Studying the clarity of organizational mission on …journal-archieves31.webs.com/1105-1127.pdfStudying the clarity of organizational mission on employee performance based on Denison

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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS

COPY RIGHT © 2013 Institute of Interdisciplinary Business Research 1105

APRIL 2013

VOL 4, NO 12

Studying the clarity of organizational mission on employee

performance based on Denison model in Torfeh Negar Company

33

Vajiheh Aghamohsenifashami,34

Mohammadmahdi Moghadam,

Dr. Narges Hassanmoradi35

, Dr. Farzad Fakhimi36

Abstract

The aim of this study is investigate the influence of clarity of organizational mission on the

performance of human resources in the torfeh negar company. In this research, mission

dimension in Denison model is used to recognize the clarity of organizational mission

following his studies and comprehensive performance evaluation model for evaluating

employee performance. Methods: a descriptive – correlation research method was utilized.

The data gathering tools include the Denison’s organizational mission questionnaire and

forms and documents related to employee performance evaluation in 3 periods of time in the

H.R department. The Cranach’s alpha method was used in order to estimate the reliability of

a questionnaire. The Cronbach's Coefficient Alpha method is 0.88 respectively. The

population is consisted of full staff torfehnegar company, their total number is 210 within

regard to Morgan table, the sample 132 employees were selected through sequential

sampling that 120 questionnaires were returned to researcher. Pearson correlation analysis

was used for statistical analysis. The results of this research showed that clarity

organizational mission has significant and positive effect on employees performance in

1. M.A of Public management, Islamic Azad University, Tehran - Shomal branch, faculty of social science &

management 2. M.A of public management, Islamic Azad University, Tehran - Shomal branch, faculty of social science &

management 3. Professor, PHD, in training management, Islamic Azad University, Tehran - Shomal branch, faculty of social

science & management 4.

Professor, PHD, in administrative management, Islamic Azad University, Tehran - Shomal branch, faculty of

social science & management

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three indicators: process indicators and criteria, reviews hierarchy management and HR

indicators but it doesn`t have positive influence on goals and programs.

Key words: Torfeh Negar Company – organizational mission- Denison model- employees’

performance.

Introduction

In the modern world we witness huge changes in different fields, always the environment

faces challenge and competiveness has been increased. Organizational systems should

utilize intro-perspective and retro-perspective programming (Fred R 2012). If organization

accommodate changes and activate in internal external environment with economic and

social and technologic changes they must have comprehensive insight and consider different

necessities.

Moreover in this time the main comprehensive competitive resources for organization are

effective human resources. today human resources is the most valuable factor of

production and also the most important resources for each organization in competition and

it is considered as inseparable factor in strategic programming. In organization which

competitiveness advantage is the principle for organization to survive, recognizing and

understanding organization mission is important. if the mission for organizational be clear

for all; this can proved agreement toward main goal for all levels in organization and all

people can be focus on main goal and by creating proper values with common goals in

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company this can promote responsibility and commitment among employees and finally

high level performance of employees can be achieved(Campbell 2001).

Organization mission and related and independent variables definitions:

Organization mission and its dimensions

Organizational mission- David (1997) believes that current view about organizational

mission is resulted from Draker . He believes that this question: what is our activity? Means

what is our mission? In this regard it can be said that the organizational mission is a phrase

which distinguishes the intention of an organization with other ones (Emamiyan 2007) due

to the importance of transparency of organizational mission in an organization for manager

and employees now different perspectives of organizational mission are considered

perfectly. If the mission of an organization is announced to stockholder as written

documents we have provided mission of organization (Arabi 2007 and Denison 2000) have

introduce strategic targeting and perspective and goals as 3 elements of mission.

The importance of mission for organization in strategic management literature has been

emphasized perfectly. A research which recently was conducted on mission of 500 fortune

companies and compared them perfectly and it indicated that companies with high

performances have comprehensive organizational mission.

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Organizational perspective:

Dwivedi describes that the perspectives is the ability of leader to imagine future and some

perspectives related to understand future this definition is combining mental concept and

virtual resources which it is determined in perfect structure .

Goals

Organization has some goals which are formed to achieve them which in fact these goals are

long-term and organization tries to achieve goals within 3-5 years. Short-term goals of each

organization are determined based on mission and long-term goals.

Goal definition by Scott

Goals determine aim and intention to plan project and program. Those have been collected

based on process structure and convert the clear ideas to determined results.

Strategic direction and trend

Strategic coordination and direction include support rate of strategy for intelligence system

and also business strategy of organization related to intelligence system. Stresemann 1997

believes that directing is ability and presentation capability of the determined relation

between information and business performance standard in general level.

Employees’ performance and its role in improving organization’s goals

Armstrong believes that performance means achievement of goals with determined quantity

and quality .the standard of success for each organization and performance quality rate of

employees in that organization to measure success of organization some human resources

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must be considered which in this regard the proper guidelines are presented to coordinate

goals of organization and employees and this provide conditions for organization to achieve

goals. Coordinated performance of employees with organizations goals shall have short term

and long term advantages so that managers can guide employees to achieve goals in

organization.

Research Background

About studying relation of organization mission and performance of employees many

researches have been conducted as follow:

Mr shakil Ahmad conducted a research in year 2012 entitled the effect of organizational

culture on performance management based on Denison model in Sates information institute

in Pakistan. According to information analysis it was determines that recognizing and

understanding organizational mission on performance of employees has direct and positive

effect in comparing 3 other factors and resulted score is 81%.

William phanuel and cofi darbi in year 2012 conducted a research about the effect of

mission and perspective understanding on performance and behavior of employees in high

education centers and business managers’ education and leaders and governmental mangers

in management sciences in Ghana and western Africa countries. According to the obtained

results it was determines that there is a direct relation between performance and behavior of

employees with organizational mission and perspective recognition.

Dr Mohamad Haghighy in year 2000 conducted a research about studying relation between

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organizational mission measurement and organizationalperformance. In hypotheses testing

it was determines that there is a significant and positive relation among all characteristics.

Mohammad Aslam khan in year 2010 conducted a research in media, banking, drug

equipments companies about the effect of organizational mission as facilitator factor to

improve organizational performance. According to obtained information of questionnaires

analysis it was determines that there is a significant and positive relation between

organizational mission and dimension.

Theoretical pattern of research

Describing comprehensive measurement model of organizational mission.

Due to perfect and new model of organizational culture measurement belongs to Denison

and its application in IT companies and its extendibility to all levels of organization this

model was used completely.

Describing comprehensive model of human resources performances evaluation. The most

important factor related to activities and performance of employees in each day is studying

and determining standards and process pivots which are extracted from strategy and

programs of organization.

The second factor related to evaluating goal achievement rate and programs in each unit

which have been determined based on long-term and short-term goals of organization. The

third factors related to evaluating performance and output of employees in general approved

system such as attendance and absence and educational activities and encouragement and

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work teams and success. The Forth factor related to evaluating employees performance

using management hierarchy opinion which the performance of employees are recognized

and considered by management.

Research hypotheses

The main hypotheses

Organizational mission transparency on human resources performance measurement in

Torfeh Negar companies group has significant and positive effect.

Secondary hypotheses

- Organizational perspective on human performance measurement elements in Torfe Negar

companies group has significant and positive effect.

- Recognized goals on human resources performance measurement elements in Torfe

Negar companies group have significant and positive effect.

- Tendency and strategy direction on human resources performance measurement elements

in Torfe neguor companies group have significant positive group.

Organizational mission dimension:

Organizational perspective

Goals and objectives

Strategic direction

Performance measurements

elements of employees:

Goals and programmers

Process and indices

Human resource indices

Administrative indices

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Community, sample and sampling method

This research is applicable kind and is based on descriptive data collection from survey

kind. in this research the statistical community includes all employees and experts of Torfe

Negar engineering company as 210 people and using Morgan table , 132 people with

classified sampling method were selected and the organizational mission

questionnaires were distributed to respondents.

Tools and research method

Data collection in this research includes questionnaires related to organizational mission

measurement based on Denison organizational cultural model with 15 questions also the

performance average of 120 employees and expert based on indics was analyze using

performance evaluation form of 120 subject in 3 quarters phases winter 2012 and 3 months

of winter 2012 and spring of 2012 which in this research they have been determined as the

first, second and three phases. The reliability and validity of questionnaires were confirmed

and Cronbac`s Alfa method has been used perfectly.

Research findings

The obtained findings of research indicate that 32 % of respondents were men and 68%

were women. About educational level the findings show that 51/7% were computer

graduates and 9/2% were graduates and 16/7% were accounting graduates and 14/2 were

management graduates and 10% were graduates in other fields .

In following table using obtained analysis from person correlation test the relation between

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two dependent and independent variables is determined.

Correlations

Organizational

mission

transparency

Human

resources

indices

Goals &

programs

Indices &

standards

of process

Management

hierarchy

opinions

Organizational

perspective

Strategic

direction

Long –

term goals

Pearson

Correlatio

1 .245** -.011 .219* .832** .987** .956** .979**

Sig. .007 .905 .016 .000 .000 .000 .000

N 120 120 120 120 120 120 120 120

Pearson

Correlatio

.245** 1 .065 .257** .148 .242** .256** .219*

Sig. .007 .482 .005 .106 .008 .005 .016

N 120 120 120 120 120 120 120 120

Pearson

Correlation

-.011 .065 1 .513** -.136 .064 -.142 .040

Sig .905 .482 .000 .139 .488 .122 .668

N 120 120 120 120 120 120 120 120

Pearson

Correlation

.219* .257** .513** 1 .085 .287** .051 .296**

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Sig .016 .005 .000 .354 .001 .578 .001

N 120 120 120 120 120 120 120 120

Pearson

Correlation

.832** .148 -.136 .085 1 .822** .809** .800**

Sig .000 .106 .139 .354 .000 .000 .000

N 120 120 120 120 120 120 120 120

Pearson

Correlatio n

.987** .242** .064 .287** .822** 1 .911** .973**

Sig .000 .008 .488 .001 .000 .000 .000

N 120 120 120 120 120 120 120 120

Pearson

Correlation

.956** .256** -.142 .051 .809** .911** 1 .886**

Sig .000 .005 .122 .578 .000 .000 .000

N 120 120 120 120 120 120 120 120

Pearson

Correlation

.979** .219* .040 .296** .800** .973** .886** 1

Sig .000 .016 .668 .001 .000 .000 .000

N

120 120 120 120 120 120 120 120

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Testing the main hypotheses

- Organizational mission transparency on employee’s performance measurement

elements is significant and positive.

- Organizational mission transparency on process standard of human

resources performance measurement elements is significant and positive .

So the observed r in level 5% shows the significant and positive correlation of

organizational of mission transparency on process standard score of human resources

performance. On the other hand whatever the organizational mission transparency increases

the human resources performance shall be increased and hypothesis 0 is rejected.

- The organizational mission transparency on opinions of human resources

performances management hierarchy is significant and positive.

So the observed r in level 1 % shows the significant and positive correlation of


Resources Frequency R Significant level

Organizational mission transparency and

process standers

120 .219* .016



opinion of management hierarchy

120 .832** .000

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- The organizational mission transparency on goals and programs score of human

resource performance is significant and positive.

So according to obtained results the organizational mission transparency on programs and

goals human resource performance not positive and significant so H0 is accepted.

- The organizational mission transparency on human resources indices of human

resource performances is significant and positive.

So the observed r in level 1 % shows the significant and positive correlation of




Testing secondary hypotheses



goals and programs

120 -.011 .905


Organizational mission transparency

and human resources indices

120 .245** .007

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In this part the secondary hypotheses are studied in 3 sub scales (tendency, strategy

direction, goals and perspective) and for organizational performance perfectly.

Organizational perspective has positive and significant effect on employees and

measurement elements.

Organizational perspective has positive and significant effect on process standard of human

resources performance and measurement elements.

So the observed r in level 1 % shows the significant and positive correlation of perspective

effect on process standard of human resources performance. On the other hand whatever

perspective for employees be more visible, the performance shall increase and hypothesis 0

is rejected.

Perspective has positive and significant effects on human resources indices of human

resources performance.



perspective and process standard 120 .287** .000


human resources indices and perspective 120 .242** . .01

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effect on human resources indices of human resources performance. On the other hand

whatever perspective is clearer, the human resources performance shall be increased and

hypothesis 0 is rejected.

Perspective has positive and significant effects on goals and programs of human resources

performance.

According to the obtained result, the observed r, the organizational perspective has not

significant and positive effect on programs and goals development of human resources

performance and H0 is confirmed.

- Perspective has positive and significant effect on management hierarchy opinions of

human resources perspective.


effect on management hierarchy opinions of human resources performance. On the other

hand whatever perspective for employees, the human resources performance shall be


Perspective and goals and programs 120 .064 .488


Perspevtive and management hierarchy

opinions

120 .822** .000

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increased and hypothesis 0 is rejected.

- Organizational goals have significant and positive effect on employees’ performance

measurement elements.

- Clear goals and organizational have significant and positive effect on indices and

process standard of human resources performance.

So the observed r in level 1 % shows the significant and positive correlation of long-term

goals of organization on process standard of human resources performance. On the other

hand whatever the organizational goals are clearer, the human resources performance shall

be increased and hypothesis 0 is rejected.

- Clear goals of organizational have positive and significant effect on human resource

indices of human resources performance.

So the observed r in level 5 % shows the significant and positive correlation between long-

term goals of organization influence on human resources indices. On the other hand


Clear goals and indices and process

standards

120 .296** .001


Clear goals and human resources

indices

120 .219* .016

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whatever the organizational goals are clearer, the human resources performance shall be

increased and hypothesis 0 is rejected.

- Clear goals of organizational have positive and significant effect on human resources

indices performance programs.

According to the obtained result and obtained r, long-term goals of organization have not

positive and significant on goals and human resources performance program development

and H0 is confirmed.

So the observed r in level 1 % shows the significant and positive effect of clear goals on

management hierarchy opinions. On the other hand whatever the goals are clearer, the

human resources performance shall be increased and hypothesis 0 is rejected.

- Tendency and strategic have significant and positive effect on employees

performance measurement elements.

- Tendency and strategic have significant and positive effect on indices and process

standard of human resource employees performance.


Clear goals and program 120 .040 .668


clear goals and management hierarchy

opinions

120 .800** . .000

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According to the obtained result and observed r, strategic direction and tendency have not

significant and positive effect on indices and process standard of human resources

performance of employees and H0 is confirmed perfectly.

- Tendency and strategic direction have significant and positive effect on indices and

process standard of human resource employees’ performance.

So the observed r in level 1 % shows the significant and positive correlation between

tendency and strategic direction influence on human resources indices of human resource

performance. On the other hand whatever the tendency strategic direction for employees is

clearer, the human resources performance shall be increased and hypothesis 0 is rejected.

- Tendency and strategic direction have significant and positive effect on human

resources performance programs and goals.


Tendency and strategic direction and

standard

120 .051 .578

Resources Frequency R Significant

level

Tendency and strategic direction and human

resources indices

120 .256** .005

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So the observed r in level 122 % shows there is no significant and positive correlation

between tendency and strategic human resources performance programs and goals and

hypothesis 0 is confirmed.

- Tendency and strategic direction have significant and positive on management

hierarchy opinion of human resources performance.

So the observed r in level 1 % shows there is a significant and positive correlation between

tendency and strategic direction influence on management hierarchy opinions of human

resources performance on the other hand whatever tendency and strategic direction is

clearer, the performance rate of human resources shall be increase and hypothesis 0 is

rejected.

After studying performance evaluation forms of subject based on four indices of

performance measurement and 3 phase model following information were obtained.


Tendency and strategic direction and

goals and programs

120 -.142 .122


Tendency and strategic direction

and management hierarchy opinions

120 .809** .000

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scores first phase

scores second phase

scores third phase

The char of performance employees

Employee

performance

measurement

Human resources indices Goals & programs Process standard management hierarchy opinions

Scores

third

phase

Score

s

secon

d

phase

Score

s first

phase Score

s third

phase

Scores

secon

d

phase

Scores

first

phase Scores

third

phase

Scores

secon

d

phase

Scores

first

phase Scores

third

phase

Scores

second

phase

Scores

first

phase

Employees

performance

average 75.3 73.6 68.9 70.3 70.98 62.89 89.38 82.15 80.73 76.07 74.31 73.52

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According to above information about employees’ performance it can be said that in all indices

except program and goals indices, employees’ performance in phase 3is better than the first and

second phases. But about employees performance programs and goals indices a reduction is

observed in phase 3and the second phase has higher score than the phases 3and1.

Conclusion

Using Pearson correlation coefficient the relation between organization mission transparency

and employees performance measurement elements was studied and determined that the

organizational mission transparency has significant and positive effect on indices and process

standards and human resources indices and management hierarchy opinions on the other hand

whatever employees of an organization activate about organizational mission it can improve

the performances in 3 performance measurement indices .

Due to obtained results for researcher it is suggested that to improve performance , employees

must be familiarized with experts and personnel in organizational mission process , perspective

and also many sessions must be held to informe based on documented resources . members of

each organizational unit must participate in internal goals process so that the individual goals of

employees be applicable and employees believe that if the organizational goals be realized they

can reach to their individual goals and in regarding organizational goals achievement,

employees must interact in group with increasing responsibility and with presenting proper

feedback with performance and evaluation can be announced at the end of the process.

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Documents

Studying the clarity of organizational mission on …journal-archieves31.webs.com/1105-1127.pdfStudying the clarity of organizational mission on employee performance based on Denison