THE EFFECT OF ORGANIZATIONAL CULTURE ON ORGANIZATIONAL EFFECTIVENESS: THE CASE OF ADDIS ABABA FISTULA HOSPITAL

Abstract

Even though there is an assumption that organizational culture is one variable which can affect an organization’s function but there are few studies which explicitly discuss the effect it has on organizational effectiveness. The main purpose of this study was to examine five traits of organizational culture; involvement, consistency, adaptability and mission and how they affect organizational effectiveness in the case Addis Ababa fistula hospital (AAFH). For the study the researcher deployed explanatory research design and stratified sampling using the five sectors of AAFH functions. Proportion to population size method was used to distribute the sample in each stratum. The data had been gathered through structured questionnaire from154current employees of AAFH and an in-depth interview with managers. The collected data were analyzed using statistical package for social science version 25. In order to check the reliability and internal consistency of the questionnaire, Cronbach alpha was tested. Both Descriptive as well as inferential statistics were used to analyze the data and interpret results. According to the results of regression analysis, it can be concluded that 55.0% of variation in organizational effectiveness is accountable for organizational culture. Specifically, Adaptability and Mission sub culture dimensions have a positive and a high significant effect on organizational effectiveness. Based on the research findings and research conclusions, major recommendations such as; employees’ capacity development, performance management system, and emphasis should be given on AAFH’s involvement and consistency practices in order to enhance the effectiveness of employees’ satisfaction and commitment.