working for Ericsson Kenya Limited located in Nairobi, Kenya and the sampling frame was a list of employees obtained from the human resource management department. The study used stratified random sampling technique to draw a sample of 163 employees from the population under study and used a questionnaire as a tool for data collection. Descriptive statistics measures such as mean and standard deviation were used to analyze the data, while inferential statistics, and particularly correlation analysis was used to draw inferences about the population under study. During the study, data was analyzed using Statistical Package for Social Sciences (SPSS) program as a tool and presented using tables, graphs and charts. The findings on the extent to which the involvement dimension of organizational culture affects employee job performance indicated that there was a statistically significant moderate correlation between involvement dimension of organizational culture and employee job performance (r = 0.557, p < 0.001), implying that involvement dimension of organizational culture affects employee job performance. The findings on the extent to which adaptability dimension of organizational culture affects employee job performance revealed that there was a statistically significant strong correlation between adaptability dimension of organizational culture and employee job performance (r = 0.685, p < 0.001), implying that adaptability dimension of organizational culture affects employee job performance. Also, the findings on the extent to which consistency dimension of organizational culture affects employee job performance revealed that there was a statistically significant moderate correlation between consistency dimension of organizational culture and employee job performance (r = 0.470, p < 0.001), implying that consistency dimension of organizational culture affects employee job performance. The study revealed that involvement dimension of organizational culture has an effect on employee job performance. The conclusion drawn from the study indicated that when employees are involved in decision making and taking responsibility for their work, they become empowered leading to improved performance. The study further revealed that consistency dimension of organizational culture has an effect on employee job performance, with consistency there is proper coordination and integration as well as consistent decisions which lead to efficiency and improved employee performance. The study also concluded that adaptability dimension of organizational culture has an effect on employee job performance, adaptable organizations and employees respond faster to changes in the work environment and serve their customers better, leading to improved performance. From the study it was recommended that the organization should give employees authority, responsibility and ability to manage their work in order to enhance their job performance. Further, the organization should develop employee capabilities, and have programs of appreciating and recognizing employee efforts. It was also recommended that the organization should continue to manage failures and seek new and improved ways to meet customer expectations while enabling staff to adapt fast to any new changes in the organization. Values and principles that are shared by all employees should be embraced and maintained. Finally, the leadership should be consistent in behavior, action and decision making in order to promote a favorable work environment that encourages high performance