This study tries to examine the effect of organizational culture on decision making in Yeka Sub City Small Tax Payers’ Branch Office. The study employed both descriptive and explanatory research design and used structured questionnaire as data gathering tools for the sample population; interview and document observation was also employed to supplement questionnaire. The total sample size was 172 out of which 161 questionnaires were completed and 6 out of 8 interviewees have been participated and included in the analysis part. The responses of respondents were analyzed.
Organization is a group of individuals who work together to achieve specific goals. It is a cultural phenomenon and every organization has its own culture that may separate it from other organizations. These activities have outcomes for organizational members, the organization itself, and for the society. The essence of organizations revolves around the development of shared meanings, beliefs, values and assumptions that guide and are reinforced by organizational behavior. These shared meanings, values and assumptions represent organizational culture.
As for the people is defined character, for organizations can also be defined character. Organizational culture is constituent of character of any organization, organizations as well humans can be conservative, creative, timid, learning etc. Most of the time core values of the organization is largely considered as strong culture of the organization whenever members are accept the major core values and have greater commitment to them shows the organization will have strong culture. Strong culture has greater impact on individuals’ behavior and cause of greatly reduced employee relocation. Strong culture leads to confirmation and high agreement among the members of the organization about what the organization is following. These agreements become cause of integrity, loyalty and commitment to the organization. The existence of strong culture in the organization may cause for people have lower desire to leave the organization. If the organization has strong culture adaptability and suitability will appear in which finally leads the organization to greater effectiveness.
TABLE OF CONTENTS
Content
ACKNOWLEDGEMENT
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
LIST OF APPENDICES
ACRONYMS
ABSTRACT
CHAPTER ONE
INTRODUCTION
1.1. Background
1.2. Statement of the problem
1.3. Objective of the study
1.3.1. General objective
1.3.2. Specific objectives
1.4. Research questions
1.5. Hypothesis
1.6. Significance of the study
1.7. Scope of the study
1.8. Limitations of the study
1.9. Operational Definition of terms
1.10. Organization of the study
CHAPTER TWO
2. LITERATURE REVIEW
2.1. Theoretical review of literatures
2.1.1. Definition and concept of organizational culture
2.1.2. Development of organizational culture
2.1.3. Dimensions of organizational culture
2.1.4. Levels of organizational culture
2.1.5. The concept of decision making
2.1.6. Definition and concept of leadership
2.1.7. Organizational culture and decision making
2.2. Review of empirical literature
2.3. Research gap
2.4. Conceptual framework
CHAPTER THREE
3. RESEARCH METHODOLOGY
3.1. Description of the study area
3.2. Research design
3.3. Variables of the study
3.3.1. Dependent variable
3.3.2. Independent variable
3.4. Data types and sources
3.5. Population, sampling procedure and sample size
3.5.1. Population
3.5.2. Sampling procedure and sample size
3.6. Method data collection
3.7. Data quality control
3.7.1. Validity of the instruments
3.7.2. Reliability
3.8. Data analysis and interpretation
3.9. Ethical consideration
CHAPTER FOUR
4. RESULTS, ANALYSIS AND DISCUSSION
4.1. Introduction
4.2. Analysis and Discussion of Findings
4.2.1. Response rate
4.2.2. Demographic Characteristics of Respondents
4.2.3. Identifying the prevailing organizational culture of the study organization
4.2.4. Computing value frame work (CVF)
4.2.5. Assessment of decisionmakingpractices in the study organization
4.2.6. The effect of organizational culture on decision making
CHAPTER FIVE
5. SUMMARY, CONLUSION AND RECOMMENDATIONS
5.1. Introduction
5.2. Summary of findings
5.3. Conclusion
5.4. Recommendations
5.4.1. For policy makers:
5.4.2. For higher leaders and managers of Yeka Sub City Small Tax Payers Branch Office
5.4.3. For further study:
BIBLIOGRAPHY
APPINDIX
ACKNOWLEDGEMENT
First and for most I would like to thank God for being with me in every step of my activities with this work. I am very glad to express my sincere gratitude and appreciation to Dr. Simret Gebretsadik for her invaluable, constructive and enduring comments and professional advice from the inception to the completion of this work.
I would also like to acknowledge the contribution of all employees and officials of Yeka Sub City Small Tax Payers’ Office for their cooperation by filling up the questionnaires and providing valuable information for completing my work.
My special thank also goes to my wife Yeshi Alelgn and my children Nebyat Abebe and Hemen Abebe for their priceless sacrifice and role of continuous blessing and moral support in all my deeds, for their encouragement and motivation throughout my life.
I would like to acknowledge the contribution of my friend Gizachew Tilahun, for his holistic ideal and technical support and priceless contribution, co-operation and assistance throughout my work.
I also owed special debt to my friends and relatives who have been with me throughout my work by providing both material and moral support. Specifically, I would like to deeply thank; Teshome Mengesha, Dagnachew Hulumyfer,Jemal, Temesgen Hilemariam, Engdawork Hailue, Miraf Ashgre, Melese Gashaw, Tamiru Demisie, Behredin Kedir And Haile Nigusie for cooperation and assistance throughout this work.
LIST OF TABLES
Table 4.2 Outlook of respondents on the dominant characteristics of the organization
Table 4. 3: Respondents’ perception on organizational leadership
Table 4.4: outlook of respondents on management of employees
Table 4.5Respondents’ perception of organizational glue
Table 4. 6: Respondents’ perception on the strategic emphases of the office
Table 4.7: Respondents’ outlook on the criteria of success in the organization
Table 4. 8: Computed values of the four major culture types
Table 4. 9: Respondents’ perception on decisivedecision making style
Table 4.10: Respondents’ outlook on Hierarchic style of decision making
Table 4. 11: Respondents’ perception on flexible style of decision making
Tble 4.12 block 0 classification Tablea,b For decision making
Table 4. 13 Omnibus Tests of Model Coefficients
Table 4. 14 Model Summary
Tble 4. 15Hosmer and Lemeshow Test
Table 4. 16 Classification Tablea
Table 4. 17Variables in the Equation
LIST OF FIGURES
Figure 2. 1 Conceptual framework
Figure3. 1 Study area map
Figure4. 1: Sex distribution of respondents
Figure4. 2: Age category of respondents
Figure4. 3: Educational status of respondents
Figure4. 4: Work experiences of respondents in the study organization
Figure4. 5: the domination position of culture types
Figure4. 6: coverage share of culture types in the organization
LIST OF APPENDICES
Appendix 1: questionnaire
Appendix 2 Interview guide questions
Appendix 3 Summarized interview
Appendix 4 Binary logistic regression output
ACRONYMS
Abbildung in dieser Leseprobe nicht enthalten
ABSTRACT
Organizational culture plays significant role in the overall performance of a particular organization. It becomes an increasingly important factor for organizational survival in the current dynamic environment. And decision making is one aspect of organizations performance. This study tries to examine the effect of organizational culture on decision making in Yeka Sub City Small Tax Payers’ Branch Office. The study employed both descriptive and explanatory research design and used structured questionnaire as data gathering tools for the sample population; interview and document observation was also employed to supplement questionnaire. The total sample size was 172 out of which 161 questionnaires were completed and 6 out of 8 interviewees have been participated and included in the analysis part. The responses of respondents were analyzed using descriptive and inferential statistics supported by narration. SPSS software was used in analyzing the collected data. The results of the analysis showed that, the prevailing organizational culture as analyzed via descriptive statistics and CVF and the finding became mixed culture and amongst the dominant is hierarchy culture. The decision making practice was analyzed via descriptive statistics and the most dominantly decision making practice is found to be hierarchic style decision making. The effect was analyzed using binary logistic regression, the result showed OC has 26.3 up to 35.2 percent effect on leaders DM practice. The dominant affecting cultures became market culture and hierarchy culture. While hierarchy culture affected DM negatively market culture affects positively. In general the study revealed that the prevailing organizational culture affected decision making practice of the organization. Finally the researcher recommended that there is a need of culture change from hierarchy culture to market culture since it has positive effect on decision making in the study organization to improve the decision making and handle the customers’ grievance.
Key terms: Organizational Culture, Leaders, Decision Making, Effect,
CHAPTER ONE
INTRODUCTION
This chapter provides a general introduction to organizational culture and decision making. And it describes the concept of organizational culture, as well as the concept of decision making in the background. More over it describes statement of the problem, objective of the study, research questions, significance of the study, delimitation/scope of the study, limitation of the study, definition of key terms and finally organization of the study.
1.1. Background
Organization is a group of individuals who work together to achieve specific goals. It is a cultural phenomenon and every organization has its own culture that may separate it from other organizations (Rezaiian, 2000). These activities have outcomes for organizational members, the organization itself, and for the society. The essence of organizations revolves around the development of shared meanings, beliefs, values and assumptions that guide and are reinforced by organizational behavior. These shared meanings, values and assumptions represent organizational culture (Hall, 1999)
As for the people is defined character, for organizations can also be defined character. Organizational culture is constituent of character of any organization, organizations as well humans can be conservative, creative, timid, learning etc. (Zareiti & Matin, 2000). Most of the time core values of the organization is largely considered as strong culture of the organization whenever members are accept the major core values and have greater commitment to them shows the organization will have strong culture. Strong culture has greater impact on individuals’ behavior and cause of greatly reduced employee relocation. Strong culture leads to confirmation and high agreement among the members of the organization about what the organization is following. These agreements become cause of integrity, loyalty and commitment to the organization. The existence of strong culture in the organization may cause for people have lower desire to leave the organization. If the organization has strong culture adaptability and suitability will appear in which finally leads the organization to greater effectiveness (Robbins, 2006)
There are different dimensions and types of organizational cultures those are inherent to both public and private organizations. The absence and presences of all these have different effects on organizational performance in the processes of delivering the services based on their degree of intensity. According to the study of Greenburg & Brown, (2003), organizational culture influences an individual and organizational process by generating strong pressures on employees to go along with and to think and act in a way that is consistent with the existing organizational culture. The influences can either lead to enhance employee commitment and promote organizational success or hinder its effectiveness (Schein, 2004). This is the clear indications of strong relationships between organizational culture and organizational performances in the processes of providing the intended services for the targeted customers. Whenever the performances of organizations are affected, it is true that there is an effect on the leaders decision making since the overall performance of the organization is on the shoulder of the leaders and the main role of leaders is decision making. This influence is mostly significant in service rendering organizations because of the complex nature of public organizations.
The concept and nature of the decision-making is difficult and sensitive. This is because of its complex nature, when we impose certain things have reached an agreement on the subject, or issue we have resolved that in all these cases, in fact the kind of decisions we have been in this situation, the decision is a dynamic process, not the end. Decision-making process, in particular, involves choosing a way from among existing alternative ideas. The decision means the conscious choice, which allows individuals, according to a given set of conditions, their behavior and their own thinking, and then set an option, accepted, and then be carried out (Hui & Miksel, 2009). The decision is to choose one path from among the various defined, Decision analysis methods available, and choosing a way to achieve goals (Rezaiian, 2000). In organizations where decision making is under problem cannot satisfy its customers. Since it is decision that can solve the challenges of anything including customers’ service problem.
In Ethiopia reports are indicating as there are service delivery improvements in public organizations through the application of different change management tools. As stated in article 50 sub articles 1 and 4 the FDRE constitution (1995), the country has three-tiers of government systems that are federal, regional and local levels of government, and each sphere is separated with its own powers and functions. In charging the regions with the responsibility of providing services and carrying out poverty reduction programs, it is believed that decentralization brings about higher efficiency and better accountability in service delivery. It is also viewed as an effective way of bringing the decision-making process closer to the people, which enable the people to directly participate in their own development (Kumera, 2006).
In similar manner the charter of Addis Ababa (2003) states Addis Ababa City Administration is a self governing city which has three levels of government that are city administration, sub city and woreda administrations. The first city administration level is considered as regional level and the last two the sub city and woreda levels are taken as local levels of government. In this manner Yeka Sub City is one of the ten sub cities of Addis Ababa city administration took the positions of local governance from which basic services for small tax payers are provided for the concerned portion of society in collaboration with other stakeholders through the decentralized manners which is expected to facilitate better service provisions for society. Accordingly, each and every sub city has its own administrative wings and sectors to accomplish the intended objectives as per its necessities.
Despite the government efforts to improve service delivery through decentralized approach, there are still different challenges standing as inhibiting factors to the performance and aggravate customers’ compliance in the sub city. In doing so, sub city activities cannot escape from the influencing factors like service related organizational culture in the processes of service provisions considering culture as how things are done around here as the definition given by Williams, Dobson and Walters (1994) cited in (Wodajo, 2014). These influences are finally related to different aspects of the organization like organizational performances, decision making and the attitude of customers towards the ongoing services. So this study tried to see the effect of organizational culture on leaders’ decision making practices in Yeka Sub City Small Tax Payers’ Branch Office.
1.2. Statement of the problem
Different scholars defined organizational culture differently. For example for Schein (2004) organizational culture is a pattern of basic assumptions invented, discovered and developed by a given group, learns to cope with its problems of external adaptation and internal integration worked well enough to be considered valid and taught to new members as the correct way to perceive, think and feel in relation to those problems. Organizational culture is unique pattern of shared values, norms, attitudes, beliefs, rituals, socialization, expectations, collective programming of the mind and assumptions of the employees and which distinguish the members of one organization from another (Nakamya, 2011). This reveals organizational culture is a commonly shared practice in a particular organization in its daily operations that may affect organizational activities either positively or negatively since it is shared both by employees and the public at large. Hence, the complete knowledge and awareness of OC may help to improve the ability to examine the behavior of organizations which assists to manage and lead the organizational activities.
Empirical studies show different roles of OC on different aspects of the given organization. The study undertaken by Meijen (2008) indicated the significant roles of OC on employee commitment by indicating the role of preferred and existing organizational culture in the study area. Other scholars Shahzad et al (2012), revealed organizational culture has a deep impact on the variety of organizations process, employees and its performance. The result of this research further recommended that managers and leaders of organizations have to develop the strong culture in the organization to improve the overall performance of the employees and organization. This shows the significant roles of OC on organizational performances. As Syauta,Henry &Setiawan, (2012) statedthat clearly shows the negative consequences of non conductive organizational culture on employee performance, job satisfaction and organizational commitment. This shows the significant role of organizational culture in influencing the organizational activities either positively or negatively both in service rendering and productions organizations.
Ethiopia a country under structured reforms for about two decades strives to achieve organizational change by designing different reform packages by introducing different change management tools taking decentralization as one to bring about higher efficiency and better accountability in service delivery. It is also viewed as an effective way of bringing the decision-making process closer to the people, which enable the people to directly participate in their own development (Kumera, 2006).
Beside the efforts of reforms Kumera(2006) revealed that there is still customer dissatisfaction, because of timely decision making problems at all levels of administration levels. Different factors affect the decision making practice, customer dissatisfaction and organizational performance. Among those factors organizational culture plays significant role on different aspects of organizations like customer satisfaction, organizational performance and other aspects of organizations. The study of Wodajo (2014) indicated that organizational culture has strong and positive relationship with customer satisfaction, and he recommended that organizational culture may also affect other aspects of organizations so it is better if researchers study and identify its effect on employee motivation, decision making and employee performance.
However, it seems that less attention for the role of organizational culture in Ethiopia is given and hence organizations do not entertain organizational culture as a determinant factor in the overall activities of the organization. As far as the researcher’s knowledge only Wodajo (2014) has studied “the impact of organizational culture on customer satisfaction”. Ignoring this determinant factor may cost organizations an invisible but great value. This is supported by Cameron & Quinn (1999) cited in Wodajo (2014), which states organizations should give attention for the internal glues like dominant managerial and leadership styles, the language and symbols, the procedure, routines, etc of the organization.
Taking the above basic points, when the researcher read the annual evaluation report of Yeka Sub City Small Tax Payers’ Branch Office (2018), the report identified delay of decision is the major problem of the organization which is affecting the satisfaction of the customers. In the report different causes for the delay of decision were presented like problem of leaders’ commitment, lack of skilled man power and corruption but OC did not get attention. Plus to that as per the researcher’s information despite the existence of studies in connection with factors affecting decision making very little attention has been given to OC. This means that the effect of organizational culture on decision making practices has not yet received adequate research attention in Ethiopia as well as in Addis Ababa. Thus, there is a major research gap in Ethiopia in this area, which has to be covered by this research.
Believing this is a major problem the researcher wanted to study whether this decision making problem is affected by the culture of the organization or not. Therefore the intension of this paper is to investigate the effect of OC on leaders’ decision making practices in public sectors particularly in Yeka Sub City Small Tax Payers’ Branch Office.
1.3. Objective of the study
1.3.1. General objective
The general objective of this study is mainly to examine the effect of organizational culture on leaders’ decision making practices in Yeka Sub City Small Tax Payers’ Branch Office.
1.3.2. Specific objectives
The specific objectives of the study are to:
a. Identify the organizational culture that is currently prevailing in Yeka Sub City Small Tax Payers’ Branch Office
b. Assess the decision making practice of Yeka Sub City Small Tax Payers’ Branch Office
c. Examine the effect of the prevailing organizational culture onleaders’ decision making practice in the study organization.
1.4. Research questions
The basic research questions that the researcher has tried to answer in this research are:
a. What type of organizational culture is currently prevailing in Yeka Sub City Small Tax Payers’ Branch Office?
b. What type of decision making style is more dominantly practiced in the study organization?
c. What is the effect of the prevailing organizational culture on leaders’ decision making practice in the study organization?
1.5. Hypothesis
H1. Organizational culture affects leaders’ decision making practices Yeka Sub City Small Tax Payers’ Branch Office.
1.6. Significance of the study
Organizational culture plays significant roles in provisions of goods and services. Therefore, studying its effects on decision making has meaningful importance as it helps in realizing the extent to which organizational culture influence the efficiency and effectiveness of an organization. Every research should have something to contribute since a lot of time, money and above all human energy is exerted to do it. Therefore, this research is expected to have the following significances.
Higher officials and employees, in general leaders of the organization through the research’s output can get important information concerning the effects of organizational culture on leaders’ decision making. This will inspire them to deal with their weaknesses and strengths in giving attention to organizational culture and improve their understanding of culture management in the organization. The research output can also provide information for customers and other stakeholders of the organization to adjust themselves for better services.
Findings from this research can also assist to the interest of researchers for further investigation of the various aspects of problems which are not fully addressed by this particular study. Accordingly the study is expected to be a bench mark for the upcoming research investigations. Concerned bodies having interest in the sector can also use the research findings as input in their decision making processes.
1.7. Scope of the study
The theoretical aspect of organizational culture goes across several disciplines and it is therefore, a multidisciplinary study. The concept of organizational culture includes broad elements like artifacts, values and assumptions of the concerned organizations. For the purpose of this study, organizational culture is defined as how things are done around the concerned organization in relation to service provisions. As a result, this paper is delimited to investigate the effect of existing organizational culture on leaders’ decision making practices on provisions of services in the Yeka Sub City Small Tax Payers Office. Even though different categories of organizational cultures are developed by different researchers and authors, this study has tried to depend on the dimensions of organizational culture indicated by (Cameron & Quinn, 2011). These authors have identified four types (dimensions) which can be used to analyze the culture of one particular organization. The four dimensions clan culture, adhocracy culture, hierarchical culture and market culture was used in this study. The reason for the selection of these dimensions of organizational culture is the dimensions are more comprehensive and other dimensions can be incorporated under these categories. In similar manner the decision making though there are different styles of decision making, the researcher delimited the study with the Eisenfuhr’s(2011)styles of decision making which are decisive, hierarchic flexible, integrative and catalyst styles of decision making. Among the five styles, catalyst style decision making is more ideal type, therefore the researcher delimited the study with the four practicable decision making styles (decisive, hierarchic, flexible and integrative).These dimensions are more preferable to investigate the organizational culture and decision making practice of Yeka Sub City Small Tax Payers’ Branch Office to analyze the effect of each dimension of organizational culture on leaders’ decision making practices.
The study area is also delimited to Yeka Sub City Administration which is one of the ten sub cities of Addis Ababa City Administration. In Yeka Sub City there are 23 sector offices, the researcher has studied one single sector office which is small tax payers’ office of the sub city. The office has the mandate of collecting tax from small tax payers (grade B and grade A excluding higher tax payers). The researcher selected this single sector since it is difficult to see every sector’s organizational culture and its effect on decision making due to the presence of different constraints.
1.8. Limitations of the study
Multidimensionality and the absence of single definition for organizational culture was the primary limitation to conduct this study. Lack of published data or study conducted on the effects of organizational culture on leaders’ decision making or in general on decision making in our country Ethiopia was also the other limitation. This creates difficulty in developing the research model for the study.
While caring out this research, the researcher was faced constraints of budget, cooperative problem from informants and respondents there was gap of understanding the overall organizational culture their organization and the situation they were working on. The other problem was lack of skill in interpreting the binary logistic regression model. Taking these problems into account the researcher tried to handle the problems in different mechanisms.
To tackle the research gap of developing research model, the researcher tried to develop the model based on the theories of OC by Cameron Quinn (2011) and DM by Eisenfuhr (2011). The budget constraint was solved using differen supports from my home organization. To manage the problems from the respondents and informant the researcher aranged awerenes creation befor they fill the quistionaire and give their interveiw. Finally to fill the gap of skill in binary logistic regression analysis the researcher read different books, watch different vedios fro youtube then passed the challenges and finalised the study.
1.9. Operational Definition of terms
Decision making : choosing among the alternatives to solve a particular problem in the organization is taken as preferable definition for this study.
Effect : in this study effect is the level or extent of influence of the independent variable on the dependent variable
Leaders: for this study leader is defined as all employees who are engaged in decision making therefore leaders in this study are all employees of Yeka Sub City Small Tax Payers’ Branch Office.
Organizational culture : for this study organizational culture is the total sum of all activities practiced in the organization that aims at fulfilling organizational purposes (the way things are done).
1.10. Organization of the study
This research has beenorganized in five chapters. The first chapter has an introductory part which includes background of the study, problem statement, objectives of the research, research questions, hypothesis, scope of the study, significance of the study, and limitation of the research. The second chapter deals the general theoretical framework related to the meaning and importance of organizational culture, leadership and decision making, empirical evidences of different studies, research gap and conceptual frame work. Chapter three provides research methodology and chapter four dealt with data presentation and analysis regarding organizational culture, and decision making. Finally, in the fifth chapter the summery of findings, conclusion and recommendations of the study are presented.
CHAPTER TWO
2. LITERATURE REVIEW
In this section the researcher assesses the related theories, concepts and empirical evidences which are relevant to show the research gap to the main subject of the study. The general concepts of organizational culture, leadership, decision making and the relation of organizational culture to different aspects as well as decision making particularly in public organizations is presented.
2.1. Theoretical review of literatures
2.1.1. Definition and concept of organizational culture
There is no single definition for the term organizational culture since it is a broad concept. Beside that different scholars have placed their views on organizational culture. And they give different definitions for organizational culture in different times and ways in their studies.
The famous scholars like Hofstede (1980), Martin, (2001) and Schein, (1992) cited in Nakamya(2011) asserted as it is difficult to define organizational culture and its concept. The authors clearly agreed on importance of having clarity on what is meant by the term organizational culture, if it is to be analyzed and managed.
Among the several definitions given for this concept perhaps the most commonly known is “the way we do things around here” (Lundy & Cowling, 1996 in (Sun, 2012). And Divan(2012) argued that culture is embedded across entire organizations over time as members develop common beliefs, values and practices which then can be transferred to new recruits. This idea is also advocated by Sun(2012)in which organizational culture is generalized as the “set theory” of important values, rituals, beliefs, and understandings that members share in common and it provides better ways of thinking, feeling and reacting that could help leaders to make decision and arrange activities of organization. Sun(2012), pronounced that a successful organization should have strong cultures that can attract, hold and reward people for performing roles and achieving goals. In this form, strong cultures are usually characterized by dedication and cooperation in the service of common values. So how much does an employee involve for an organization at their best should be recognized clearly in order to be a successful organization in the processes of undertaking the predetermined activities.
To indicate the sound roles of organizational culture in organizational progress, Sun(2012), pointed that, culture can be considered as ‘software’ within an organization and because of this leaders or managers are supposed to study carefully and try to find how does each element of this ‘software’ works on the basis of ‘hardware’ regarding an organization as an operating hardware. This shows as each and every activities of organization could not escape from the influences of organizational culture.
The other definition is the one which is provided by Robins & Sanghi(2007); they defined organizational culture as a system of common values which can be estimated that people describe similar organization culture even with different background at different levels within the organization and set of beliefs, values, and meanings that are shared by members of an organization.
2.1.2. Development of organizational culture
Different agents play a great role to develop organizational culture. Among the other Finnegan (2000) cited in Ojo(2012) indicated that the values and norms which are the basis of organizational culture are formed through four different ways. They are:
- By Leaders of the organization, especially those who have shaped them in the past. People identify with visionary leaders, how they behave and what they expect. They note out how such leaders pay attention to and treat them as role models.
- Because of Critical Incidents or Important events from which lessons are learned about desirable or undesirable behavior.
- By effective working relationship among organizations members. This establishes values and expectations.
- Through the environment of the Organization: Culture is learned over a period of time. Where a culture has developed over long periods of time and has become firmly embedded, it may be difficult to change quickly (ibid).
As it has been discussed above, leaders of an organization, events those have the ability to leave lessons from which desirable and undesirable behavior will be learned. The relationships among the organizational actors and the general working environments have also the ability to develop organizational culture in particular organization. In this form organizational culture can be developed.
2.1.3. Dimensions of organizational culture
Organizational culture can be examined by its different dimensions. Taking this in to account different scholars identified different types of dimensions of organizational culture based on their studies.
Shahzad et al(2012), indicated that organizational culture can be weak and strong. Accordingly, strong culture is believed to be available where the greater part of employees embraced the same sort of beliefs and values as concern to the organization and weak organizational culture could be one that is loosely joined. In the case of weak organizational culture rules are imposed strictly on the employees that may create diversity between the person’s, personal objectives and organizational goals.
In the other ways Delobbe, Haccon& Vandenberghe(2002) and Robbins (2006) have identified seven dimensions which in aggregate capture the essence of organizational culture that could be used to compare culture across organizations. The seven dimensions of organizational culture are:
- Innovation and Risk taking: this dimension characterizes the degree to which employees are encouraged to be innovative and take risks while performing their duties.
- Attention to detail: here the degrees to which employees are expected to exhibit precision, analysis, and attention to detail or task. It means that paying attention to being precise or careful.
- Outcome Orientation: is the degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve the outcomes.
- People Orientation: it is the degree to which management decisions take into consideration and the effect of outcomes on people within the organization. It is degree of value and respect for people.
- Team Orientation: the degree to which work activities are organized around teams rather than individuals based.
- Aggressiveness: is the degree to which the people are aggressive and competitive regarding their work rather than easy going.
- Stability: the degree to which organizational activities emphasize maintaining the status quo in contrast to growth or the organizational openness to change.(ibid)
Cameron& Quinn(2011: 37- 44), categorized organizational culture into four: that are Clan or (collaborate) culture, hierarchy (control) culture, adhocracy (create) culture and market culture. These four categories describe the extent to which an organization is either internally or externally focused on customer satisfaction. The four dimensions are presented in detail as follows:
The Clan culture/collaborate: it is with the motto of” do things together”. It Exists in an organization where there is a very pleasant place to work in which people share a lot of personal information, much like an extended family. The leaders or heads of the organization are seen as mentors and perhaps even parent figures. The organization is held together by loyalty or tradition. In this case, commitment is high. The organization emphasizes the long term benefit of human resources development and attaches great importance to cohesion and morale. Success is defined in terms of sensitivity to customers and concern for people. The organization places a premium on teamwork, participation, and consensus. In an organization with this type of organization culture, leaders are facilitator, mentor and team builder. And the value drivers in such kind of culture are commitment, communication and development. In organization with this king of culture quality strategy is empowerment, team building, employee involvement, human resource development, open communication.
The Adhocracy/create Culture: is an organizational culture where a work place is dynamic, entrepreneurial and creative that means do things first. In such organizational culture, leaders are considered innovators and risk takers. The glue that holds the organization together is commitment to experimentation and innovation. The organization’s long term emphasis is on growth and acquiring new resources. Success means gaining unique and new products or services. Being a product or service leader is important. The organization encourages individual initiative and freedom. The quality strategy is, creating new standards, anticipating needs, continuous improvement, finding creative solutions.
The Market Culture/ compete: Organizations with this culture is result oriented whose major concern is getting the job done. It is with the intensions of doing things fast. In such organization people are competitive and they are goal oriented. Quality Strategies of organization is measuring customer preferences, improving productivity, creating external partnerships, enhancing competitiveness, involving customers and suppliers.
Leaders of organizations with this culture are hard drivers, producers, and competitors. They are tough and demanding. The glue that holds the organization together is an emphasis on winning. Reputation and success are common concerns. The long-term focus is on competitive actions and achievement of measurable goals and targets. Success is defined in terms of market share and penetration.
The Hierarchy/ Control Culture: organizations with such type of culture are very formalized and structured place to work. Procedures govern what people do. Organization with this kind of culture deals with doing things right which implies efficient utilizations of resources and achieving the right outputs. The leaders pride themselves on being good coordinators and organizers who are efficiency minded. Maintaining a smoothly running organization is most critical.
Formal rules and policies hold the organization together. The long-term concern is stability and performance with efficient and smooth operations. Success is defined in terms of dependable delivery, smooth scheduling and low cost. The management of employees is concerned with secure employment and predictability. Efficiency, punctuality, consistency and uniformity are the value driven in organization with such kinds of culture. Error detection, measurement, process control, systematic problem solving and quality tools are quality strategies in such kinds of organizations.(ibid)
The identification of organizational cultures into different categories and dimension is not sufficient to attempt to understand and measure the culture of the organization. However, it is also very important to measure the impact that the culture has on the everyday operations and workings of the organization, that is, how the organization organizes itself, its relations with customers (internal and external) and how the organization treats staff, those should be key aspects when building a successful culture(Sun, 2012).
As it is indicated in the above paragraphs the studies made on organizational culture have identified different dimensions and types of organizational culture. These types and dimensions have the ability to explain the prevailing culture of one organization and influence the other aspects of organizational elements.
2.1.4. Levels of organizational culture
Organizational culture exists at different levels, which differ in terms of visibility and resistance to change. When it comes to changing the culture of the organization, it becomes difficult to determine which the more, and which are the less important elements that help shape an organization’s culture (Schein, 2004).
According to Schein(2004), there are three major levels to be considered to analyze organizational culture. These are presented as follows.
i. Basic assumptions , namely the fundamental dynamics of how the organization and its members relate to the environment, time, space, reality ,and to each other which often fall below the level of consciousness and tend to dictate and motivate the behavior.
ii. Values and beliefs, reflect what members believe "ought to be" the work of the organization in the form of easily articulated ideologies, attitudes, and philosophies. It represents collective beliefs, assumptions and feelings about what things are good, normal, rational, and valuable.
iii. Cultural artifacts: Is the most visible layer of culture within the organization and include the languages used, stories told, ceremonies performed, rewards given, symbols displayed, heroes remembered, and history recalled. It also includes the organizational processes by which behavior is made routine and structural elements such as charters, formal descriptions of how the organization works, and organization charts. Any challenge of these assumptions will result in anxiety and defensiveness.
The levels of organizational culture indicated above encompass the overall images of an organization. Organization can also produce multiple cultures or subcultures that overlap to create intergroup harmony, conflict, or indifference(Martin, 2004). In connection with this Schein (2004), argues that each organization, at minimum, contains three subcultures among front-line personnel executing tasks; the subset focused on process design, innovation, and improvement; and executive personnel responsible for organizational survival and long life effectiveness. This clearly indicated as one can describe a particular organization in terms of its culture and subcultures.
2.1.5. The concept of decision making
Organizations are making decisions constantly at every level by their leaders and managers. The concept of decision making is difficult and sensitive to study, this is because of its complex nature, when we impose certain things have reached an agreement on the subject, or issue we have resolved. Different scholars give different definitions to decision making. Eisenfuhr (2011) defined decision making as a fundamental and routine management activity happens at all levels in any organization. A decision should be made in order to execute activities and to achieve goals.It is a dynamic process, not the end. Decision making process, in particular, involves choosing a path from among two or more existing methods. The decision means the conscious choice, which allows individuals, according to a given set of conditions, their behavior and their own thinking, and then set an option, accepted, and then be carried out (Hui & Miksel, 2009). Other scholars like Rezaiian(2000) defined decision as analysis methods available, and choosing a way to achieve goals. Drucker(1967), explained as decision making is not just about the selection of the right or choice or compromise; it should be converted into practice. Unless decisions are converted into practice it is not decision. As Blanchard(1986), revealed decision is the selection reflects a particular approach to solve a particular problem or issue.
Management theorists agree that decision making is one of the most important functions of organizations in all management activities (Drucker, 2010). It is important to note, however, that not only managers make decisions in organizations, but also employees at every level in an organization participate in and practice decision making as well. Now a day many decisions in organizations are made by its members of individuals, groups, teams, or committees (Bonito, 2012). Decision making is not the task of somebody but it is the task of all employees of the organization though there is difference in its level or load.
Inability to make a quality decision may affect every aspect of the organization and its relationship with others. However in the decision making process there are several factors that could influence the decision. Individual and organizational are the two natural factors that influence the decision making process. Berardi & Blackmore (2006) argue that there are at least seven factors, which can influence decisions. They are decision makers; Individual or persons who make the decision, decision situation; the environment or condition in which the decision is made, thinking in terms of a problem or an opportunity, decision criteria (single or multi-criteria), time and people affected by the decision as well as decision support theories, models, tools, strategy and techniques. Decision maker, which covered their personality characteristic and individual differences, such as gender and age differences, past experience, cognitive biases and belief in personal relevance, could also be an influencing factor for decision-making (Stanovich & West, 2008). The studies clearly indicate as there are different factors that affect a leaders decision making it may be personal or environmental, natural or artificial. These factors can be revealed on different dimensions, styles and processes of decision making which are discussed below.
2.1.5.1. Dimensions of decision making
Scope of decision making is very wide and the process sometimes severely complex and individual styles vary considerably. Decision making is such a fundamental part of human existence and growth; however many of we humans may not give enough thought to our approach for decision making does my decision making need any fine-tuning or am I happy with it as it is. In order to internalize our own style of decision making it is needed to consider what the major dimensions of decision making and where do we stand on each of the dimensions. Decision making can be examined based on different dimensions. Accordingly different scholars identified different dimensions of decision making in their studies.
Various views and theories of decision-making may be found in the literature. The following list of views, supporting theories and models is based upon categorizations provided by (Das & Teng, 1999). Their list is, by itself, a meta-classification. The last two items mentioned in the list below, namely naturalistic decision-making and the multiple perspectives approach, are relatively new and did not appear in the mentioned categorizations.
I. Rational model: The rational manager view assumes a rational and completely informed decision-maker (“economic man”) as described by neoclassical microeconomic theory around the middle of the previous century. The process of rational decision-making comprises a number of steps, Intelligence: (finding occasions for making a decision), Design (inventing, developing and analyzing possible courses of action), Choice (selecting a particular course of action from those available) and Review (assessing past choices) (Simon, 1979)
In classical or perfect rationality, methods of decision analysis are used to attach numerical values or utilities to each of the alternatives during the “choice” phase. The alternative with the highest utility or maximum subjective expected utility is selected. When using the rational model in this fashion, it is assumed that manager: clear of all possible alternatives; predict the consequences of implementing each alternative; have a well organized set of preferences for these consequences; and have the computational ability to compare consequences and to determine the preferred one.
II. Model of bounded rationality: The “satisficing,” process-oriented view is based primarily on the work of Simon (1979), bounded rationality, admitting that the rational manager does not always have complete information, and that optimal choices cannot be always required. According to Simon (as quoted by Chase, Hertwig & Gigerenzer, 1998), “human rational behavior is shaped by a scissors whose two blades are the structure of task environments and the computational capabilities of the actor.” These scissors cut the problem space into a much smaller area that is feasible to search. Bounded rationality is characterized by the activities of searching and satisfying.
Alternatives are searched for and evaluated sequentially. If an alternative satisfies certain implicitly or explicitly stated minimum criteria, it is said to “satisfice” and the search is terminated. The process of searching might be made easier by the identification of regularities in the task environment. Although Simon has been highly acclaimed for the theory of bounded rationality, it still describes (albeit constrained) rational behavior. For this reason, a number of researchers, such as (Das & Teng, 1999), do not distinguish between perfect and bounded rationality in their classification of decision-making models.
III. Incremental view: The logical incremental view involves a step-by-step process of incremental actions and keeps the strategy open to adjustment. Under Lindblom’s (1959) cited in Haris (2012) disjointed incrementalism marginal, feasible changes are made, working from the status quo to solve prevailing problems rather than towards goals.
IV. Organizational procedures view: The organizational procedures view seeks to understand decisions as the output of standard Operating procedures invoked by organizational subunits. It is programmed model existing procedures as well as the reutilized thinking of the people involved. Das and Teng (1999) refer to it as the “avoidance mode” which views decision-making as a systematic process aimed at maintaining the status quo at the cost of innovation.
V. The political view: The political view sees decision-making as a personalized bargaining process, driven by the agendas of participants rather than rational processes. People differ on the organization’s goals, values and the relevance of information. The decision-making process never ends, but remains a continuous battle between different coalitions. After one group wins a round of the battle, other parties might regroup or become even more determined to win the next round. Influence and power is wielded in a deliberate manner and to further self-interest. The goals of the coalitions are defined by self-interest rather than by what is good for the organization as a whole.
VI. The garbage can model: The garbage can view describes decision-making in an “organized anarchy” and is based on the work of (Cohen, March & Olsen, 1998). Like the political view, it assumes a pluralist environment with multiple actors, goals and views. The garbage can model emphasizes the fragmentedness and chaotic nature of decision-making in organizations, rather than the deliberate manipulations implied by the political view. In the garbage can model, “a decision is an outcome or interpretation of several relatively independent streams in an organization”. The streams of problems (looking for solutions and opportunities to be aired), of solutions (looking for issues to which they might provide an answer), and of participants (whose attention is divided and who come and go) meet each other at a choice opportunity, symbolized as a garbage can. When a decision is made, the garbage can is removed. This might happen without having solved all or some of the associated problems in the garbage can. Since participants are the ones generating the garbage, or problems and solutions, the decision made is totally dependent on the make-up of the team of participants in the can.
VII. Individual difference perspective: The individual differences perspective focuses the attention on the problem solving behavior of the individual manager, as influenced by the leaders’ decision-making style, background and personality. It tries to explain how managers might use different methods or come to different conclusions because of differing personalities.
VIII. Naturalistic decision making: Naturalistic decision-making is concerned with investigating and understanding decision making in its natural context. The empirical foundation of naturalistic decision making differentiates it from other descriptive models, such as the organizational procedures, garbage can or political views. A recent contribution to the field of naturalistic decision making is that of Klein (1998) Recognition-Primed Decision (RPD) model. Klein observed and/or analyzed over 600 decisions made by people in life-or-death situations, such as firemen, nurses and soldiers. Central to the RPD model is the decision-makers ability to recognize a situation as being similar to that of a previous experience. Part of what is recognized are the appropriate goals associated with such a situation, as well as important cues and what to expect.
Decision-makers also recognize a course of action that is likely to succeed. The course of action is evaluated by means of a mental simulation, where the decision-maker visualizes how the action is implemented. The script is revised until the decision-maker is comfortable with it, after which it is implemented. All this can happen in a course of a few seconds. If a situation is not recognized as typical, more energy needs to be spent to diagnose the situation, and additional information will be collected. According to Klein, one of the key factors leading to good decisions is experience. The RPD model supports the idea that experience will increase the person’s ability to recognize a situation.
IX. The multiple perspectives approach: Scholars proposed the multiple perspectives approach to decision-making as an attempt to “sweep in” all possible perspectives on a problem. It is based on Churchman’s, (1971) concept of unbounded systems thinking, which assumes that any problem is a member of any other problem. The multiple perspectives view classifies perspectives as either being technical, organizational or individual in nature. Analytical models that collect data as a basis of understanding the system would all fall under the technical perspective. Different analysts or modeling projects will come up with different technical views, even if these projects claim to present an objective or rational picture of the situation. Thus, it is encouraged that more than one technical view of a system is obtained. In order to cover the organizational and individual perspectives, as many as possible of the role-players’ and stakeholders should be investigated. Data collection is also to follow the “sweeping in” approach, and especially the organizational and technical perspectives data need to be gained in multiple modes and from as many sources as possible. Apart from the technical, organizational and individual views, Mitroff and Linstone (1993) advise that ethical and aesthetical perspectives should also be kept in mind. Even if a decision makes sense from a technical perspective, or if a particular group of organizations endorses it, the decision might not be ethical.
The other scholar Gladwell(2007) indicated five important dimensions of decision making which are explained as follows.
I. Motivating and Influencing factors : There are always external factors such as the environment in which decisions are made, that motivate us in making instantaneous or even irrational decisions. Certain color schemes, sounds, imagery and smells make us to feel comfortable; we tend to lower our guard, are more willing to listen and are more agreeable. Different retailers understand this all too well and design spaces accordingly. Different internal factors are there, that depend on our personality traits such as being an extrovert or introvert, risk takers or a hyper vigilant person. To understand the dimensions we need to examine what factors motivate and influence us.
II. Thinking and Analyzing : “Do you blink or analyze the situation to death?” According to (Gladwell, 2007), great decision makers aren’t those who process the most information or spend the most time deliberating, but those who quickly identify the critical few factors from the huge pile of information and data. On the other hand there is no shortage of scientists and great inventors who believe in thinking and analyzing which is the best way of decision making. It is important to understand our propensity during decision making weather we are more inclined to over analyze or to make a rash decision.
III. Adapting and Changing : As Gladwell, (2007) stated sometimes decisions may be unalterable whereas most of the decisions are possible to adapt, adjust or even change at a certain cost. Once a decision is made, sticking to the given alternative is the best way but it doesn’t mean that a bad choice is best, we have to suffer indefinitely. In some cases cutting losses and moving on may be the best choice. At which point we adapt or change depends on our styles of decision making and the situation.
IV. Bias and Preference : Based on our life experiences and value system, knowingly or unknowingly we may be making or favoring certain choices. There is an intention to selectively collect information and data supporting our initial biased hypothesis. No one is free of biases; however if we are aware of this, we can consciously guard against these biases.
V. Opinions and Support : Decision making also often ranges from making your own choices to consulting experts and/or trusted people. Sometimes people tend to be more independent and others prefer to get as many opinions as they can to help them in making the final choice. Some experts and coaches are available for almost any decision making situations we can imagine. As like the above four dimensions, we need to be aware of our tendencies and make a decision that is finally yours, even if others helped you in making it (Gladwell, 2007)
Where exactly we find ourselves on each of these dimensions for decision making it will depend on our inherent style as well as the specific situation and existing circumstances like our levels of stress, recent experiences and general environment around us. The most significant aspect is that we need to understand our style and if we are not happy with the outcome of our decisions, adjust it for the better. However, changing our decision making style on any of the dimensions, will need the same or more effort as changing any other deep-rooted habit (ibid).
2.1.5.2. Styles of decision making
Different leaders practice different styles of decision making in different organizations and situations in the same or different organizations. The term decision style is the way a person uses information to formulate a decision (Rowe & Mason, (1987). Decision style is still a cognitive process that includes one’s personality in relation to one’s needs, values, and self-concept. Harren, (1979) stated that decision making style reflects an individual characteristic for perceiving and responding to a decision making process. The style of decision making for any leader or in any organization depends on learning process and experience. Driver et al, (1998) explained that the differences among individuals when making a decision depend on two factors: information use and the focus that the number of solutions considered. Rowe & Mason, (1987) explained that decision style framework is defined by three key factors: 1) the way one thinks about a problem, 2) the way one communicates to others, and 3) the way one expects others’ behavior to affect his/her performance. The operational definition for decision making style is a habitual pattern or preferred way of doing things that is consistent over time and across activities (Sternberg & Li-fang, 2011).
Various scholars identified different styles of decision making in organizations. For example Rowe and Boulgarides(1992) identified four styles of decision making that can be practiced by leaders in different situations. The four styles of decision making are directive, analytical, conceptual and behavioral decision making which are discussed as follows.
a. Directive style decision-making: A directive decision-maker typically works out the pros and cons of a situation based on what they already know. Directive decision-makers are very rational and have a low tolerance for ambiguity. Their decisions are rooted in their own knowledge, experience, and rationale, rather than going to others for more information. The upside to this style is decision-making is quick, ownership is clear, and it doesn’t require extra communication. However, directive decisions can sometimes be made impulsively, without all the necessary information.
b. Analytic style decision-making: Analytic decision-makers examine much information before taking action. For example, analytic leaders rely on direct observation, data, and facts to support their decisions. However, unlike directive decision-makers, an analytic decision-maker will seek information and advice from others to confirm or deny their own knowledge. These decision-makers have a high tolerance for ambiguity and are very adaptable, but they like to control most aspects of the decision process. This style is a well-rounded approach to decision-making but can be time-consuming.
c. Conceptual decision-making style : The conceptual decision-making style takes a more social approach compared to the directive or analytic methods. Conceptual decision-makers encourage creative thinking and collaboration and consider a broad array of perspectives. These decision-makers are achievement-oriented and like to think far into the future when making important decisions.
d. Behavioral decision making style: Behavioral decision-makers try to make sure everyone works well together. Like the conceptual style, behavioral decision-making is group-oriented; however, rather than brainstorming potential solutions, the group is given the options available to them. From there, the group discusses the pros and cons of each choice. This style of decision-making considers many different outlooks and opinions in the process.
According to Eisenfuhr (2011: 291-297), there are five decision making styles, namely: decisive, hierarchic, flexible, integrative and catalyst styles of decision making and the details are presented as follows.
a) The decisive style decision making: Decisive style decision making follower leaders use minimum amount of information to decide on problems at hand. The main concern of their decision is forwarding rapid solutions for the problems at hand with short period of time and focus on efficiency and consistency of their relationship.
b) The hierarchic style decision making : Hierarchic decision maker is leaning heavily towards a structured process of decision making. Thorough analysis and quality of outcome focus on hierarchical relationships and mutual trust. The rules and regulations of the organization took the upper hand in analyzing the information and deciding to solve the problems.
c) The flexible style decision making : Decision makers having flexible style shifts the power of decision making slightly towards various stakeholder groups. They are broadminded invite and encourage group members to contribute to their decision making process and they are open to consider diverse angles and solutions of problems at hand. Focus on adaptability and several meaning and implications.
d) The integrative style decision making : Decision makers with integrative style decision making are risk takers, have their very own, powerful vision, decided in full freedom and they are quite apt at convincing their team members to join them. This type decision makers or leaders can make people believe in their “bigger & brighter” vision of the future and practically motivate them to work towards turning it in to reality. Creativity and exploration are highly important, the use of several ways to solve problems; focus on team work and co-operation and trust. The limitation of this style of decision making is it may ignore the greater interest of the organization.
e) The Catalyst style of decision making : This style of decision making is ideal style. Though they believe in the broader vision of the future and are known for responding promptly to call for action their decisions to act are firmly grounded in appropriate analysis of information. They gather information from abroad selection of stakeholders across the organization and decisions are arrived at by following a well defined set of steps. Encourage their team members, handle almost all types of decision making situations fairly well and limit the impact of biases to the maximum.
2.1.5.3. Decision making process
Decision-making begins with presence of problems or issues that must be solved in order to achieve the goals of organization. Identification and understanding of a problem considered as the basis for determining the next steps to be taken in decision making process. The theory of decision making process is mostly base on a “traditional” model from Mintzberg. Mitzberg et al (1976) defined a decision making process as the set of actions beginning with the identification of a stimulus for action and ending with the specific commitment to action. As he elaborated, there are three important steps of the decision making process formulated: the problem identification, development of alternative solution, and selection of the best alternative. Baker et al. (2001) divided decision-making process into eight series of steps. The first step is defining the problem, the second, determining the requirements that the solution to the problem must meet. Followed by establishing goals that solving the problem should accomplish, then identifying alternatives that will solve the problem, develop valuation criteria based on the goals, select decision-making tools, apply the tool to select a preferred alternative and check the answer to make sure it solves the problem. However as Masch (2004), the core of “natural” process of decision-making can be specified in four steps: problem identification (recognition), searching and gathering of information, selection and evaluation of alternatives, execution (implementation) the decision and evaluating the result.
During the process of decision-making, starting from identification of the problem to a decision execution, there are many factors that could influence a decision. They could be the personality of decision maker, the state of organization, internal and external situation in organization as well as availability of information. These entire factors can be classified as individual and organizational factors and as controllable and uncontrollable conditions (Ozer, 2005). Understanding how important these factors which influence decision making process can be the best “strategy” to improve timely, reliable, accuracy, effectively and accountability of the decisions, which will be done.
Considering to the above statements the decision must have been some process (Soltani, 2000). The decision making process includes the following eight stages.
I. Create a productive purpose, without any ambiguity that it can return to the evaluation, and then define the problem. Typical examples include: Maximizing profits, minimizing costs or maximizing service quality.
II. The express purpose of returns, the amount and terms of funding, the collection of appropriate data, it can be done.
III. Select the set of possible substitutes for consideration. At this point, the only alternative strategies, which have the recognition, consider, and therefore assume that all successors are known.
IV. Determine and establish a pattern used to indicate strategies based on yield goal, and specifying values (measuring devices), the parameters of the process.
V. Rate of return targets
VI. Defining strategy for the purposes of efficiency, there in Step 1 gives the best value, or it will be the optimum. The selection procedure for admission
VII. Implement selected strategies
VIII. Control strategies for success.
Decision can be different in type and level. For example according to (Pownall, 2012) there are three types of decision makings which are strategic decision making, tactical decision making and operational decision making. Strategic decision making is mostly concerned with the appropriate use of resources for the intended goal of a given organization, while tactical decision making is the action which follow the strategic decision placed and the operational decision making is the day to day short term and responsive actions.
2.1.6. Definition and concept of leadership
As the concept of group work has become increasingly important in organizational life, and leadership, as the ability to lead and to exert interpersonal influence, has become a particularly critical requirement for creating an environment where individuals and teams have the capacity and opportunity to succeed. The term leadership has different meanings. People, particularly scholars define leadership in accordance with their perspectives to the context that give meaning to them. For example Ricketts (2011)defined leadership as the ability of person to move the organizations towards the accomplishment of the intended objectives of the given organization using any style of his/her own. Leadership is the ability to move or influence followers towards the achievement of organizational, group or individual objective (Ricketts, 2011). Yukl, (2013) Also defined leadership as a process of influencing others to understand, agree and follow the needs to be achieved and the ways of achieving and facilitating efforts to accomplish the common goals.
From the above definitions we can understand that leadership has no single definition rather it is open to all to define it based on the contexts of the situation. Besides this logic according to most researchers leadership can be defined as the influence, motivation of others to the achievement of the goal that the leader, manager wants to achieve at any level weather formally or informally (Ricketts, 2011). Therefore leadership is the influence and motivation of others to achieve the intended goal of a given organization through decision making.
2.1.7. Organizational culture and decision making
Different theories and researches show that in management organizational culture has an effect in the technique and effective management methods. Hence managers must have full attention to Organizational culture, the formulation of goals and strategies, individual behavior and organizational performance, motivation and job attitudes, creativity and innovation, how to decide on the level of employee involvement, level of dedication, commitment, discipline, hard work, anxiety, and such it affects (Akbari & Darabi, 2014). Here, the impact of organizational culture on the role of management including the role of decision-making in the basis and essence of management is significant because the environment is changing permanently. The organization should continue to exist, continue to coincide with changes in the environment. Therefore the organization is engaged in a continuous effort more and better environmental conditions and to coordinate its environment, and the need to make timely decisions, and good managers (Hamdi,2010 cited in (Akbari & Darabi, 2014)).
2.2. Review of empirical literature
This part presents the works of different people in connections with the impacts of organizational culture on other elements of organizations. As it is evidenced from different literatures there were many researches and studies on the field of organizational culture in different parts of the world under different circumstances in connection with organizational culture and its influences on the different aspects of organizational elements even though scarcity of literatures are reflected on the areas of cultural influences on leaders’ decision making up to the knowledge of the researcher the following are some evidences.
According to Shahzad et al (2012), his study in the field of impact of organizational culture on organizational performance and found that organizational culture has a deep impact on the variety of organizations process, employees and its performance. This research also shows that if employee are committed and having the same norms and value as per organizations have, it can increase the performance toward achieving the overall organization goals. The result of this research further recommended that managers and leaders of organizations have to develop the strong culture in the organization to improve the overall performance of the employees and organization. This shows the significant roles of organizational culture on organizational performances. Whenever organizational performances are influenced it is clear that the customers’ satisfactions about the goods and services of organization are also influenced either positively or negatively.
The other study is undertaken by Meijen(2008) the study investigates the influence of organizational culture on organizational commitment by taking the selected municipality of South Africa. This research also indicated the significant roles of organizational culture on employee commitment by indicating the role of preferred and existing organizational culture in the study area which directly affects the service delivery of the selectedmunicipality.
Organizational culture is a major determinant of an employee’s efficiency and effectiveness in carrying out their jobs. That is, organizational culture is one of the major key determinants of how employees perform or behaves in their job (Ojo, 2012).
Additionally Sun (2012)stated organizational culture can have an influence on: employee motivation; employee morale and ‘good will’; productivity and efficiency; the quality of work; innovation and creativity and the attitude of employees in the workplace. Organizational culture has positive and significant impact on job performance and work motivation as Sipahatar et al (2016) stated in his study in defense industry west java province of Indonesia.
The study of Uddin et al(2013) also affirmed this idea. They have studied the impact of organizational culture on employee performance and productivity by undertaking a case study of telecommunication sector in Bangladesh. The result of this study also indicated the sound role of organizational culture on employee performances and productivities. It also indicated that organizational culture significantly influences employee performance and productivity in the dynamic emerging context. The findings of this paper significantly demonstrate both positive and negative mannerism of organizational culture which has significant consequences on employees as well as organizational performance. It also asserted that organizational culture is an open system approach and it has interdependent and interactive association with organizations performance.
Likewise Essay UK(2013) stated organizational culture influences the decision process significantly and assured that the top managers are more often in the situation to collaborate with other culture. In addition Chegini(2010), undertook the study by relating organizational culture and staff productivity of public organizations and concluded as the meaningful relation exists between organization’s culture and organizational productivity. Wodajo(2014) has studied the impact of organizational culture on customer satisfaction in Ethiopia and conclude that organizational culture has great impact on customer satisfaction
2.3. Research gap
As we have seen in the above literatures different scholars conduct several researches on the areas of organizational culture in different aspects like employee commitment, customer satisfaction, and organizational performance taking different dimensions of organizational culture. Most of them conducted their researches in the area of organizational culture in aspects like employ commitment, organizational performance, employ performance and other aspects, and they are conducted abroad Ethiopia. Akbari & Darabi (2014) had studied the impact of organizational culture on managers decision making patterns what makes different this study is identifying the effect of organizational culture on leaders’ decision making. It is clear that managers are positioned person while leaders are all employees who play his/her role in the organization and the research is focused on Hofsted’s dimensions of organizational culture and it is done abroad. Up to the researchers information Wodajo (2014) had conducted the research entitled the impact of organizational culture on customer satisfaction in Ethiopia. Though he studied organizational culture he did not cover its effect on leaders’ decision making and he left to further study. So conducting the research as titled above can fill the gap.
2.4. Conceptual framework
Abbildung in dieser Leseprobe nicht enthalten
Figure 2.1 Conceptual framework
Sources: Researcher’s own construction from (Cameron & Quinn,2011), (Eisenfuhr, 2011)
The above figure presents a summary diagram of the proposed causal model for the prediction of decision making from the concept of organizational culture. It indicates the relationship between and the effects of the variables under study that is organizational culture and leaders’ decision making. Organizational culture includes basic elements like artifacts which are the visible portions of organizational culture, Values and basic underlying assumptions broadly. In this case organizational culture is to be investigated in terms of its four dimensions. These dimensions are repetitively mentioned in different literatures. This is the evidence from the work of Cameron & Quinn, (2011).
The researcher in this particular paper also believed that the other aspects and types of organizational culture would be represented by these dimensions since it is comprehensive and indicates the internal work processes of organizations. These dimensions in aggregate also have the capacity to capture the essence of organizational culture. The assumption behind organizational culture and leaders’ decision making is that if organizational culture is favorable, the organizational environment becomes conducive and it can make the employees to perform their best and decide timely using the available resources that may in turn create conducive environment to provide qualified services for the target customers which leads the organization to perform better to achieve the organizational goal.
CHAPTER THREE
3. RESEARCH METHODOLOGY
This section deals with the methodology that the researcher has tried to apply to finalize the overall research. It includes description of study area, research design, variables of the study, data type and source, population and sample size of the study, techniques used in sample selections, method data collection technique, data controlling mechanism and methods of data analysis.
3.1. Description of the study area
Addis Ababa City Administration has 10 sub cities; Yeka Sub City is one of them which is located in the north eastern Addis Ababa. The sub city borders with Oromiya regional state on the north and north east, Arada sub city on north east, Gulele and Kirkose sub cities in the west, Bole sub city in the south east. The area of sub city is 85.46 kilometer square with total population of about 500,000 and density of 3950.1(i.e. total population per square kilometer of land). The sub city comprises 14 distinct (woreda) Administrations and 24 sub city sector offices. Yeka Sub City Small Tax Payers’ Branch Office is one of the 12 branch offices of Addis Ababa Revenue Authority organized to hold the responsibility of collecting taxes from small tax payers (grade B and grade A excluding higher tax payers) of the sub city. The sub city Small tax payers’ branch office has around 28,000 customers and collects around 1,000,000,000 (one billion birr) per year and we can say this organization is the blood vessel of the sub city so studding this organization is very important. Therefore studying problems in such organizations is meaningful and contributes more in the day to day activities of an organization.
This figure was deleted by the editors due to copyright issues.
Figure3. 1 Study area map, Source: Yeka Sub City Atlas (2017)
3.2. Research design
In this study the researcher employed mixed approach since it involves both qualitative and quantitative aspects. The research type that has been employed in this study is both descriptive and explanatory. It is a descriptive research because the items used for this study are described by computing their frequency and mean. Descriptive research design was used since it enables the researcher to collect as much response options as possible from the organization under investigation. Therefore, descriptive research design particularly survey method was used with the support of qualitative study since it has the ability of describing the existing situation as it is. Survey method was chosen as an overall approach for its ability to incorporate different methods and techniques in the collection and analysis of data that focuses on the various issues of the study. The design has also the ability to gather data at a particular point in time with the intention of describing the nature of existing conditions.
Moreover, explanatory research design was also used. Since the researcher had explained the relationship between organizational culture and decision making and how those dimensions can affect leaders decision making. It has also the ability to clarify why and how of the relationship between two or more aspects of a situation or phenomenon.
3.3. Variables of the study
This study has two variables one dependent variable and one independent variable
3.3.1. Dependent variable
The dependent variable of this study was decision making practice targeting the improvement in decision making implies the overall improvement in the organization. Decision making practice has been studied based on the four selected decision styles (decisive, hierarchic, flexible and integrative).
3.3.2. Independent variable
The independent variable of the study was organizational culture of the study organization. Organizational culture based on the four culture types (clan culture, adhocracy culture, market culture and hierarchy culture) and with the measuring six dimensions (dominant characteristics, organizational leadership, management of employees, organizational glue, strategic emphases and criteria of success) as presented by(Cameron& Quinn, 2011)
3.4. Data types and sources
To accomplish this study, the researcher was relied on both primary and secondary sources of data. Accordingly, all the necessary primary data was collected through questionnaire and interview while secondary data was collected through document review. Questionnaire was administered for all levels selected leaders of the study organization and interview was used to investigate the ongoing activities in the study organization in connection with the subject of the study. Document review was also administered in the organization.
3.5. Population, sampling procedure and sample size
3.5.1. Population
Population is a characteristic of a specific group from which samples are taken to be observed or studied(Cohen, Manion & Morrison, 2007). The population of this study was all employees of Yeka Sub City Small Tax Payers Office. As all employees are leaders and passes his/her decision on the tasks. Therefore as per the information from human resource department of Small Tax Payers’ Branch Office of Yeka Sub City, the employees available in the organization were 302 employees. So the total population undertaken to conduct this research was 302.
3.5.2. Sampling procedure and sample size
In conducting researches determining an efficient sample size has great significance. This is because too small samples may lead to inaccurate results; while samples that are too large may waste time and resources as well the size of samples is determined by the type of research design (Cohen et al, 2007).
In this study mainly simple probability sampling techniques particularly lottery method was used to select the samples to administer the questioner and purposive sampling to select the samples of interview to study the effect of organizational culture on leaders’ decision making since it is difficult to manage all population at the same time for the researcher .The researcher used simple probability sampling technique since it has the ability of giving equal and known chances of belongingness into the sample and by so doing sampling bias is either minimized or eliminated, and purposive non probability sampling enables the researcher to get more detail information about the study.
The target population of the study consists of all employees of the study organization. The total population of the organization consists of 302 (three hundred two). In this form using the formula of Yamane (1967) the sample which is representative is as the total population is 302at 95% confidence interval the sample was (302/1+302 * 0.0025) which is equal to 172. 172 samples were randomly selected from leaders’ (employees) of the target population. In addition to the probability sample the researcher employed non probability sampling which is purposive sampling to administer the interview 8 most experienced leaders in the study organization was selected purposely to strengthen the data collected by the questionnaires. In addition relevant documents were observed to address the practices beyond the questionnaire and interview.
3.6. Method data collection
The researcher used mixed type of data collection techniques since a single technique is considered to be insufficient for the study. Therefore, the researcher designed to use both quantitative and qualitative data collection techniques. Accordingly, to obtain sufficient information from the selected sources, data was collected through questionnaires. In line with this, close ended questionnaires were designed and distributed to concerned study units. To identify the prevailing culture of the organization the researcher used Cameron & Quinn (2011), of OCAI (organizational culture assessment instruments) and to asses the decision making practice quistionnaires were developed based on the selected four decision styles of Eisenfuhr (2011) for each level of leaders in English as the study units are capable of understanding the language. Moreover, document observation and face to face interview with more experienced leaders were made to strengthen the data collected by questioner. Finally the effect of organizational culture on leaders’ decision making practice was examined by comparing and analyzing the first two basic questionnaires. The validity and reliability of instruments have passed through tests.
3.7. Data quality control
3.7.1. Validity of the instruments
It is obvious that the instruments need to be approved to be reliable it was difficult to conclude simply as the instrument were valid. Therefore the researcher had tried to consult experienced people and reviewed relevant literatures in order to increase the validity. Furthermore to keep up the validity Yeka Sub City Small Tax Payers’ Office leaders and managers consult and gave me comments. And for clarity the English version was translated into Amharic language which is the working language of the study organization and checked the alignment.
3.7.2. Reliability
The reliability of instruments was determined, by Cronbach's alpha coefficient test. According to Cohen et al(2007)From the Cronbach's alpha coefficient test the result greater than 0.90 is very highly reliable, from 0.80–0.90 highly reliable, from 0.70 –0.79 reliable, from 0.60–0.69 marginally/minimally reliable and the Cronbach's alpha coefficient less than 0.60 is unacceptable or low reliability. Based on this the OCAI was already checked through different studies and the Cronbach's alpha value was between 0.86 and 0.92 Cameron & Quinn(2011), and the test in this study show the value of Cronbach's alpha OCI = 0.83 and the decision making instruments were tested and resulted Cronbach's alpha value of DM = 0.71. And finally the reliability of all instruments result Cronbach's alpha value was0.86. Generally the reliability test of all instruments showed that it is greater than 0.7 which indicates accepted level. Therefore the instrument employed to study this research was reliable.
3.8. Data analysis and interpretation
The data analysis was undertaken right after the data collection from the field. In the progress of achieving the intended objectives of the study and nature of issues under investigations, the collected data from the predetermined sources was edited first, coded, summarized and presented through tables and pie charts.
Descriptive and inferential statistical analysis was used with different supporting tables, pie chart, frequency and simple percentages were computed. Binary logistic regression analysis was undertaken to know the relationships and its intensity among the study variables. Computed mean was also used to conclude the result of each dimension at the end of analysis. Statistical Package for Social Sciences (SPSS) software version 24 was used to process the collected data. Manual analysis was carried out for qualitative aspects: for interview and document observations of the analysis.
3.9. Ethical consideration
All information collected from the respondents was treated without disclosure of the respondents’ identity. Moreover, no information was modified or changed, hence information gotten is presented as collected and all the literatures collected for the purpose of this study are appreciated in the reference list. In the processes of conducting survey, sufficient information was verbally given out about the study in explaining why it was carried out, by whom, and what it involves. The consent from the participant was considered before handing over the questionnaire paper to the respondents. The questionnaire was read and interpreted to respondents who cannot understand clearly for their consent before a questionnaire is administered for them.
CHAPTER FOUR
4. RESULTS, ANALYSIS AND DISCUSSION
4.1. Introduction
The study was focused on the effects of organizational culture on leaders’ decision making in Yeka Sub City Small Tax Payers’ Branch Office. In this chapter the researcher presented the results under various headings and sub headings using various graphical presentations notably Tables and pie charts. It contains summary of descriptive statistics and binary logistic regression analysis among the study variables and discussion of the results.
4.2. Analysis and Discussion of Findings
The main focus of this part is on the analysis of collected data from the conducted field survey on the subject of the effect of organizational culture on leaders’ decision making practice in the tax collection sector of Yeka Sub City specifically organizational culture as determinant factor of leaders’ decision making. The structure of this section is based on the sequential order of the research questions in order to present the data at hand and provide the conceptual results of the survey. Questionnaires were filled by the respondents of the study organization from March 5 to April 5 2019. Out of 172 questionnaires 161 were filled and returned by respondents. After assuring the data were encoded into the soft ware used for this purpose which is SPSS. The questionnaires were developed based on two level scales (dichotomous) which contain yes/no alternative answers. The analysis of the study was done by using descriptive statistics by computing the frequency and percentage of each item to interpret the response rate of respondents for each item. Finally binary logistic regression analysis was undertaken to determine the existing relationship and extent of the effect of organizational culture on decision making practice of leaders. Qualitative data are presented to strengthen the quantitative data interpreted and discussed with the combination result.
4.2.1. Response rate
For this study, the researcher has distributed a total of 172 questionnaires, from the total number of questionnaires that were distributed to employees of the organization; the rate of return of the questionnaire is 161(93.6%). That means even though all questionnaires were distributed to the total sample size, around 4(2.3%) questionnaires were not returned and 7(4%) questionnaires were discarded due to incompleteness. Thus, the returned questionnaires were not having an excessive missing value and all are included for analysis purpose. Regarding the interview among the selected 8 experienced leaders in the organization 6 were interviewed it is75%. According to Mugenda (1999) a response rate of 50% is adequate, 60% is good and response rate above 70% is excellent. Based on the assertion the response rate of this study is 93% and it is excellent. Therefore, from the total of 172 questionnaires 161 questionnaires that represent the response rate of 93.6% were systematically encoded, analyzed, presented, and discussed in the following section. Table 4.1 below summarizes the number of distributed and returned questionnaires.
4.2.2. Demographic Characteristics of Respondents
The demographic characteristics of respondents would help the readers to appreciate the composition of respondents. Thus, gender, age category, educational status and experiences of respondents of the study organization are the basic features considered in this study. This back ground information is a good indicator of the picture of the reality about the respondents.
4.2.2.1. Sex of respondents
The sex profile of respondents helps to reveal whether the study is gender discriminating or not, the age category can tell how the respondents are mature enough to the study. And the education level, as well as the experience of respondents is also important to deduce their level of understanding about the issues on progress in connection with organizational culture and decision making in this particular organizations. The demographic distribution of respondents are presented as follows
Abbildung in dieser Leseprobe nicht enthaltenFigure4. 1: Sex distribution of respondents
Source: Field Survey, March 2019
Sex wise, the selected respondents are varying in the indicators. It could be seen from Figure 4.1 above that, the respondents of the Yeka Sub City Small Tax Payers’ Office are to some extent equally distributed. It is revealed that, out of 161 respondents, 89(55.3%) are males and the remaining 72(44.7%) are females. Accordingly, it is shown that the female and male respondents are almost equally participated in this study and are part and parcels of the organization. Additionally, it can be deduced that the collected data is the reflections of the ideas of both sex groups in nearly balanced manners. From this one can infer that in the study there is no gender discrimination.
4.2.2.2. Age of respondents
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Figure4. 2: Age category of respondents
Source: Field Survey, March 2019
When we look atFigure 4.2above, the study was conducted among the respondents who are at least 18 years old. The question about respondent’s age was asked to understand the age maturity level of respondents in dealing with the issues under investigations. Accordingly, the largest age group is laid in the age category of 18 - 30 years which accounts to 49.7% out of the total respondents. The smallest age group was related to people who are 51-60 years old with the share of 6.2%. People within an age bracket of 31 - 40 years constitutes the second largest group which accounts to 31.7% followed by those in the age brackets of 41-50 which accounts 12.4%. From this it can be indicated that the study organization is mostly organized by people whose age lies between 18 - 40 years employees which covers 79.6% of the total respondents. This shows the study organization is organized with energetic and productive man power and has a capacity to give important information for the study.
4.2.2.3. Educational background of respondents
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Figure4. 3: Educational status of respondents
Source: Field Survey, March 2019
Figure 4.3shows the educational backgrounds of respondents. Accordingly, 45.3% respondents are diploma holders and similarly 45.3% are degree holders. Masters degree holders took the third rank with 6.8% and only 2.5% of respondents are below diploma level. The educational status of respondents is summarized as almost all are educated and they are mature enough for the study.
4.2.2.4. Work experience of respondents
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Figure4. 4: Work experiences of respondents in the study organization
Source: Field Survey, March 2019
With regard to the experiences of respondents, Figure 4.5reveals that the employees of the office are varying in their experience. It is indicated that the vast number of respondents were those who are working for 2 up to 4 years which accounts 38 % approximately, 29% have experience of 5-8 years 16% above 8 years experience. Only 17% have below two years experience. The result shows that more than 83% of respondents were experienced with above two years work experience. From this one can conclude that the respondents of the study were mature enough to give relevant information to the study.
4.2.3. Identifying the prevailing organizational culture of the study organization
To identify the prevailing organizational culture of Yeka Sub City Small Tax Payers’ Branch Office, the Cameron& Quinn(2011) constracted six dimensions that can help to measure which culture type is practiced dominantly in the organization subject to study. The researcher tried to interpret the results based on those dimensions which are dominant characteristics, organizational leadership, management of employe, organizational glue, strategic emphases and criteria of success. In each dimension all four culture types are represented by one statement under ‘A’ represents clun culture, ‘B’ represnts adhocracy culture, ‘C’ represents market culture and ‘D’ represented hierarchy cultureCameron& Quinn(2011). It is based on this the analysis was conducted. For stattistical terms “F” denote frequency and “%” represents percentage
4.2.3.1. Dominant characteristics
Table 4.1 Outlook of respondents on the dominant characteristics of the organization
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Source: Field Survey, March 2019
The study sought to determine the respondents level of agreement with Table 4.2 above statements related to the dominant characteristics of the study organization. From the research findings the study established that the majority of respondents agreed the organization is a very controlled and structured place. Formal procedures generally govern what people do and it is considered as a dominant characteristic of the organization since it is shown by an agreement of 127 respondents out of 161 which covers 78.9 percent.The organization is very results oriented. Major concern is getting the job done. People are very competitive and achievement oriented took the second position in dominating the characteristics of the organization. This is explained by 105 respondents cover 65.2 percent agreement. Others remained in disagreements of the majority of respondents as dominant characteristics of the study organization.
The above findings concur with the “Diagnosing and changing organizational culture based on the competing value framework”Cameron & Quinn (2011), organizations under hierarchical culture domination, for example, they have found that the most effective managers, those rated as most successful by their subordinates, peers, and superiors and those who tend to move up quickly in the organization. They are good at organizing, controlling, monitoring, administering, coordinating, and maintaining efficiency. So in the finding the organization is a very controlled and structured place. Formal procedures generally govern what people do is found as the dominant characteristics of the study organization.
4.2.3.2. Organizational leadership
Table 4. 2: Respondents’ perception on organizational leadership
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Source: Field Survey, March 2019
The study sought to determine the respondents level of agreement with the above statements related to organizational leadership of the small tax payers office. From the research findings the study established that the majority of respondents agreed that the leadership in the organization is generally considered to exemplify coordinating, organizing, or smooth running efficiency took the first position with 71.4% yes answer (agreement). On the second position the leadership in the organization is generally considered to exemplify mentoring, facilitating, or nurturing explained by 57.1% agreement, the leadership in the organization is generally considered to exemplify a no-nonsense, aggressive, results-oriented focus which is explained by 56.5% agreement. The remaining is left in disagreement of the majority.
Findings from the above presentation best fits with the statement of Cameron & Quinn (2011), the leadership of organizations dominated with hierarchical organizational culture demonstrate a matching leadership style.‘Hierarchy leaders are rule reinforcers’.This is found in Yeka Sub City Small Tax Payers’ Office from the respondents’ responses. Therefore the organizational leadership style of the office is mostly dominated by hierarchical organizational culture.
4.2.3.3. Management of employees
Table 4.3: outlook of respondents on management of employees
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Source: Field Survey, March 2019
The study sought to determine the respondents level of agreement with the above statements related to management of employees in the organization. From the findings on Table 4.4 above the study established that the majority of respondents agreed that the management style in the organization is characterized by security of employment, conformity, predictability, and stability in relationships took the first position with 72% yes answer, which reveals agreement. The remaining statements of management of employees’ are left in disagreement of the majority of the respondents.
The above findings show that the management of employees is characterized by security of employment, conformity, predictability, and stability in relationships which was explained in a similar statement byCameron & Quinn (2011), when an organization is dominated by the hierarchy culture, we have found that the most effective managers rated as most successful by their subordinates, peers, and superiors and those who tend to move up quickly in the organization. That may assure security of employment, conformity, predictability and stability in relationships with the subordinates themselves and immediate superiors. From this one can conclude the management of employees in the study organization is most likely dominated by hierarchical organization culture.
4.2.3.4. Organizational glue
Table 4.4Respondents’ perception of organizational glue
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Source: Field Survey, March 2019
The study sought to determine the respondents level of agreement with the above statements related to organizational glue of the study organization. From the findings presented on Table 4.5 above the study established the majority of respondents agreed that the glue that holds the organization together is formal rules and policies. Maintaining a smooth running organization is important took the first position with 87.6% yes answer that is agreement. On the second position the glue that holds the organization together is the emphasis on achievement and goal accomplishment which is explained by 67.1% agreement. The remaining organizational glue statements are left in disagreement of the majority of respondents.
The above findings concurring with the findings ofCameron & Quinn (2011),the glues that holds together the organizations under the domination of hierarchical organizational culture are policies, formal rules and regulations. According to them maintaining the smooth running of the organization is important and goal of the organization. The findings of this study are also pinpointed out the glue that holds the organization together is formal rules and policies and also maintaining the smooth running organization is important. From this one can reach in a conclusion that the organizational glue is mostly dominated by the hierarchical organizational culture.
4.2.3.5. Strategic emphases
Table 4. 5: Respondents’ perception on the strategic emphases of the office
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Source: Field Survey, March 2019
The study sought to determine the respondents level of agreement with the above statements related to strategic emphases of the small tax payers office. From the research findings the study established that the majority of respondents agreed, the organization emphasizes permanence and stability. Efficiency, control, and smooth operations are important took the first rank with 90.7% agreement. On the second position the organization emphasizes human development. High trust, openness, and participation persist explained by 64% agreement. The organization emphasizes competitive actions and achievement. Hitting stretch targets and winning in the marketplace are dominant is also placed in the third position which is explained by 56.5% agreement. The remaining is left in disagreement of the majority.
According to Cameron & Quinn (2011), there is no clear demarcation in between the four culture types. They may overlap one other but at the end one dominant culture will develop. From the findings above the strategic emphases is dominated by three cultures which are hierarchical, clan and market cultures in their ranks respectively. When we look at the most dominance value hierarchical organization culture is continued the dominant one.
4.2.3.6. Criteria of success
Table 4.6: Respondents’ outlook on the criteria of success in the organization
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Source: Field Survey, March 2019
The study sought to determine the respondents level of agreement with the above statements related to criteria of success to the small tax payers office. From the research findings the study established that the majority of respondents agreed that the organization defines success on the basis of efficiency. Dependable delivery, smooth scheduling, and low-cost production are critical came at the first rank with 85% yes answer agreement. On the second position the organization defines success on the basis of winning in the marketplace and outpacing the competition. Competitive market leadership is key explained by 69.6% agreement. The organization defines success on the basis of the development of human resources, teamwork, employee commitment, and concern for people ranked third which is explained by 62.7% agreementand the last statement remained with disagreements of the majority of respondents.
Criteria of success differs from culture to culture that the organizations adopt to run their activities and achieve their goals. This dimension also show the interdependence of cultures as Cameron & Quinn (2011)revealed there is no clear demarcation between the four cultures, all cultures may exist in an organization but among them one should dominate others in practice. From this one can infer that as like the above dimensions the criteria of success in Yeka Sub City Small Tax Payers Branch Office is dominated by hierarchy culture.
4.2.4. Computing value frame work (CVF)
Computing value framework helps researchers to compute the values of the six dimensions and identify what the dominant and prevailing culture in the given organization is. According to Cameron & Quinn (2011) Competing Values Framework has been found to have a high degree of congruence with well-known and well accepted categorical schemes that organize the way people think, their values and assumptions, and the ways they process information.
Table 4. 7: Computed values of the four major culture types
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Source: Field Survey, March 2019
The figures below shows the quadrants of each organizational culture type and the dominancy level of the cultures is explained in figure4.6 and 4.7 consecutively
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Source, Cameron & Quinn (2011)
Figure4. 5: the domination position of culture types
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Source, Cameron & Quinn (2011)
Figure4. 6: coverage share of culture types in the organization
Thecomputing value frame work explains the values of the four major types of culture here the value of (A) shows the magnitude of clan culture, (B) represents the adhocracy culture, (C) stands for market culture and (D) denotes the hierarchical culture of organization. Accordingly the findings of the study in the computing value frame work hierarchical culture came first with the value of 35.4 out of hundred. Market culture follows the hierarchical culture with the value of 26.7 out of hundred. On the third position clan culture is found with 20.4 out of hundred values and at last the adhocracy culture exists and scored 17.5 out of hundred.
The finding shows the existence of all types of organizational cultures and this best fits the statement of Cameron & Quinn, (2011), stated that there is no clear demarcation between the four culture types in any organization. Therefore in this study what we take as the prevailing organizational culture is by computing the values and selecting the most dominant one. As a result hierarchical organizational culture have 35.4 out of hundred and it is the highest portion among others. Experienced leaders in the organization assured that though the culture types are mixed type mostly their works and activities are governed by hierarchy culture. Taking this in to consideration one can infer that the prevailing organizational culture of Yeka Sub City Small Tax Payers’ Office is mixed type and the most dominant culture is hierarchical organizational culture.
4.2.5. Assessment of decisionmakingpractices in the study organization
As Drucker (2010) stated decision making is the most important functions of organizations in all management activities, and he also note that not only managers make decisions in organizations, but also employees at every level in an organization practice decision making as well. Taking this assumption as a guiding the researcher tried to assess the current practice of decision making based on the Eisenfuhr’s (2011) decision making styles which are decisive DM style, hierarchic DM style, flexibleDM style and integrative DMstyles.
4.2.5.1. Decisive style of decision making
Table 4. 8: Respondents’ perception on decisivedecision making style
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Source: Field Survey, March 2019
The study sought to determine the respondents’ level of agreement with the above statements of decisive style of decision making. From the findings the study established among the four alternatives there is no majority agreement as the organization decision making is decisive style all agreements are below 46% and. This majority disagreement shows decisive style of decision making is not the most practiced style in the study organization. The researcher’s observation also shows mostly leaders’ decision is not a decisive style.
The above findingsreveal most of the time the leaders in the study organization do not decide being concernedon getting the job done; they do not decide to provide rapid solutions for problems; the concern of their decision is not efficiency and The driver of their decision is not competition. This contradicts the statement of Eisenfuhr (2011) that states organizations under decisive style of decision making are market driven, decisions are made concerning effectiveness and efficiency. But this type of decision making style is not dominantly practiced in the study organization. From this one can conclude that decisive style of decision making is not the major and dominantly practiced decision making in Yeka Sub City Small Tax Payers Office.
4.2.5.2. Hierarchic style of decision making
Table 4.9: Respondents’ outlook on Hierarchic style of decision making
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Source: Field Survey, March 2019
The study has tried to determine the respondents’ level of agreement with the above statements of hierarchic decision making styles. From the findings presented on Table 4.10 the study established in all the alternatives there is majority agreement as the organizations decision style is more hierarchic style, all statements of decision making are agreed with more than77% respondents. The researcher’s observation also shows mostly leaders’ decision is bureaucratic characterized by office to office inter linkages and most leders’ decision should keep the steps of process coordinators, team leaders and the front desk decision makers. The miss in one of the decision makers in the hierarchy makes delay of the overall. The participant in the decision has to put his signature to continue for the next decision.
The findings presented above revealed that leaders of Yeka Sub City Small Tax Payers’ Office pass decisions based on the procedures and formal rules of the organization to maintain the smooth running organization. This finding is congruent with the hierarchic decision making style of Eisenfuhr(2011)which states decision makers with hierarchic style of decision making decides with thorough analysis and quality of outcome focus on hierarchical relationships and mutual trust, they heavily leaned towards the structured process of decision making. In addition to quantitative data, qualitative data were collected using interviews with experienced leaders to support the result obtained quantitatively. The result shows that, most of the time their decisions are under the influence of rules and regulations of the organization. One of the interviewee had to say that:-
“In my personal feelings I am interested if I decide concerning customers needs while providing services. But in the organization the rules and regulations are stiff and too strict. As a result all staff members decide to maintain these rules and regulations. Most of the rules, regulations and directives focused on decision makers as the organization is blamed as the place of corruption. In reality it is exposed for corruption what we call commonly rent seeking. Therefore even though my interest is to decide concerning customers need the organizational culture enforces me to decide by giving more concern to the rules regulations and directives of the organization rather than the needs of customers in case the needs of customers may contradict the rules”.
From this one can conclude hierarchic style of decision making is the one which is dominantly practiced decision making style in the study organization.
4.2.5.3. Flexible style of decision making
Table 4. 10: Respondents’ perception on flexible style of decision making
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Source: Field Survey, March 2019
The study wanted to determine the respondents’ level of agreement with statements in Table 4.11 about flexible decision making style. From the findings the study resulted out that among the four alternatives there is no majority agreement as the organizations decision making style is flexible.Allagreements are below 32.9%. Majority of respondents disagreed as theirdecision making style is flexible. Based on these responses respondents don’t decide in terms of sensitivity to customers looking in different dimensions; openly in team work through participatory way; decision focuses on the implications that the decision results and their main concern is not acceptance.
According to Eisenfuhr (2011) flexible decision making style shares decision making power to various stake holders, decision makers in this style are broadminded, invite and encourage team members to contribute to their decision. Whereas the results from respondents as presented above don’t show as this flexible decision making style is a more practiced style of decision making style in the study organization.
4.2.5.4. Integrative style of decision making
Table 4.12: Respondents’ perception of Integrative style of decision making
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Source: Field Survey, March 2019
The study wanted to determine the respondents’ level of agreement with the above statements integrative style of decision making. From the findings the study resulted out that among the four alternatives there is no majority agreement as the organizations decision making style is integrative. It is revealed with all agreements are below 33.5%. Majority of respondents disagreed as the integrative style of decision making is not mostly practiced style of decision making in the small tax payers office of the sub city.
Regarding the integrative style of decision making the respondents responses clearly show that they do not take risks when they decide; they do not decide in sense of freedom and creativity; they do not decide emphasizing long term growth of the organization and the concern of their decision is not getting new product. Eisenfuhr (2011) clearly stated that Decision makers with integrative style decision making are risk takers, have their very own, powerful vision, decided in full freedom and they are quite apt at convincing their team members to join them. This type decision makers or leaders can make people believe in their “bigger & brighter” vision of the future and practically motivate them to work towards turning it in to reality. Creativity and exploration are highly important. In contrast the results of this finding do not show these activities in practice. Therefore one can infer that integrative style decision making is not dominantly practiced style decision making in the study organization.
4.2.6. The effect of organizational culture on decision making
H1: organizational culture affects leaders’ decision making in Yeka Sub City Small Tax Payers’ Branch Office
To examine the effect of organizational culture the researcher used binary logistic regression model since the variables are measured through dichotomous, yes/no questions. Logistic regression allows to test models to predict categorical out comes with two or more categories either the predictor (independent) variables are categorical or continuous or mix of both in the one model (Jullie, 2010). In this study, all the four culture type predictor variables (independent variables), clan culture, adhocracy culture, market culture and hierarchy culture are tested in one block to assess their predictive ability as the variables are dichotomous in this section only the main part the block 1: method is presented and other preliminary parts are attached in the appendix.
Table 4.11 block 0 classification Tablea,b For decision making
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a. Constant is included in the model.
b. The cut value is .500
Block 1: Method = Enter
According to Jullie (2010) Block 1 is the main step where the set of predictor variables are tested. In this step different tests are employed to get a valuable result that are the omnibus test of model coefficients give us an overall indication of how well the model performs, over and above the results obtained for Block 0; the Hosmer and Lemeshow Test also support the model as being worthwhile which is the most reliable test, interpreted very differently from the omnibus test; Model Summary gives us another piece of information about the usefulness of the model. The Cox and Snell R Square and the Nagelkerke R Square values provide an indication of the amount of variation in the dependent variable the other output considered in this study is the classification table, it provides the researcher with an indication of how well the model is able to predict the correct category for each case and enabled compare this with the Classification Table shown for Block 0, (Jullie, 2010). Based on the above explained parameters the effect of organizational culture on leaders’ decision making is analyzed, presented and discussed as follows.
Table 4. 12 Omnibus Tests of Model Coefficients
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The omnibus test of model coefficients give us an overall indication of how well the model performs, over and above the results obtained for Block 0. With none of the predictors entered into the model. This is referred to as a ‘goodness of fit’ test (Jullie, 2010). For this set of results the researcher want a highly significant value of p less than 0.005 in this case, the value is 0.002 which means p less than 0.05. Therefore, the model with the four variables used as predictors is better than SPSS’s original guess shown in Block 0, which is 59%, assumed that everyone would report there is problem of decision making. The chi-square value, which we need to report, is 68.3 with 4 degrees of freedom.
Table 4. 13 Model Summary
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a. Estimation terminated at iteration number 6 because parameter estimates changed by less than .01.
Results in the Model Summaryfrom Table4.14gave us another piece of information about the usefulness of the model. The Cox and Snell R Squareand the Nagelkerke R Squarevalues provide an indication of the amount of variation in the dependent variable explained by the model from a minimum value of 0 to a maximum of approximately 1. These are described as pseudo R square statistics, rather than the true R square values which is provided in the multiple regression output (Jullie, 2010). In this study, the result shows the two values are .263 and .352 and this suggests that between 26.3 percent and 35.2 percent of the variability is explained by this set of variables.
Tble 4. 14Hosmer and Lemeshow Test
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Table 4.15 shows the results of Hosmer and Lemeshow Test.Hosmer and Lemeshow Test also support the model as being advisable. This test is the most reliable test of model fit available in SPSS, is interpreted very differently from the omnibus test discussed above (Jullie, 2010). As he stated for the Hosmer-Lemeshow Goodness of Fit Testpoor fit is indicated by a significance value less than 0.05, so to support our model we actually want a value greater than 0.05. The result in table 4.15 revealed, the chi-square value for the Hosmer-Lemeshow Test is 11.032 with a significance level of .192. This value is greater than 0.05. Therefore it indicates support for the model.
Table 4. 15 Classification Tablea
Abbildung in dieser Leseprobe nicht enthalten
a. The cut value is .500
The Classification Table provides researchers with an indication of how well the model is able to predict the correct category for each case and we can compare this with the Classification Table shown for Block 0, to see how much improvement there is when the predictor variables are included in the model (Jullie, 2010). As Table 4.16 shows model correctly classified 62.7 percent of cases overall sometimes referred as the percentage accuracy in classification (PAC), an improvement over the 62.7 percent in Block 0.
The sensitivityof the model is the percentage of cases that the model classifies as having the characteristic that is actually observed in this group (Jullie, 2010). To calculate this for this study the researcher needs to divide the number of cases in the predicted=yes, observed=yes cell (11) by the total number in the predicted=yes cells (11 + 17 = 28) and multiply by 100 to get a percentage. This gives us 11 divided by 28 × 100 = 39.3 percent. Therefore, the positive predictive value is 39.3 percent, it indicates that of the people predicted there is no decision making problem in this model accurately reached 39.3 percent of them. And the negative predictive valueis the percentage of cases predicted by the model not to have the characteristic that is actually observed. The values from the classification table are: 84 divided by (84 + 49) × 100 = 63.2 percent. Therefore, the negative predictive value is 63.2 percent. It indicates that the people predicted there is decision making problem in this model accurately picked 63.9 percent.
Table 4. 16Variables in the Equation
Abbildung in dieser Leseprobe nicht enthalten
a. Variable(s) entered on step 1: clan culture, adhocracy culture, market culture, hierarchy culture.
The variables in the equation give information about the contribution or importance of each of the predictor variables.The test that is used here is known as the Wald test (Julie, 2010). In table 4.16 the value of the statistics for each predictor in the column labeled Wald. Scan down the column labeled Sig. looking for values less than 0.05. These are the variables that contribute significantly to the predictive ability of the model. In this case, we have two significant variables; market culture p= .003 and hierarchic culture p= .007. in this study, the major factor that affect decision making of the organization significantly are market culture and hierarchy culture. Other culture types; clan and adhocracy culture did not have significant effect on decision making. Since their significance value is greater than 0.05.
The Bvalues provided in the second column are equivalent to the B values obtained in a multiple regression analysis and these are the values that researchers would use in an equation to calculate the probability of a case falling into a specific category (Jullie, 2010). Positive or negative values of Btell about the direction of the relationship, the likelihood of a yes answer and which factors decrease it, negative B values indicate that an increase in the independent variable score results in a decreased probability of the case recording a score of 1 in the dependent variable this indicates the presence of decision making problem. The study identifies the predictor (independent) variable hierarchy showed positive B value (0.328) which indicates the more practice of hierarchy culture, the more likely problem of decision making and the vies versa. On the other hand the market culture showed negative B value (-.552) and this indicates the more practicing the market culture, the less likely to the occurrence of decision making problem.
The findings from the test in this model contained four independent variables (clan culture, adhocracy culture, market culture and hierarchy culture). The full model containing all predictors was statistically significant, χ2 (4, N = 161) = 62.7, p greater than .001, indicating that the model was able to distinguish between respondents who reported and did not report a decision problem. The model as a whole explained between 26.3% (Cox and Snell R square) and 35.2% (Nagelkerke R squared) of the variance in decision making status, and correctly classified 62.7% of cases. As presented in Table 4.16, only two of the independent variables made a unique statistically significant contribution to the model, they were market culture and hierarchy culture. Market culture affects decision making positively and hierarchy culture affects decision making negatively and the strongest predictor of reporting the problem of decision making was, recording an odds ratio of 4.109.
In addition to the quantitative data qualitative data show that the culture of the organization has meaningful influence on the decision making practice of the study organization. One of the interviewee states as follows:-
”The culture of the organization clearly influences my decision making or it is better to say my decisions are under the influence of the bureaucracy of the organization. For example communicating with customers outside the working time is conceived as a bargaining to corrupt the tax that the customer will pay to the organization. Because of this my coworkers and me are frustrated even to communicate relatives freely if he/she is tax payer and customer of my organization.”
From the quantitative and qualitative results one can infer that organizational culture has an effect on decision making practice, more specifically market culture and hierarchy culture significantly affects decision making of the organization.
CHAPTER FIVE
5. SUMMARY, CONLUSION AND RECOMMENDATIONS
5.1. Introduction
The study was aimed at examining the effect of organizational culture on leaders’ decision making in Yeka Sub City Small Tax Payers' Branch Office with the intention of identifying the prevailing organizational culture, the decision making practice and finally examining the effect of the prevailing organizational culture on leaders’ decision making. In order to investigate the effect of organizational culture on leaders’ decision making: organizational culture and decision making have been examined through their dimensions. The data for this purpose have been collected from employees of the concerned organization through questionnaire, interview and document observation and analyzed through quantitative and qualitative analysis.
This section outlines the summary of findings of the research work, drawn conclusions based on the findings and recommendations for future considerations by the concerned organs as follows.
5.2. Summary of findings
As mentioned above, the main objective of the study was to examine the effect of organizational culture on leaders’ decision making in Yeka Sub City Small Tax Payers’ Branch Office. More specifically the study aimed at identifying the prevailing organizational culture using different dimensions, assessing the decision making practices, explain whether organizational culture affects leaders’ decision making in the study organization.
The study adopted quantitative and qualitative approach as well as descriptive and explanatory research design. The population of the study was composed of 302 employees of Yeka Sub City Small Tax Payers’ Branch Office from which 172 respondents have been selected using simple random sampling technique. The study was relied on primary and secondary data, which was collected through self administered questionnaires’, interview and document observations. Regarding the reliability the OCAI (organizational culture assessment instruments) are tested in different studies and the retested Cronbach’s alpha value is (0.83). The DMQ (decision making questionnaires Cronbach’s alpha value (.71), and the overall Cronbach’s alpha value was 0.86. This shows that all values of the test were above 0.7 and the reliability is above the acceptable level. The data were analyzed in inferential statistics, binary logistic regression using SPSS version 24 and the findings of the study are presented as follows.
According to the findings of this research the demography of respondents revealed that both male and female leaders have been participated in almost a balanced manner. Therefore, the study is not gender discriminatory. The age of respondents who participated in the study was mature enough to provide relevant information for the study; regarding to the educational status they were more than 97% diploma, degree, and masters and above levels of education and the years that they have worked in the organization most of respondents had enough experiences to give information about the study organization. Therefore the respondents were eligible and mature enough in participating this research.
As the study showed based on the responses of respondents Yeka Sub City Small Tax Payers’ Branch Office is dominantly characterized as it is a very controlled and structured place; Formal procedures generally govern what people do. The organizational leadership is generally considered to exemplify coordinating, organizing, or smooth running efficiency. Concerning the management of employees it revealed that management style of the organization is characterized by security of employment, conformity, predictability, and stability in relationships. It also identified the glue that holds the organization together, and it showed that formal rules and policies are found as the glue of the tax payers, office. Regarding the strategic emphases of the organization the study identified permanence and stability; efficiency, control and smooth operation are important. And finally the criterion of success is defined based on efficiency; dependable delivery, smooth scheduling, and low cost production are critical. The above points reveal the characteristics of hierarchical culture of (Cameron& Quinn, 2011), that stated organizations are dominated by hierarchical culture evaluate their success in efficiency, timeliness, smooth functioning, and predictability. The dominant operational theory that drives organizational success is that control fosters efficiency and therefore effectiveness.
Regarding the prevailing organizational culture practiced in the study organization, the findings in the descriptive analysis and the computing value framework showed that all types (clan culture, adhocracy culture, market culture and hierarchical culture) are under practice with different degrees. Hierarchical culture took the first dominance with the computed value of 35.4, market culture followed as the second dominant and or practiced culture with computed value of 26.7, clan culture came to the third rank in its domination with 20.4 computed values and adhocracy culture remained the least practiced culture in Yeka Sub City Small Tax Payers’ Branch Office.
The study also revealed out the decision making practices based on the four decision making styles those are decisive, hierarchic, flexible and integrative style decision making. The finding revealed that hierarchic style decision making is the most practiced one, mostly leaders’ decision is bureaucratic characterized by office to office inter linkages and most leaders’ decision should keep the steps of process coordinators, team leaders and the front desk decision makers. The miss in one of the decision makers in the hierarchy makes delay of the overall. The participant in the decision has to put his signature to continue for the next decision.
The findings from the binary logistic regression revealed in the test the full model containing all predictors (clan culture, adhocracy culture, market culture and hierarchy culture) was statistically significant, χ2 (4, N = 161) = 62.7, p less than .001, indicating that the model was able to distinguish between respondents who reported and did not report a decision problem. It also identified organizational culture has an effect on leaders decision making practices with the range from 26.3% - 35.2% with the values of Cox and Snell R square and Nagelkerke R squared. The full model is correctly classified 62.7% of cases.
In analyzing each predictor (independent variable), only two of the independent variables made a unique statistically significant contribution to the model, they were market culture and hierarchy culture with the significance value of 0.003 and 0.007 respectively. Hierarchy culture has positive relationship with decision problem which indicates the more practice of hierarchy culture the more likely to the more decision problem whereas market culture has negative relation with decision problem that indicates the more practicing market culture, the less likely the occurrence of decision problem. This is explained with the B values of hierarchy culture = (.328) and market culture = (0-.552).The strongest predictor of reporting the problem of decision making was hierarchy culture, recording an odds ratio of 4.109. This indicated that respondents who had decision making problems were over 4 times more likely to report a decision problem than those who did not have decision problem, controlling for all other factors in the model.
5.3. Conclusion
The study was conducted with the main objective of assessing the effect of organizational culture on leaders’ decision making in the study organization. Based on the objective from the findings the researcher can draw the following conclusions.
In Yeka Sub City Small Tax Payers Office all organizational culture types (clan culture, adhocracy culture, market culture and hierarchy culture) are in practice in different degrees among them hierarchical organizational culture is the most dominantly practiced organizational culture.
Most of the time the leaders in the organization practices their decision making based on rules, directives, regulations and policies. And their main aim off decision is to achieve the organizational goal planed to be achieved, maintaining the smooth running organization is always considered in the decision making process. Therefore, the researcher concludes that the decision making in Yeka Sub City Small Tax Payers’ Branch Office is most likely hierarchic style of decision making this leaders the organization not to satisfy the customers.
The finding from this study showed organizational culture has significant effect on leaders’ decision making that ranges between 26.3 – 35.2%. The remaining effects that range from 64.8 – 73.7% effects may emanate from other factors which are not included in this study.
The study examined the effect of each organizational culture type on the decision making practice. Among the culture types hierarchy culture and market culture have significant effect on decision making. Hierarchy culture affects decision making negatively while market culture affects decision making positively. This means practicing hierarchy culture results more decision problems and practicing market culture reduces decision problems.
5.4. Recommendations
Based on the findings and drawn conclusions the researcher recommends having a significant effect of organizational culture on leaders’ decision making practice in Yeka Sub City Small Tax Payers’ Branch Office, hierarchical hierarchy culture dominancy as well as hierarchic decision making is dominantly practiced, there is a sign of deficit of computable culture with the current globally accepted types of cultures. Therefore the researcher recommends the following points for the higher officials of the study organization, the policy makers and other stakeholders as well for further researchers.
5.4.1. For policy makers:
Regarding the revenue policies, directives and regulations policy makers shall give attention for organizational culture especial for policies that can encourage market culture. In formulating policies they have to give emphasis for the customers and should make compatible policies with their customers’ need, which is market culture that can treat customers responsibly.
5.4.2. For higher leaders and managers of Yeka Sub City Small Tax Payers Branch Office
Higher leaders and mangers of the office should strive to change the dominant culture from hierarchy culture to market organizational culture, since the more practice of market culture improves the decision problem. And it is computable with the current globally accepted type of culture in the new public management era.
It is better if minimize the chains of decisions and give responsibilities for each leader’s in the organization. This enables all leaders to be risk taker for the delay of decisions and solution maker for problems at their hand.
The effect of hierarchy culture is negative in improving the decision making process short and fast therefore the introduction of dominant market culture with other cultures that may contribute for timely decision is mandatory. For that matter the higher officials of the organization shall study how to change the organizational culture and implement based on the findings of their study.
The new public management is most customers oriented as well as competitive and strives to the comfort of the customers practicing market culture is more preferable and enables the organization more effective.
There is no single best style of decision making including hierarchic style of decision making. Therefore leaders as well as higher officials of the organization shall to practice all decision making styles based on the situation.
In a nutshell leaders of the sub city small tax payers’ office shall give due attention specifically to the market culture and flexible style decision making to give immediate responses for their customers and minimize delay of decisions which finally affect the overall activities of the organization.
5.4.3. For further study:
Future researchers shall study factors that affect leaders’ decision making other than organizational culture, like leaders’ motivation, leaders’ belongingness to the organization, succession of leaders, experience of leaders’ fore decision making and other factors.
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APPINDIX
Appendix 1: questionnaire
ETHIOPIAN CIVIL SERVICE UNIVERSITY
COLLAGE OF LEADERSHIP AND GOVERNANCE
INSTITUTE OF LEADERSHIP AND GOOD GOVERNANCE
Dear respondents,
The main purpose of this questionnaire is to gather information or primary data on the effect of organizational culture on leaders’ decision making with specific reference to Yeka Sub City Small Tax Payers Office for the partial fulfillment of master’s degree in leadership and good governance. Dear respondents, you are expected to provide genuine, accurate and balanced information with respect to organizational culture and decision making. Your genuine information is highly valuable as it determines the success of this study. Therefore, the researcher is very much grateful for the sacrifice you pay to this end. This research is conducted for academic purposes and your responses will be treated with utmost confidentiality.
At last, if you have any questions or comments on this research work, please participate via the following addresses.
AbebeAnimut
Direction:
- No need to write yourname
- Answer by putting a tick mark (“√”) alongside the answer you choose.
- In case you have ambiguities on any of the questions, please do not hesitate to contact me through my mobile number given above.
Thank you in advance for your Cooperation!
Part I: Demographic background of Respondents
Abbildung in dieser Leseprobe nicht enthalten
Part II: Organizational Culture Assessment questions
Some dimensions of organizational culture are listed below. Please indicate whether it is in practice or not in your organization with the following statements concerning organizational culture. Put “√” mark in column ‘ Yes ’ if you agree with the statements and in column ‘No’ if you disagree with the statements presented in the table below.
Abbildung in dieser Leseprobe nicht enthalten
Part III: Decision making assessment questions
Some decision activities are listed below. Please indicate whether you are practicing it or not in your daily decision making process with the following statements concerning decision making. Put “√” mark in column ‘ Yes ’ if you agree with the statements and in column ‘No’ if you disagree with the statements presented in the table below.
Abbildung in dieser Leseprobe nicht enthalten
Appendix 2 Interview guide questions
1. What is the concern of your decision in the organization?
2. What are the basic obstacles in your decision making process?
3. Do the organizations cultures affect your decision? How ?
4. Do you decide with the sense of freedom?
5. What is the goal of your decisions?
Thank you very much for your co-operation.
Appendix 3Summarized interview
Abbildung in dieser Leseprobe nicht enthalten
Appendix 4Binary logistic regression output
LOGISTIC REGRESSION VARIABLES DM
/METHOD=ENTER clan adhocracy market hierarchy
/CONTRAST (clan)=Indicator(1)
/CONTRAST (adhocracy)=Indicator(1)
/CONTRAST (market)=Indicator(1)
/CONTRAST (hierarchy)=Indicator(1)
/SAVE=PRED PGROUP
/CLASSPLOT
/PRINT=GOODFIT CI(95)
/CRITERIA=PIN(0.05) POUT(0.10) ITERATE(20) CUT(0.5).
Logistic Regression
Abbildung in dieser Leseprobe nicht enthalten
Case Processing Summary
Abbildung in dieser Leseprobe nicht enthalten
a. If weight is in effect, see classification table for the total number of cases.
Dependent Variable Encoding
Abbildung in dieser Leseprobe nicht enthalten
Categorical Variables Codings
Abbildung in dieser Leseprobe nicht enthalten
Block 0: Beginning Block
Classification Table a,b
a. Constant is included in the model.
b. The cut value is .500
Variables in the Equation
Abbildung in dieser Leseprobe nicht enthalten
Block 1: Method = Enter
Omnibus Tests of Model Coefficients
Abbildung in dieser Leseprobe nicht enthalten
Model Summary
Abbildung in dieser Leseprobe nicht enthalten
a. Estimation terminated at iteration number 6 because parameter estimates changed by less than .001.
Hosmer and Lemeshow Test
Abbildung in dieser Leseprobe nicht enthalten
Contingency Table for Hosmer and Lemeshow Test
Abbildung in dieser Leseprobe nicht enthalten
Classification Tablea
Abbildung in dieser Leseprobe nicht enthalten
a. The cut value is .500
Variables in the Equation
Abbildung in dieser Leseprobe nicht enthalten
a. Variable(s) entered on step 1: clan culture, adhocracy culture, market culture, hierarchy culture.
[...]
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Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X. -
Upload your own papers! Earn money and win an iPhone X.