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The Impact Of Organizational Culture On Employee Commitment

The Impact Of Organizational Culture On Employee Commitment

Abstract

The following research concerned with the objective to find the impact of organizational culture on employee commitment. Employee commitment is used to measure the attitude, behavior and conducts of employee within the boundaries of organizational culture. For data analysis and for performing different validity tests IBM SPSS V. 21 was used. It was found that organizational culture have a considerable impact on employee commitment. It was also discovered that Age had notable relation with employee commitment. When employees turn 35+ they do not like to switch jobs and they prefer to remain in the organization where they are working.
Keywords: Organizational Culture, Employee Commitment.

Acknowledgement
First and foremost I would like to thanks Allah Almighty for giving me the power and wisdom to complete this research thesis and without whose help this could not have been completed. I am also exceptionally thankful to my supervisor, who guided me at each step and from whose knowledge and experience I benefited a lot. Last but not the least I would like to thank my parents and family for giving me support and encouraged me to complete this research. I would also like to thank my friends and class fellows for their kind support and valuable feedback.

Table of Contents

Introduction………………………………………………………………………………7
Scope of the Study 8
Problem Statement 8
Conceptualization 35
Variables 35
Dependent Variable 35
Independent Variables 35
Demographic Variables 36
Conceptual Framework 36
Research Hypothesis 37
Hypothesis 1 37
Hypothesis 2 37
Hypothesis 3 37
Hypothesis 4 37
Hypothesis 5 38
Hypothesis 6 38
Research Methodology 39
Research Objectives 39
Research Design 39
Purpose of study 39
Type of study 39
Study setting 40
Population 40
Unit of Analysis 40
Time Horizon 40
Sampling Type 40
Sample Size 41
Research Tool 41
Applied Tests 41
Regression test Analysis between Organizational Culture and Employee Commitment 49
Correlation Tests 51
Nonparametric Correlations 51
Mann-Whitney Tests 52
Mann-Whitney test between Genders of Employees and Employee Commitment 52
Mann-Whitney test between Marital Status of Employees and Employee Commitment 53
Kruskal-Wallis Tests 54
Kruskal-Wallis test between Age group of employees and employee commitment 54
Kruskal-Wallis test between Monthly Income of employees and employee commitment 55
Kruskal-Wallis test between education of employees and employee commitment 56
Findings and Recommendations 57
Bibliography 60
Appendix………………………………………………………………………………….63

Introduction:

Organizational culture describes the procedures in which employees behave in a firm. Organizational culture can be seen as the exceptional design of common goals, behaviors, customs, principles, values, opportunities, socialization and expectations of individuals in the company. Organizational culture is therefore associated with the character of the company, showing people’s behavior even when they are not directed regarding their tasks. Research studies stated that organizational culture puts a substantial impact on corporate culture, especially in the field of competence, efficiency and commitment of employees. This mean that by emerging a suitable organizational culture, companies can achieve success. That’s why there is necessity to study the impact of organizational culture on individual’s commitment to the company. (Clugston, Kennedy, Denison 1984)
It is assumed that organizational culture impacts individual’s sense of commitment, empathy and belongingness to work place. Lokand Crawford noticed that such thoughts might rationally be expected to make an impact on employee’s commitment. The study is important for quickly emerging country such as Pakistan as there is great necessity to understand how organizational culture create values in forming positive behavior of employees towards organizational commitment. This could help in improving behaviors of employees at workplace which will lead to employee commitment. Tentatively, it is imperious to improve our understanding of how organizational culture impacts employees commitment in a developing country like Pakistan. Finally the research findings will help managers in decision making especially in the field of hiring, recruitment, up gradation, training, motivation and instituting in organizational culture. (Lok and Crawford 2004)
Employee commitment is defined as, “the degree to which an employee identifies with the organization and wants to continue actively participating in it”.

The interest in this topic is due to the fact the employee commitment is an important elements which is compulsory for organizational success. When employee is strongly committed with an organization then there are less chances for disloyalty with company. Employee empowerment, job satisfaction, performance appraisal and employee retention formulates a strong foundation for organizational commitment. Because of the importance of employee commitment several research studies has been conducted to check out the importance of relationship between organizational culture and employee commitment. (George, Allen, Mackenzie 2003)
According to Nelson, employee commitment is very worthy for the sound growth of organization. Intensified or demotivated employees are unproductively affect the work place environment continuously. In today’s world if employees need are not fully satisfied they will become demotivate which will cause ultimate problems for organization. Because without human capital you can’t even think of doing business. So Nelson, in his research findings put a great emphasize on employee’s commitments. If today you show care for your employees then they will show care for your clients. It’s just like a give and take relation. So employee commitment in any business is very important. Now old trends have been changed when people say that make your customers happy, but in today’s world make your employees happy they will make your customers happy. So Nelson stated that adopt a friendly culture in your office so that employee can feel relaxed at work place, when he/ she feels relaxed then he/ she will show performance as well. (Nelson, Allen, Shenroy 2002)

Scope of the Study

The scope of this research study is to find out how an organizational culture influences employee commitment in organizations. In this research study our key focus is on to determine the relationship between organizational culture and employee commitment. I am going to conduct research study on the IT sector of Pakistan, as it is rapidly developing industry in Pakistan and mostly researchers at the corporate culture in this sector. So, this research will help managers in finding out the linkages between organizational culture and employee commitment in the IT industry of Pakistan.

Problem Statement

In this research study our main focus will be on finding out the impact of organization culture on employee commitment in the IT sector of Pakistan. So mentioned below statement will describe problem statement.
A focused statement of the problem would be:
What is the impact between organizational culture and employee commitment in the IT sector of Pakistan?

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