Abstract:
The purpose of this study was to establish the role of organizational culture in the performance of organizations in the private sector. The study was aimed at showing the relationship if any, between the independent variable, organizational culture and the dependent variables namely; innovation & risk taking, team orientation and the outcome orientation. The researcher used a descriptive research design. The population sample consisted of part-time graduate business students. The use of questionnaires facilitated the collection of data. The researcher herself distributed the questionnaires. The findings showed that organizational culture does encourage innovation and risk taking, team work and the outcome orientation in these organizations but in varying degrees. Under innovation and risk taking, the two main drivers of this factor were the desire to explore new opportunities and the presence of champions of change. On teamwork, co-operation amongst departments and voluntary assistance in work duties were the main parameters found in the study while on the outcome orientation, performance rating according to objectives and the accountability of employees were seen to be prevalent. The study recommended that organizations in Kenya foster more innovation by encouraging employees to participate in risky opportunities irrespective of the outcome. Further, establishment of flexible working hours was suggested to stimulate innovation too. On teamwork, the researcher recommended that organizations adopt team-based rewards. These rewards would enhance more collaboration amongst individuals and positively influence good organizational performance. On the last characteristic namely outcome orientation, the researcher suggested that organizations have a formal orientation program especially for new employees. This would encourage new employees to settle in their new positions well as well as enhance their productivity too.
