Organizational Culture and Accuracy of Performance Forecasting in Large Manufacturing Firms, in Kenya
E.W. Chindia, F. N. Kibera
This article explores the possibility of reducing and prioritizing dimensions of organizational culture in large manufacturing firms (LMFs) to a few basic characteristics for management to adopt in achieving accuracy of performance forecasting (APF). The objective was to reduce and prioritize elements of organizational culture for management to focus on in the development of a winning culture. APF is an aspect of manufacturing that is seldom derived correctly in many LMFs, in Kenya. However, since LMFs generally recruit skilled and experienced staff, this survey presumes that the presence of skilled manpower ensures APF in preparing budgets. Therefore, management can prioritize cultural dimensions to minimize the confusion brought about by the many elements of culture in order to manage operations effectively. The study identified the multiple dimensions of culture in LMFs and by using factor analysis, reduced these into a smaller number of factors. Factor analysis was done after collecting data using a structured questionnaire administered among randomly selected LMFs, in Kenya. Results of the analysis indicated that dimensions of organizational culture can be condensed into two basic groups of factors where the most important cultural practices are: suitability performance and efficiency, success in business, management focusing on internal integration, and management placing a premium on collaboration.