Mwaura, Elsie Nyambura

Kenyatta University.

Bula, Hannah (PhD)

Kenyatta University.

CITATION: Mwaura N. E. and Bula, H. (2017) Organizational Culture and Firm Performance: A case of the Institute of Certified Public Accountants of Kenya. International Journal of Business, Social Sciences and Education. Issue No 10, Volume VIII, pp 74-105.ISSN 2105 6008.

ABSTRACT

ICPAK has not yet established a monitoring mechanism, making it difficult to identify and pursue violations of established rules and regulations. Deep seated skepticism on the part of private investors has not yet been overcome, and private investment levels remain very low. Lack of pressure from the users of financial statements for high-quality information, and the general absence of transparency in the corporate sector, pervade the corporate financial reporting regime. This study sought to establish the effects of organizational culture on firm performance at the Institute of Certified Public Accountants of Kenya by specifically assessing the influence of the mission culture, organizational adaptability culture, organizational cultural consistency and organizational cultural involvement influences performance of ICPAK. The study was anchored on the Denison’s Theory and the Goal Setting Theory and it adopted a descriptive research design. The target population consisted of 73 top, middle and low-level management staff working at ICPAK offices located at CPA Centre along Thika Road in Nairobi Kenya. The study adopted stratified proportionate sampling to give a sample size of 36 respondents, 50 percent. Data was collected using a semi structured questionnaire which was pilot tested for validity and reliability. Correlation analysis was used to test the direction of relationship between the independent variables and dependent variable. Qualitative data was analyzed using content analysis while quantitative data was analyzed using descriptive statistics such as the measures of central tendencies. Inferential statistical analysis was done using multiple regressions using SPSS Version 22. Analyzed data was presented in form of tables to facilitate comparison. Findings showed that that there was strategic direction and intent under mission culture and it is significant and has a positive relationship with performance of ICPAK. Under adaptability culture, findings indicate that creating change in the organization was a crucial component of adaptability culture and it influences performance of ICPAK. Under the consistency culture, findings revealed that agreement is an important component of consistency culture and it influences performance of ICPAK while under involvement culture, findings showed that people at all levels feel that they have at least some input into decisions that will affect their work and that their work is directly connected to the goals of the organization which implies that there is a significant positive relationship between involvement culture and performance of ICPAK. The study concludes that organizations that have mission statements and values that have a meaning serve as powerful guides for everyday action. The study also concludes that firms characterized by higher adaptability culture will perform better than did those characterized by lower adaptability culture. On consistency culture, the study concludes that successful companies have a clear set of values that support employees and managers in making consistent decisions. The study recommends that HR managers should always ensure that they consider the mission culture as one of the most important managerial tools. The study recommends that for an organization to perform well, there should be some level of consistency between the values of its employee and the organization and that those who design work in the organization should, give individuals assignments that are consistent with their strengths, interests and opportunities for continued learning and growth. This study also recommends that the organization under study extends its staff involvement in decision-making to key decisions that directly affect employees, and to involve them more in performance evaluations. View Full PDF Version