Influence of organizational culture on human error
- Pennsylvania Power and Light Co., Allentown, PA (United States)
Much has been written in contemporary business literature during the last decade describing the role that corporate culture plays in virtually every aspect of a firm`s success. In 1990 Kotter and Heskett wrote, {open_quotes}We found that firms with cultures that emphasized all of the key managerial constituencies (customers, stockholders, and employees) and leadership from managers at all levels out-performed firms that did not have those cultural traits by a huge margin. Over an eleven year period, the former increased revenues by an average of 682 percent versus 166 percent for the latter, expanded their workforce by 282 percent versus 36 percent, grew their stock prices by 901 percent versus 74 percent, and improved their net incomes by 756 percent versus 1 percent.{close_quotes} Since the mid-1980s, several electric utilities have documented their efforts to undertake strategic culture change. In almost every case, these efforts have yielded dramatic improvements in the {open_quotes}bottom-line{close_quotes} operational and financial results (e.g., Western Resources, Arizona Public Service, San Diego Gas & Electric, and Electricity Trust of South Australia). Given the body of evidence that indicates a relationship between high-performing organizational culture and the financial and business success of a firm, Pennsylvania Power & Light Company undertook a study to identify the relationship between organizational culture and the frequency, severity, and nature of human error at the Susquehanna Steam Electric Station. The underlying proposition for this asssessment is that organizational culture is an independent variable that transforms external events into organizational performance.
- OSTI ID:
- 426460
- Report Number(s):
- CONF-961103-; ISSN 0003-018X; TRN: 96:006307-0183
- Journal Information:
- Transactions of the American Nuclear Society, Vol. 75; Conference: Winter meeting of the American Nuclear Society (ANS) and the European Nuclear Society (ENS), Washington, DC (United States), 10-14 Nov 1996; Other Information: PBD: 1996
- Country of Publication:
- United States
- Language:
- English
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