The Validity and Reliability of the Organizational Culture Questionnaire

Date: March 10, 2000 Revision: 2nd Prepared by Hee-Jae Cho

Organizational Culture: Summary Tables

Contents Table 1 Index, scale, item .........................................................................................................................2 Table 2 (Continued). Index, scale, item ....................................................................................................3 Table 3 Pearson's correlation of the 12 organizational culture scale; Numbers inside the parenthesis are coefficient alpha. (N=36542) ..................................................................................6 Table 4 Descriptive Statistics and Alpha Coefficients for the Organizational Culture Questionnaire (N=36542) (After deleting the missing values: N = 36542). ....................................7 Table 5 Item-total correlations, interitem correlations, alpha value changes when items are deleted, N, Mean, S.D. (N=36542) ..................................................................................................8 Table 6 Item-total correlations, interitem correlations, alpha value changes when items are deleted, N, Mean, S.D. ......................................................................................................................9 Table 7 Inter-scale alpha ...........................................................................................................................9 Table 8 Relationship of each scale within and between indexes (For the best-fit model candidates) ......................................................................................................................................10 Table 9 Relationship of each scale within and between indexes (The best-fit model)............................10 Table 10 Rotated factor matrix: Factor loadings by maximum likelihood method for the "Involvement" scale data ................................................................................................................11 Table 11 Rotated factor matrix: Factor loadings by maximum likelihood method for the "Consistency" scale data .................................................................................................................11 Table 12 Rotated factor matrix: Factor loadings by maximum likelihood method for the "Adaptability" scale data.................................................................................................................12 Table 13 Rotated factor matrix: Factor loadings by maximum likelihood method for the "Mission" scale data........................................................................................................................12 Table 14 Goodness-of-fit for measurement models (22 structure models)...........................................13 Figure 1 The hypothetical Model............................................................................................................14 Figure 2 The best fit model:....................................................................................................................15 Figure 3 The best fit model:....................................................................................................................16

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Organizational Culture: Summary Tables

Table 1 Index, scale, item Index Scale Involvement Empowerment

Team Orientation

Capability Development

Consistency

Core Values

Agreement

Coordination and Integration

Item 1. Most employees are highly involved in their work. 2. Decisions are usually made at the level where the best information is available. 3. Information is widely shared so that everyone can get the information he or she needs when it's needed. 4. Everyone believes that he or she can have a positive impact. 5. Business planning is ongoing and involves everyone in the process to some degree. 6. Cooperation across different parts of the organization is actively encouraged. 7. People work like they are part of a team. 8. Teamwork is used to get work done, rather than hierarchy. 9. Teams are our primary building blocks. 10. Work is organized so that each person can see the relationship between his or her job and the goals of the organization. 11. Authority is delegated so that people can act on their own. 12. The "bench strength" (capability of people) is constantly improving. 13. There is continuous investment in the skills of employees. 14. The capabilities of people are viewed as an important source of competitive advantage. 15. Problems often arise because we do not have the skills necessary to do the job. (Phasing & answer reversed) 16. The leaders and managers "practice what they preach." 17. There is a characteristic management style and a distinct set of management practices. 18. There is a clear and consistent set of values that governs the way we do business. 19. Ignoring core values will get you in trouble. 20. There is an ethical code that guides our behavior and tells us right from wrong. 21. When disagreements occur, we work hard to achieve "win-win" solutions. 22. There is a "strong" culture. 23. It is easy to reach consensus, even on difficult issues. 24. We often have trouble reaching agreement on key issues. (Phasing & answer reversed) 25. There is a clear agreement about the right way and the wrong way to do things. 26. Our approach to doing business is very consistent and predictable. 27. People from different parts of the organization share a common perspective. 28. It is easy to coordinate projects across different parts of the organization. 29. Working with someone from another part of this organization is like working with someone from a different organization. (Phasing & answer reversed) 30. There is good alignment of goals across levels.

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Organizational Culture: Summary Tables

Table 2 (Continued). Index, scale, item Index Adaptability Scale Creating Change Item 31. The way things are done is very flexible and easy to change. 32. We respond well to competitors and other changes in the business environment. 33. New and improved ways to do work are continually adopted. 34. Attempts to create change usually meet with resistance. (Phasing & answer reversed) 35. Different parts of the organization often cooperate to create change. 36. Customer comments and recommendations often lead to changes. 37. Customer input directly influences our decisions. 38. All members have a deep understanding of customer wants and needs. 39. The interests of the customer often get ignored in our decisions. (Phasing & answer reversed) 40. We encourage direct contact with customers by our people. 41. We view failure as an opportunity for learning and improvement. 42. Innovation and risk taking are encouraged and rewarded. 43. Lots of things "fall between the cracks". (Phasing & answer reversed) 44. Learning is an important objective in our day-to-day work. 45. We make certain that the "right hand knows what the left hand is doing." 46. There is a long-term purpose and direction. 47. Our strategy leads other organizations to change the way they compete in the industry. 48. There is a clear mission that gives meaning and direction to our work. 49. There is a clear strategy for the future. 50. Our strategic direction is unclear to me. (Phasing & answer reversed) 51. There is widespread agreement about goals. 52. Leaders set goals that are ambitious, but realistic. 53. The leadership has "gone on record" about the objectives we are trying to meet. 54. We continuously track our progress against our stated goals. 55. People understand what needs to be done for us to succeed in the long run. 56. We have a shared vision of what the organization will be like in the future 57. Leaders have a long-term viewpoint. 58. Short-term thinking often compromises our long-term vision. (Phasing & answer reversed) 59. Our vision creates excitement and motivation for our employees. 60. We are able to meet short-term demands without compromising our long-term vision.

Customer Focus

Organizational Learning

Mission

Strategic Direction & Intent

Goals & Objectives

Vision

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Organizational Culture: Summary Tables

Strategy of Data Analysis

1. Data analysis procedure I estimated four measurement models for each index (Involvement, Consistency, Adaptability, Mission) separately. It was an item-level analysis; 15 items in each index were analyzed to check whether three scales (3 latent constructs) were extracted from 15 items. As a first step, it was to identify the presence of latent constructs (scales) in the OC questionnaire. It was to check dimensionality of the questionnaire. Analysis methods: Factor analysis: exploratory factor analysis (factor loading tables) and confirmatory factor analysis (RMSEA and fit statistics) Then for each pair of indexes, I combined them two by two and then estimated six measurement models for all indexes. It was a scale-level analysis; six scales (3 scale from each index) were analyzed to see how six scales were interrelated to each other. Finally, I estimated a structural equation model for the indexes jointly with the measurement models. 2. My Check list: Did I do this? Refinement Procedures Dimensionality Reason Identifying the presence of subfactors or superordinate factors in an instrument Methods Factor analysis: both exploratory and confirmatory factor analytic techniques are integral to this process. Empirical indicators of item consistency include item-total correlations; interitem correlations; alpha value changes when items are deleted; and, in the case of factor analysis, factor loadings. Check Here Done

Item-level statistical analysis

Content-based item-level analysis Independent sample replication

Assessment of discriminant validity

This property should be reflected in an empirical finding that item scores are highly intercorrelated; the tendency to endorse one construct indicator should be associated with the tendency to endorse other, alternative construct indicators. item content be judged to represent the content domain of the construct accurately. replicating measure refinements on an independent sample; the more rigorous process of conducting item-level refinements on one sample and then replicating measure performance on a second sample. cases were rated successful on this criterion if they reported any tests of discriminant validity, including either reports that some factors correlated with a criterion but others did not or more rigorous, convergent and discriminant validity investigations.

Done

refinement or replication necessary

When the OCQ was developed Done

Done

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Organizational Culture: Summary Tables

March 10, 2000

Organizational Culture: Summary Tables

Table 3 Pearson's correlation of the 12 organizational culture scale; Numbers inside the parenthesis are coefficient alpha. (N=36542) Scales Variable 1. Empowerment 2. Team 3. Capability development 4. Core value 5. Agreement 6. Coordination & Integration 7. Creating Change 8. Customer Focus 9. Organizational Learning 10. Strategic Direction 11. Goals & Objectives 12. Vision Mean 3.19 3.30 3.31 3.45 3.12 3.00 3.06 3.36 3.06 3.34 3.38 2.97 S.D. .73 .80 .71 .67 .68 .73 .70 .69 .73 .80 .71 .71 1 (.77) .75 .66 .60 .64 .62 .59 .48 .67 .59 .62 .62 2 (.83) .67 .61 .66 .64 .60 .48 .68 .59 .62 .62 3 4 5 6 7 8 9 10 11 12

(.70) .58 .63 .58 .59 .48 .66 .58 .60 .60

(.70) .65 .56 .49 .44 .58 .57 .60 .56

(.75) .65 .61 .49 .67 .58 .61 .62

(.76) .63 .50 .65 .59 .61 .62

(.76) .53 .67 .59 .59 .63

(.73) .54 .49 .51 .50

(.75) .63 .64 .69

(.85) .74 .73

(.80) .72

(.78)

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Organizational Culture: Summary Tables

Table 4 Descriptive Statistics and Alpha Coefficients for the Organizational Culture Questionnaire (N=36542) (After deleting the missing values: N = 36542). 4 Indexes & 12 Scales # items N Mean SD (Cronbach coefficient alpha for inter-items) (Cronbach coefficient alpha from 15 interitems) .90 (Cronbach coefficient alpha from 3 scales) .87

Involvement Empowerment Team Orientation Capability Development Consistency Core Values Agreement Coordination and Integration Adaptability Creating Change Customer Focus Organizational Learning Mission Strategic Direction & Intent Goals & Objectives Vision

5 5 5

36542 36542 36542

3.19 3.30 3.31

.73 .80 .71

.77 .83 .70 .88 .83

5 5 5

36542 36542 36542

3.45 3.12 3.00

.67 .68 .73

.70 .75 .78

.87 5 5 5 36542 36542 36542 3.06 3.36 3.06 .70 .69 .73 .76 .73 .75 .92 5 5 5 36542 36542 36542 3.34 3.38 2.97 .80 .71 .71 .85 .80 .78

.81

.89

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Organizational Culture: Summary Tables

Table 5 Item-total correlations, interitem correlations, alpha value changes when items are deleted, N, Mean, S.D. (N=36542) Index Involvement = .9 Scale Empowerment = .77 Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Item-Total Correlation .45 .60 .59 .57 .53 .58 .70 .62 .64 .57 .45 .54 .57 .56 .22 .46 .39 .59 .35 .50 .56 .43 .61 .47 .50 .43 .59 .62 .52 .60 Alpha after deleting this item .76 .71 .72 .72 .74 .80 .77 .79 .79 .81 .66 .62 .61 .61 .75 .65 .68 .59 .69 .64 .68 .73 .67 .72 .71 .77 .72 .71 .75 .72 N 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 Mean 3.8 3.04 2.97 3.12 3.05 3.44 3.33 3.22 3.37 3.14 3.29 3.23 3.27 3.47 3.27 2.98 3.30 3.41 3.73 3.80 3.31 3.38 2.92 3.04 3.13 3.21 3.02 2.70 2.94 3.14 S.D. .85 1.04 1.10 1.01 1.05 1.02 1.07 1.08 1.03 1.00 1.05 .95 1.09 1.00 1.11 1.09 .95 1.03 .93 .93 .99 .95 .91 .96 1.00 1.01 .99 .98 1.09 .94

Team Orientation = .83

Capability Development = .70

Consistency = .88

Core Values = .70

Agreement = .75

Coordination & Integration = .76

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Organizational Culture: Summary Tables

Table 6 Item-total correlations, interitem correlations, alpha value changes when items are deleted, N, Mean, S.D. Index Adaptability = .87 Scale Creating Change = .76 Item 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Item-Total Correlation .57 .52 .62 .46 .49 .57 .60 .46 .52 .35 .53 .52 .48 .46 .57 .69 .49 .74 .79 .64 .60 .58 .59 .57 .60 .63 .63 37 .60 .59 Alpha after deleting this item .71 .72 .69 .74 .74 .66 .65 .70 .68 .74 .69 .70 .72 .72 .68 .82 .87 .81 .79 .83 .76 .77 .77 .77 .76 .72 .72 .80 .73 .73 N 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 36542 Mean 2.77 3.29 3.32 2.75 3.18 3.35 3.48 3.01 3.43 3.51 3.28 2.88 2.70 3.71 2.73 3.59 3.19 3.42 3.37 3.14 3.16 3.30 3.58 3.57 3.30 3.00 3.28 2.58 2.89 3.10 S.D. 1.06 .97 1.00 1.00 .88 .93 .94 1.06 1.02 1.00 1.01 1.06 1.11 .97 1.06 .98 .94 .97 .99 1.15 .92 .99 .90 .92 .99 .98 .98 .96 1.01 .92

Customer Focus = .73

Organizational Learning = .75

Mission = .92

Strategic Direction & Intent = .85 Goals & Objectives = .80

Vision = .78

Table 7 Inter-scale alpha Alpha from 15 items .90 .88 .87 .92 Alpha from 3 scales .87 .83 .81 .89

Involvement Consistency Adaptability Mission

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Organizational Culture: Summary Tables

Table 8 Relationship of each scale within and between indexes (For the best-fit model candidates) Organizational Culture Index Involvement Scale Empowerment Team Orientation Capability Devel. Consistency Core Values Agreement Coord. & Integration Adaptability Creating Change Customer Focus Org. Learning Mission Strategic Direction Goals & Objectives Vision *** Three scales in each index (Within scale relationship) ** Significant positive relationship with other scales (Between scale relationship) * Significant negative relationship with other scales (Between scale relationship) ** (.21) * (-.17) ** (.46) * (-.67) * (-.75) Involvement *** *** *** *** *** *** *** *** *** * (-.29) *** *** *** ** (.20) * (-.67) * (-.55) * (-.37) * (-.19) Consistency Adaptability Mission

Table 9 Relationship of each scale within and between indexes (The best-fit model) Organizational Culture Index Involvement Scale Empowerment Team Orientation Capability Devel. Consistency Core Values Agreement Coord. & Integration Adaptability Creating Change Customer Focus Org. Learning Mission Strategic Direction Goals & Objectives Vision *** Three scales in each index (Within scale relationship) * Significant negative relationship with other scales (Between scale relationship) * (-.25) Involvement *** *** *** * (-.21) *** *** *** *** *** *** *** *** *** * (-.51) * (-.29) Consistency Adaptability Mission

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Organizational Culture: Summary Tables

Table 10 Rotated factor matrix: Factor loadings by maximum likelihood method for the "Involvement" scale data Items 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Variance explained by each factor (weighted) Factor 1 .24 .31 .29 .36 .35 .43 .59 .61 .68 .40 .38 .31 .21 .29 .06 4.87 Factor 2 .39 .58 .60 .46 .42 .39 .42 .33 .21 .45 .37 .30 .22 .26 .18 4.32 Factor 3 .23 .25 .26 .28 .31 .30 .28 .20 .24 .29 .31 .49 .69 .59 .20 3.81 Final Communality .26 .49 .51 .42 .39 .42 .61 .52 .56 .45 .38 .43 .57 .50 .08

Table 11 Rotated factor matrix: Factor loadings by maximum likelihood method for the "Consistency" scale data Items 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Variance explained by each factor (weighted) Factor 1 .43 .44 .64 .44 .58 .41 .49 .24 .13 .47 .47 .27 .15 .12 .37 4.28 Factor 2 .27 .15 .28 .06 .10 .24 .21 .29 .24 .31 .32 .60 .70 .57 .54 4.04 Factor 3 .39 .12 .24 .04 .17 .48 .23 .63 .58 .31 .18 .17 .24 .24 .26 3.03 Final Communality .41 .23 .55 .20 .38 .46 .36 .54 .42 .41 .35 .47 .57 .40 .49

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Organizational Culture: Summary Tables

Table 12 Rotated factor matrix: Factor loadings by maximum likelihood method for the "Adaptability" scale data -- Problematic Items 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Variance explained by each factor (weighted) Factor 1 .58 .50 .65 .41 .51 .23 .15 .33 .18 .32 .55 .57 .33 .50 .47 5.02 Factor 2 .12 .27 .22 .05 .19 .75 .84 .27 .44 .21 .13 .15 .11 .11 .11 5.13 Factor 3 .21 .21 .22 .34 .21 .11 .11 .40 .46 .19 .20 .19 .58 .18 .48 2.42 Final Communality .40 .37 .52 .29 .34 .62 .74 .34 .43 .18 .36 .39 .46 .29 .46

Table 13 Rotated factor matrix: Factor loadings by maximum likelihood method for the "Mission" scale data Items 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Variance explained by each factor (weighted) Factor 1 .36 .34 .44 .33 .30 .44 .44 .15 .25 .53 .56 .51 .39 .58 .61 6.12 Factor 2 .57 .37 .58 .79 .59 .38 .26 .27 .24 .33 .41 .38 .15 .31 .22 8.00 Factor 3 .33 .19 .35 .28 .31 .38 .43 .73 .56 .37 .31 .31 .05 .30 .20 4.80 Final Communality .57 .29 .65 .82 .53 .48 .45 .62 .43 .52 .57 .51 .17 .53 .46

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Organizational Culture: Summary Tables

Table 14 Goodness-of-fit for measurement models (22 structure models) Model Involvement * Consistency Involvement * Adaptability Involvement * Mission Consistency * Adaptability Consistency * Mission Adaptability * Mission Involvement * Consistency * Adaptability * Mission 2 384.25 62.42 463.37 226.44 329.17 625.57 3177.74 df 7 6 7 5 5 7 44 RMSEA .038 .016 .042 .035 .042 .049 .044 NFI .997 1 .997 .998 .998 .995 .990 CFI .997 1 .997 .998 .998 .995 .990 AGFI .990 .998 .987 .991 .987 .983 .975 RMSR .0042 .0017 .0064 .0039 .0035 .0053 .0071

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Organizational Culture: Summary Tables

Figure 1 The hypothetical Model Chi-square=4905.34, df=48, p=.0000, RMSEA = .053

.15

Empowerment

.62

.17

Team Orientation Capability Development Core Values

.69 .56

Involvement

1.00

.18

.94 .20 .50 .56 .58 .20

.15

Agreement Coordination & Integration

Consistency

1.00

.92

.90 .19

.84

Creating Change
.55 .44 .63

.28

Customer Focus Organizational Learning

Adaptability

1.00

.88

.14

.90 .18

Strategic Direction/Intent Goals & Objectives

.68 .61 .61

.13

Mission

1.00

.13

Vision

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Organizational Culture: Summary Tables

Figure 2 The best fit model: Chi-square=3177.74, df=44, p=.0000, RMSEA = .044

.15

Empowerment

.62

.17

Team Orientation Capability Development Core Values

.69 .56 -.21

Involvement

1.00

.18

.95

.17

.99 1.03 .57

.13

Agreement Coordination & Integration Creating Change

Consistency
-.25

1.00

.92

.21

.90 .19 .55 .44 .63 .14 -.51

.86

.28

Customer Focus Organizational Learning

Adaptability

1.00

.93

-.29 .15

.91

Strategic Direction/Intent Goals & Objectives

.93 .60 .60

.14

Mission

1.00

.14

Vision

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Organizational Culture: Summary Tables

Figure 3 The best fit model: Chi-square=3177.74, df=44, p=.0000, RMSEA = .044 (same as Figure2)

.19

Creating Change Customer Focus Organizational Learning

.55 .93 .44 .63

Strategic Direction/Intent
.60

.15

.28

Adaptability

.91

Mission

Goals & Objectives Vision

.14

.60 .14

.14

.92 .86
.15

.93 .90
.99

Empowerment Team Orientation Capability Development

.62 .69 .56

Core Values

.17

.17

Involvement

.95

Consistency

1.03 .57

Agreement Coordination & Integration

.13

.18

.21

Negative Estimate Involvement Agreement: -.21 Consistency Strategic Direction & Intent: -.25 Adaptability Core Values: -.51 Mission Agreement: -.29

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