Organisational culture and organisational performance: A study of the South African public sector

Abstract

Despite initiated reforms, public sector organisations in developing countries often grapple with performance and service delivery issues. This study seeks to enrich existing literature by examining the influence of organisational cultural dimensions (i.e., involvement, consistency, adaptability, and mission) on organisational performance as a measure of effectiveness and efficiency within South Africa's public sector. Considering its importance, the impact of organisational culture on performance remains unexplored in this context. Using quantitative methodology and descriptive and causal designs, data was collected from 174 participants, including both management and non-management roles, across various public organisations in South Africa. Data was analysed using both Statistical Package for Social Sciences (SPSS) and SmartPLS. Results indicate that dimensions like involvement and adaptability have a significant correlation with organisational performance, while the relationship between mission culture and performance is only partially significant. The study provides a foundational framework for generalising findings related to public sector organisations in developing countries, specifically within the South African context. Furthermore, the practical implications for managers are that they should respond to internal and external changes and empower employees in decision-making processes. These insights demonstrate the critical role of organisational culture in the execution of performance improvement plans.