THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE:

THE CASE OF ARBAMINCH UNIVERSITY

BY
BIRUKTAWIT BEZABIH

SUBMITTED TO DEPARTMENT OF MANAGEMENT POST

GRADUATE STUDIES SATA TECHINOLOGY AND BUSINESS
COLLEGE IN PARTIAL FULFILLMENT OF MA DEGREE IN
BUSINESS ADMINESTRATION

February 2024

ARBAMINCH ETHIOPIA
THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE:
THE CASE OF ARBAMINCH UNIVERSITY

BY

BIRUKTAWIT BEZABIH
ADVISOR: AWEL BEKER (ASSi. Prof.)

THESIS PROPOSAL SUBMITTED TO SATA TECHNOLOGY AND BUSINESS

COLLEGE FOR THE PARTIAL FULFILMENT OF THE REQUIREMENT OF
THE AWARD OF THE DEGREE OF MASTER OF BUSINESS
ADMINISTRATION

SATA TECHNOLOGY AND BUSINESS COLLAGE

SCHOOL OF POST GRADUATE STUDIES

FEBRUARY, 2024

ARBA MINCH, ETHIOPIA

 DECLARATION
I hereby declare that this MA thesis proposal entitled as “THE EFFECT OF
ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE: THE CASE OF

ARBAMINCH UNIVERSITY” is my original work and has not been presented for any other
university, and all source of material used for this thesis proposal have been duly acknowledged.

Name Signature Date

BIRUKTAWIT BEZABIH ----------------------- ----------------

i
 ADVISOR’S PROPOSAL APPROVAL SHEET

This is to certify that the thesis proposal entitled “ I hereby declare that this MA thesis proposal
entitled as “THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEE
PERFORMANCE: THE CASE OF ARBAMINCH UNIVERSITY has been developed by
BIRUKTAWIT BEZABIH in partial fulfillment of the requirements for the degree of masters
with specialization in Development Economics, post-graduate program of the department of
Economics under my supervision. Therefore, I recommend that the student’s proposal can be
presented for review and open oral presentation.

AWEL BEKER (ASSi. Prof.) -------------------- -----------------

Name of Principal Advisor Signature Date

ii
 Table of content
DECLARATION..........................................................................................................................................i

ADVISOR’S PROPOSAL APPROVAL SHEET........................................................................................ii

This is to certify that the thesis proposal entitled “ I hereby declare that this MA thesis proposal entitled as
“THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE: THE CASE
OF ARBAMINCH UNIVERSITY has been developed by BIRUKTAWIT BEZABIH in partial
fulfillment of the requirements for the degree of masters with specialization in Development Economics,
post-graduate program of the department of Economics under my supervision. Therefore, I recommend
that the student’s proposal can be presented for review and open oral presentation....................................ii

Table of content..........................................................................................................................................iii

LIST OF TABLES.......................................................................................................................................v

List of Figure..............................................................................................................................................vi

CHAPTER ONE..........................................................................................................................................1

INTRODUCTION.......................................................................................................................................1

1.1 Background of the Study...................................................................................................................1

1.2 Statement of the Problem...................................................................................................................3

1.3 RESEARCH QUESTIONS...............................................................................................................4

1.4 Objective of the study........................................................................................................................5

1.5 Significance of the Study...................................................................................................................5

1.6 scope of the study..............................................................................................................................5

1.7 Operational definition of Variables....................................................................................................6

1.8 Organization of the Study..................................................................................................................6

CHAPTER TWO.........................................................................................................................................7

2. REVIEW OF RELATED LITERATURE...............................................................................................7

2.1 Concepts of Organizational Culture...................................................................................................7

2.2 Dimensions of Organizational Culture...............................................................................................8

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 Innovative Cultures.................................................................................................................................8

Aggressive Cultures.................................................................................................................................9

Outcome-Oriented Cultures.....................................................................................................................9

Stable Cultures......................................................................................................................................10

People-Oriented Cultures.......................................................................................................................10

Team-Oriented Cultures........................................................................................................................11

2.3 Functions of Organizational Culture................................................................................................12

2.4 Employee Performance...................................................................................................................13

2.5 Conceptual Framework....................................................................................................................14

CHAPTER THREE...................................................................................................................................16

3. RESEARCH METHODOLOGY...........................................................................................................16

3.1 Description of study Organization...................................................................................................16

3.2 Research Design..............................................................................................................................16

3.3 Target population.............................................................................................................................17

3.4 Sampling Technique and Sampling Size determination...................................................................17

3.5 Types of data and Source of Data....................................................................................................18

3.6 Data Collection Tool.......................................................................................................................19

3.7 Methods of Data Presentation and Analysis....................................................................................19

Reliability and Validity of Instruments..................................................................................................19

3.9 Ethical Considerations.....................................................................................................................20

4. WORK PLAN /TIME SCHEDULE......................................................................................................21

5. LOGISTICS & BUDGET BREAKDOWN...........................................................................................22

References.................................................................................................................................................24

iv
 LIST OF TABLES

Table 4.1 work plan.....................................................................................................................21

Table 5.1 budget break down.....................................................................................................22

v
 List of Figure
Figure 2.1: Conceptual Framework of the Study…………………………………………16

vi
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Dolan and Lingham (2012) defined organizational culture as a set of values and commonly held
beliefs that determine which behaviors are acceptable and expected for a given group in an
organization . Fahmi, (2016) explained organizational culture as a habit that lasts a long time and
is used and applied in life work activities as one of the drivers for improving the quality of work
of employees and company managers. According to Umi, et al (2015: 02) Organizational culture
is a norm and values formed and implemented by a company to influence the characteristics or
behavior in leading its employees so that they can carry out tasks in a timely manner and guide
employees in achieving organizational goals.

Culture is the result of human creation that is produced and has been used as part of the order of
everyday life. A culture that is applied and used in life during a certain period will influence the
pattern of formation of a society. Because of that, it is not impossible to change a culture, as long
as there is a strong will and enthusiasm to make that change, and the only people who can change
it are the humans themselves (Fahmi, 2016:49)

Today's competitive business environment, creating a positive and strong organizational culture
has become the main focus of the company to improve employee performance (Iskamto, 2021;
Jufrizen et al., 2021). Organizational culture reflects the values, norms, beliefs, and practices that
shape the identity and way of working of a company. A good organizational culture provides
clear direction, motivates employees, and influences their decisions and actions (Adam et al.,
2020).

Organizational culture provides a powerful mechanism for controlling behavior

by influencing how we view the world around us. Organizations do not exist in a vacuum but in
a specific culture or socio-cultural environment that influence the way their employees think,
feel, and behave. Work place culture is a very powerful force that influences an employee’s work
life. It is the very thread that holds the organization together. Hence, managers and employees do
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not work in a value-free environment. They are governed, directed, and tempered by the
organization’s culture (Ritchie, 2020). Hence, organizational culture is the underlying values,
beliefs, principles, and practices that constitute its management system (Denison, 2019).

A good organizational culture can also increase cooperation and collaboration between
employees, reduce interpersonal conflicts, and create an inclusive work environment. Through a
strong organizational culture, companies can inspire employees to adopt high performance
standards, innovation, and customer orientation, which in turn can increase the company's
competitive advantage.(Jufrizen et al., 2021)

Understanding the association between employees’ job performance and culture of

the organization is an imperative research subject because findings of different studies
have proved that an individual’s work performance is crucial for the success of an
organization, particularly in the higher educational institutions. Higher educational institutions
are global organizations where highly diversified employees and instructors are working together
and governed by organizational culture. Hence, they need an open environment where they can
easily share their ideas, participate in decision making and provide help to each other. Strong
culture will make it easy to communicate openly and to participate efficiently and effectively in
the decision making to explore their ideas and skills (Hofstede, 2010).

However, despite the strong influence of organizational culture on employee performance, there
may be a gap between the culture desired by the company and the culture that is actually
embraced by employees. This gap occurs when there is a discrepancy between the values
officially declared by the company and the daily practices in the workplace. This misalignment
can result in employee dissatisfaction, frustration, and even decreased performance (Ekosusilo,
2020; Hasibuan & Bangun, 2020).

Therefore, this study aims to investigate the effect of organizational culture on employee
performance in Arbaminch University. This study will also explore the factors that influence an
effective organizational culture, and identify gaps that may occur between the desired culture and
that which is lived by employees.

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1.2 Statement of the Problem
Human being is inseparable from culture. Where there is human being, there is culture. Different
studies were conducted to identify organizational culture parameters that affect employee
performance. The finding of Etalong (2018) shows that Organizational norms can also be
reflected on how it rewards performance, such as awards for diligence, praise for well-behaved
employee(s) in the month, quarter, or even a year

The existing literature on organization culture and employee performance mainly focused and
carried out in developed countries and considering the determinants, influences and composition
of the culture it was not applied universally in different environments like developing countries
(Lydiah, 2014). However, some studies were conducted on organizational culture and employee
performance from other wider dimensions in developing countries such as Nigeria, Kenya and
Somalia but focused only on positive effects of organizational culture.

Despite the strong influence of organizational culture on employee performance, there may
be a gap between the culture desired by the company and the culture that is actually embraced by
employees. This gap occurs when there is a discrepancy between the values officially declared
by the company and the daily practices in the workplace. This misalignment can result in
employee dissatisfaction, frustration, and even decreased performance (Ekosusilo, 2020;
Hasibuan & Bangun, 2020).

Njugi and Nickson (2014) found in their study that organization culture has a great influence on
performance as it dictates how things are done, organization’s philosophy, work environment,
performance targets, and organizations stability. However, Lahiry (1994) argues a weak relation
between organization culture and performance. It is these diverse results that give room for more
research to be done on the relationship between organizational culture and employee
performances. According to Ojo (2008) despite the studies on organizational culture in the last
few decades, the empirical evidences emerging from various studies about the effect of
organizational culture on performance have so far yielded varied results that are inconclusive and
contradictory. He further states that there is no agreement on the precise nature of the
relationship between organizational culture and performance.

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Various complaints and public dissatisfaction with public services indicate the urgency
of an expectation that changes in the performance of government employees in a better way.
To support this change, it is necessary to have a standard reference imposed by an
organization. The standard reference is the organizational culture that systematically guides
employees to increase their work commitment to the organization.

Arbaminch University, one of the oldest public university has being producing qualified
employees and experts in engineering and other areas of the study. There are many graduates of
Arbaminch University currently working in international organizations, at ministry level in
Ethiopia and at higher official’s levels in the country. However, the 2022 annual reports of the
Arbaminch University show that, turnover rate of employees both academic and administrative
staffs is high. Many mass Medias such as Walta TV, ESAT TV and Abay TV repeatedly
reported the prevalence of corruption trends in Arbaminch University and showed the existence
of poor governance in the university. Why corruption is a series problem in Arbaminch
University? Is due to poor organizational culture? Previous research studies conducted on
organizational culture have different gaps. Some studies are narrow in scope and only depend on
one or two variables. Other have methodological gap and do not clearly shows methodology
used and models applied for further investigation. Many studies were conducted in developing
countries and focus on European cultures ignoring Ethiopians. Some studies conclude that
organizational culture has no effect on employee performance. Therefore, , this study will try to
fill the previous research gap and explore organizational cultures of Arbaminch University. .

1.3 RESEARCH QUESTIONS

Therefore this study will try to answer the following research questions
1/ what are the effects of team orientation working condition on employee performance?
2/ what are the effects of employee commitment on employee performance?
3/ what are the effects of work discipline on employee performance?
4/ what are the effects of employee motivation strategies on employee performance

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1.4 Objective of the study
1.4.1 General Objective

The general objective of this study is to investigate the effect of organizational culture on
employee performance in Arbaminch University.
1.4.2 Specific Objectives

This thesis will intend to achieve the following specific objectives

To determine the effect of team work orientation on employee performance
To examine the effect of employee commitment on employment performance
To determine the effect of work discipline on employment performance
To examine the effect of employee motivational strategies on employee performance

1.5 Significance of the Study

The purpose of this study was to investigate the possible effect of organizational culture and
employee performance. Furthermore, the results of this study have the following importance:
The findings of this study will be designed to give a brief, reliable and state-of-the-art account on
the effect of organizational culture on employee performance. The research findings will be
useful for the higher educational institutions how to improve their performances by adopting
competitive organizational culture. Besides, this study is intended to provide some information
to the government and non-governmental bodies on organizational culture for policy
formulation. Also, the public organizations and any interested bodies may use it as the reference
material in organizational culture. It is also supposed to serve as a significant and reliable ground
for policy makers, legal personnel and development partners in their activities towards initiating,
executing, handling and supervising the holistic and sustainable development of the study area
and other similar localities of the state.

1.6 scope of the study

This thesis is delaminated geographically, conceptually, methodologically and timely. This study
will be focused on the effect of organizational culture on employee’s performance in the case of
Arba-Minch University. This thesis was focused on two issues: organizational culture
dimensions of Arbaminch university and its effect on employee performance in Arba-Minch
University. This study will be conducted in three representative Arbaminch university campuses
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this study will follow cross sectional research design using quantitative approaches. This study
will be conducted in 2024 academic year.

1.7 Operational definition of Variables

Organizational Culture: - Organizational culture comprises the shared set of beliefs,
expectations, values, norms and work routines that influence how members of an organization
relate to one another and work together to achieve organizational goal (Jones & George, 2006).
Employee performance: Individual Performance is the fulfillment of responsibility and an
obligation, in a manner that releases the performer from all liabilities under the contract.

1.8 Organization of the Study

This research project will be organized into five chapters. Chapter one contains the background,
problem statement, research objectives, research questions, significance of the study, scope of
the study, limitations and organization of the study. Chapter two contains the theoretical review,
empirical review, and conceptual framework. Chapter three contains the research design,
sampling procedure and sample size, data collection instrument, validity and reliability, data
collection procedure, data analysis and presentation and ethical consideration. Chapter four
briefly explain the research findings and discussions and last chapter five will cover the
summary, conclusions, recommendations and suggestions for further studies.

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 CHAPTER TWO

2. REVIEW OF RELATED LITERATURE

This section will attempt to review the existing literatures related to the research question under
study. It begins with explaining and conceptualizing organizational culture, employee
performance, major theoretical schools on the organizational culture, the strengths and
weaknesses of organizational culture. At the end, a brief accounts on the empirical literature.

2.1 Concepts of Organizational Culture

Schein, (2011) defined organizational culture as he set of shared values, beliefs, and norms that influence
the way employees think, feel, and behave in the workplace Culture is transmitted to an organization's
members by means of socialization and training, rites and rituals, communication networks, and symbols.
Agwu,( 2014) stated that organizational culture is as collection of traditions, values, beliefs, policies and
attitudes that constitute a pervasive context for everything one does and thinks in an organization.
Wardiah (2016) discussed organizational culture as he basic values of the organization, which
will serve as the basis for attitude, behavior and action for all members of the organization .
Kotter (2012) explained organizational culture as an attribute that differentiate on organization
from other organizations. Organizational culture is contextualizing a mixture of values, sets,
beliefs, communications and explanation of behaviour of diversified employees to organizational
performance.

The main idea of culture comes from sharing in learning processes that have been based upon
systematic allocation of resources. (Titiev, 2001) The cognitive systems of human that helps in
improving thinking and decision making were based upon organization culture. (Pettigrew 2017)
The multifaceted set of beliefs, assumptions and values helps in presenting different level of
culture by conducting business at an effective manner. The normative glue based upon
organization culture helps in holding overall management effectiveness.( Tichy 2018). The
concept of effective organization culture helps in improving business decisions. The survival of
culture in an organization lies upon national and foreign culture differentiation in
culture management. (Schein, 2020) The culture of organization has been affected by attitudes,
norms and beliefs that lead to strong communication between employees
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2.2 Dimensions of Organizational Culture
Different studies conducted across the world discussed dimensions of organizational culture and
group them in different ways. Jiddah et.al (2016) identified organizational dimensions as
involvement, consistency and organizational mission. On the other hand Kien (2014) framed
organizational culture into six categories: Process-oriented vs. results-oriented which is
concerned with effectiveness of an organization. Job-oriented versus employee-oriented which
focus on management philosophy. Professional versus local, professional are assigned based on
their professional development and ability where as local is based on identity of member or a
group a culture. Open system and closed system which is concerned with exchange of
information between organizations and its external environment. Tight vs. lose control which
exercises amount of internal control, structuring and discipline. The last dimension is pragmatic
versus normative in which organization focus is either on external environment or internal
environment. Denison and Neale (2011) identifies four cultural traits Involvement, Consistency,
Adaptability and Mission. These underlying traits are expressed in terms of a set of managerial
practices. Schein (2004) believed that there are three levels in an organization culture and his
model focuses on artifacts, values, and assumptions. The artifact include The dress code of the
employees, office furniture, facilities, behavior of the employees, mission and vision of the
organization all come. The values of the individuals working in the organization play an
important role in deciding the organization culture. Edgar (2013) developed a model based on
the belief that cultures can be distinguished by values that are reinforced within organizations
and identified seven organizational culture dimensions namely Innovation and risk taking,
Stability, Respect for People, Outcome Orientation, and Attention to Detail, Team Orientation,
and Aggressiveness.

Innovative Cultures

According to the OCP framework, companies that have innovative cultures are flexible and adaptable,
and experiment with new ideas. These companies are characterized by a flat hierarchy in which titles and
other status distinctions tend to be downplayed. For example, W. L. Gore & Associates Inc. is a company
with innovative products such as GORE-TEX® (the breathable fabric that is windproof and waterproof),

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Glide dental floss, and Elixir guitar strings, earning the company the distinction of being elected as the
most innovative company in the United States by Fast Company magazine in 2004. W. L. Gore
consistently manages to innovate and capture the majority of market share in a wide variety of industries,
in large part due to its unique culture. In this company, employees do not have bosses in the traditional
sense, and risk taking is encouraged by celebrating failures as well as successes. Deutschman, A. (2004,
December). The fabric of creativity. Fast Company, 89, 54–62. Companies such as W. L. Gore,
Genentech Inc., and Google also encourage their employees to take risks by allowing engineers to devote
20% of their time to projects of their own choosing. Deutschman, A. (2004, December). The fabric of
creativity. Fast Company, 89, 54–62; Morris, B., Burke, D., & Neering, P. (2006, January 23). The best
place to work now. Fortune, 153, 78–86.

Aggressive Cultures

Companies with aggressive cultures value competitiveness and outperforming competitors: By

emphasizing this, they may fall short in the area of corporate social responsibility. For example,
Microsoft Corporation is often identified as a company with an aggressive culture. The company has
faced a number of antitrust lawsuits and disputes with competitors over the years. In aggressive
companies, people may use language such as “We will kill our competition.” In the past, Microsoft
executives often made statements such as “We are going to cut off Netscape’s air supply.…Everything
they are selling, we are going to give away.” Its aggressive culture is cited as a reason for getting into new
legal troubles before old ones are resolved. Greene, J., Reinhardt, A., & Lowry, T. (2004, May 31).
Teaching Microsoft to make nice? Business Week, 3885, 80–81; Schlender, B. (1998, June 22). Gates’
crusade. Fortune, 137, 30–32. Recently, Microsoft founder Bill Gates established the Bill & Melinda
Gates foundation and is planning to devote his time to reducing poverty around the world. Schlender, B.
(2007, December 10). Bill Gates. Fortune, 156, 54. It will be interesting to see whether he will bring the
same competitive approach to the world of philanthropy.

Outcome-Oriented Cultures

The OCP framework describes outcome-oriented cultures as those that emphasize achievement, results,
and action as important values. Employees are trained and mentored to sell company products effectively,
and they learn how much money their department made every day. Copeland, M. V. (2004, July). Best
Buy’s selling machine. Business 2.0, 5, 92–102. In 2005, the company implemented a results oriented
work environment (ROWE) program that allows employees to work anywhere and anytime; they are

9
evaluated based on results and fulfillment of clearly outlined objectives. Thompson, J. (2005, September).
The time we waste. Management Today, pp. 44–47. Outcome-oriented cultures hold employees as well as
managers accountable for success and utilize systems that reward employee and group output. In these
companies, it is more common to see rewards tied to performance indicators as opposed to seniority or
loyalty. Research indicates that organizations that have a performance-oriented culture tend to outperform
companies that are lacking such a culture.Nohria, N., Joyce, W., & Roberson, B. (2003, July). What really
works. Harvard Business Review, 81, 42–52. At the same time, some outcome-oriented companies may
have such a high drive for outcomes and measurable performance objectives that they may suffer negative
consequences. Companies overrewarding employee performance such as Enron Corporation and
WorldCom experienced well-publicized business and ethical failures. When performance pressures lead
to a culture where unethical behaviors become the norm, individuals see their peers as rivals and short-
term results are rewarded; the resulting unhealthy work environment serves as a liability. Probst, G., &
Raisch, S. (2005). Organizational crisis: The logic of failure. Academy of Management Executive, 19, 90–
105.

Stable Cultures

Stable cultures are predictable, rule-oriented, and bureaucratic. These organizations aim to coordinate and
align individual effort for greatest levels of efficiency. When the environment is stable and certain, these
cultures may help the organization be effective by providing stable and constant levels of output.
Westrum, R. (2004, August). These cultures prevent quick action, and as a result may be a misfit to a
changing and dynamic environment. Public sector institutions may be viewed as stable cultures. Its
bureaucratic culture is blamed for killing good ideas in early stages and preventing the company from
innovating. When the company started a change program to increase the agility of its culture, one of their
first actions was to fight bureaucracy with more bureaucracy: They created the new position of VP of
business process simplification, which was later eliminated. Boyle, M. (2004, November 15). Kraft’s
arrested development. Fortune, 150, 144; Thompson, S. (2005, February 28). Kraft simplification strategy
anything but. Advertising Age, 76, 3–63; Thompson, S. (2006, September 18). Kraft CEO slams
company, trims marketing staff. Advertising Age, 77, 3–62.

People-Oriented Cultures

People-oriented cultures value fairness, supportiveness, and respect for individual rights. These
organizations truly live the mantra that “people are their greatest asset.” In addition to having fair

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procedures and management styles, these companies create an atmosphere where work is fun and
employees do not feel required to choose between work and other aspects of their lives. In these
organizations, there is a greater emphasis on and expectation of treating people with respect and
dignity.Erdogan, B., Liden, R. C., & Kraimer, M. L. (2006). Justice and leader-member exchange: The
moderating role of organizational culture. Academy of Management Journal, 49, 395–406. One study of
new employees in accounting companies found that employees, on average, stayed 14 months longer in
companies with people-oriented cultures.Sheridan, J. (1992). Organizational culture and employee
retention. Academy of Management Journal, 35, 1036–1056. Starbucks Corporation is an example of a
people-oriented culture. The company pays employees above minimum wage, offers health care and
tuition reimbursement benefits to its part-time as well as full-time employees, and has creative perks such
as weekly free coffee for all associates. As a result of these policies, the company benefits from a
turnover rate lower than the industry average.Weber, G. (2005, February). Preserving the counter
culture. Workforce Management, 84, 28–34; Motivation secrets of the 100 best employers. (2003,
October). HR Focus, 80, 1–15. The company is routinely ranked as one of the best places to work
by Fortune magazine.

Team-Oriented Cultures

Companies with team-oriented cultures are collaborative and emphasize cooperation among employees.
For example, Southwest Airlines Company facilitates a team-oriented culture by cross-training its
employees so that they are capable of helping each other when needed. The company also places
emphasis on training intact work teams.Bolino, M. C., & Turnley, W. H. (2003). Going the extra mile:
Cultivating and managing employee citizenship behavior. Academy of Management Executive, 17, 60–
71. Employees participate in twice daily meetings named “morning overview meetings” (MOM) and
daily afternoon discussions (DAD) where they collaborate to understand sources of problems and
determine future courses of action. In Southwest’s selection system, applicants who are not viewed as
team players are not hired as employees. Miles, S. J., & Mangold, G. (2005). Positioning Southwest
Airlines through employee branding. Business Horizons, 48, 535–545. In team-oriented organizations,
members tend to have more positive relationships with their coworkers and particularly with their
managers.Erdogan, B., Liden, R. C., & Kraimer, M. L. (2006). Justice and leader-member exchange: The
moderating role of organizational culture. Academy of Management Journal, 49, 395–406.

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2.3 Functions of Organizational Culture
Organizational culture has different functions in the life of any organizations. It plays several
important roles within an organization. As such it provides a sense of identity and generates
organizational commitment as well as commitment to the organization’s mission and clarifies
and reinforces standards of behavior (Greenberg, 2003). According to (Patel, 2014), the
functions of organizational culture can manifest itself through creating the feeling of identity
among personnel and commitment to the organization and competitive edge to enable the
members (especially new members) in the organization to well understand acceptable behavior
and social system stability.

Dwirantwi (2012) indicates that culture helps to account for variations among organizations and
managers, both nationally and internationally. Culture helps to explain why different groups of
people perceive things in their own way and perform things differently from other groups.
Culture can help reduce complexity and uncertainty. It provides a consistency in outlook and
values, and makes possible the process of decision-making, co-ordination and control. There is
nothing accidental about cultural strengths. There is a relationship between an organizations
culture and its performance. And he explains that culture performs the four main functions.

First and foremost, Culture supplements rational management creation of work. Culture is a
time- consuming process. He continues by saying that, organization culture cannot suddenly
change the behavior of people in an organization. Culture communicates to people through
symbols, values, physical settings, and language, and, thereby supplements the rational
management tools such as technology and structure.(Luke,2018).

The second function is it facilitates induction and socialization. Induction is a process through
which new entrants to an organization are socialized and indoctrinated in the expectations of the
organization; its cultural norms, and undefined conduct. The newcomer imbibes the culture of
the organization, which may involve changing his / her attitudes and beliefs to achieving an
internalized commitment to the organization (Sami, 2015)

Furthermore, culture promotes a code of conduct; a strong culture in an organization explicitly

communicates modes of behavior so that people are conscious that certain behaviors are
expected and others would never be visible. The presence of a strong culture would be evident

12
where members share a set of beliefs, values, and assumptions which would influence their
behavior in an invisible way. Where culture has been fully assimilated by people, they
persistently indulge in a typical behavior in a spontaneous way. Promotion of the culture of
quality can helps achieve good business results.

Lastly; sub-cultures contribute to organizational diversity: sub-cultures, and sub-systems of

values and assumptions, which may be based on departmentalization, activity centers, or
geographical locations, provide meaning to the interests of localized, specific groups of people
within the macro organization. Sub-cultures can affect the organization in many ways: (i) they
may perpetuate and strengthen the existing culture; (ii) they may promote something very
different from those existing; (iii) they may promote a totally opposite sub-culture (beliefs and
values) or counter culture when in a difficult situation.

2.4 Employee Performance

Researchers have defined employee performance as well as highlighted parameters affecting
employee performance. The performance of an individual or an organization depends strongly on
all organizational activities, policies, practices, knowledge management practices and employee
engagement (Anitha, 2013). Wahjoedi (2021) states that organizational culture indirectly affects
employee performance. Employee’s performance as a combination of efficiency and effectiveness
of the employee’s daily tasks to meet the expectations of the stakeholders (Bataineh , 2017). On
the other hand, Pawirosumarto, Sarjana and Gunawan (2017) tide between employee
performance and work environment that contains physical and nonphysical factors around
employees which have a positive and significant effect on improving employee performance.
While Smith and Bititc (2017) emphasis on improving performance measurement systems and
performance management practices as factors of work’s environment which enhance employee’s
engagement levels. Also, Mensah (2018) support their ideas when considered talent management
as a critical success factor within companies which become the most core managerial value in
our highly dynamic and uncertain market environment of the twenty-first-century era.

According to Prawirosento (2016), the measure of good and bad performance of and employee is
measured by effectiveness and efficiency. Kasmire (2019), noticed that Clarity of authority and
responsibility of each person in an organization support the performance of employees. Kasmire

13
(2019) indicated that quality, quantity, effective time utilization, cost effectiveness and good
interpersonal communication.

Many scholars and managers contend that if employees are adequately informed about matters
concerning them and given the chance to make decisions related to their work, there will be
benefits for both the organization and the individual (Shadur, Kienzle, Rodwell, 2005). PDM
enhances production efficiency, employee morale, and job satisfaction; it also builds a better
sense of control and trust in the employees (Chang & Lorenzi, 2012). When employees are
afforded opportunities to contribute ideas and suggestions in decision -making, firm performance
may increase because deep employee involvement in decision-making maximizes the diversity
of perspectives (Kemelgor, 2002).

2.5 Conceptual Framework

The conceptual model formulates to show off the effect of organizational culture on employee
performance. In this study employee performance is dependent variable while organizational
culture is independent variable.

Professionalism

Employees are selected and identified with their profession and they are exposed to on job and of
job training related to their work

Strict work discipline

This dimension deals with amount of internal control structure and discipline. It expresses
formaility and punctuality level of employees in the organization

Job oriented management Philosophy-

Job oriented philosophy assumes responsibility for the employees job performance only.

Employee Motivation

This dimension involves creating the acceptance of employees to perform in their best in terms
of their abilities.

Employee commitment:

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 This element focuses to the extent of manager-subordinate relationship in the organization to
enhance organizational excellence.

Team Orientation

This dimension analyses the amount of cooperation and coordination among the employees of
different departments

Figure 2-1: Conceptual Framework on the Relationship between organizational culture , and
employee Performance

Professionalism

Employee motivation Employee Performance

 Productivity
 Decision making ability
Team orientation  Creativity and innovation
 Quality work
 Leading ability
Strict work discipline  Efficiency in resource use
 Effectiveness
Job Oriented

Employee commitment

Organizational culture

Figure 2.1: Conceptual Framework of the Study (source: own computation, 2024)

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 CHAPTER THREE

3. RESEARCH METHODOLOGY
This chapter presented a methodology followed and applied during data collection. It presents
description of the study organization, population, research methods of data collection, data
analysis and interpretation

3.1 Description of study Organization

Arba Minch University was made the legal entity called ‘University’ by the Council of Ministers
Charter Regulations No. 11112004. This Charter Regulation was issued by the Council of
Ministers pursuant to Article 5 of Definitions of Powers and Duties of the Executive Organs
(Federal Democratic Republic of Ethiopia Proclamation No. 4/1995 and Art.. 8 of Higher
Education Proclamation No. 351/2003). Arba Minch University (AMU) is one of the well-
established universities found in the Southern Nations, Nationalities and People's Region
(SNNPR). It is located at Arba Minch town, 500 km south of Addis Ababa. The main campus of
the university is situated at the eastern foot of Gamo mountain ranges and adjacent to the vast
low land stretching towards Lake Abaya and Lake Chamo which form part of the East African
Rift Valley. Currently, the University comprises of six colleges, three Schools and two institutes.
The Colleges are: College of Natural and computational Sciences, College of Agricultural
science, College of Medicine and Health Sciences, College of Social Science and Humanities,
college of continuing and distance education and College of Business and Economics, school of
pedagogical and behavioral science .school of medicine, school of law, school of sport science
academy and School of post Graduate Studies. The school, which was launched in the 2002/03
academic year, is now running 40 programs. In 2022/3 academic year a total of 4860 permanent
academic and administrative staffs are working in Arbaminch university.

3.2 Research Design

Explanatory research design will be used to conduct this study because this helps to describe
existing situations; characteristics. In addition, the researchers will employee quantitative

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research approaches. The quantitative approach is will used to measure phenomena using
numbers in statistical procedures. In order to get accurate data from respondents, researcher will
use questionnaire as means of data collection instruments.

3.3 Target population

The target populations of this study will be employees of Arbaminch University. Arbaminch
University has more than 4600 administrative and academic staffs. The sample frame of the
study includes all five campuses such as Main campus, Kulfo campus, Nechsar campus, Chamo
campus and Abaya campus. The study included both academic and administrative staffs
currently working in Arba Minch University. .

3.4 Sampling Technique and Sampling Size determination

To calculate sample size the maximum sample size at 95% Confidence level and a 5% tolerable
error and 10 % non-response rate will be considered and use the recommended 50% Standard
deviation. Since Arbaminch University is led by one president and has highest decision making
unit called “Senete legislation”” which is situated in main campus, the researchers included both
academic and administrative staffs of five campuses

As stated in the background of the organization there are 4610 employees in Arbaminch
University, a representative sample size was selected from the total population by using Yamane
Taro (1967) sample size determination formula. It is computed as follow;

N
n= 2
1+ N (e)
Where:
n = Desired sample size
N = Total population
e = Accepted error limit (0.1 on the basis of 90% degree of confidence).
If the N, population size = 4610, find n, the required sample size.

Solution:
N 4610 4610 4610 4610
n= = = = = =368
1+ N (e) 1+ 4610(0.5) 1+ 4610(0.05) 1+11.525 12.525
2 2

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With the use of proportionate stratified sampling technique followed by simple random sampling
a total of 368 respondents will be selected. Therefore 368 respondents will be participated in this
research.

Therefore, 368 employee will be selected randomly in proportion to their total population size
from each selected campus as shown in Table 3.1

Table 3.1 Sample selection with proportional allocation

No Campus Total employees Proportional% Sample size

Academic Administrative

1 Main Campus 1520 33 40 82

2 Kulufo 420 9 13 21

3 Nechsar 620 13 21 28

4 Chamo 1420 31 37 76

5 Abaya 630 13 23 27
Campus

Total 4610 100% 134 234

Source- annual report of Arbaminch University 2023

3.5 Types of data and Source of Data

Data will be collected from the primary sources. Primary data will be collected from top
management, human resource management directorate, legal system of the university, and
subordinates of Arbaminch University. This source of data is considered primary data based
on the expectation that they have better information on the organizational culture in the study
organization. The adoption of these tools helped to collect both quantitative and qualitative data.

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3.6 Data Collection Tool
In collecting the data, the researcher will rely on the questionnaire that included several themes
according to the questions and objectives of the study. The questionnaire will be subjected to the
standards of honesty and consistency. Questionnaire will include both open ended and closed
ended questions. . The questionnaire will consist three sections. The first section represents the
general information of the respondents. The second section represents the data on organizational
culture while section three represents data on employee performance. Therefore, by using 5 -
point Likert scale, on which to express the respondent’s level of agreement closed ended
questionnaire will be used. Questionnaire will be based on the objective of the study.

3.7 Methods of Data Presentation and Analysis

After data collection, data will be checked for reliability and representativeness. The researcher
will use descriptive method of data analysis. First the collecting data will be categorized, next
tabulation of the data will be following and the data will interpret by using both quantitative and
qualitative means of analysis. Both quantitative and qualitative methods of data analysis will be
employed to answer the basic research questions and achieve the objectives of the study. In the
case of quantitative data analysis, the data from the questionnaire will be entered into a computer
using statistical package for social science (SPSS) version 13, computer programs for data
analysis, and quantitatively analyzed by using descriptive tools such as percentage, frequency,
mean and figure. The frequency and percentage derived from the data will be served as the basis
for interpretation of the data and summarization. While inferential statistical regression was used
to generalize from a sample result, and also to examine the significance contribution of each
independent variable to the dependent variable.

Reliability and Validity of Instruments

3.8.1 Reliability

According to (Kothari, 2004) a measuring instrument is reliable if it provides consistent results.

The reliability analysis will use Cronbach’s alpha to evaluate internal consistency of the
questionnaire. If the quality of reliability is satisfied by an instrument, then while using it we can
be confident that the transient and situational factors are not interfering. As cited by (Chepkech,

19
2014), the Cronbach’s alpha formula reduces the time required to compute a reliability
coefficient in other methods.

3.8.2 Validity of Instruments

Before the data collection made, researcher will develop the questionnaire based on the literature
review by addressing the basic research question and taste the data collection tools via pre-test
and also the research advisor comments, suggestions and all required information to valid the
study. Validity indicates the soundness or extent to which an instrument measures the construct
was aiming to measure Goodwin (1995). According to Trochim, (2005) cited by Mary Calist
Irema, (2015) data validity refers to empirical measurement which adequately reflects the real
meaning of the concept under study.

3.9 Ethical Considerations

According to Tangen, (2013), research ethics is a complex set of standards, values and
institutional systems that governs relationship in research undertakings and management of
research data. In the views of Shamoo and Resnik (2015), it’s imperative for researchers to learn
how to make decisions, learn how to interpret, assess and apply various research rules as well as
responsible conduct in different situations. The researcher sought informed consent from the
research participants by addressing the concerns of their concerns as well as providing all
necessary information pertaining to the nature of the research study and level of involvement of
the participants in the research undertaking.

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 4. WORK PLAN /TIME SCHEDULE
The overall time required by the researcher for running and completing each activity is estimated
as follows.

S. No List of Activities Time of completion

1 Preparation works Feb 20-28/2024

2 Purchase of stationary materials March 25-31/2024

3 Preparation of Data collection Instruments April 1-3/2024

4 Training for data collectors April 15-20/2024

5 Data collection April 21-May 5/2024

6 Data Entry May 7- 12/2024

7 Discussion with advisor May 15- 16/2024

8 Data processing: editing, clearing and entry May 20- 31/2024

9 Data analysis and writing up June 1-15/2024

10 Submission of first draft June 20/2024

11 Submission of final research June 25/2024

Table 2- work plan

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 5. LOGISTICS & BUDGET BREAKDOWN
To complete the research work, the following budget breakdown is allocated to required
materials during the research work. This breakdown includes stationary cost, personal expenses
for field work and transportation cost

Table 3: stationary and Material Cost

s/No Items Unit quantity Unit price in birr Total cost birr

1 Flash disc 8GB No 2 200 400

2 Printing paper packet 3 180 540

3 Note Book No 5 30 150

4 Staple No 1 200 200

5 Photocopy No 1000 3 3000

6 Pen pkt 3 500 1500

7 Ruler No 5 20 100

8 Type writing No 200 10 2000

Sub-total 7, 890

Table 4: Personal Expense for Field Work

S/No Description unit No of days Daily payment in birr Total expense in birr

1 Data collectors day 5 200* 5 collectors 5,000

2 Researcher perdiem day 5 350 1,750

Sub total 6,750

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Table 5: Transport Cost

S/No Description Unit No of Unit price (birr) Total price in birr

round

1 Data collectors Surveying 8*5*5 10 2000

household

2 Researcher Surveying 6 per day 10 300

household for 5 days

Sub-total 2,300

Table 6: Budget summary

S/No Description Sub-total expenses

1 Stationary and Material costs 7, 890

2 Personal expenses for field work 6,750

3 Transport cost 2,300

Sub total 16,940

Contingency (10%) 1,694

Grand total 18,634 birr

Budget source: researcher

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