The relationship between performance measurement and organisational culture systems in Kenya manufacturing sector

Abstract

The aim of this study was to determine relationship between organizational culture systems and performance measurement systems (PMS). The objectives are:to establish the organizational culture systems in Kenyan manufacturing sector; to establish performance measurement systems used in Kenyan manufacturing sector;and to establish the relationship between the type of organizational culture and PMS used by the manufacturing sector. To test this relationship empirically data were collected through aquestionnaire survey of manufacturing firms in Kenya. Hierarchical cluster analysis was used to identify two PMS groups and assign them to traditional and contemporary types and two types of organizational culture and assign them to flexible and control cultures. The study established that the firms which had control culture used traditional PMS and those that had the flexible culture used contemporary PMS.Therefore the culture of an organization plays a key role in determining the type of the PMS used hence there is a relationship between these two variables