Professional Documents
Culture Documents
over which culture can be formed and shaped; inferring that the culture of organizations
will have a linkage to the stage of the lifecycle it is at, at any particular time. Quinn &
Cameron (1983), reviewed 9 models of organizational lifecycles and proposed 4 major
stages namely: entrepreneurial (i.e. the starting out stage dominated by innovation,
creativity and gathering of resources), collectivity (i.e. the structures are more informal,
with more face to face communication, high commitment amongst members- putting in
long hours with evident commitment), formulation & control (here, procedures and
policies become grounded and formalized with emphasis on efficiency) and the
elaboration of structure (here more attention is given to expansion and emphasis placed
on monitoring external factors/environment) stages. While there is undoubtedly a
correlation between the type of culture and the stage an organization is in its lifecycle,
this research only focuses on the relationship between an organization's culture and its
portfolio performance.
Cameron & Quinn (2011) developed an instrument known as the ''organizational culture
Assessment Instrument (OCAI) - used to assess organizational culture; an instrument
which has been widely used in research (Fralinger & Olson, 2007; Faqir et al., 2011;
Ng'ang'a, & Nyongesa, 2012). The instrument was based on a framework known as the
competing Values Framework (CVF) - a theoretical model which was developed initially
from a conducted research targeted at major indicators of effective organizations.
(Yazici, 2010; 17); and is ''now the dominant framework for assessing organizational
culture'' (Cameron & Quinn, 2011: 35). Four major culture types are proposed by
Cameron & Quinn (2011), namely the 1) Clan; 2) Adhocracy; 3) Hierarchy and 4) Market
cultures. See table 3.2 for full descriptions of the four culture profiles by Cameron &
Quinn, (2011). These have been widely acknowledged by researchers and have been
found in prevalent literature on organizational culture to depict a holistic view of culture
types (O'riley & Moses, 1984; Zammuto & Krakower, 1991, cited in Faqir et al., 2011:
105). Figure 2.0 below shows the competing values and their relationship with the 4
culture types.
Figure 2.0: The Competing Values Framework
The CVF helps reveal an organization's focus, i.e. whether it has more of an internal or
external focus or if it goes all out for flexibility & discretion or stability & control.
(Berriov, 2003).
Ng'ang'a, & Nyongesa (2012) in their study to assess the Impact of Organisational
Culture on Performance of Educational Institutions, endorsed the OCAI model as ''a
validated research method of examining organizational culture'', and from their study,
conclude that the type of culture existent has great bearing on performance.
Portfolio performance
The concept of portfolio performance could be considered the most important aspect of
any organization as this directly relates to the core of its existence, with the results
reflecting its performance levels and every organization would normally want to succeed
in this regard. Marcoulides & Heck (1993) in their study conclude that in line with many
other previous researches, organizational culture has a relationship with performance.
this statement has also been validated in the course of this research as more studies
have proved a strong linkage between an organization's culture and its performance.
Alvesson (2002: 67) notes organizational culture as a key element in all forms of
performance. It will be considered valuable if an organization invests in the factors or
traits that influence its performance, as such, an investment or lack of, as the case may
be, could be beneficial or detrimental to the organization in the area of achieving its
purpose, objectives or goals.
Most public sector organizations manage projects in similar ways, with the projects
going through similar life cycle stages as well as similar performance measurement
systems, the project life cycle shows how the different stages in projects (from
are clear and are accepted by the organization's employees, then performance will be
enhanced .It then becomes important for those values and beliefs to be continually
shaped and guided positively to achieve the desired results. Baker (1980: 51), maintains
that 'managers consistently pay attention to shaping culture into a positive force by
encouraging those elements that are seen as beneficial and checking or eradicating those
that are less desirable', as this will surely have an impact on the success of the
organization's portfolio. This is indeed a true phenomenon as it is the modus operandi
in the case study organization under research i.e. DFID Nigeria. Results from an
annually conducted survey are reviewed and attention paid to areas that are perceived to
enhance performance.
Muldrow, Buckley & Schay (2002: 343) also note that an organizations performance is a
''result of the totality of the employees' behaviours'' and a good and clear understanding
of the culture could reveal why an organization is at a particular performance level. They
also note that in some cases, the relationship that exists between the culture and
performance could be indirect, such that the results in performance are also a
corresponding change in employee attitudes, which is more a direct result from the
culture change. Gordon & Ditomaso (1992) investigated the relationship between the
strength of culture & values (measured through surveys over years within an
organization) with corporate performance and the results revealed that these traits were
indeed predictors of performance and that overall, strong cultures would influence
performance in subsequent years. Denison & Mishra (1995), also reviews the
relationship based on the four traits of organizational culture - ''involvement,
consistency, adaptability, and mission'' with results showing that these were predictors
of performance as well as quality and employee satisfaction.
A slightly different view has also been presented by some research: Nikbakht, et al
(2012) in their study measured the impact of organizational culture on organizational
excellence- with excellence referring to the quality of an organization's methods of
assessment, human resources, organizational processes, its strategies, and quality of
leadership and found relationships between the culture and all of the above - with the
exception of a relationship between organizational culture and 'methods of assessment''.
This is unsurprising as 'methods of assessment' can be seen as the tool used to measure
the performance levels in the organization.
Other views may even be more contrary - e.g. research conducted by Lim (1995), where
he examined previously conducted research on the link between an organization's
culture and performance and concludes that there were no indications of a relationship
between culture and performance in the short term, much less a causal one between
culture and performance. He however admits to some degree that there is some
evidence of a correlation between 'adaptive' cultures and longer term performance; and
regards culture more as a ''descriptive and explanatory tool rather than a predictive''
tool. (Lim, 1995: 20).
As an organization's success or portfolio performance will mean different things to
different organizations, It could be appropriate to then argue that for culture to affect
performance, it would have to be tailored or adapted to the organization's context or
mode/ type of business in order to achieve the performance levels desired. It is found
that in different organizations, culture is either performance related - focusing more on
the projects or portfolio and the project management principles applied; while in other
organizations, more people oriented, focusing on the employees and providing the
relevant support to achieve the desired goal. Andersen & Jessen, 2000, cited in Khang &
Moe, (2008: 73) emphasized the need to make separate the ''task- and people-oriented
aspects in evaluating the project results'', this will actually provide a basis to determine
what areas exactly need attention, and then focus can be placed on that area. Knutson
(2001) notes the importance of building a project management culture, and suggests
three perspectives from which this can be achieved within a business enterprise which
include the endorsement of a culture for successful projects, the construction of a
support infrastructure for the successful management of projects and the establishment
of the executive's role.; while Combs et al (2006: 502) in their study note that
performance can be enhanced through high performing work practices such as
employee participation, training, making work arrangements more flexible, as these
would motivate employees to perform better. These approaches can then be directly
translated to the cultural traits an organization could adopt and groom to achieve the
desired results.
While looking at the subject of organizational culture, the variable components like
values, behaviours, attitudes, norms, artefacts, people, etc. are more often come across
in its definition; with most organizational culture profiles containing a combination of
these variables or traits.
time i.e. there will likely be possible changes in customer service, leadership
competencies, etc (Overholt et al, 2007). This remains an interesting concept that will
be worthy of research in the near future. Table 2.1 below compiles traits attributable to
high- performing organizations revealed through the literature reviewed.
High- performing organizations.
Traits
Strong customer focus or client responsive, consistent and clear strategy, strong and
well defined beliefs & values (i.e. culture), solid structure, consistency, well defined
processes, excellent execution, strong leadership, innovation, peer respect, distinctive
people characteristics, management systems, vision (which is emotion packed), fair
treatment of employees, employee pride, longer term relationships, quality performance
measurement, strive to be the best, adaptability, experience fun at the work place,
strong mission, respectful of colleagues, make no excuses, frequent constructive
feedback systems, ability/desire to crush competitors, involvement,
Table 2.1: traits of high - performing organizations
Source: Overholt et al (2007); (GAO, 2004); Osborne & Cowen (2002);
The traits of high performing organizations cannot be exhausted in a world where
theories are ever evolving, and may have different meanings and compositions in
different settings, Osborne & Cowen (2002) state that personnel in high performing
organizations may even expect to have longer term working relationships rather than
frequent job swaps, have can-do attitudes with zero tolerance for excuses, but move to
get the job done, and even experience fun at the workplace.
De Waal (2008), states that in high-performing organizations, management will
combine varying characteristics to achieve its purpose; some of the characteristics will
include maintaining a high quality of management style where employees are treated
with respect, and feel valued, management have personal and honest relationships with
employees such that they feel they can trust the managers; an open culture with action
orientation, such that employees feel they are consulted in matters arising in the
organization, and see action being taken as a result of such consultation; long term
commitments to partners and employees by being customer oriented and building solid
and long term partnerships, also with employees such that there is a sense of job
security and a sense of being valued; commitment to continual improvement to make
processes better to improve efficiency and be more effective, encouraging innovation
and harnessing good traits and competences, also realising and acknowledging gaps and
filling these by outsourcing needed competencies to achieve the desired results;
investment in quality employees, by ensuring well seasoned employees are recruited
with the right skills for the job with programmes in place for continual improvement of
employee competencies.
In reality, high performing organizations will most likely contain a high or good mix of
these characteristics, as it is doubtful that any one organization can claim credibility for
exhibiting all of these attributes, as sometimes, the mode of business may influence to
some degree what characteristics an organization can have or even groom to maturity.
What remains crucial is that an organization determines what is important to its
achieving its goal and then efforts can be targeted towards these so that it attains the
high performance it desires. (De Waal, 2008:5)
Organizations are continually seeking ways to improve and better their performance and
these processes sometimes involve drastic measures of change, either in their cultures or
processes or systems. The capacity of these organizations to manage the change process
also depends on whether or not they are high performers, therefore the change process
needs to be properly managed to be effective. There are common assumptions that some
changes, especially to the more physical or aesthetic structures, will improve an
organization's performance. Depending on the nature of business of an organization,
this may be a misconception while in some other organization; it may be a step in the
right direction. A lot of literature has revealed that there is definitely not one right
answer as it is mostly working towards achieving a combination of different traits that
catapults an organization into being a high performing one.
Summarily, Kirkman, Bradley & Lowe (1999) in their review of existing literature on
high performing work organizations arrive at five characteristics of high performing
organizations to have a high level of teams self- managing their work, good/total
management of quality, use of efficient technologies to aid business, good employee
involvement, engagement and empowerment levels, and awareness of organizations to
learn from both internal and external factors in order to improve on methods and
systems or adapt to their environment or be prepared for changes to come. Kirkman,
Summary
This chapter examined existing literature in the subject of organizational culture and its
relationship with performance to set a background and define the scope for the research
Organizational culture was seen to have a wide number of variables. See table 2.2 for a
compiled list, which by no means is conclusive, of some of the variable
components/traits encountered. The chapter began by examining organizational culture
and its evolution in the organizational setting. The subject of portfolio performance was
then examined next and narrowed down to the public sector context, as this was most
relevant to the research. The concept of portfolio management was also examined in the
same public sector and then went on to tie the culture - performance relationship. The
concept of high performing organizations was also examined and this was followed by a
brief examination of the impact of the environment on an organization's culture.
The literature showed that there is a relationship (of varying strengths across
organizations or business sectors) between the various traits of an organization's culture
and the performance of its portfolio as the cultural traits support or aid employees in
executing their duties, and because success means different things in all organizations,
the culture of the organization has to be adapted to meet its business needs. These traits
can be influenced by leaders and employees alike, as well as by the environment or
location. (Khan & Afzal, 2011). The degree to which these traits are shaped and modified
to support the organization will determine their performance level; and this is a
continuous process throughout the organizational life cycles as organizations are
striving to be high performing at all times.
Organizational culture
Variable components
Organizational culture: the research showed that there are different variable
components constituted in a variety of mixes and these vary by organization; especially
as the nature of business vary as well.
The various components constituted in organizational culture as encountered in
literature reviewed include:
Leadership, organizational strategies, human resources, organizational goals,
organizational resources, task organization, organizational structure, organizational
purpose, responsiveness, organizational climate, openness, organizational values,