The influence of organizational culture on performance in public entities of South Africa

Abstract

Background: Creating an enabling organisational culture in an organisation is important for a successful strategy implementation, yet the influence of organisational culture on organisational performance in South African (SA) public entities is unknown.

Aim: This study aimed to determine the influence of organisational culture on organisational performance during strategy implementation in schedule 3 public entities in the Northern Cape (NC) province.

Setting: The schedule 3 public entities at the provincial level, in terms of organisational culture, leadership, corporate controls, strategy alignment, strategy implementation and organisational performance.

Method: The survey design and a semi-structured questionnaire were used to collect data from a random sample of 38 respondents, comprising 32 senior managers of the public entities and six executives from three NC Provincial Government Departments. Data were analysed using regression analysis and document analysis.

Results: Based on the perceptions of the respondents, it was found that organisational culture does not affect the organisational performance during strategy implementation. The existing organisational culture does not support strategy implementation, and this is negatively affecting organisation performance in the public entities.

Conclusion: The findings reveal that organisational culture does not affect the organisational performance during strategy implementation in the schedule 3 public entities in the NC province. In some cases, the cultures would be able to facilitate strategy implementation, but they cannot because of a lack of financial and human capital resources. Hence, the issues around resources need to be addressed for the entities to meet their strategic objectives and management should make appropriate interventions to promote a healthy organisational culture that will support strategy implementation.