Organizational Culture and Performance of Level Five Hospitals in Nairobi City County, Kenya

Abstract

The state of the health sector in a country determines the development of the welfare and quality of life of its citizens. The Kenyan health sector faces challenges in its work that lead to inefficient service delivery. Therefore, this study aimed to examine the effect of organizational culture on the performance of a Level 5 hospital in Nairobi, Kenya. In particular, this study examines the influence of adhocratic culture, market culture, hierarchical culture and clan culture on company performance. It is based on Schein's theory of organizational culture, stakeholder theory, and resource-based view theory. Both descriptive and explanatory research projects were used. The study targeted 20 level five hospitals in Nairobi County. All the hospitals were included in the study and therefore it was a census. The unit of observation included 10 department heads from each hospital. A total of 200 respondents were expected to participate in the study. Structured questionnaire was used to obtain primary data. The analysis used descriptive and inferential statistics to evaluate the results. Pilot data was used to measure the questionnaire's validity and reliability. Frequencies, percentages, means, and standard deviation were used in descriptive statistical analysis. Inferential statistics were used to determine how variables were related. It consisted of correlation and regression analysis to assess the relationship between the independent and dependent variables. The study found out that adhocracy culture, market culture, hierarchical culture, and clan culture had a positive correlation with firm performance. The four aspects of organizational culture were also found to have a statistically significant effect on firm performance. The management of level five hospitals should promote adaptability and also encourage individual initiatives. The management should promote productivity, effectiveness and result optimization. The management should further encourage formalization in the work environment, and standardization of services. Finally, the management should promote loyalty, morale, commitment, teamwork, and participation.