Abstract
This research-based chapter investigates the impact of organizational culture on organizational performance in the context of Malaysian healthcare industry during the COVID 19 pandemic. The study developed a framework based on Daniel Denison's organizational culture model with organizational culture as second order contrast comprised of factors namely adaptability, involvement, consistency, and mission. The data was collected from 202 healthcare professionals working in hospitals in Malaysia. Data collection was conducted using self-administered online questionnaire measuring items on Likert scale of 1-7. The data were purified and assessed for its reliability and normality using SPSS 22. This then was followed by confirmatory factor analysis, validity assessment and structural equation modelling using AMOS 24 software. The results of the research exhibited that the proposed model has appropriate fit and organizational culture has a direct strong positive impact on organizational performance.
TopIntroduction
The healthcare system in Malaysia is divided into two segments which is a government-led and funded public sector, and a thriving private sector that has evolved exponentially over the last quarter of a century (MHTC, 2020). According to MHTC (2020), although the public sector serves 65% of the population, only 45% of all registered doctors and fewer specialists cater to the population. However, doctors practicing in Malaysia must complete three years of service in public healthcare to warranty sufficient cover for the population. Malaysian citizens pay for public healthcare through the general taxation of income; therefore, patients pay a nominal fee in this heavily subsidized public healthcare sector, which is only applicable for Malaysian nationals (MHTC, 2020). Foreigners may seek public healthcare with additional fees payable or opt for private healthcare available. Although public healthcare is a cheaper option, private healthcare has its advantages, such as providing faster services as there are more doctors in the sector due to better working conditions and higher remuneration packages (MHTC, 2020). However, public hospitals do not have the same excellence in the services and care of patients as private healthcare (Sbmedix, 2017), there is a lack of urgency among healthcare employees in performing duties, and government healthcare administration seems to be causing bottlenecks everywhere.
According to a survey taken by Cheema (2017), 25% of the population stopped seeking medical treatment at government hospitals due to excessive waits. In government hospitals, patients often have to wait for weeks to see a specialist, and surgery postponements are very common as beds are scarce to obtain because most hospitals are full (Cheema, 2017). Healthcare providers in public hospitals have little accountability, and most of the services are provided by doctors in training or junior doctors. Although Malaysians prefer private healthcare, it is costly to pay out of pocket for it as medical services and surgeries are high due to its profit-based nature of the organization (Cheema, 2017). Henceforth, private healthcare is accessible to only the affluent or people with private health insurance. According to MOH (2020), the Malaysian government's commitment to providing high-quality healthcare accessible to everyone has been unparalleled, to what it was in the past, through providing clinics and hospitals nationwide; there are still shortages of quality healthcare facilities in the remote parts of the country.
Key Terms in this Chapter
Involvement: It is ability of an organization to engage and involve members of the organizations and integrate them with the culture.
Consistency: Consistency of an organization is how firm an organization is in implementing policies, procedures, and rules,
Organizational Performance: The performance or the organization is assessment of to what extend an organization has achieved its set goals and objectives. Organizational performance can be financial as well as non-financial performance. Financial performance includes aspects related to revenue, profits etc. while non-financial performance include organizations brand, employees, and other qualitative asses.
Organizational Culture: Culture is based on customs, beliefs and shared attitudes and reflets in written or unwritten rules which are considered as valid by the society. Similarly, organizational culture comprised of expectations, experiences, philosophy, as well as the values that guide employee's behavior and future expectations. In simple words, it is nothing, but the way things should be done in an organization.
Adaptability: It can be defined as ability to vary administrative functioning and leadership styles depending on the culture and environment in which they are operating.