Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Impact of Organizational Culture on Employee Retention:A Theoretical Perspective


Affiliations
1 Department of Business Administration, Shri Shankaracharya Engineering College, Shri Shankaracharya Technical Campus, Bhilai (C.G.), India
2 Shri Shankaracharya Group of Institutions, Shri Shankaracharya Technical Campus, Bhilai (C.G.), India
     

   Subscribe/Renew Journal


Organizational Culture: People join or get associated with various organizations in their lives. Every organization has a culture. Culture matters as we experience its effects on performance every day. The complexity of environmental changes forces firms to monitor the culture of their organization regularly by a variety of methods to gain a truer picture for their development process.

An organization’s culture is reflected by what is valued, the dominant managerial and leadership styles, the language and symbols, the procedures and routines, and the definitions of success that make an organization unique. The noteworthy models contributed in the context of organizational culture have been discussed. These models facilitate us in understanding/ being aware of the current status of the culture of an organization in a meaningful and productive way so that one can create, change and influence the direction of organizational culture.

Employee Retention: Corporate leaders are facing employee retention issues as the most critical workforce management challenge due to the shortage of skilled labor both in terms of continuing globalization and technological innovation, economic growth and employee turnover. Hence, every organization tries to retain a key, positive, talented, competent, skilled, trained, experienced, high potential staff for the organization's success, competitiveness and above all its survival.

The biggest factor in attracting and most importantly retaining key employee is culture. The level of congruence between an organization’s culture and employees’ value preferences can predict employee retention and turnover. An organization nurtures and maintains conducive environment that guarantees the employees’ stay in the organization. It is important for employees to feel like they are part of a team, need a connection to the vision and direction of the organization and their co-employees, need ways of working better together, which ultimately lead to more collaboration.

Purpose: This paper presents a theoretical perspective of organizational culture and employee retention, the most commonly used organizational culture models, the relationship between organizational culture and employee retention.


Keywords

Culture, Organization, Organizational Culture, Organizational Culture Models, Employee Retention.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Denison D. (2009). Culture getting started guide. Retrieved May 2, 2013, from Denison Consulting.
  • Schultz. M. (1994). On Studying Organizational Cultures – Diagnosis and Understanding. Berlin: Walter de Gruyter.
  • Schein. E. (2004). Organizational Culture and Leadership (3 ed.). Jossey-Bass.
  • Schneider B., Brief. A. and Guzzo. R. (1996). Creating a Climate and Culture for Sustainable Organizational Change. Organizational Dynamics .
  • Beer. M. and Nohria. N. (2000). Cracking the Code of Change . Harvard Business Review .
  • Geert Hofstede. (1999). Cultures and Organizations: Software of the mind. London: McGraw Hill International (UK) Ltd.
  • Mobley William H., Wang Lena and Fang Kate. (2005, Summer). Organizational culture: Measuring and developing it in your organization. The Link, Knowedge@CEIBS .
  • Gupta, N. (2007). Culture Dynamics and Market Attractiveness. The ICFAI Journal of Management Research , 6 (1), 13-77.
  • White. L. (1948). Man’s Control over Civilization. Scientific Monthly , 66, 235-47.
  • Morgan. G. (1986). Images of Organization. Beverly Hills: London: Sage Publications.
  • Kluckhom, C. . (1954). Culture and Behaviour. New York: Free Press.
  • Bethlem, A. d. (1999). Gestao de negocios: uma abordagem brasileira. Rio de Janeiro : Campos.
  • Freitas, M. E. (1991). Cultura organizacional: grandes temas em debate. Revista de administracao de Empresas , 31 (3), 73-82.
  • Triandis, H. C. et al. (1986). The Measurement of the etic aspects of Individualism and Collectivism across Cultures. Australian Journal of Psychology , 38 (3), 257-267.
  • Weick. K. . (2001). Making Sense of the Organization. Malden, MA: Blackwell.
  • Kotter. J. and Heskett. J. (1992). Culture and Performance. New York: Free Press.
  • Wagner, D. B., and Spencer, J. L. (1996). The role of surveys in transforming culture: Data, knowledge, and action. In In A. I. Kraut (Ed.), Organizational surveys:Tools for assessment and change (pp. 67-87). San Francisco: Jossey-Bass.
  • Pettigrew, A. (1979). On studying organizational cultures. Administrative Science Quarterly , 24, 570-581.
  • Peters. T.J. and Waterman. R.H. (1982). In Search of Excellence. New York: Harper and Row.
  • P., Blunt (1988). Cultural Consequences for Organizational Change in a Southeast Asian State:Brunei. Academy of Management Executive , 2, 3:235-40.
  • Obenchain, A. (2002). Organizational culture and organizational innovation in not-for-profit, private and public institutions of higher education. UMI: Unpublished Dissertation . Nova Southeastern University.
  • Ouchi, W. G. (1981). Theory Z. Reading, MA: Addison-Wesley Publishing Company.
  • Creque, C. A. (2003). Organizational culture type and business process orientation congruence in buyer seller relationships. UMI: Unpublished Dissertation . Nova Southeastern University.
  • Michael A. Gillespie, Daniel R. Denison, Stephanie Haaland. (2007). Linking organizational culture and customer satisfaction: Results from two companies in different industries. European Journal Of Work And Organizational Psychology .
  • Kotter. J. and Heskett. J. (1992). Culture and Performance. New York: Free Press.
  • Burack, E. H. (1991). Changing the Company Culture- The Role of Human Resource Development . Long Range Planning , 24 (1), 88-95.
  • Robbins, S. P. and Sanghi, S. . (2007). Organizational Behavior. New Delhi: Pearson Education.
  • Douglas, S. (2010). Growing the Corporate Culture. Retrieved from https://www.wachovia.com/foundation/v/index.jsp?vgnextoid=ab411f07760aa110VgnVCM1000004b on May 02, 2014.
  • Kerego, K and Muthupha, D.M. (1997). Job satisfaction as perceived by agricultural extension in Swaziland. South African Journal of Agricultural Extension , 23 (2), 19-24.
  • Van Maanen, J., and Barley, S. R. (1985). Cultural organization: Fragments of a theory. In P. J. Frost, L. F. Moore, M. R. Louis, and C. C. Lundberg, Organizational culture (pp. 31-54). Beverly Hills: Sage.
  • Bulent Aydin and Adnan Ceylan. (March 2011 ). What is the joint effect of employee satisfaction and customer orientation on the organizational culture in metalworking manufacturing? The International Journal of Human Resource Management , 22 (5), 1203–1215.
  • Brown, A. (1998). Organizational culture (2 ed.). Harlow: Financial Times Prentice Hall.
  • Jaivisarn, V. (2010). How Organizational Culture Of Japanese Multinationals In Thailand Influences Japanese-Speaking Thai Employees’ Organizational Commitment. Journal Of International Business And Economics , 10 (1).
  • Hofstede, G. (2011b). Culture [Internet]. Retrieved from http://www.geerthofstede.nl/culture.aspx on May 03, 2014.
  • Hofstede, G. (1984). Cultural Consequences: International Differences in Work Values. Beverly Hills: Sage.
  • Brown, A. (1995, 1998). Organisational Culture (2 ed.). Pitman Publishing.
  • Lundy, O., and Cowling, A. (1996). Strategic Human Resource Management. London: Routlegde.
  • Neal M. Ashkanasy, ,Celeste P M Wilderom .Peterson .Mark F .(2000)Handbook of Organizational Culture and Climate. New Delhi: Sage.
  • Beyer J.M. and Trice H.M. (1993). The Cultures of Work Organizations. Englewood Cliffs, NJ: Prentice Hall
  • Pettigrew, A. M. (1990). Organizational climate and culture: Two constructs in search of a role. In B. Schneider, Organizational Climate and Culture (pp. 413-433). San Francisco: Jossey-Bass Publishers.
  • Hofstede, G., Neuijen, B., Ohayv, D. D., and Sanders, G. (1990). Measuring organizational cultures: a qualitative and quantitative study across twenty cases. Administrative Science Quarterly , 35 (2), 286-316.
  • Ekvall, G. (1988). Organisaticcultuur: Modegril, theoretische uitbouw en paradigma. In H. T. In P.J.D. Drenth, Nieuw handboek arbeids-en organ isatiepsychologie. Deventer: Van Loghum Slaterus.
  • Hull, P. (2003). 'A Content Analysis of Employee Satisfaction Surveys,’ A thesis in CommunicationStudies Submitted to the Graduate Faculty of Texas Tech University in Partial Fulfillment of the Requirements for the Degree of Master of Arts (and references cited therein).
  • Denison. D. R. (1990). Corporate Culture and Organizational Effectiveness. New York: John Wiley and Sons.
  • Cameron, K. S., and Quinn, R. E. (1999). Diagnosing and changing organizational culture based on the competing values framework. Upper Saddle River, NJ: Prentice Hall Series in Organizational Development.
  • Quinn. R. and Rohrbaugh. J. (1983). A Spatial Model of Effectiveness Criteria: Towards a Competing Values Approach to Organizational Analysis. Management Science , 29 (3), 363-377.
  • Yu Tianyuan and Wu Nengquan. (2009). A Review of Study on the Competing Values Framework . International Journal of Business and Management , 4 (7).
  • Cameron. K. and Quinn. R. (2006). Diagnosing and Changing Organizational Culture: Based on the Competing Values Framework. Beijing: China Renmin University Press.
  • Denison Overview, Introduction to the Denison Model, Research Notes, Volume 1, Issue 1. (2005-2006). Retrieved 5 2, 2013, from www.denisonconsulting.com.
  • Burke, R., and Ng, E. (2006). The changing nature of work and organizations: implications for human resource management. Human Resource Management Review , 16, 86–94.
  • Sachin Jadhav, Swati Jadhav, Lavanya M. (December 2014). Strategies for Employee Retention in Indian Higher Education System. International Journal of Education and Psychological Research (IJEPR) , 22-26.
  • Coff, R. (1997). Human Assets and Management Dilemmas: Coping with Hazards on the Road to Resource- Based Theory. Academy of Management Journal , 22, 374- 402.
  • Catalyst, C. (1993). Mentoring: a guide to corporate programs and practices. New York: Catalyst.
  • Capplan, Gayle and Teese, Mary. (1997). Survivors - How to keep your best people on board after downsizing. Palo Alto:CA: Davies Black Publishing.
  • Stovel M, Bontis N. (2002). Voluntary turnover: Knowledge management – friend or foe? J. Intell. Cap. , 3 (3), 303-322.
  • Abate, F. (1998). Oxford Essential Dictionary. Oxford University Press , Revised Edition, pp. 514. Berkley Publishing Group.
  • Zineldin, M. (2000). TRM Total Relationship Management. Student litterateur, Lund.
  • Lockwood, N.R. (2006). Talent management: driver for organizational success. SHRM Research Quarterly , 51 (6), 1-11.
  • Workforce Planning for Wisconsin Government State. 2005. Employee Retention. Retrieved on June 12, 2014.
  • Freyermuth. (2007). Retaining Employees in a Tightening Labor Market, RSM Mc Gladrey. Retrieved from Website: www.cfo.com/whitepapers/index.cfm/displaywhitepaper/10308654?topic id=10240327 – 22k – on June 02, 2014.
  • Earle, H. A. (2003). Building a workplace of choice: Using the work environment to attract and retain top talent. Journal of Facilities Management , 2 (3), 244- 257.
  • Logan, J. K. (2000). Retention tangibles and intangibles: More meaning in work is essential, but good chair massages won’t hurt. Training and Development , 54 (4), 48-50.
  • Baker, E. (2006). The Human Factor . CIO Insight , 73, 40–50.
  • Eskildsen, J.K., Nussler, M.L. (2000). The managerial drivers of employee satisfaction and loyalty. Total Quality Management , 11 (4 and 5).
  • Noe, R.A., Hollenbeck, J.R, Gerhart. B., Wright, P.M. (2007). Human Resource Management: Gaining a Competitive Advantage. Tata McGraw- Hill Publishing Company Ltd.
  • Abassi S.M., Hollman K.W. (2000). Turnover: the real bottom line. Pub.Pers. Manage. 2 (3), 303-342.
  • Kaliprasad, M. (2006). The human factor I: attracting, retaining, and motivating capable people. Cost Engineering , 48 (6), 20–26.
  • Gupta, V. and Srivastava, S. (2007). Employee Retention – Key to Success. Retrieved from http://www.hytechpro.com/newsletters/pdf/whitepapernov2007.pdf on June 03, 2014.
  • Norman, M. (2012). 6 ways to retain remote workers – and make them feel part of the team. Retrieved 03 20, 2012, from http://www.tlnt.com.
  • Kotter. J. P. and Heskett. J. L. (1992). Corporate Culture and Performance. New York: Free Press.
  • Murphy, K.J. (1985). Corporate performance and managerial remuneration: An empirical analysis. Journal of Accounting and Economics , 7, 11 - 42.
  • Hong, L.C and Kaur, S. (2008). A Relationship between Organizational Climate, Employee Personality and Intention to leave. International Review of Business Research Papers , 4 (3), 1-10.
  • Abdullah. (2009). Major challenges to the effective management of human resource training and development activities. The Journal of International Social Research , 2 (8).
  • Ghapanchi, A.H. and Aurum, A. (2011). Antecedents to IT Personnel’s Intentions to Leave: A Systematic Literature Review. Journal of Systems and Software , 84, 238-249.
  • Allen, D.G. and Shanock, L.R. (2013). Perceived Organizational Support and Embeddedness as Key Mechanisms Connecting Socialization Tactics to Commitment and Turnover among New Employees. Journal of Organizational Behaviour , 34, 350-369.
  • Andrews, D.R. and Wan, T.T. (2009). The Importance of Mental Health to the Experience of Job Strain: An Evidence Guided Approach to Improve Retention. Journal of Nursing Management 17, 340-351.
  • Loan‐Clarke, J., Arnold, J., Coombs, C., Hartley, R. and Bosley, S. (2010). Retention, Turnover and Return - A Longitudinal Study of Allied Health Professionals in Britain. Human Resource Management Journal , 20, 391-406.
  • Christeen, G. (2014). Retaining Professional Workers: What Makes Them Stay? Employee Relations , 37, 102-121.
  • Logan, J. K. (2000). Retention tangibles and intangibles: More meaning in work is essential, but good chair massages won’t hurt. Training and Development , 54 (4), 48-50.
  • Fitz-enz, J. (1990). Getting and keeping good employees. In personnel , 67 (8), 25-29.

Abstract Views: 28

PDF Views: 0




  • Impact of Organizational Culture on Employee Retention:A Theoretical Perspective

Abstract Views: 28  |  PDF Views: 0

Authors

Smruty Shah
Department of Business Administration, Shri Shankaracharya Engineering College, Shri Shankaracharya Technical Campus, Bhilai (C.G.), India
Souren Sarkar
Shri Shankaracharya Group of Institutions, Shri Shankaracharya Technical Campus, Bhilai (C.G.), India

Abstract


Organizational Culture: People join or get associated with various organizations in their lives. Every organization has a culture. Culture matters as we experience its effects on performance every day. The complexity of environmental changes forces firms to monitor the culture of their organization regularly by a variety of methods to gain a truer picture for their development process.

An organization’s culture is reflected by what is valued, the dominant managerial and leadership styles, the language and symbols, the procedures and routines, and the definitions of success that make an organization unique. The noteworthy models contributed in the context of organizational culture have been discussed. These models facilitate us in understanding/ being aware of the current status of the culture of an organization in a meaningful and productive way so that one can create, change and influence the direction of organizational culture.

Employee Retention: Corporate leaders are facing employee retention issues as the most critical workforce management challenge due to the shortage of skilled labor both in terms of continuing globalization and technological innovation, economic growth and employee turnover. Hence, every organization tries to retain a key, positive, talented, competent, skilled, trained, experienced, high potential staff for the organization's success, competitiveness and above all its survival.

The biggest factor in attracting and most importantly retaining key employee is culture. The level of congruence between an organization’s culture and employees’ value preferences can predict employee retention and turnover. An organization nurtures and maintains conducive environment that guarantees the employees’ stay in the organization. It is important for employees to feel like they are part of a team, need a connection to the vision and direction of the organization and their co-employees, need ways of working better together, which ultimately lead to more collaboration.

Purpose: This paper presents a theoretical perspective of organizational culture and employee retention, the most commonly used organizational culture models, the relationship between organizational culture and employee retention.


Keywords


Culture, Organization, Organizational Culture, Organizational Culture Models, Employee Retention.

References