Impact of Organisational Culture on Performance at Eskom

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

1DISSERTATION
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

2DISSERTATION
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

3DISSERTATION
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.