Influence of organizational culture on human error

Corporate culture plays an important role in the level of success an organization can achieve. Several electric utilities have documented strategic culture change resulting in improved operational and financial performance. Building on this, PP&L undertook a study to identify the relationship between organizational culture and human error at the Susquehanna Steam Electric Station, USA. Cultural values deemed important were determined and department employees were asked to indicate the level to which they believe these values are demonstrated. This assessment was performed during five quarters, while statistical human error data was also collected. A correlation was developed with organizational culture as the independent variable and human error frequency as the dependent variable. The finding was that organizational culture was a significant determinant of human error. Additional data being collected should further refine the understanding of the relationships, which may prove invaluable as the electric utility industry undergoes the transformation underway.