The main objective of the study was to examine the effect of the organizational culture on organizational performance at Kenya School of Monetary Studies

The main objective of the study was to examine the effect of the organizational culture on organizational performance at Kenya School of Monetary Studies (KSMS). More specifically, the study aimed at ascertaining the effect of organizational culture on the different attributes of organizational performance of KSMS, the extent to which organizational culture affects the customer service at KSMS, and establishing the relationship between organizational culture and internal business procedures at KSMS.
The study adopted a descriptive survey research design. The population of the study was composed of 110 employees of KSMS, out of which a stratified sampling was used to draw out a sample size of 80 respondents. The sample frame consisted of a list of all KSMS employees obtained from KSMS HR office. This study relied on primary data, which was collected using an electronic questionnaire emailed to respondents. A pilot test was conducted using 10 questionnaires to establish the validity and reliability of the study. The study had a reliability Cronbach Alpha value of (0.879). The study data was analyzed for descriptive statistics (frequencies and percentages) and inferential statistics (correlation and regression analysis). Statistical Package for Social Sciences (SPSS) software aided in data analysis.
The findings on the on the effect of organizational culture on performance reveled the existence of statistically significant relationship between organizational culture and performance, r (0.658); p < 0.01. The constituent components of organizational culture at KSMS including mean oriented measures, work oriented measures, professional oriented measures, open system culture and pragmatic approach all contributed to the significance of the relationship. The findings on the effect of organizational culture on customer service equally revealed the existence of a significant relationship between organizational culture and customer service, r (0.573); p < 0.01. The constituent components of customer service including provision of reliable service, responsive service, tangible service, and quality service all contributed to the significance of the relationship. The findings on the effect of organizational culture on internal business procedures also revealed the existence of a significant relationship between organizational culture and internal business procedures, r (0.553); p < 0.01. The constituent components of internal business procedures including human resource processes, internal audit procedures, administrative procedures and finance procedures all contributed to the significance of the relationship. The findings of this study have established the existence of a significant relationship between organizational culture and organizational performance. Therefore, the study concludes that all constituent components of organizational culture including goal oriented measures, work oriented measures, employee oriented measures, open culture system, and professional work culture enhance organizational performance. This study has established a strong positive relationship between organizational culture and customer service. Therefore, the study concludes that the organization culture strongly influences customer service at KSMS. The constituent components of customer service including responsive servive, reliable service, tangible customer care, quality service, and assurance of service were all significantly influenced by organizational culture at KSMS. The study has established the existence of a strong positive and statistically significant relationship between organizational culture and internal business procedures. Therefore, this study concludes that all constituent components of internal business procedures including finance procedures, internal audit systems, business administration systems, and human resource procedures were all influenced by KSMS organizational culture.
This study concludes that internal finance procedures, internal audit systems, administration procedures, and human resource procedures are significantly influenced by organizational culture. Therefore, management at KSMS should invest more in systems and structures that enhance the utilization of finance procedures, and internal audit systems on a consistent basis.
Based on the strong link between organizational culture and performance, it is recommended that KSMS should invest more in positive organizational culture practices that contribute significantly towards organizational performance. Since this study established a strong relationship between organizational culture and customer service, it is recommended that KSMS management should invest more resources in attributes of customer care that were positively impacted by the organizational culture.