THE EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEES' PERFORMANCE AT NEFAS SILK LAFTO SUB-CITY PUBLIC SERVICE AND HUMAN DEVELOPMENT OFFICE

Abstract

An organization’s culture may have a big influence on the performance of that organization in any part of the world. It is a practice that cannot just be wished away as it has both positive and negative effects as far as performance of the employees is concerned. The focus of this study is Nefas silk Lafto Sub city public service and human development office, with the main objective being to determine the effect of organization’s culture on employees’ performance and to assess prevalent organizational culture traits. The research design adopted for this study involved both descriptive and explanatory methods in which the research sought to collect qualitative data from a target population of 179 employees working in the institution. The data collected was then summarized, classified, tabulated and analyzed using SPSS, STATA and Microsoft office tools. The result of the study revealed that, the four traits of organizational culture (involvement, consistency, adaptability and mission) account for 69.9% of the variation in the performance of employees, and the prevalent overall organizational culture of the institution was not strong. The result also indicated that involvement and mission cultural traits have relatively higher effect on employees’ performance while task performance of employees had better existence. Hence concluding that there is significant positive effect of organizational culture on employees’ performance and the overall culture of the institution edges to the negative end of the scale. The study recommends that while it keeps on strengthening the existing positive cultural elements, the institution should also provide effective integration & coordination of systems among departments, continuously develop their employee’s skills & capacity and reinforce team orientations. It should also embrace a learning organizational culture and encourage employees to adhere to core values by making employees’ participate in decision making process in a way that will promote employee’s performance.