Role of Organizational Culture on Business Performance in Schneider Electric Company, Nairobi.

Abstract

ABSTRACT

The study aimed at determining the role of organizational culture on business performance with a focus on Schneider Electric Nairobi. The independent variables of this study were market culture, clan culture, hierarchical culture, adhocracy culture, and business performance as the dependent variables. The study was supported by the dynamic capabilities’ theory, Schein’s theory of organizational culture, exchange theory, and organizational culture theory. The study targeted employees of all levels from top management to junior employees who totaled 140. The sample size was calculated using the Yamane formula giving the sample of 103 respondents who were selected through random sampling. Quantitative data was collected through a structured questionnaire composed of Likert scale questions. The data analysis technique adopted was descriptive statistics and regression analysis. The main study findings indicated that clan culture, market culture, hierarchical culture, and adhocracy culture have positively and significantly played a major role in business performance in Schneider Electric Nairobi. Based on the findings, the study recommended that the organization’s leadership foster a positive and productive work culture, embrace transparency, and celebrate small and big achievements across the board to motivate the employees. The management encourages and leads by example in the spirit of teamwork, open communication, and transparency. Also foster a sense of belonging among employees, providing opportunities for personal and collective growth. The leadership should also empower employees to make decisions and take risks, encouraging experimentation and failure as a learning opportunity in schneider electric. The leadership to ensure the rules and policies are result focused and designate who is in charge and who is responsible for making decisions. Lastly, the leadership should continue encouraging employees to pull towards a common goal.

Key word: Role, Organizational culture, Business Performance, Schneider Electric Company, Nairobi