Professional Documents
Culture Documents
Abstract:
This research paper investigates the intricate relationship between organizational
culture, employee satisfaction, and organizational commitment in the context of the
modern workplace, characterized by constant change and challenges. Through an
extensive literature review, it highlights the pivotal role of nurturing a positive
organizational culture in enhancing both employee satisfaction and commitment,
while also addressing the importance of employee engagement and adaptability to
change. Additionally, the study discusses the impact of employee experience and
cynicism on employee attitudes and introduces new research findings that provide
fresh insights into this complex relationship. Overall, it offers practical implications for
managing and enhancing organizational culture in contemporary organizations.
Introduction:
Organizational culture, similar to a firm's personality, impacts the collective behaviors
and actions of both the company as a whole and its individual employees in pursuit
of strategic and personal goals (Stachová, 2013). It influences the conscious and
subconscious parts of individuals, enhancing their connection to work and regulating
interpersonal dynamics among employees (Kachaáková, 2010). This intangible force
includes important beliefs, values, and standards and is reflected in symbols and
artifacts resulting from successful problem-solving inside a company (Ambál &
Hoghová, 2008). Organizations, which are fundamental to society, gradually evolve
unique organizational cultures over time. The main goal of this culture is to foster
harmony and cohesiveness and ignite employee excitement and innovation,
ultimately improving the business's economic efficiency (Tianya, 2015). Each
business has a distinctive personality that defines its neighborhood. Once the
organizational structure is established, this invisible but powerful force impacts how
people behave within the organization, making appropriate behavior second nature
for all of its participants (Citeman, 2008).
In an environment marked by economic instability and social change, global
competitiveness necessitates the prudent use of people-oriented resources
(Rugman et al., 2012). According to Albert et al. (2000), structural and institutional
approaches to organizations are becoming increasingly dependent on the
commitment and conviction of their members. The discussion of organizational
culture has been characterized in a variety of ways. According to Kilman et al.
(1985), it has "something to do with the people and unique quality and style of the
organization" or it is the "expressive non-rational qualities of an organization."
Pettigrew (1979), who presented anthropological concepts and illustrated how they
could be used in organizational analysis, marked the beginning of the formal study of
organizational culture. The idea has been improved upon by later scholars, such as
Denison and Mishra (1995), Schein (1985a, b), Siehl and Martin (1988, 1990), and
Wallach (1983). Chatman and Jehn (1994), Denison and Mishra (1995), and Kotter
and Heskett (1992) have all explicitly used culture as a variable for research
purposes, contributing to the discipline of culture-performance studies.
Literature Review:
Many researchers have conducted research works on different aspects of
Relationship Between Organisational Culture, Employee Satisfaction, and
Organisational Commitment . Several important empirical research findings
have been taken into consideration.
Importance of Organisation’s culture
An organization's emphasis on the group culture domain will positively correlate with
organizational effectiveness. Organizations that value teamwork, cohesion, and
employee involvement will tend to outperform organizations that do not focus on
these values. (Brian T. Gregory, Stanley G. Harris, Achilles A. Armenakis,
Christopher L. Shook 2008). The findings suggest that culture impacts employee
attitudes and that those attitudes have an influence on organizational outcomes
(Brian T. Gregory, Stanley G. Harris, Achilles A. Armenakis, Christopher L. Shook
2008). Organizational culture has been identified as a major driver behind employee
longevity (Desselle, Raja, Andrews, & Lui, 2018).
In a study by Miller and Xiao (2007), culture played a central role in building
resilience during high-trauma patient cases, simplifying workflows, and aiding
decision-making. New technology, such as printed graphs and whiteboards,
supported social interaction among staff. Gauthereau (2004) demonstrated how
cultures in hospital wards can enhance patient safety by fostering flexibility and
adapting care processes to local situations. Cultural variables also play a role in
organizational development and the adoption of new behaviors. They are
strategically important during periods of change (Pfeffer, 1981).
Carlström and Ekman (2004) ,discusses the complexity of organizational culture and
its contested nature, emphasizing the challenges in defining and understanding it.
While some scholars view culture as a tool for comprehending organizational life, the
paper argues for recognizing culture as a variable influencing organizational
behavior. It reveals diverse organizational cultures in security networks, with
interviewees acknowledging the gradual nature of intentional cultural change. The
study emphasises the significance of structural and relational properties in shaping
culture
Alma Whiteley( 2013), study leveraged a corporate culture change initiative to gain
insights into analysing corporate culture change and recognizing employees' agency
in workplace learning. It offers theoretical implications and highlights the active role
employees play in interpreting and reconstituting managerial messages. The concept
of "adaptive culture structuration" emerges as a potential area for future research
and practice, emphasizing the need for negotiated practice within a negotiated
learning space for sustainable cultural change(Bertelsen, 2000).
However, a middle ground exists between these extreme views. Some researchers
argue that culture can be manipulated, but only under specific environmental
conditions such as crisis, leadership turnover, and organizational formation. During
these periods of transformation, organizations have opportunities to manipulate
culture (Martin, 1985; Robbins, 1987). Nevertheless, even under these conditions,
the existence of a strong culture and subcultures can make culture management
more challenging (Robbins, 1987). The concept of cultural strength is also essential
in understanding organizational culture. Cultural strength refers to the extent to
which values are consistent and cohesive across an organization. Stronger cultures
are more resistant to change (Deal and Kennedy, 1982; Sathe, 1983; Schall, 1983;
Weick, 1985; DiTomaso, 1987).
David J. Stanley (2005) discusses the concept of cynicism and its potential
relevance to the relationship between organizational culture, employee satisfaction,
and organizational commitment. Cynicism, as defined in the study, is characterized
by disbelief in the motives of others, including management. This finding suggests
that cynicism could be a factor influencing employee satisfaction and organizational
commitment within an organization.
Furthermore, the study addresses the relationship between cynicism and resistance
to organizational change. Cynicism, especially change-specific cynicism, is found to
be related to employees' intention to resist or their actual resistance to change
initiatives. This suggests that a negative organizational culture or perceived insincere
motives within the organization can contribute to cynicism, which in turn can hinder
employee commitment and satisfaction.
Employee attitudes will mediate the relationship between organizational culture and
effectiveness (Brian T. Gregory, Stanley G. Harris, Achilles A. Armenakis,
Christopher L. Shook 2008), and these attitudes are directly related to the
satisfaction he has from his job. Research, however, has revealed that job
satisfaction is a multidimensional phenomenon, influenced by several internal and
external factors, like the individual’s values, principles, personality and expectations
and the job’s nature, the opportunities provided etc. (Davies et al., 2006). In many
cases there is a significant difference between an organizations’ culture and the
culture preferred by its employees. This fact should be taken into consideration, as
many researches have revealed that it is likely to lead to decrease in job
performance and increase job dissatisfaction and job burnout (Dimitrios Belias,
Athanasios Koustelios 2014).
Sarantuya Jigjiddorj's study in 2020 further confirms the positive link between
organizational culture and employee satisfaction and commitment. It emphasises the
role of organizational culture in effective human resources management and shaping
an organization's distinct identity and behaviour. A culture that promotes cooperation,
support, and a sense of belonging can significantly enhance employee satisfaction
and commitment (Jigjiddorj, 2020).
Employee engagement can be divided into two main areas: job engagement and
organizational engagement. Job engagement pertains to an individual's emotional
and cognitive focus on work-related goals, while organizational engagement is an
individual's involvement, satisfaction, and enthusiasm regarding their workplace
(Harter, Schmidt & Hayes, 2002).Employee engagement is a crucial aspect of
organizational success, benefiting both employees and the organization itself.
Engaged employees are proactive contributors who utilise their talents, build
productive relationships, and consistently perform at high levels. They play a
significant role in driving innovation and moving the organization forward (Van Allen,
2013).Furthermore, employee emotional competence, which involves recognizing
and regulating emotions in oneself and others, has a positive impact on customer
experiences and satisfaction. Studies have shown that emotionally competent
employees lead to more positive customer experiences and service (Giardini &
Frese, 2008; Menguc et al., 2013).
Odom et al. (1990) investigated the relationships between organizational culture and
three elements of employee behavior, namely, commitment, work-group cohesion,
and job satisfaction. He concluded that the bureaucratic culture, which dominated
their sample of transportation organizations, was not the culture most conducive to
the creation of employee commitment, job satisfaction, and work-group cohesion.
Nystrom (1993) investigating health care organizations, found that employees in
strong cultures tend to express greater organizational commitment as well as higher
job satisfaction. Social exchange theory suggests that when employees perceive that
the organization helps them in some way, such as by providing care and support for
their family life, they will reciprocate with positive attitudes and behaviors (Blau,
1964). Consistent with social exchange theory, research demonstrates that one way
employees reciprocate their belief that their organization is supportive of their family
is by forming a stronger attachment to the organization (Allen, 2001; Odle-Dusseau,
Britt, & Greene-Shortridge, 2012; Tang, Siu, & Cheung, 2014). Pool (2000) examined
the relationship between organisational culture and job stressors. He found that
executives working in a constructive culture reduced the role of stressors in their
working environment.
According to Meyer and Allen (1997), a committed employee is the one who stays
with the organisation through thick and thin, attends work regularly, puts in a full day
(and maybe more), protects company’s assets, shares company goals and others.
Thus, having a committed workforce would be an added advantage to an
organisation. Bulent Aydin in his research in 2009 says there is significant correlation
between organizational culture and employee satisfaction Employee satisfaction has
positive significant correlations with organizational culture and spiritual leadership in
metalworking firms (Bulent Aydin & Adnan Ceylan 2009).
(Gallup, 2006; Dow Jones Business News, 2007; Singh, 2013). Brewer and Clippard
(2002) discussed that organizational culture is a significant tool for improving
organizational commitment. Previous research findings support that there is a
relationship between organizational culture and organisational commitment. In
addition, enough evidence has been provided by the research to support this
relationship.Therefore, organisations that attempt to improve their employees’
commitment need to make extra effort to build a strong organisational culture (Dima
H. Aranki 2013). For certain types of corporate culture, certain types of
organisational commitment models are appropriate in the organisational setting than
others. In other words, there is a match or compatibility between the type of
organisational culture and type of organisational commitment required to motivate
the employees in an organisation. Thus, in order to motivate the employees, it may
be necessary to determine the cultural type first, and then prescribe the appropriate
commitment type to be emphasised in an organisation. For example, in the
consensual culture, top managers need to emphasize the affective commitment in
developing their key personnel so that they could perform effectively in their
managerial work or organisational work setting (Md. Zabid Abdul Rashid, Murali
Sambasivan and Juliana Johari 2003). Abdul Rashid’s research also underscores
that corporate culture and organisational commitment significantly influence
performance, potentially leading to superior outcomes. Managers can benefit by first
assessing their organisation's prevailing culture, recognizing its strengths and
weaknesses. They should then aim to cultivate cultures that align better with both
employees and the organisational context. Additionally, managers should
strategically match individuals to the organisational culture and subsequently
motivate them with the suitable level of commitment to foster enhanced
performance. For instance, in cases of a bureaucratic culture, altering the culture
and aligning commitment appropriately becomes crucial for managerial success.
Maartje PAAIS says employees are valuable assets that must be maintained by
companies or organizations because they are the spearhead of the production
process. The composition of motivation as a driving factor in improving employee
performance and satisfaction is inseparable from the role of leadership to change the
organizational atmosphere to be more optimal and professional (Maartje PAAIS,
Jozef R. PATTIRUHU 2020)
Benefits of Commitment
Several studies highlight the benefits of employee commitment. For instance, a study
of nearly 50,000 businesses across 34 countries found that organizations with higher
employee engagement had significantly greater odds of success. Companies in the
99th percentile of engagement had four times the success rate compared to those in
the bottom half (Van Allen, 2013). Moreover, top-quartile units reported lower
absenteeism, turnover, shrinkage, safety incidents, and higher customer metrics,
productivity, and profitability. Examples from companies like Standard Chartered
Bank, Marks & Spencer, and JCPenney demonstrate that highly engaged employees
lead to higher returns, increased sales, and greater operating income. Research by
Gallup reported in the Harvard Business Review indicates that, on average, only
about 30 percent of employees in any company are actively engaged, while
approximately 20 percent are actively disengaged (Sanford, 2002). Imagine the
potential organizational outcomes if 100 percent of the workforce were actively
engaged. It has been estimated that low employee engagement costs the US
economy approximately $370 billion per year (Moreland, 2013). Shim et al. (2015)
showed that officers committed to group culture are more committed to their
organizations. Messner (2013) also suggested that there is a positive relationship
between organizational culture and organizational commitment, and it also
recommended designing a corporate culture change strategy in order to increase
organizational commitment.
Methodology:
Research Design
Data Collection
Inclusion Criteria
Exclusion Criteria
Literature Review
Conclusion
Research Design:This study employed a systematic literature review approach to
gather and analyze relevant research papers, journals, and articles.The systematic
review method allows for a comprehensive synthesis of existing literature on the
subject. The systematic literature review methodology ensures the validity and
reliability of the findings by following a structured and transparent process.
This approach minimizes bias and enhances the credibility of the research.
Inclusion Criteria: Initial search results were screened based on relevance to the
research topic. Only peer-reviewed articles, journals, and research papers written in
English were considered. Studies that provided insights into the relationship between
organizational culture, employee satisfaction, and organizational commitment were
included.
Exclusion Criteria: Articles that did not address the research topic or lacked
relevant data were excluded. Duplicate publications were removed to ensure the
uniqueness of the selected papers.
Data Screening and Selection: Approximately 70 papers were identified during the
initial search. After applying inclusion and exclusion criteria, approximately 60 papers
were shortlisted for the literature review.
Literature Review: The selected papers were thoroughly reviewed and analyzed to
extract key findings, methodologies, and conclusions.An emphasis was placed on
identifying trends, patterns, and inconsistencies in the literature. The findings from
the selected papers were synthesized to identify common themes, relationships, and
factors that emerged regarding the interplay between organizational culture,
employee satisfaction, and organizational commitment.
Conclusions: The findings from the literature review were used to draw relevant
conclusions about the relationship between organizational culture, employee
satisfaction, and organizational commitment.
Limitations:
Possible limitations of this study include the reliance on existing literature and the
potential for publication bias. The study's generalizability is also subject to the quality
and diversity of the selected papers.
Key Findings
Employee Engagement:
● Employee engagement is crucial for organizational success, benefiting both
employees and the organization itself. Engaged employees contribute
proactively, build productive relationships, and consistently perform at high
levels.
● Organizations with higher employee engagement have significantly greater
odds of success, with lower absenteeism, turnover, and higher productivity
and profitability.
Benefits of Commitment:
● High levels of employee commitment lead to several benefits, including
increased organizational success, lower absenteeism and turnover, and
higher customer metrics, productivity, and profitability.
● Employee engagement and commitment are essential for achieving
organizational goals and economic success.
Recommendations
Based on the extensive literature review provided on the relationship between
organizational culture, employee satisfaction, and organizational commitment, here
are some recommendations for organizations and researchers:
Align Organizational Culture with Goals: Recognize that specific cultural elements
can have a more significant impact on performance and employee satisfaction than
overall cultural strength. Therefore, organizations should strategically shape their
culture to align with their performance goals.
Consider Cultural Fit: Recognize that there may be a disconnect between the
organization's culture and employees' preferred culture. Address this misalignment
to prevent decreases in job performance and increases in job dissatisfaction.
Match Culture and Commitment: Consider the type of organizational culture and
its compatibility with the type of organizational commitment required. Match
individuals to the culture and commitment level that aligns best with both employees
and the organizational context.
Conclusion :
The literature review delves into the intricate relationship between organizational
culture, employee satisfaction, and organizational commitment, offering valuable
insights into the dynamics that shape modern workplaces. It becomes evident that
organizational culture serves as a pivotal driver, with its influence extending far
beyond traditional boundaries. Research consistently underscores the significance of
a positive organizational culture that values teamwork, transparency, and employee
growth opportunities, as it correlates with higher levels of employee satisfaction and
commitment. This alignment between culture and employee attitudes underscores
the central role of leadership practices in fostering these desirable attributes.
Studies affirm the positive link between organizational culture, employee satisfaction,
and organizational commitment. A supportive and cooperative culture leads to higher
levels of commitment, job satisfaction, and engagement. Employee emotional
competence is identified as a contributor to positive customer experiences. The
review also addresses the potential benefits of organizational commitment, including
higher success rates, productivity, profitability, and lower turnover. The research
provides valuable insights into the practical implications of aligning organizational
culture with strategic goals, emphasizing the need for ongoing cultivation and
adaptation.
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