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Transcript of Assessing an Indonesian Organization Culture Readiness.
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organization factors to external organization environment. The instrument is considerable
punctual in portraying organizational current condition which is flexible or stable.
Educational education particularly Universities is characterized apparent with
inflexible and resistant to change organization (Friedman, Friedman, & Pollack, 2005). In
free trade era, universities have to learn to run their organizations in more business-like.Inflexibility and the failure to respond quickly decisively to environmental change can be
dangerous. Assessing Universities organization culture will provide academician description
of their organization in its readiness to respond environmental change. This paper is
subjected to provide an organization picture to adapt in the free trade environment.
Universities organization in free trade era context
Free trade era refers to internalization trade process, which is signed with flow of
product and production factors (e.g. labor and capital) across geographical boundaries.
Internalization flow of product and production factors increase competitive among countries.
The developed countries race to market their products and expand their production factorover the world while developing countries attempt to provide competitive advantageous
environments.
Recently, Indonesia emphasizes its competitiveness factors on low cost of production
factors such cheap labor force and abundant supply of natural resources. Technology
advancement and limit availability unrenewable resources have changed the competitiveness
factors. Moreover, demand on natural conservation, health, security, and human right leads
industrialization practice into more sociable and more responsible. The competitiveness
factor turns into technology, knowledge and expertise (Tambunan, 2004). As the result, to
sustain and increase Indonesian competitive position, fulfillment of the competitiveness
factor is undeniable.
Free trade era brings its challenges on neo-liberals that emphasizes on private
ownership and distributive effect of prosperity exploration. This condition leads to
commercialization and comodification of global system economic, including water, food,
health, arts, sciences, and technology (UGM, 2004). Universities as a part of culture-
conserving and culture-creating institution in the civilizing process and humanizing are
encouraged into market based preference. Universities in free trade era are challenged into
three main changes: first, the implication of technology development and its application and
its consequences. Universities have to perceive society development that driven by market
preference criteria. Information and technology development will available as long as its
benefited. Second, globalization of information technology will be resulted citizen and
economic grow onto corporate capitalism that manifest into oligopoly and monopolistic
corporation. Third, as result of the two main challenges, class inequality will control the
society. The class will determine who and what information must be received.
All three main challenges must drive university to build sense of crisis and sense
of emergency that an action and a policy should be taken to prevent degradation of
university ability to create an education and conservation institute and culture creation. In the
other side, Universities as a provider national labor are challenged not only on their
graduates ability to compete with international workforce but also responsible to createnational expertise. Two statements above give insight that universities must able to adapt
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creates a "strong" culture based on a shared system of beliefs, values, and symbols that are
widely understood by members of an organization (Mobley, Wang, & Fang, Summer 2005).
Consistency is manifested into (1) coordination and integration-rely on different functions
and units of the organization are able to work together well to achieve common goals without
interfered by organization boundaries. (2) Agreement is an ability to reach agreement incritical issues that includes both the underlying level of agreement and the ability to reconcile
differences when they occur. (3) Core values rely on share a set of values that create a sense
of identity and a clear set of expectations.
Adaptability emphasizes translation demand of the business environment into action.
This aspect integrates a system of norms and beliefs that support the organization's capacity
to receive, interpret, and translate signals from its environment into internal behavioral
changes that increase its chances for survival, growth, and development. The adaptability
aspect impact on first, the ability to perceive and respond to the external environment;
second, the ability to respond to internal customers, regardless of level, department, or
function; and third, the capacity to restructure and re-institutionalize a set of behaviors and
processes that allow the organization to adapt (Denison & Neale, 1999). Adaptability
manifests into creating change, customer focus, and organizational learning. Creating change
imply the organization to create adaptive ways to meet changing needs. It is able to read the
business environment, quickly react to current trends, and anticipate future changes.
Customer focus highlights the organization to understand and reacts to their customer, and
anticipates their future needs. It reflects the degree to which the organization is driven by a
concern to satisfy their customer. Organizational learning underlines on how the organization
receives, translates, and interprets signals from the environment into opportunities for
encouraging innovation, gaining knowledge and developing capabilities.A mission trait provides purpose and meaning by defining a social role and external
goals for the organization. It provides a clear direction and goals that serve to define an
appropriate decision action for the organization and its members. A sense of mission allows
an organization to shape current behavior by envisioning a desired future state. It also align
internalization and identification an organization's mission that contributes to both short and
long-term commitment to the organization. Mission manifests into (1) strategic direction and
intent and intent and intent deal with clear strategic intentions convey the organization's
purpose and make it clear how everyone can contribute, and make their mark in the
industry. (2) Goals and objectives deal with clear set of goals and objectives can be linked to
the mission, vision, and strategy, and provide everyone with a clear direction in their work.
(3) Vision is a shared view of a desire future state. It embodies core values and captures the
hearts and minds of the organization's people, while providing guidance and direction (Fey &
Denison, 2003).
Applying this framework guides organization into effectiveness criteria. Previous
studies (Fey & Denison, 2003; Mobley, Wang, & Fang, Summer 2005) proved organizational
culture model focuses on the contradictions involved in simultaneously achieving internal
integration and external adaptation. At the core of this model, underlying beliefs and
assumption as the deeper level of organizational culture are typically difficult to measure and
harder to generalize (Schein E. H., 2009). However, practically this model provides
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observable and presentation underlying beliefs and assumption into the four key of cultural
traits, involvement, adaptability, mission, and consistency.
One of the uniqueness of this model is that it focuses on two paradoxes that each
company is constantly seeking to balance (Mobley, Wang, & Fang, Summer 2005). For
example, consistency versus adaptability: companies that are market-focused may encounterproblems with internal integration but those too well integrated may be over-controlled and
lacks adequate flexibility to adjust to the environment. The other is top-down vision (mission)
versus bottom-up (involvement): organizations with too much emphasis on general corporate
mission may frequently ignore the issue of employee empowerment and buying but
organizations with strong participation may have a hard time in establishing direction.
Effective organizations are those that are able to resolve these contradictions without relying
on simple trade-offs (Fey & Denison, 2003).
Research Method
The research questions are guiding this study concern on applying the models to
describe organization readiness of university in free trade era. The first question addresses
organizational culture according to the four cultural traits through descriptive research.
Second question support to emphasize the first question answer by conducting case study.
This study involves both research approaches quantitative and qualitative that data is
characterized supplemental and mutually interdependent. The collection and analysis
quantitative data followed by collection and analysis qualitative data is referring sequential
explanatory design (Tashakkori & Teddue, 2003). The purpose of the sequential explanatory
design is typically to use qualitative results to assist in explaining and interpreting the
findings of a primarily quantitative study.
(Denison & Neale, Denison
Figure 1. Denison Organization Culture
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The study is conducted in university institution as an object study. Quantitative study
involved survey on Denison culture survey to member of the organization. The questionnaire
items are adapted from Denison organization Culture survey that worked by Fey and Denison
(2003). The four traits in the model each have three indexes that are the mean of three five-
point Likert scale questions ranging from 1-5 (strongly disagree to strongly agree). Thequestionnaires distribute within simple random sampling that provides least bias and offer the
most generalizability (Sekaran, 2003). Qualitative approach considers the judgmental
sampling that the choice of respondents who are most advantageously placed or in the best
position to provide information required (Veal, 2005). About four informants are selected
according to their best organization position and their understanding on the culture context.
Reliability test is conducted to test for consistency and stability. Cronbachs alpha is
reliability coefficient that indicates how well the items in a set positively correlated to one
another (Sekaran, 2003). Cross sectional studies distribute eighty questionnaires. The respond
rate is 43, 75 percent data that are sufficient to be analyzed.
Descriptive analysis is conducted to obtain organizational cultural traits. While
univariate analysis involving differences test (t-test results) is represent influence of gender
bias.Anova (analysis of variance) provide influence of current position and educational
background In line with quantitative approach, case study method addresses reflective
opinion of organization. This approach aims
Result
The goodness of data is justified according reliability test. The result for reliability
test is .809 that considered good (Sekaran, 2003). Respondents are characterized gender
differences, position, and educational background. Position within organization are divided
into four position, there are lecture refers to teaching staff; functional staff refers to
employees who authorize certain department, administration staff refers to administrative
employees including receptionist, secretary, librarian receptionist; and supporting staff refers
to employee who support the functional staff.
54.3 percent respondents are male; this percentage does not refer to describe total
employees gender. About 52.4 percent respondents are supporting staff and lectures are least
respondents. This indicates that questionnaire responds may high in supporting staff. Most of
respondents obtain bachelor degree followed by master degree. This indicates the
organization is contained with educated resources.
Table1. Respondents Characteristics frequencies
Frequency Percent
Gender differencesMale 19 54.3
Female 16 45.7
Current positionLecture 2 5.7
Functional staff 11 31.4
Administration staff 4 11.4
Supporting staff 18 51.4
Educational background
Undergraduate/ diploma 1 2.9Bachelor 20 57.1
Master degree 13 37.1
Doctoral degree 1 2.9
Total 35 100.00Source, primary data
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Table 2 provides descriptive value of cultural traits. Involvement (3.75) trait is the
highest mean than mission (3.63) consistency (3.48) and adaptability (3.31). Within
involvement traits, empowerment (4.0) is the highest index mean, in the consistency traits
coordination and integration (4.0) is the highest. Creating change has 3.9 index mean, higher
than other manifest factors of adaptability. In mission trait, vision has highest index mean
(3.8).t-test (appendix 1) indicates genders are not influence difference perception of the
cultural traits (sig.> 0.05) except involvement trait (t=-.116;sig=016
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vary according to educational background. Case study result will be analyzed in the
following section
Discussion
Descriptive result of Independent test presents involvement (3.75) has greater index
mean than mission (3.63) consistency (3.48) and adaptability (3.31). Involvement represents
the university rely on informal, voluntary, and implied control systems, rather than formal,
explicit, bureaucratic control systems. The university organization provide internal
environment that encouraged employees active participation on the decision making. Within
involvement traits, empowerment has higher index rather than capability that indicates people
in the university organization are making decisions that they may not be capable of making.
The condition may be potential disaster waiting to happen, occurring when people
confuse empowerment with abdication or think that by saying the magic word, people wake
up capable of making business decisions regardless of experience, education, knowledge, or
ability (Denison & Neale, 1999). It is contradicting with educational demographic that mostof respondent obtain high educational background (bachelor degree). High educational
background of university organization members may be assumed sufficiency to generate right
decision for organization. However, educational degree does not enough equipped university
organization members to make right decision. Experience, knowledge, and ability are key
factor of taken right decision. Experience, knowledge, and ability are manifestation of
organizational intellectual assets (Sumita, 2008). Those intellectual assets are form of a
university organization members learning in facing business challenges.
Mean index of mission (3.63) trait addresses a clear direction and goals that serve to
define an appropriate course of action for the university organization and its members.
Direction and goals are clearly communicated to university organization members. With high
empowerment, members are encouraged to engage on goals achievement. Unfortunately,
within mission trait, vision is higher than Goals and Objectives indicates that the university
organization may have a difficult time executing or operationalizing its mission. At the helm
may be brilliant visionaries who have a difficult time translating dreams into reality.
Difficulties on executing the organization result may be indicated by lack decision making
capability of organization members particularly person in charge (authorized leaders) in those
organization.
A consistency trait is lower mean index (3.48) than involvement and mission traits.
Low consistency mean index addresses low internal integration coordination and control. The
organization has low committed employees, no key central values, a unclear method of doing
business, no tendency to promote from within, and a blurred set of do's and don'ts (Denison
& Neale, 1999). Low consistency is considerable weak culture because a shared system of
beliefs, values and symbols that are not widely understood by members of university
organization. Agreement (3.37) has the lowest index than core value and coordination (3.80)
and internal integration traits (3.97) indicate that university organization have a good
intention but become less bond when conflict or differing opinions arise. In the arising
conflict or differing opinion, everyone talking at once, people ignoring the input of others, or
withdrawal are frequently observed behaviors (Mobley, Wang, & Fang, Summer 2005).
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Adaptability (3.31) presents organization norms and beliefs that support
organizations capacity to respond external challenges has lowest mean index among other
traits. The low adaptability trait indicates, first, organization is considered less able to
perceive and respond external environment; second, less able to respond internal customers,
regardless of level, department or function and third, less capacity to restructure and re-institutionalize a set of behaviors and processes that allow the organization to adapt.
High level anxiety among employee may exist due to high mean index of creating
change (3.94) than customer focus (3.05) and organizational learning (3.65), and vision
(3.80) and strategic direction and intent (3.7), are on the low side. This condition indicates a
"change for change sake" mentality, and the changes made are often not perceived by
employees as having any particular direction or purpose.
Within free trade era, when market force is the driven factor, the crucial failure may
appear when organization address changed environment due to free trade era. University
organization will have difficulties in addressing change to adapt the new environment.
Commercialization and commodifications are undeniable in free trade era that forces many
organizations to engage including university organization. Crucial issue may appear when
university in the state of weak culture. It leads to lack of organization self identity as culture-
conserving and culture-creating institution in the civilizing process and humanizing. The
organization suffers for losing its role as educational institution.
University organization members may lead to anxiety and frustration on blurred
organization condition. Organization members experience of integration internal organization
(norms and value) to external condition (environment) drives into organization climate
discussion. Climate, portrays organizational environments as being rooted in the
organization's value system, but tends to present these social environments in relatively staticterms, describing them in terms of a fixed (and broadly applicable) set of dimensions
(Denison, 1996).
t-test by gender differences resulted there is no variation between male and female
respondent except on involvement trait(t=-.116;sig=016
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organization learning process; second, higher educational background may trigger resistance
on learning process. Vision is perceived varying by educational background. Educational
background influences variation of vision among university organization members. This may
imply that higher education background drive the vision is clearly communicated but difficult
to implement.
Case study
Case study is conducted to obtain reflective organization culture condition by
university organization members. The case study began with face to face interviews to
informants that considerable in the best position and understanding the context. The four
informants are coming from different position within organization including (lecture,
functional, administrative, and supporting staff). The informants provide information of
organization culture implementation through reflection of the norms and value of
organization.
Norms and value of organization underlies behavior of organization member. Theculture of organization is still struggling to be implemented since this organization newly
exists. Different value and characters university organization members that influence their
behavior still become challenge for internal integration (support low agreement mean index).
Although formal value and norms are socialized through formal organization forum,
organization culture does not manifest in the day to day task. The integration of norms and
value that underlies members behavior tends growing difference than institutionalized norm
and value. Organization member admit its norm and values are more effective to cope with
daily activity and relation harmonization.
In the organizational life, people tend competing against each other rather than
fighting the real competition. The heavy internal focus, the organization tends to focus on
internal competition, rather than external competition. The competition is developed to drive
the quality of members work. Employees are encouraged to give the best ability in
organization development. However, the negative competition impact has not being
considerable.
Leader of this organization have strong characters and often influence in the taken
decision. Taken decision often involve of leader personal desire and ambition that less
consider organization resources capability. The strong force of leader asides with high
potential employee capability may address low organizational buying in. Low organizational
buying is being realized by the informant due to employee resignation frequency. Employee
resignation frequency tends high (data of employee resignation cannot be provided) in this
university organization. Although various possibilities appear due to reason of employee
resignation, This condition proves that the organization failed to engage organization vision
and employee vision.
Conclusion and limitation
The study captures current condition of university organization. Involvement is the
highest trait among cultural traits. Although the highest involvement means the positive side,
high empowerment that does not aside with lower capability index lead into waiting potential
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disaster. The statement implies that university organization members are lack of capability in
executing strategy and create right decision.
Adaptability is the lowest traits of university organization culture implies lack of
organization respond on external environment, respond to internal customer and less capacity
to restructure and re-institutionalize a set of behaviors and processes that allow theorganization to adapt. This condition is not benefited the organization because they will
unable to exist. In the context of free trade era, which emphasizes running organization like
business fashioned, lack ability to adapt and create right decision is a potential factor for
organization failure. The organization will unable to exist and compete within turbulence
environment.
Denison organizational culture survey provides the importance insight of current
organization condition. The survey is practitioner approach that simple to apply but capture
reality or organization. Aside with descriptive study, face to face interview provides
reflective opinion of captured cultural traits. Indirectly, qualitative study gives cause and
effect linkages of the organization condition.
This study emphasize on simple analysis and considers less provide linkage on other
variable such as existing environment, organization performance. Control variable such as
gender differences and educational background is unexpected influence variation of cultural
traits. Due to lack linkage to other variable, this study is limited to explain the variation.
During discussion of this study several result test can be answered due to lack of provided
data such as insight of difference culture perceive by gender. Further research may examine
influence of gender more specific.
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Appendix
Appendix 1. Independent sample test result
Independent Samples Test
Levene's Test
for Equalityof Variances t-test for Equality of Means
F Sig. t df
Sig.
(2-tailed)
Mean
Difference
Std. Error
Difference
95% Confidence
Interval of the
Difference
Lower Upper
Involvement Equal variances
assumed6.470 .016 -.123 33 .903 -.03563 .29015 -.62594 .55467
Equal variances
not assumed-.116 20.855 .909 -.03563 .30649 -.67328 .60201
Empowerment Equal variances
assumed.053 .820 -.823 33 .416 -.29276 .35551 -1.01606 .43053
Equal variances
not assumed-.816 30.527 .421 -.29276 .35894 -1.02529 .43976
Team orientation Equal variances
assumed2.353 .135 -.872 33 .389 -.27303 .31308 -.91000 .36394
Equal variances
not assumed-.830 22.005 .415 -.27303 .32889 -.95509 .40904
Capability
Development
Equal variances
assumed.812 .374 .941 33 .354 .33224 .35305 -.38605 1.05053
Equal variances
not assumed.924 28.874 .363 .33224 .35950 -.40316 1.06764
Consistency Equal variances
assumed.514 .479 -.162 33 .872 -.04179 .25758 -.56584 .48226
Equal variances
not assumed-.159 28.591 .875 -.04179 .26264 -.57928 .49570
Core value Equal variances
assumed2.818 .103 .575 33 .569 .20724 .36039 -.52598 .94045
Equal variances
not assumed.563 28.229 .578 .20724 .36809 -.54649 .96096
Agreement Equal variances
assumed.005 .947 .306 33 .762 .10855 .35474 -.61317 .83027
Equal variances
not assumed.304 31.275 .763 .10855 .35656 -.61840 .83550
Coordination and
integration
Equal variances
assumed.016 .901 -1.824 33 .077 -.51316 .28132 -1.08551 .05919
Equal variances
not assumed-1.843 32.887 .074 -.51316 .27841 -1.07966 .05335
Adaptability Equal variances
assumed
.045 .833 -.539 33 .593 -.15393 .28549 -.73477 .42691
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Equal variances
not assumed-.540 32.147 .593 -.15393 .28513 -.73461 .42675
Creating change Equal variances
assumed.602 .443 -1.439 33 .160 -.45066 .31323 -1.08793 .18661
Equal variances
not assumed -1.442 32.249 .159 -.45066 .31254 -1.08709 .18578
Customer focus Equal variances
assumed.034 .854 -.313 33 .756 -.12500 .39952 -.93782 .68782
Equal variances
not assumed-.314 32.443 .755 -.12500 .39789 -.93504 .68504
Organizational
learning
Equal variances
assumed.741 .396 .607 33 .548 .17434 .28708 -.40972 .75840
Equal variances
not assumed.602 30.637 .552 .17434 .28966 -.41671 .76539
Mission Equal variancesassumed
2.588 .117 -1.710 33 .097 -.50034 .29265 -1.09574 .09506
Equal variances
not assumed-1.759 32.248 .088 -.50034 .28445 -1.07957 .07889
Strategic
direction and
intent and intent
Equal variances
assumed4.664 .038 -1.538 33 .134 -.57895 .37651 -1.34495 .18706
Equal variances
not assumed-1.598 30.676 .120 -.57895 .36226 -1.31810 .16020
Goals and
objectives
Equal variances
assumed.265 .610 -.976 33 .336 -.29605 .30338 -.91329 .32118
Equal variancesnot assumed
-.977 32.187 .336 -.29605 .30289 -.91287 .32077
Vision Equal variances
assumed.306 .584 -1.506 33 .142 -.48355 .32119 -1.13701 .16991
Equal variances
not assumed-1.529 33.000 .136 -.48355 .31631 -1.12709 .15998
Source, primary data
Appendix 2. ANOVA table by current position
ANOVA
Sum of Squares df Mean Square F Sig.
Involvement Between Groups .011 1 .011 .015 .903
Within Groups 24.130 33 .731
Total 24.141 34
Empowerment Between Groups .744 1 .744 .678 .416
Within Groups 36.227 33 1.098
Total 36.971 34
Team orientation Between Groups .647 1 .647 .760 .389Within Groups 28.095 33 .851
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Total 28.743 34
Capability development Between Groups .959 1 .959 .886 .354
Within Groups 35.727 33 1.083
Total 36.686 34
Consistency Between Groups .015 1 .015 .026 .872
Within Groups 19.017 33 .576
Total 19.032 34
Core value Between Groups .373 1 .373 .331 .569
Within Groups 37.227 33 1.128
Total 37.600 34
Agreement Between Groups .102 1 .102 .094 .762
Within Groups 36.069 33 1.093
Total 36.171 34
Coordination and internal
integration
Between Groups 2.287 1 2.287 3.327 .077
Within Groups 22.684 33 .687
Total 24.971 34
Adaptability Between Groups .206 1 .206 .291 .593
Within Groups 23.362 33 .708
Total 23.568 34
Creating change Between Groups 1.764 1 1.764 2.070 .160
Within Groups 28.122 33 .852
Total 29.886 34
Customer focus Between Groups .136 1 .136 .098 .756
Within Groups 45.750 33 1.386
Total 45.886 34
Organizational learning Between Groups .264 1 .264 .369 .548
Within Groups 23.622 33 .716
Total 23.886 34
Mission Between Groups 2.174 1 2.174 2.923 .097
Within Groups 24.548 33 .744
Total 26.722 34
Strategic direction and
intent and intent
Between Groups 2.911 1 2.911 2.364 .134
Within Groups 40.632 33 1.231
Total 43.543 34
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Goals and objectives Between Groups .761 1 .761 .952 .336
Within Groups 26.382 33 .799
Total 27.143 34
Vision Between Groups 2.031 1 2.031 2.267 .142
Within Groups 29.569 33 .896
Total 31.600 34
Source, primary data
Appendix 3. ANOVA Table by educational background
ANOVA
Sum of Squares df Mean Square F Sig.
Involvement Between Groups 1.817 3 .606 .841 .482
Within Groups 22.324 31 .720
Total 24.141 34
Empowerment Between Groups 2.048 3 .683 .606 .616
Within Groups 34.923 31 1.127
Total 36.971 34
Team orientation Between Groups 2.020 3 .673 .781 .514
Within Groups 26.723 31 .862
Total 28.743 34
Capability development Between Groups 1.716 3 .572 .507 .680
Within Groups 34.969 31 1.128
Total 36.686 34
Consistency Between Groups 2.115 3 .705 1.292 .295
Within Groups 16.917 31 .546
Total 19.032 34
Core value Between Groups 1.973 3 .658 .572 .638
Within Groups 35.627 31 1.149
Total 37.600 34
Agreement Between Groups 1.191 3 .397 .352 .788
Within Groups 34.981 31 1.128
Total 36.171 34
Coordination and
internal integration
Between Groups 5.479 3 1.826 2.905 .050
Within Groups 19.492 31 .629
Total 24.971 34
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8/8/2019 Assessing an Indonesian Organization Culture Readiness.
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Adaptability Between Groups 1.307 3 .436 .607 .616
Within Groups 22.261 31 .718
Total 23.568 34
Creating change Between Groups 3.828 3 1.276 1.518 .229
Within Groups 26.058 31 .841
Total 29.886 34
Customer focus Between Groups .413 3 .138 .094 .963
Within Groups 45.473 31 1.467
Total 45.886 34
Organizational learning Between Groups 6.936 3 2.312 4.228 .013
Within Groups 16.950 31 .547
Total 23.886 34
Mission Between Groups 1.294 3 .431 .526 .668
Within Groups 25.429 31 .820
Total 26.722 34
Strategic direction and
intent and intent
Between Groups 3.035 3 1.012 .774 .517
Within Groups 40.508 31 1.307
Total 43.543 34
Goals and objectives Between Groups 2.143 3 .714 .886 .459
Within Groups 25.000 31 .806
Total 27.143 34
Vision Between Groups 2.281 3 .760 .804 .501
Within Groups 29.319 31 .946
Total 31.600 34
Source, primary data