Influence of Organizational Culture on Performance of Public Water Companies in Kenya

Abstract

Organizational culture has an influence on nearly all facets of an organization’s performance, particularly in respect of people and their interaction. Culture in an organization determines the demeanour of employees and the manner in which they interact internally and externally. It also determines several aspects of employee treatment and their relationships. Cohesive organizational culture underpins higher productivity, improves employee morale, affects work attitudes and encourages employee dedication. Organizational culture also constraints and directs management behaviour which affects firm performance through decision making process and formulation of strategy and its implementation. The objective of this study was to investigate the influence of organizational culture on performance of public water companies in Kenya. The study was based on the Cameron and Quinn’s competing values framework for evaluation of an organization’s culture. The variables investigated pertaining to organizational culture were; clan type of culture, adhocracy type of culture, market type of culture and hierarchy type of culture and their influence on performance of the water companies. The moderating influence of leadership values on the relationship between organizational culture and performance of the water companies was also investigated. The study used descriptive and correlational research designs with a population of 84 public water companies. A statistical of sample of 17 water companies was selected with 185 respondents.126 responses were received, giving giving a response rate of 68%. Primary data was collected using questionnaires while secondary data was obtained from the relevant published documents of the water companies. The study espoused Cameron and Quinn’s organizational culture assessment instrument questionnaire as one of the data collection instruments. It was customized to incorporate questions on leadership values based on the portrait values questionnaire as proposed by Schwartz. Data collected was sorted and analyzed using descriptive, diagnostic and inferential analyses. Statistical Package for Social Sciences Version 23.0 was used for data analysis and generation of tables, figures and relationships. Inferential statistics including correlation, analysis of variance and multiple linear regression models were used to establish the association involving the independent and dependent variables. Results of the study show that organizational culture has an influence on performance of public water companies in Kenya. The study also found that leadership values have a moderating effect on the relationship involving organizational culture and performance of the water companies. The study findings recommend the necessity of leaders of public water companies in Kenya to manage culture in order to achieve sustainable improvement in the provision of water services and, hence improved performance. Future researchers may consider introducing different moderating variables other than leadership values in testing the moderating effect on the influence of organizational culture on performance of public water companies and other public organizations in Kenya.