Impact of Organisational Culture on Performance at Eskom

This dissertation explores the impact of organisational culture on the performance of Eskom, the largest electricity-producing company in South Africa. The study identifies the current organisational culture at Eskom, its impact on performance, and recommends strategies for improving the culture. The study is significant for other companies in the industry as it provides insights into the gaps in organisational culture and their influence on performance.

Regent Business School
Exploring the Impact of organisational culture on the organisational performance at
Northern Cape Operating Unit, Distribution division Eskom
Lebohang Khoeli
MBA
2018

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Impact of organisational culture on the organisational performance at Northern Cape
Operating Unit, Distribution division Eskom
By
Lebohang Khoeli
Dissertation submitted to Regent Business School, South Africa in partial fulfilment of
the requirements for the degree of Master of Business Administration
Supervisor: Louise Niemand
2018

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Abstract
The primary objective of this study is to understand the impact of organisational
culture on the employee performance of Eskom. Northern Cape Operating Unit under
distribution division was used for this study.
Eskom has been South African monopoly company from when it started in south
Africa, during apartheid. We will look at how the culture of monopoly companies
affect their performance in terms of meeting the changing societal and environment
needs. Most Eskom’s power is generated by coal and that has negative impacts on
its carbon footprint and renewable energy power generation is now way forward.
Previously organisation’s performance was measured in terms of financial returns to
the shareholders now performance is measured by meeting societal and
environmental needs. Hofstede provide how national culture influence performance
therefore is broader.
To break culture down to organisational culture 3 dimensions of organizational
culture the innovative, the bureaucratic, and the supportive dimension by Wallach
(1983) and find out Eskom has been concentrating too much on which dimension
that has coursed it to be where it is now in terms of societal and environmental
performance. And we will look at Dension et al. (1991), culture types of Human relations
model, open system model, internal processes model and rational goal model and get the
idea of each with their advantages and disadvantages to looks which culture type Eskom
adopted and what made it to where it is now.
The research has been conducted by means of questionnaire survey. Quantitative
approach was used because the population is known. Hundred (100) questionnaires

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were distributed and 75 questionnaires were returned. The analysis has been done
using MS-Excel so that the variables can be represented with the help of graphs and
statistics. This has allowed the researcher to compare the different components of
the variables and with the analysis
The study also consists of the recommendations about the strategies that needs to
be taken by Eskom management so that employee performance can be enhanced.
The study concludes that the internal business procedures along with the customer
services need to be enhanced

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Declaration
I Lebohang Khoeli, do hereby declare that this dissertation is the results of my
investigation and research and that this has not been submitted in part or full for any
degree or for any other degree to any other University
_____________________________ ___________________
L.D Khoeli Date

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Acronyms
Dx – Distribution Division
NCOU – Northern Cape Operating Unit
IPP – Independent Power Producers

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Acknowledgement
Firstly, I would like to thank God the Almighty in giving me the strength and courage
without which I could not have completed the entire study. Secondly, I would like to
thank my family and relatives who gave me constant support mentally and physically
so that I can complete the study on time.
I would also like to take this opportunity to thank my Supervisor Louise Niemand
without whose, constant support and guidance, the research would not have been
possible.
Lastly, I would like to give thanks to my friends and colleagues who have helped me
in providing the appropriate information throughout the project and helped me in
doing the in-depth analysis of the research. Without their proper guidance, it was not
going to be possible for me to complete the project.
Thanks and Regards,
Yours Sincerely,

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Table of Contents
Chapter 1: Introduction................................................................................................10
1.1: Background of the Study..................................................................................11
1.2: Problem Statement...........................................................................................12
1.3: Aims and objectives of the study......................................................................13
1.4: Research questions..........................................................................................13
1.5: Research hypothesis..........................................Error! Bookmark not defined.
1.6: Significance of the study...................................................................................13
1.8: Structure of study..............................................................................................14
1.9: Conclusion........................................................................................................15
Chapter 2: Literature Review......................................................................................16
2.0: Definition of terms..............................................Error! Bookmark not defined.
2.1: Introduction.........................................................Error! Bookmark not defined.
2.2: Effect of organisational culture on performance Error! Bookmark not defined.
2.3: Hofstede’s approach to organisational culture...Error! Bookmark not defined.
2.3.1: Means-oriented versus Goal-oriented measures......Error! Bookmark not
defined.
2.3.2: Work-oriented versus Employee-oriented...Error! Bookmark not defined.
2.3.3: Professional versus Local...........................Error! Bookmark not defined.
2.3.4: Open system versus Closed system...........Error! Bookmark not defined.
2.3.5: Strict work discipline versus Easy-going work discipline. Error! Bookmark
not defined.

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2.3.6: Pragmatic versus Normative measures......Error! Bookmark not defined.
2.3.7: Power Distance..........................................................................................21
2.3.8: Individualism versus Collectivism..............................................................21
2.3.9: Masculinity/Feminity...................................................................................21
2.3.10: Uncertainty Avoidance.............................................................................22
2.4: 3-Dimensional review of organisational culture. Error! Bookmark not defined.
2.5: Effect of organisational culture on customer service.......Error! Bookmark not
defined.
2.5.1: Reliability....................................................................................................29
2.5.2: Responsiveness.........................................................................................30
2.5.3: Assurance..................................................................................................30
2.5.4: Tangibility...................................................................................................31
2.5.5: Theory of Service-Profit Chain...................................................................31
2.6: Effect of organisational culture on the internal business system.....................33
2.7: Communication, performance and organisational culture................................37
2.8: Factors affecting organisational culture............................................................25
Chapter 3: Research Methodology.............................................................................39
3.1: Introduction.......................................................................................................39
3.2: Research Outline...............................................Error! Bookmark not defined.
3.3: Research philosophy..........................................Error! Bookmark not defined.
3.3.1: Justification..................................................Error! Bookmark not defined.
3.4: Research approach............................................Error! Bookmark not defined.

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3.4.1: Justification..................................................Error! Bookmark not defined.
3.5: Research design................................................Error! Bookmark not defined.
3.5.1: Justification..................................................Error! Bookmark not defined.
3.6: Research strategy..............................................Error! Bookmark not defined.
3.6.1: Justification..................................................Error! Bookmark not defined.
3.7: Reliability Test....................................................Error! Bookmark not defined.
3.8: Sampling technique and sample size................Error! Bookmark not defined.
3.8.1: Justification..................................................Error! Bookmark not defined.
3.9: Data collection technique...................................Error! Bookmark not defined.
3.10: Data analysis technique...................................Error! Bookmark not defined.
3.11: Ethical considerations......................................Error! Bookmark not defined.
3.12: Research Limitations........................................Error! Bookmark not defined.
Reference List.............................................................................................................47
Appendices..................................................................................................................58
Appendix 1: Survey questions for employees.........................................................58

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Chapter 1: Introduction
Organisational culture is one of the essential components of gaining competitive
advantage in the market as organisation’s performance can be made more effective
by making use of the developed culture. Therefore, it is crucial for the organisation to
make employees aware of their organisational culture so that they can get hold of the
organisational system. This will benefit the employees and they will be able to
perform in a more effective way.
The development of an organisation is dependent on the identification and analysis
of the various factors that help in increasing the effectiveness of the company. The
managers of the organisation need to understand the level of commitment of the
employees so that they can improve productivity. Managers and employees must
know and understand organisation’s set of rules and objectives so that the culture
that is present in the organisation can be associated with them (Awadh & Alyahya
2013).
Management is responsible for introducing/reinforcing organisational culture so that
employees can understand how to act, behave when executing their duties. The
knowledge and understanding of the culture that is present in the organisation will
also help in improving organisational behaviour so that employees performance can
be improved (Uskurt et al. 2013).
The organisation values and norms define the culture and this study will aim to
identify the influence of organisational culture on performance of Eskom, Distribution
division Northern cape operating Unit

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1.1: Background of the Study
Eskom is the largest electricity-producing company in South Africa Africa and
produces almost 98 percent of the electricity that is consumed by the country and
about 45 percent of the energy is used all over Africa. Eskom is among the top
utilities company all over the world. The ability to develop continuously innovative
strategies and technologies to improve the business model of the organisation is a
crucial for gaining competitive advantage in present market.
The core competency of any organisation is their ability to develop a suitable
organisational culture so that business model can be improved on continuous basis.
Eskom has been facing issues in developing their organisational culture within their
business model and the study will address the issue to identify the necessary
changes required.
On the contrary, the organisational culture is very much influenced from the national
culture and different companies have different organisation culture based on the
value and norms they have developed through their social practices. Hofstede’s
cultural dimension defines the cultural differences in organisational and regions
which can be used to depict the organisational culture. Knowledge sharing is one the
important aspect of increasing organisational productivity which provides any
organisation with significant advantage in the market. However, the culture of Eskom
has been a major hindrance in developing knowledge sharing activities within the
organisation.
The conduciveness of the organisation towards knowledge management is essential
for effectively knowledge sharing within the organisation. The cultural landscape of
the organisation will be examined to understand the reason behind this barrier and

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the changes that could be incorporated to make improvements to the organisational
culture.
1.2: Background to the problem
Eskom has depended on coal for electricity supply since it was formed in
1926. It has enjoyed monopolistic position till to this day. Now with global push for
renewable energy, cheaper electricity cost and higher electricity demands Eskom has
struggled to change with new way of doing things and this study will explore the
culture that might have been present within the organisation that could have
contributed to this problem Eskom finds itself in.
With the introduction of Independent Power Producers (IPPs) into the
Electricity supply grid, Eskom may in the future loose its monopolistic position and
might even be required to change its structure and business model. The research is
being done for Northern cape operating unit which lies in the borders of Northern
cape province is where most IPPs will be in South Africa.
Performance is no longer about Profits only but it now includes Planet and
People (PPP/Triple P) for sustainability therefore if the company is not doing well on
any of PPP then it is its not performing and something must be done to improve its
performance. The changes that can be developed within the organisation can be
done with the help of technological advancements.
The culture of the organisation needs to be aligned with the goals and mission
of the company so that the employees can associate themselves in a better way with
the culture. Innovation is one of Eskom values the study will help see how
management employees value innovation
Problem Statement

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Aim of the Study
The study will aim to identify the impact of organisational culture on organisational
performance in the utility company named Eskom.
1.3: Objectives of the study
Research Objectives
 To identify the current organisational culture that is found at Eskom
 To identify the impact of organisational culture on the performance of the
organisation Eskom
 To recommend suitable strategies for improving organisational culture in
Eskom
1.4: Research questions
The current research study will be based on the following questions:
 What are the different elements in organisational culture of Eskom?
 What is the impact of organisational culture on organisational performance
in Eskom?
 What strategies can be recommended for improving the organisational
culture so that performance can be enhanced within Eskom?
1.6: Significance of the study
The study is significant, as it will highlight the current gaps in organisational culture of
Eskom and its influence on organisational performance. The study will also
recommend suitable strategy for improving the organisational culture, which can be
used by the other companies in the industry.

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Knowledge sharing is a critical issue in Eskom and the organisational culture will
have to be conducive to incorporate changes. The study will identify the issue in the
organisational cultural factors to recommend suitable strategies for improving the
culture which will facilitate knowledge sharing with the organisation
1.8: Format of the study
The first chapter is the introduction part that helps in presenting the
background of the study along with the research objectives and questions. The
second chapter will deal with the review of literature that will help in providing the
factors that helps in creating an impact of organisational culture on the performance
of the organisation. The third chapter is the research methodology, which will allow
the researcher in stating the methodological tools that are present so that the
research can be conducted accordingly.
The fourth chapter will consist of the data analysis and findings from the
questionnaire that has been prepared so that it can help in understanding the
problem that is present. The fifth chapter will consist of the concluding statement that
will sum up the entire study and provide recommendations for the company as well.
This will help the company in adopting the strategies so that the performance of the
employees can be increased to a great extent.

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Figure 1: Structure
(Source: Hoffman, Hoffman and profile 2016)
1.9: Conclusion
Chapter one presented background of the research and reasons for the
research. The aim, objectives and research questions have been stated and the
overview of what the reader can expect in more details in the coming chapters. In the
following chapter literature about organisational culture and organisational
performance will be reviewed..

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Chapter 2: Literature Review
Introduction
The literature review has been divided in to two sections where the first section will
deal with the impact of the culture on the performance of the organisation in a
financial manner and the second section will deal with impact of organisational
culture on the service that is being provided to the customers by the organisation.
Culture
Culture is defined as a set of beliefs, assumptions and values that help in defining the
ways through which the business need to be conducted (Helmreich & Merritt 2017).
As stated by Hogan and Coote (2014.), the development of organisations has some
functions that are responsible for improving sustainability through effectiveness. The
value, norms and objectives enhance the culture of an organisation. The Hofstede’s
cultural dimension is factor which evaluates the differences the values, norms and
objectives of different organisations. The cultural differences between organisations
are measured in different levels which determine the organisational practices. In the
modern business environment, organisational culture has become of the key aspect
of organisational success.
This is due to the increase in diversity within the organisation and workforce from
difference race, culture, background and gender work together to fulfill the goals set
by the stakeholders (Lonial and Carter 2015). Therefore, it is the responsibility of the
organisation and its management to introduce their organisation culture to the
employees so they can fit into the organisation.

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The organisations having proper organisational culture will have be able to enhance
the performance of the employees as it establishes learning of the surrounding
environment. Therefore, the managers in the modern business environment should
be aware about the ideal working environment so that they implement practices for
enhancing the culture and facilitate the employees to perform at their full potential
which in turn will improve the organisational culture.
On the contrary, Valmohammadi and Roshanzamir (2015) states that organisation
culture is not instrumental in bring up the organisational performance and modern
organisations should implement other strategies in order to do so. The author stated
that organisation culture is not a tool for performance management, therefore; this
study will focus on establishing the relationship between organisational culture and
performance by establishing the fact that organisational culture is essential
component of performance management.
Organisational culture
Alvesson and Sveningsson (2015) defines culture as the shared beliefs, basic
assumptions and the values and according to the author culture resides within the
organisation at different level and particularly there are three levels to it. These are
values, artifacts, creations and assumptions.
The organisation culture will define the behaviors that are appropriate within the
organisation and the ones that are not. However, this does not mean there is
homogeneity in culture across all the departments as some of the norms will be well
received by the employees within the organisation. As stated by Mills (2017),
different groups tend to develop their own set of culture within the organisation after a
certain period of time. There has significant increase in interest among various

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researchers about organisational culture as they believe that organisational culture
boosts the long-term performance of the organisation.
According to Helms Mills and Mills (2017), organisation culture are few assumptions
shared by a group of people which they have taken for granted and the group thinks,
perceives and reacts to any situation based on these beliefs. This definition clearly
signifies three facts; the work behavior is influenced by the organisational culture, the
culture within an organisation tend to operate at different levels and socialization
passes the culture of the organisation to the new members. The foundation of any
organisation is their principles and their values and in order to set up a strong
organisation and culture, the organisational values have to be strong. The values of
the organisation should relate to effective use of resources and innovation which are
key to developing a sustainable vision. Bolman and Deal (2017) states that every set
of organisation have their own set of unique organisational values for example, some
organisations focus on honesty, passion and integrity where there are other
organisation that emphasized on technology, innovation and self-improvement.
Therefore, irrespective of the culture within an organisation, the core values should
be aligned with the goals and the policies in order to excel. Moreover, the
organisational culture has a deep impact on the employees within the organisation
and poor organisational culture leads to the increase in the turnover rates.
Longman et al. (2018) states that different types of cultural setting exist in the
modern organisations and they are counter culture, sub culture, strong culture and
weak culture. Counter culture is the shared beliefs and values of a certain groups
within the organisation that have different set of beliefs than the broad organisational
culture. These set of culture is developed against forceful leaders and managers.

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The organisations accept this type of cultural environment when there is positive
influence on the employees within the organisation however, it is dangerous for the
original culture of the organisation. Organisations have a particular hierarchical
structure which leads to formation of various departments due to the different
activities they have to perform. Sub culture develops within certain group of people
either because of their geographical background or having set of goals as they
belong to the same department (Elsbach and Stigliani 2018).
This will lead better social interaction between the workforce even outside the
working shifts. A strong culture is developed when majority of the workforce hold the
same values, beliefs and norms. Therefore, the manager will have to reduce the gap
between the employees in order to develop a strong organisational culture.
The organisations that are loosely knit by their organisational values and beliefs are
known as weak culture. In this scenario, the rules are imposed onto the employees
which is responsible for creating a diverse culture between the employee objectives
and the organisational goals.
Elements of organisational culture
As stated by Schneider et al. (2017), maximizing the employee’s values are the
rational assets in supporting the individuals and the organisation to develop a strong
organisational culture. The characteristics of organisational culture are as follows:
 The organisation norms can be measured by the degree of cooperation
between the employees and the management and the quantity of work done
 The organisation sets clear set of rules for defining the behavior of the
employees in related to intergroup cooperation, productivity and customer
relationship.

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 Organisational culture will take formal procedures and common language as
behavioral regularities.
 Organisation culture is used for integration and coordination among the
different organisational units so that the efficiency of work, speed and quality
of designing and manufacturing of products or services can be improved.
As stated by Mezirow (2018.), there are different methods of identifying and learning
the culture of an organisation and they are as follows:
 Arte facts are the first factor which refers to the total physical and social
development of an organisation. This will consist of the equipment, rules,
office space, procedures and systems.
 Language is the second factor which will define the exact way in which the
organisations understand the surrounding world.
 The next factors Is the behavior pattern which defines the sets of the repeated
beliefs and action of the organisations consisting of celebrations and
ceremonies.
 Behavioral norms are the next factor which will consist of rules consist of
instructions that defines appropriate and inappropriate behaviors.
 Heroes are the organisational role models who represent the organisation to
the outside world and inspire other employees within the organisation.
 Symbolic actions define the objects, words, conditions, features or acts of the
company important to the workforce.
 Believes, attitudes and values are the factors attached to the ethical and moral
standards of the organisation. Therefore, this factor is used to judge the
appropriate behavior and action of the employees.

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Hofstede’s Cultural dimension
The Hofstede’s cultural dimension determines the dimension of organisation in
different countries. The four dimensions of Hofstede’s cultural dimension are power
distance, individualism versus collectivism, masculinity/femininity, long term versus
short term orientation and uncertainty avoidance.
Power Distance
Power distance is the acceptance of the society regarding the unbalanced power
distribution within the organisation
Individualism versus Collectivism
Individualism is the societal framework where the people focus on protecting
themselves (Jeon and Cho 2017).Collectivism is the societal framework which
focuses on protecting their own people with the help of others as a group. Masculinity
refers to the preference to heroism, achievements, materialistic rewards for success
whereas femininity represents emotions, quality of life, coordination and caring for
others.
Masculinity/Feminity
Masculinity is where the achievement, assertiveness, rewards and heroism can be
determined and this will help in the success of the organisation. Feminity on the
other hand, is where the work that is being done in the organisation is carried out
through proper coordination and emotions so that the quality of work can be
increased (Barbera 2014).

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Uncertainty Avoidance
Uncertainty avoidance describes the tendency of the society to be affected by
uncertainties and their fear to avoid any form of uncertainty. Long term orientation
focuses on patience, parsimony and future whereas short term focuses on social
responsibility, past and present and respect for customs
There are also minor measurements that can be used such as the goal versus
means orientation, employee versus work orientation, local versus professional,
closed versus open system along with work discipline in an easy going manner
versus the discipline in work and normative versus pragmatic (Chowdhury, Akhtar &
Zaheer 2013). All these measurements are discussed below in detail
Wallach Organisational culture dimensions
The cultural dimensions of an organization are mainly based on the work
environment which has been created. The environment in which employees work is
able to form a specific type of culture in the organization. In the year 1983 the
different dimensions of culture were investigated by Wallach. The three major
dimensions that have been suggested by him are, innovative dimension, bureaucratic
dimension and supportive dimension. The culture that is established in the
organization is mainly considered to be a combination of these three dimensions in
an effective manner (Evrard 2017).
Innovation dimension
The major norms that are related to the innovation dimension are based on
the risks and challenges that are a part of the work process. The employees are

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thereby free to find out the new ways which can help them in working in the
organization without any fear of failure. The major objectives that are related to the
culture in an organization are, risk taking, creative, result oriented, stimulating,
challenging, pressurized, driving and enterprising. The typical outcome that can be
gained from the innovative cultural dimension is related to the sales growth of the
organization (Yaaqoubi and Reinecke 2018).
Bureaucratic dimension
This dimension is based on the rules, efficiency and the regulations that have
clear lines related to the responsibility and the authority. The organizations which
have a high bureaucratic dimension will be able to highlight the predictability and
consistency in the rules, structures and procedures. The major characteristics that
are related to this dimension are specialized, hierarchical, inflexible and formal.
Negative types of reactions can be caused from the employees of an organization
which is based on the bureaucratic dimension (Siamagka, Christodoulides and
Michaelidou 2016).
Supportive dimension
The supportive dimension is related to the different factors that include
features like, trusting, warm, friendly, relationship oriented and sociable. The
organizations which have this cultural dimension treat the employees like a part of
the family. The work environment in this case is warm and friendly in nature and the
management is able to create an open relationship with the employees (Dato-on
2015). The atmosphere of work that is created in a supportive dimension is
collaborative in nature and the employees are and management are able to work with
each other in an effective manner. The employees also start feeling much more

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committed towards the organization if the organizational culture is supportive. The
values of the organization are thereby shared among the employees with the help of
the commitment that they are able to show (Siamagka, Christodoulides and
Michaelidou 2016).
The overall culture of the organization is therefore totally dependent on the
different cultural dimensions that have been discussed above. The combination of
these dimensions in an appropriate manner is able to develop the culture of an
organization in an efficient manner which will further be helpful in the operations of
the organization (Purce 2014).
Competing values framework
Figure 1: The competing values framework of organizational effectiveness of Quinn (Kalliath,
Bluedorn and Gillespie, 1999, p. 146).

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four dimensions of organizational effectiveness with the characteristics of these dimensions.
Below, the four cultural types will be analyzed
Human relations model (group culture)
The human relations model has been developed in the year 1920 at the time of the
industrial revolution. The productivity of the business operations was given high
levels of importance during that time. The major belief behind the human relation
model of management is people have the desire to become a part of a team which is
supportive in nature and is able to facilitate growth and development. The employees
in this case are able to receive special attention from the management and they are
also given encouragement so that they are able to perform the duties appropriately
(Wickert and Schaefer 2015). The work in the organization is given importance by the
employees which further increases their levels of productivity. The three major parts
of the studies that are based on human relations include,
 Recognition and individual attention.
 Motivation provided to the employees.
 Studies which are based on the human relations that are formed in
organizations.
The relationships are able to affect the productivity of employees within an
organization. The levels of employee productivity can increase with the help of the
positive relationships that are developed among them. The supportive organization
thereby has effect on the productivity and the motivation levels of the employees
(Scott 2015).
Open systems model (developmental culture)

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An open system is a type of system which is mainly based on the external
transactions. The system is related to the regular exchange of feedbacks with the
external environment of an organization. The open systems thereby consist of many
other elements like, inputs, goals, processes, evaluation, learning and assessments.
The open systems which are health in nature are based on the regular exchange of
information and feedback with the external environments. The open systems are able
to share the feedback outside the boundaries of the organization (Weber and
Waeger 2017). The organizations with open systems are thereby able to connect
with the external environment in an effective manner as compared to the closed
systems. The outcomes of the organizations with closed systems are received faster
in comparison to those with closed systems. The exchange of feedback by the
organizations with open systems is based on the flow of activities within the
operations (Ciabuschi, Dellestrand and Martín 2015).
Internal process model (hierarchical culture)
The internal process model is mainly based on the hierarchy, documentation,
information management and the emphasis on the measurement. The processes
which are a part of this model are able to bring control and stability. The hierarchies
mainly function in an effective manner when tasks are to be done and is understood
when the time does not act as a factor. The good managers are able to demonstrate
sound judgement with the balance of the competing and complementary values
(Garcia et al. 2016). This model is based on the stress that is given by the
management to the internal control in an organization. This model is based on the
ways by which the roles and responsibilities of the employees are monitored and
coordinated. The operational efficiency is thereby achieved with the help of
management of information, consolidated continuity and documentation control. The

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five major functions of management are therefore, specialization of the labour, chain
of command and unity and routine exercise of the authority (Hickman and Silva
2018).
Rational goal model (rational culture)
The rational goal model was introduced by Frederick Taylor in the year 1915 which
was further developed in the twentieth century. This stresses on the importance of
the external control of the managerial activities. The external control is thereby based
on the exercise of the producer and director based roles and responsibilities so that
individuals can be employed in various activities. The effectiveness of the
performance is mainly achieved with the help of goals that are set, increase of the
profits and speeding the productivity. The speed with which the profitability and
revenues of the organization increase is based on the external factors that can affect
the operations (Guiso, Sapienza and Zingales 2015). The financial incentives, the
technological power is able to maximize the outputs that are produced by the
organizational processes. The superior standards of productivity are based on the
ways by which the time is taken to complete the operations. The strength of the
model is mainly based on the ways by which the managers provide the structure and
further initiate action (Guiso, Sapienza and Zingales 2015).
4 culture types Cameron & Freeman (1991) has only four types
Clan culture
The clan culture is the type of business based culture which is made up of tribe-like
or family-like process. The clan cultures are thereby collaborative in nature and is
considered to be the least competitive as compared to the other corporate cultures.
Employer commitment, mentoring and the employee engagement are related to the

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ways by which the loyalty and empowerment will be able to drive business success
and productivity. The clan culture is however criticised for the ways by which
business organizations which have adopted this culture suffer from the lack of high
level of diversity (Groysberg et al. 2018). The low levels of diversity are based on the
ways of nurturing the environment and leading the employees in a manner which
make them less productive. The clan culture based organizations are able more
concerned about the employees who form an important part of the organizational
operations. The clan culture mainly provides importance to the employee autonomy,
flexibility and the team work rather than the conformity or competition (Alvesson and
Sveningsson 2015).
Hierarchy culture
The hierarchical organizational culture is mainly based on the structure which is
divided by the ranks which are able to define the corporate levels. The employees or
the members of the management are ranked in such a manner which helps in
dividing them according to the levels of importance. In the corporate environment the
hierarchies are mainly dependent on the structure, the rules and the top-down control
which helps in guiding the activities and business practices. The adherence to the
best practices, the considerable oversight and controlled processes. The hierarchical
corporate culture is criticised for the rigidity which is imposed on the employees by
the members of the management (Guiso, Sapienza and Zingales 2015). The major
foundation of the hierarchy culture is related to the control by the management and
the structure that has been created in an effective manner. The environment of the
organization is strict and formal in nature. The leadership is thereby based on the
ways by which the employees are monitored and coordinated as the culture mainly
provides emphasis on the predictability and the efficiency of the organizations. The

29DISSERTATION
values of the organization following this culture include uniformity and consistency
(Groysberg et al. 2018).
Adhocracy culture
The adhocracy culture is mainly based on the creativity and energy. The employees
are provided with encouragement to take the risks that are required. The leaders of
these organizations are mainly seen as the entrepreneurs or the innovators. The core
values of the organization are thereby based on agility and change. Adhocracy is an
informal and flexible type of organization which is defined with the lack of the formal
structure. This operates in an opposite manner as compared to the bureaucracy. The
major characteristics that are a part of the adhocracy culture are based on employee
empowerment and the emphasis is provided on the initiatives which are taken by
individuals. The corporate levels which exist in the organization which follow
adhocracy culture are less strict as compared to the hierarchical types of
organizations (Guiso, Sapienza and Zingales 2015). The adhocracy is mainly based
on the integrative types of operations which are also spontaneous in nature. The
response that is provided by the adhocracy culture based organizations is faster as
compared to the organizations based on bureaucracy based companies.
Market culture
The market culture in the organizations is built on the dynamics that are related to
competition and the achievement of concrete results as well. The focus is mainly goal
oriented and the leaders demanding and tough. The organization is thereby united by
the common goal which helps it to succeed and also beat the rivals. The main drivers
of value in the market culture are profitability and market share. The market culture is
based on the corporate culture which mainly emphasizes on the competitiveness

30DISSERTATION
between the organizations and the market competitors as well. The market based
model is capitalistic and aggressive in nature among the corporate cultural models.
The employees are provided with encouragement so that they are able to set difficult
goals and they strive to achieve them as well (Groysberg et al. 2018). The individual
performance is also provided importance which further leads to higher levels of
performance and the great success for the organization as well. The market model is
mainly criticised for the emphasis that is given on the achievement of individuals and
the ways by which dishonesty and the unpleasant working environment is promoted.
The major objective that is related to the market culture is the creation of superior
type of customer value and increasing the profits of the organization as well. The
changes that take place in the market are also important and affect the levels of
market culture and its strength. The strong market culture is able to drive the
organizational performance in an effective manner (Alvesson and Sveningsson
2015).

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Factors affecting organisational culture
There are several factors that help in dealing with the organisational culture. The first
factor that needs to be taken into consideration is the individuals working in the

32DISSERTATION
organisation. The employees need to contribute towards the work place so that a
strong culture can be maintained because their attitudes towards the work and their
perception need to be taken in to account. This is the foremost factor that helps in
deciding the importance of culture within the organisation (Cania 2014).
The second factor is the gender ratio among the employees. The male
counterparts cannot be dominant over female employees, as it may lead to gender
biasness within the organisation. The aggressiveness amongst the male employees
needs to be reduced so that good working conditions can be developed.(Shin and
Konrad 2017). Nature of the business of the organisation is important because it
helps to determine the culture that is present within the organisation.
One of the important factors that affects the culture within the organisation is the
goals and objectives that are being set. The goals have to be set in such a manner
that can be achieved easily by the employees so that they remain motivated and
continue to serve with the best interest (Irefin & Mechanic 2014). Individuals must be
aligned with the goals and objectives that are being set in the organisation. This also
helps the organisation in gaining a competitive advantage in the market by increasing
its level of productivity (Noasomboon 2014).
Another major factor that affects the culture within the organisation is the way in
which the employees are treated. Employees need to be given opportunity to share
their views about the work that is being done within the work place so that their views
can help in decision making by the management (Kasemsap 2014). The
organisations that allow this type of work culture helps the employees to be
committed to the company.

33DISSERTATION
. The culture that is present in the organisation needs to be friendly as well so that it
can result in increasing the level of communication among the employees through
better channels. This will allow in the interaction of the seniors and the junior
employees so that they can understand the work . Therefore it can be stated that the
increase in the culture with respect to certain dimensions present within the
organisation will also create an impact on the performance of the employees
(Cegarra-Navarro, Soto-Acosta & Wensley 2016).
Organisational performance
As stated by Shin and Konrad (2017), organisational performance refers to the
success of an organisation and its ability to sustain in highly competitive
environment. It is essential for any kind of organisation to compute their
organisational performance and balance score card one of the methods used to
measure the performance of the organisation
The dimensions of the Balance Scorecard include (Kaplan and Norton,1992)
 financial perspective;
 customer perspective;
 internal business perspective
 Learning Perspective
There are many factors involved in comprehensive measurement of performance of
an organisation such as consistency, quality and productivity. On the contrary,
criteria-based results are included in the performance indicators; it may also consist

34DISSERTATION
of relative measures and behaviors, concepts if training and education and
management training for leadership development including development in essential
skills (Pollanen et al. 2017).
Balance scorecard is an effective way of developing frameworks based on the
organisational strategy to ensure development of effective performance
measurement tool. The performance measurement system is the way of achieving
the goals and objectives of the organisation and the stakeholders. Therefore,
strategic planning to develop organisational objective is used to develop intangible
assets.
The services, performances and quality associated with the customers have features
related to finance. Performance management system enables development of non-
financial and financial reward management system. According to (Kaplan &Norton
1992), learning and feedback is the one of the most essential part of balance
scorecard. This enables the organisation to measure the areas of strategic capability
along with the current performances and the expected dynamic situations.
This data will assist the organisation and leaders to develop effective policies and
whether is on the correct path and they are progressing towards their desired goals.
Moreover, the balance scorecard can be used to bring about a change within the
organisation.
For this study the two dimensions of Internal business proceses and custormer
perspective will be used to measure organisational performance at Eskom and the
other 2 dimensions will not be included
Effects of organisational culture on performance(customer
perspective/customer service)

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The service that is provided to the customers is one of the basic requirements that
help to increase excellence and performance of the organisation. There are many
perspectives through which the enhancement of the service can be achieved by the
organisation (Yesil & Kaya 2013). This can be illustrated through the resource-based
theory and the service-profit chain theory. The resource-based theory is a crucial
factor in the company that needs to be valued so that the competitors do not get an
upper hand. Social exchange theory helps to provide further information to the
organisation regarding the influence that can be created through evaluating the
service quality based on the customers. The aspects of organisational culture that
affects the performance of the organisation can be measured through reliability,
responsiveness, assurance of service, quality of service and tangibility (Watkins
2013).
These factors are discussed below
2.5.1: Reliability
The reliability of service is the extent to which the discrepancy is present
among the expectations of the customers regarding the services that are available
and the rate of availability during the time when the service is actually needed. This is
due to the fact that the services that will be provided will be consistent in nature as
promised to the customers so that the reliability of the company can be increased in
the market (Borman & Motowidlo 2014).
In the public utility sector, it is important for the companies to provide services
due to the perceived reliability in the organisation. The customers need to be
informed regarding the services that will be provided within the time limit so that a
positive relationship can be established between the reliability and custormer

36DISSERTATION
satisfaction (Noruzy et al. 2013). It is important for the organisation to ensure that the
processes are in place that can validate and increase the experiences of the
customers through increasing the reliability of the services that are provided to the
customers.
2.5.2: Responsiveness
The responsiveness is the degree of coordination reading the needs of the
customers and their expectations regarding the products or the services provided to
them. It is also regarded as the combined efforts of an organisation to ensure that the
needs of the customers can be met within a particular time period (Shaw, Park & Kim
2013). Responsiveness is inclusive of the feedbacks that need to be given in a timely
manner along with the concerns of the clients that needs to be addressed quickly. It
is also an important factor that helps in determining the performance of the
organisation and the value perception (Chen et al. 2014).
Responsiveness is a functional factor that helps in determining whether the
service of the organisation is of better quality or not. It is important for the
organisation to ensure that most of the mechanism that are being used helps in
attracting the customers so that their needs can be met. The study will help to
establishing a relationship between the satisfaction of the customers and the rate of
responsiveness (Wu, Straub & Liang 2015).
2.5.3: Assurance
Assurance is the ability of the organisation to inspire confidence and trust
among the customers. It can be measured by organizing the right set of skills and
knowledge in the organisation so that the products and services that are offered by
the company are of the best standards (Dobre 2013). This helps to instil confidence

37DISSERTATION
among the customers about the products that are being offered by the company. It is
also the art of being polite and friendly so that the customers can be serviced well. It
is also the ability through which the organisation can provide better advice to the
customers so that they can work better. This friendliness also helps to increase
assurance of the customers so that the needs of the customers can be analysed on a
priority basis (Birasnav 2014).
2.5.4: Tangibility
Tangibility is the physical evidence that is present in the products or services.
The physical attributes that are present in the products/services includes the
buildings, aesthetics that are maintained in the office along with the other
specifications (Carter & Greer 2013). Additionally, the employees are also part of the
organisation and are the tangible assets and help in building the culture. Employees
need to be professional so that the ethics can be developed and good customer’s
perception of the customers can be achieved (Felicio, Goncalves & da Conceicao
Goncalves 2013).
2.5.5: Theory of Service-Profit Chain
This theory was developed by Heskett and Schlesinger, who states that the
performance of the organisation needs to be derived from the satisfaction of the
customers so that it can increase the level of loyalty by delivering quality services.
Employees’ satisfaction helps in improving the level of commitment so that the quality
of services can be improved. The norms and values that are present within the
organisation are some of the attributes that helps in providing a strong effect on the
stakeholders of the organisation (Gomez-Mejia, Berrone & Franco-Santos 2014).
These norms are invisible in nature, which helps in improving the employee
performance and affects the level of profits. To assess the culture that is present

38DISSERTATION
within the organisation, it is important that the role of the leaders and managers is
considered. Managers and leaders must have the same values and beliefs that are
being imparted in the company so that they can help to improve
employee/organisational performance (Tseng & Lee 2014).
There are various steps that are present in this theory that can help the
organisation to maximize the profit. The first step is the profit and growth that helps
the organisation to maintain a goof service so that the profit can increase. This will
also help increase the outcomes that are tangible in nature so that the behaviour of
the organisation in the market can be understood (Kunze, Boehm & Bruch 2013).
The second step is that it will help in judging the loyalty of the customers so that the
profits can be increased. The loyalty among the customers can only be increased
when the goods and services that are provided by the company are accepted. The
third step is the level of satisfaction that the customer is gaining from consuming the
company’s products,this helps in measuring the level of customer expectation
towards the company as well (Gomez-Mejia, Berrone & Franco-Santos 2014).
The fourth step consists of the values that the organisation follows so that the
level of satisfaction of the customers can be met. This will help the company in
believing in their products. It also help in measuring the level of skills that are present
in the company among the employees (Tseng & Lee 2014. The fifth step consists of
the level of productivity of the employees so that the products and services can be
produced. This also results in delivering the products to the customers based on the
level of skills that are present among them. Another step is that the satisfaction of the
employees, which also plays an important role. This is due to the fact that employees
loyalty towards the company can be measured as well. It also results in motivating
the employees so they can improve their performance. This also helps in maintaining

39DISSERTATION
the quality of the services within the company so that the job can be done in the
context of the demands that are present among the customers in the market (Felicio,
Goncalves & da Conceicao Goncalves 2013).
2.6: Effect of organisational culture on the internal business system
The concept of internal control within the business was introduced in the year
1949 by the American Institute of Certificated Accountants (AICPA) so that the
activities can be coordinated and the effectiveness of the operations can be
increased to a great extent. The controls that are internal in nature are supported
through a set of rules and regulations so that the basic objectives of the company
can be attained (Sabharwal 2014). The set of procedures that are present within the
organisation will help in accomplishing the strategies of business so that the level of
competency can be reached. The internal controls within the business procedures
will help the organisation in establishing the operations within the company in an
effective manner so that the policies can lead to maximisation of employees output
(Kunze, Boehm & Bruch 2013).
Culture that is present within the organisation has a variety of social
phenomena based on which it has to be judged. The corporate culture that is present
in the organisation is constructed in a multi-layered manner and is divided in to the
accessibility and observability phenomena (Harmann et al. 2013). The internal
environment of the business is based on the culture that is built on the beliefs and
assumptions of the employees and managers. The advantage that is enjoyed by the
organisation allows them to shape up the procedures so that solution can be
provided regarding any problem that is present in the organisation (Parveen, Jaafar &
Ainin 2015).

40DISSERTATION
Communication process is an important part that helps to maintain the relation
between the culture that is present in the organisation and the internal controls . This
is the major reason that the framework of internal controls along with social system
theory is used so that the channels of communication can be effective in nature. This
will help in influencing the culture that is present within the organisation so that the
level of efficiency can be increased (Verrier et al. 2014). Due to this reason,
management gets a chance to control the capability of the behaviour that is present
within the employees so that the values of the organisation can be used to influence
the internal controls. The influence of the values that are present in the society along
with the laws and regulations will enable the employees that are present to interact in
a proper manner so that the communication can be effective in nature (Ling 2013).
The internal controls are basically the representation of the efforts of the
management regarding the set of rules that will help in managing the organisation.
This will result in setting the guidelines for the behaviour of the employees along with
the actions that will result in shaping up the beliefs and behaviour of the organisation
(Hyland, Lee & Mills 2015). It will also help in moulding the beliefs of the organisation
so that a set of shared beliefs can be introduced within the organisation. This
phenomenon has to be collective in nature so that it can create a similar stimulus
among the employees working together in the organisation. This will help in
increasing the level of efficiency in the company so that the output can be maximized
(Verrier et al. 2014).
Performance management
Performance management is an integrated and strategic approach through
which the success of the organisation can be determined by improving the level of

41DISSERTATION
performance among the employees so that their individual contributions can help in
achieving the goals and objectives of the company. The main reason for this is that
the competitive advantage of the company depends on the employees and not on the
capital that is being invested (Sabharwal 2014). The potential that is present among
the human resource needs to be transformed by removing the barriers that are
present so that the employees are motivated and rejuvenated at the work place. The
capacity of competition can be increased by managing and developing the people so
that the performance of the organisation can be enhanced (Verrier et al. 2014).
The performance of the organisation is based on three outcomes performance
on the financial front, performance in the product market and the return that is being
given to the shareholders (Colwell & Joshi 2013). In a competitive environment, the
productivity of the organisation needs to be enhanced so that it can ensure the
survival of the company. The use of performance management helps in measuring
the process of monitoring regarding the accomplishment of the programs so that it
can lead to the development and attainment of the goals (Kunze, Boehm & Bruch
2013).
According to Hyland, Lee and Mills (2015), the performance can be better
when the company has the presence of a strong culture. The presence of a strong
and positive culture allows the individuals that are present in the company to perform
in a better way so that the achievement can be high and better rate of returns can be
expected by the company. The culture plays an important role in managing the
performance of the employees, as it is through this that the welfare of the employees
can be established.

42DISSERTATION
Ling (2013) stated that the culture that is present within the organisation helps
in enhancing their level of performance as well, as the issues and inquiries can be
handled along with the attitudes towards the changes that are being made within the
company. It also helps in collaboration among the employees. This allows the
organisation in achieving its goals and objectives quicklyl. The use of unified culture
within the organisation leads to the execution of the strategies along with its
implementation so that the goals can be reached.
Impact of organisational culture on organisational performance
The organisation culture can be shared and learned by staying within the
organisation. The employees in the organisation are able to take decisions based on
the cultural system developed to guide them. The different cultural levels are based
on multifaceted sets of values, assumptions and beliefs which facilitate in taking
business decisions.
The employees’ behavior is heavily affected by the organisational culture consisting
of the shared beliefs and values. The improvement in the performance in the
employees means that there will be improvement in the overall performance of the
organisation (Burke 2017). The four functions of the organisational culture are
enhancing the commitment of the employees towards the organisation, developing a
sense of identity within the employees, shaping the different behavioral patterns of
the employees by using control mechanisms and strengthening the values of the
organisation.
The organisational culture can be used as an effective tool for measurement of the
organisational performances based on the sets of values and beliefs. This will also

43DISSERTATION
promote training and development of the workforce which is essential for developing
future leaders and skills that are necessary for the changing business environment
and the consumer need.
Organisational performance is the most essential aspect for any organisation and in
order to achieve the organisational goals through balance score card an effective
organisation culture ensures that the employee performances are improved regularly
by providing them with a sense of belonging. This shows that organisational culture
will have deep impact on the performance of any organisation.
Communication, performance and organisational culture
There needs to be constant communication between the management and the
employees so that their expectations and behaviours will help in shaping up the
organisation in a proper manner. The use of effective communication process can be
done by combining the methods that will help in reaching the employees so that the
messages can be clearly sent to all the employees through press releases along with
meetings for the employees (Giauque, Anderfuhren-Biget & Varone 2013).
Communication helps in increasing the level of satisfaction among the employees, as
their problems are being taken in to consideration by the company and proper ways
are being developed so that it can be solved. This also leads to better level of
leadership so that the behaviour of the employees within the organisation can be
understood in a proper manner (Valmohammadi & Roshanzamir 2015).
To ensure that the changes within the organisation, it is necessary to take in to
consideration the level of performance.. This can be established through the proper
use of culture within the work place so that the employees have an equal opportunity
to work harder (Yesil & Kaya 2013). There are six elements that can be interrelated

44DISSERTATION
such as rituals and routines, organisational structure, control systems, power
structure, symbols and stories. The analysis of these elements helps in describing
clearly the culture that is present within the organisation and the changes that are
needed to enhance it within the system (Abukhalifeh & Som 2013).
The culture that is present within the organisation is also important for the
work place, as it helps in influencing the employees so that the company can gain a
competitive advantage in the market. It is also important, as the role of culture is to
spread awareness regarding the undesirable and unanticipated consequences that
may take place within the organisation (Latif et al. 2013). Different studies have been
conducted that showed that there is a link between the performance and culture that
is present within the organisation. Most of the studies had indicated that the strength
of the culture was more related to the financial performance on a short-term basis
(Gharakhani et al. 2013). It also showed that the relationship between the
performance and culture that is present in the organisation has been done in a
forceful manner and that the use of culture within the performance of the organisation
can lead to a better level of advantage for the company in the competitive
environment (Hur 2013).
Literature gap
The literature used in the study is based on performance evaluation and does not
include other aspects of establishing the relationship between organisational culture
and employee performance. Moreover, the literature does not discuss the different
emphasize on the role of the organisational culture in different sectors which means
that there is general analysis of the relationship. However, there is lack of empirical
literature to support the relationship and establish it.

45DISSERTATION
Chapter 3: Research Methodology
3.1: Introduction
In this chapter the research design and methodology will be discussed. Formulation
of the research questionnaires and sample will be the main things that will be
discussed in this chapter.
Research Methodology
Research is a systematic activity of identifying the different activities to fulfill the
objective of a study. The different methods of research are quasi-experimental
method, survey method, observational method, case study method, experimental
method and correlation method (Taylor, Bogdan and DeVault 2015).
In this current study, experimental method will be used for identifying the causes and
effects of the selected phenomenon. The study is using applied research as the
objective of the study has been predefined and the identified issues can be
addressed. Moreover, research methodology can be fundamental and applied
depending upon the nature of the study. In this study, it has been already stated that
the study will address a specific problem related to a organisation.
The findings and analysis will provide relevant recommendation that will be useful for
the managers in Eskom and at the same time used by other companies facing similar
problems in the industry. Therefore, the current study is an applied research. The
study will use conclusive research design which will derive relevant conclusion from
observations.
Research Strategy (Quantitative/Qualitative)

46DISSERTATION
The study will use mono method where both quantitative analysis of data will be
conducted. Research philosophy chosen in the study is positivism as it will facilitate
in conducting quantitative analysis (Flick 2015). Positivism deals with observation
and collection of realistic data. Therefore, the data collected in positivism is
quantifiable and discrete.
This means that these data can be easily represented quantitatively and will help in
improving the objectivity of the study. There are three different types of research
approaches, one is inductive, second is abductive and the third is deductive. The
inductive approach is used to develop new theories and generalizations. On the other
hand, abductive approach is used in introducing shocking facts and discusses the
reasons behind it in rest of the study.
Deductive approach is used to prove the existing theories discussed in a research so
that the formulated hypothesis can be rejected. This will enable to reach a suitable
conclusion. The study will use deductive approach so that the hypothesis that has
been formulated can be tested to reach suitable conclusion. This will also improve
the scope of observation in the study.
Research design is the choice of the ways of the collection data and analysis. There
are two types of research design, one is conclusive and other is explorative.
Explorative research is used to explore research areas but does not have the aim to
provide conclusive research in the study. The direction of the study can be changed
at any point of time but the fundamental elements will have to be kept same in the
study. The explorative is not aiming to provide conclusive evidence in the study.
Therefore, the study will determine the problem nature.

47DISSERTATION
Conclusive research consists of the research methods used to develop effective
findings in the practical scenario which will help in making decisions. Therefore, the
objective of conclusive research is to establish relationship where as explorative
research is used to develop understanding and insights.
This study will use conclusive research where the findings of the study will facilitate
the managers of the organisation to deal with the specific problem.
. Target Population and Sample
The respondents that will be addressed to collect the data are known as the target
population in any study. Target group for this study will be Eskom employees who
are working in distribution division in the Northern Cape Province. The study will
specifically target bargaining unit employees i.e employees who are in non-
managerial positions.
The study will conduct both quantitative so survey and questionnaire will be used for
collecting data. The quantitative analysis will consist of close-ended questionnaire
where the lower level employees in Eskom will be asked various questions on the
research topic.
The formulated questionnaire is a close ended questionnaire as the employees may
not have deep knowledge about the research topic. The close ended questionnaire
will facilitate in obtaining meaningful and relevant data for the study. The study
consists of 100 respondents but sampling techniques will be used to reduce the
sample population to 60 in order to reduce the complexity of the analysis section.
Sampling Strategy

48DISSERTATION
Sampling is a method of selecting sample population from the whole population.
Sampling is used when the sample size is huge or there is less availability of data to
identify suitable respondents that will effectively represent the overall population in
the study.
There are two types of sampling methods, one is probabilistic sampling and other is
non-probabilistic sampling (Silverman 2016). Probabilistic sampling uses
randomization for selecting sample population from the study. The different types of
probabilistic sampling are systematic sampling, simple random sampling, cluster
sampling, and stratified sampling.
In systematic sampling, the ith population from the sample of 1 to n will be selected
and i is the interval. In Simple random sampling, the population samples are
randomly selected so that everyone has the equal opportunity of being selected. In
stratified sampling, the population into groups that do not coincide and then
randomization is used to select sample from each of the population.
In cluster, all the above methods are used to develop clusters and select population
samples. In non-probabilistic sampling, non-randomization is used for collecting the
sample. The different non-probabilistic sampling methods are convenience sampling,
quota sampling, snowball sampling, judgement sampling and extensive sampling.
Probabilistic sampling is time consuming and expensive but provides accurate
samples that will properly represent the whole population. Non-probabilistic sampling
is used when there is a constraint in time and resources. In this study, simple random
sampling will be used for identifying the population sample of the study. The
sampling techniques that will be used will reduce the sample population to 60
Data Collection Instruments

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The tools used for collecting data in a research are known as the data collection
instruments. The study will conduct survey and questions for collecting data from the
selected respondents in the study. The quantitative analysis will use close-ended
questions to the respondents that do not have in depth knowledge about the topic.
This means that primary data is the basis of data collection in the study.
Validity and Reliability
Validity examines whether the scientific approach has been followed in the study.
Criterion validity, internal validity, content validity, external validity, construct validity,
concurrent validity and face validity are different types of validity methods
(Csikszentmihalyi and Larson 2014).
On the other hand, when other researchers use the methods used in this study to
obtain similar result is reliability in the study. In this current study, reliability is kept
high by carefully choosing all the methods and validity is improved by using ideal
methodology, time scale and authentic data samples.
Initially, the questionnaire will be sent for pilot testing so that to identify whether
desired answers can be gathered. The questionnaire will be sent to 20 respondents
and their feedback will be taken on the significance of the questions.
Data Analysis
The quantitative analysis will consist of mean, mode, median and regression. Ms
excel is the tool used for calculating descriptive statistics and regression. Ms excel
will facilitate in developing various graphs and charts in the study by developing
frequency tables of the respondents in each question. (Humphries 2017).

50DISSERTATION
The regression analysis will establish the relationship between the independent
variable organisational culture and the dependent variable organisational
performance.
Pilot Study
Pilot study is a method of improving the reliability and validity of the study by
identifying the appropriateness of the methods and observations. Pilot study is used
for analyzing the data in quantitative analysis for analyzing small samples. Pilot study
is used for analyzing data collected in non-probabilistic sampling but in this study,
randomization is used for selecting the population sample from the overall sample.
Therefore, pilot study will have to be conducted for developing relevant observations
and findings. For Pilot study 10 respondents will be used.
Administration of questionnaires
Eskom’s internal electronic communication system (email) was used to find the
respondents and also to send questionnaires because the researcher does not know
many people in the NCOU because he has been working in this province for less
than a year. The researcher communicates a lot with fellow employees via email
about internal work that has to be done and internal notification. It was convenient to
check the email contacts from list of NCOU employees on this contact list for a
sample. The respondents were asked to fill the questionnaire and return it via email.
The researcher used email to check the respondents contact details and send them
SMS and Whatsapp to remind the respondents to return the form. The email system
was the best option because it was cheaper and convenient. Most employees who
are working in NCOU are at Kimberley which is the head office and the researcher is
based in upington 400kms away from Kimberley and away from many employees.

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Limitations of the Research
In this study, the finding of the study is based on primary data collection method so
data in this study will not be compared to the already existing journals and articles.
Moreover, the study has been narrowed down to a single company and cannot
represent the overall population in the study.
The study uses single design so it cannot be backed up by qualitative data. The
results cannot be compared with the qualitative results which could have provided a
different dimension to the study.
Elimination of Bias
This study is using simple random sampling so randomization is the basis of
selecting the population sample. Therefore, bias can be eliminated by using the
probabilistic sampling and maintaining high degree of validity and reliability.
Ethical Considerations
Various studies have failed for not maintaining the ethical aspect of the research. In
this current study, anonymity of the respondents has been maintained to protect their
privacy (Creswell and Poth 2017). The respondents have not been forced to take part
in the study and they have participated of their own free will.
The respondents have been made aware of the purpose of the study so that the
objectivity of the study can be maintained. The data collected will not be manipulated
or biased to derive the desired result in the study. The general manager of Eskom,
Northern Cape operating unit has granted permission for conducting the research
and he has been provided with all the details so that there is no issue in conducting
the research.

52DISSERTATION
The management are made aware of the study objective so that they have a prior
knowledge that the research will not have any adverse effect on the organisation,

53DISSERTATION
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For validity and reliability reasons use the existing( tried and tested) questionnaire to
determine the current culture at eskom
And please update following changes to the demographic information of respondents
Appendices
Appendix 1: Survey questions for employees
1. What is your gender?
Male
Female
2. What is your age?

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20-29
30-39
40-49
50 and above
3. What is your education level?
Grade 12
College
University of Technology/Technikon
University
Postgraduae
4. Which department are you working for in NCOU?
Maintenance and operations
Asset creation
Safety Health Environment and Quality (SHEQ)
finance
Human Resource Department
Business Integration and Performance
Management (BIPM)
Organisational culture and performance at Eskom

67DISSERTATION
Strongly Agree=1 and Strongly Disagree=5
5. Eskom has a variable culture within the organisation
1 2 3 4 5
6. The employees are given goals that helps in measuring their performance
1 2 3 4 5
7. The measures are oriented towards employees to enhance work
1 2 3 4 5
8. Open performance system helps in enhancing performance of employees
1 2 3 4 5
9. The appraisals of employees are based on their performance
1 2 3 4 5
10. Communication channels are effective so that performance can be enhanced
1 2 3 4 5
Customer service and performance of employees in Eskom
Strongly Agree=1 and Strongly Disagree=5
11. Quality of customer service is given more emphasis in Eskom
1 2 3 4 5
12. Customer service has enhanced performance in Eskom
1 2 3 4 5
13. Responsive customer service is given more importance in Eskom

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1 2 3 4 5
14. Reliable customer service has enhanced performance of employees in Eskom
1 2 3 4 5
15. Assurance customer service has enhanced employee performance in Eskom
1 2 3 4 5
16. The services to customers are tangible in nature
1 2 3 4 5
Organisational culture and internal business procedures in Eskom
Strongly Agree=1 and Strongly Disagree=5
17. The procedure of HR in Eskom is internal in nature
1 2 3 4 5
18. Eskom has developed an internal audit procedure
1 2 3 4 5
19. The use of internal audits has helped in enhancing performance in Eskom
1 2 3 4 5
20. The business operational procedure has helped in enhancing performance
1 2 3 4 5
21. Eskom follows a procedure of operating through financial activities
1 2 3 4 5
22. The internal administration procedure enhances performance of Eskom

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1 2 3 4 5
Organisational performance
Strongly Agree=1 and Strongly Disagree=5
23. Organisational culture has helped in enhancing performance in Eskom
1 2 3 4 5
24. Organisational culture has enhanced employee work performance
1 2 3 4 5
25. Organisational culture has enhanced profitability
1 2 3 4 5
26. Internal business procedures have enhanced operational performance
1 2 3 4 5
27. Internal business procedures have enhanced financial performance
1 2 3 4 5