EFFECT OF ORGANIZATIONAL CULTURE ON EMPLOYEE PERFORMANCE IN FIVE-STAR HOTELS: A CASE STUDY OF SAROVA HOTELS

Abstract

This research focuses on how the organizational culture can affect the performance of employees at the Sarova Hotels in Nairobi, Kenya. The performance of employees was also expected to continue to be central in the identification of service quality, operational effectiveness, and customer satisfaction in the hospitality sector. Nevertheless, the productivity and service delivery of employees remained a burden on many organizations, which in many cases was not due to the differences in the internal organizational culture. The primary aim of the research was to establish the effect of adaptive culture, role culture, ethical culture, and team culture on employee performance. Role Theory, the Organizational Culture Theory of Denison, Social Learning Theory, and the Social Identity Theory were used to guide the study and clarify that the role, shared values, learned behaviors, and group identification have an impact on employee performance. The sample population was 103 employees who were sampled by seven departments of the Sarova Hotels located in Nairobi. A census approach was used because the population is manageable, whereas stratified random sampling was utilized to guarantee representation of all the departments during quantitative analysis. The structured questionnaires with closed-ended questions based on a five-point Likert scale were used as primary data. To determine reliability and validity, a pilot study was carried out at the Hilton Hotel, taking a sample of 10 percent of the target population. Analysis of data was carried out using SPSS 26. Descriptive and inferential statistics were implemented to establish the associations between organizational culture and employee performance. The results of descriptive statistics indicated that adaptive culture, role culture, ethical culture, and team culture are highly practiced, and employee performance is also highly rated (M = 4.350). Adaptive culture (r = .476; p = .000), role culture (r = .531; p = .000), ethical culture (r = .714; p = .000), and team culture (r = .621; p = .000) were found to have positive and statistically significant relationships with the performance of employees. The four cultural dimensions together accounted for a significant amount of variance in employee performance, and together predicted employee performance outcomes, as shown in regression analysis. Ethical culture proved to be the strongest predictor, with team culture, role culture, and adaptive culture coming in second, third, and fourth, respectively. The study found that organizational culture has a positive impact on the performance of employees in the areas of flexibility, role clarity, ethical behavior, and collaboration. It also found that good cultural practices helped to increase the productivity, the quality of the service, and the effectiveness of the employees in the hotel. Based on the findings of the study, it was recommended that management should be more robust in training their staff on ethics, teamwork, and adaptability, communicate roles and responsibilities, and introduce more innovative practices. It also suggested regular review using performance evaluation, employee feedback, and regular culture evaluation to maintain high performance levels among employees within the organization.