Organisational culture and its effects on the performance of long-term insurance franchises in South Africa

Abstract

This study examines the relationship between organisational culture and its effects on company performance. Its makes use of different long term insurance brokerages at the Liberty Group, as these businesses are easily comparable and are affected by the same market conditions. The study firstly looks to define organisational culture, after that the different measures of organisational culture are examined. The Denison organisational culture model was chosen as a fair representation of a businesses organisational culture. The model uses a survey to construct an organisational culture profile for each business. Surveys were sent out in order to build a profile for each operation. These profiles were then compared to the different company’s performance using a regression type analysis. After analysing the returned surveys data it was decided to only evaluate companies with more than 35 consultants as the data was more normalised. 276 responses were recorded. The study found some evidence of a link between organisational culture and performance; although, there were some limitations to the findings, this study definitely builds a case for further research in this area.