Organizational culture and Employee engagement:
A Review of selected studies
Arnab Kumar Samanta
Lecturer and HOD, Department of BBA, Netaji Mahavidyalaya, Arambagh, Hooghly, W.B, India.
*Corresponding Author E-mail: a_samanata@yahoo.co.in
ABSTRACT:
The study attempts to examine the effect of organizational culture on employee engagement and performance and its evaluation has been identified by certain selected researcher’s research. The main aim of research article is to identify and determine strong relationship between organizational culture and employee engagement as well as performance. Employee engagement and effectiveness could prove to be an excellent parameter to assess the health of the organization as such with regards to satisfaction, innovation, commitment, retention and productivity. Literature review is adopted as methodology to review the culture of an organization upon employee engagement and performance. The owners and top management of an organization generally tends to have a large impact on establishing a culture. Organizational culture plays a vital role in engaging the employees and enhancing their performance. Organizational culture must be united all members and employees of the organization as this will encourage uniformity among members of the organization and this enhance commitment, group efficiency and overall performance of employees. In this study it was tried to look at the effect of organizational culture on employee’s engagement and performance with evidence of selected related literatures.
KEYWORDS: Organizational Culture, Employee Engagement, Performance, Satisfaction.
INTRODUCTION:
Organizational culture defines the way of employees’ complete tasks and interacts with each other within the organization. The cultural pattern comprises various beliefs, values, rituals and symbols that govern the operating style of the people within a company. Organization culture binds the employees together and provides a direction for the growth of company. Organizational culture is the element that drives organizations and therefore developing an organizational culture which stimulates innovation and creativity, is a key and strategic option for strengthening the organization and making it more competitive (S.M. Hazem, 2019).
The progress of an organization or industry depends upon the engagement of its workforce, and organizational culture is one of the factors that drive employee engagement (Mc Bain 2007; Lockwood 2007). Different cultural background operating in one company can also impact employee performance. Organizational culture impacts on commitment and satisfaction of the employees, performance and employee engagement (Uddin et al., 2012). Efficient work culture helps employees feel empowered and satisfied with the work environment, thereby making them feel engaged in their work. Organizations with a positive and strong culture can lead to a highly motivated and committed employee whereas a negative and weak culture may demotivate an outstanding employee to perform and end up with no achievement. The engagement is achieved when people consider that their organization respects their work, their work contributes to the organizational goals and more importantly their personal aspirations of growth are met.
Purpose of the study:
The purpose of this article is to study the various definition and explanation of organizational culture and employee engagement from the existing literature available. It also studies the association of employee engagement with another construct. Through literature review, it has been tried to find out the key drivers of employee engagement. The present paper aims to understand the basic concept of organizational culture and its impact and to study the different dimensions of employee engagement with the help of review of literature. This paper is based upon review of literature and secondary data collected from various websites, journals, magazines, newspapers and reference books. Literature review has shown prior research work done in this area.
Organizational Culture:
Gitali Choudhury (2011) stated that organizational culture has a great impact on employees' behaviour and is seen as a measure of the feeling of the internal environment of an organization as perceived by an outsider or an employee based on their business with their organization. Employee may not feel comfortable if the culture of an organisation is very normal but may feel comfortable when it is open and friendly. Jegajothi. C and Sudha. S (2015) found that the influences of organisational culture in motivating and increasing organizational effectiveness. Organizational culture is an important factor in achieving the goal of any organisation. Workplace behaviour, worker productivity, commitment, promotion, training and rewards are the important variability’s that determine the working environment in any organization. These factors, if positive, help employees to feel more comfortable with the organization. Great culture should provide continuous alignment to the vision, purpose, and goals of the organization. (N. Baumgartner, 2020). G.B Saad (2018) elaborate Organization culture as the key influencer of the performance and establish that a strong organization culture is a great source of performance excellence and consistent achievements. Organizational culture relates to how employees understand the cultural characteristic of their organization, not whether they like it or not, in other words, culture is a descriptive term. Organizational culture and organizational commitment simultaneously impact employee performance. (E. Paramita, 2020). The functions of organizational culture manifest itself in two aims: first, creating the feeling of identity among personnel and commitment to the organization; second, creating a competitive edge to enable the members (especially new members) in the organization to well understand acceptable behaviour and social system stability. (Esther Oluwayimika, 2020)
Impact:
Vinesh (2013) reported that training and development was concerned with organizational activity aimed at bettering the performance of individuals and group in organizational setting. The development of human resources is to remain competitive in the marketplace. Training is a process of transferring knowledge and information. The employees equipped with this information can translate it into practice by enhancing the effectiveness and productivity of its people. Crawford and Lapine (2013) studied that supervisors and leaders were part of any teamwork responsible for producing better organizational performance. So an integration of employees with supervisors was important. Fapohunda Tinuke (2013) in this article, attempts to outline a realistic view of what can be achieved through teamwork. The effect of teamwork depends upon many factors such as organizational culture and culture effectiveness of team leadership, employee commitment, the system of promotion and rewards and the level of employee autonomy. Employee satisfaction can be predicted from specific organizational culture. The nature of culture installed in an organization potentially derives employee feeling at work place which could result in noticeable variation of satisfaction levels. This notion leads to the definition of employee satisfaction in association with organizational culture. It also implies that when cultural values of an organization match employee’s expectations, employees feel satisfied and vice versa (D. Mesfin, 2020).
Compensation:
Someone works to give time, thoughts, and energy to the organization and as a counter-achievement, the organization must provide appropriate compensation or compensation to meet the needs of life themselves and their families. Compensation plays an important role because in general employees want balanced compensation from the company, also expect guaranteed welfare for themselves and also their families while they are still actively working and when they reach retirement. With a balanced compensation, employee welfare will be met and it is hoped that employees will get satisfaction so that the organizational commitment of employees to the organization will be high.
Work Environment:
A work environment is a place where employees do activities every day. A conducive work environment provides a sense of security and comfort that allows employees to work optimally. The work environment can affect employees' emotions, because if the employee likes the work environment where he works, then the employee will feel comfortable at work, doing his activities so that work time is used effectively. Perceptions about the work environment, Greenberg (2003) argues that the work environment is: These two aspects of the work environment are the company's internal work environment (organizational culture) and external force. Describing the basic nature of organizational culture, including the role it plays in organizations.
Job Satisfaction:
Job Satisfaction From time to time job satisfaction gets serious attention from various groups because when employees are not satisfied with their work, commitment to the organization will be low and a series of negative consequences will arise. Every individual who works certainly expects satisfaction from his workplace. Satisfaction is a relative and subjective matter, meaning that each individual has a different measure of satisfaction. Satisfaction is a condition that is not permanent but always develops following the strength of the encouragement of the needs from within and from outside each individual. According to Robins (2011), job satisfaction is a general attitude towards one's work, which shows the difference between the number of awards received by workers and the amount they believe they should receive.
Employee engagement:
Employee engagement is the degree to which an employee is cognitively and emotionally attached to his work and organisation. It reflects the level of identification and commitment an employee has towards the organisation and its values. Engagement of employees was first conceptualized by Kahn (1990) as the “harnessing of organizational members’ selves to their work roles”. Kahn recognized three antecedents of employee engagement: psychological meaningfulness (measured by job enrichment, work role fit and co-worker relations), psychological safety (measured by supervisor relations, co-worker relations and co-worker norms) and psychological availability (Measured by resources, work role security and outside activities).
NP, Myilswamy, R. Gayatri (2014), concluded that the level of Engagement determines employees productivity and their intention to stay in the organization. Employee Engagement drives organizational effectiveness by improving loyalty, retention, safety, productivity and profitability. And the employees who are highly involved in work are more engaged. Worker engagement play a vital role in achieving organizational objective, building effective work groups, healthy social relationships among coworkers and managers and conducive atmosphere in the organization that enhance motivation and results in better organizational performance. (Priyadarshni Nidan, 2016)
T. Suhasini and K.Kalpana (2018) revealed in their study that employee engagement is a comprehensive task and cannot be accomplished by the effective training programs also. Organisations can improve engagement by opportunity thinking, enhancing employee decision making, and commitment. Employee engagement results in reduced turnover intentions and increased innovative work related behaviour.
Dimension:
In 2006, The Conference Board published an article ‘Employee Engagement – A review of current research and its implication’ on the basis of some major studies conducted by Gallup, Towers Perrin, Blessing White, The Corporate Leadership Council and others. It identified following key drivers related to employee engagement as:
· Trust and integrity – managers should communicate well and go by their words.
· Nature of the job – employees should find their job challenging enough to motivate themselves.
· Line of sight between employee performance and company performance – employee should have clear understanding as to how they contribute to the company’s performance.
· Career growth opportunities – employees should have clear career path and growth.
· Pride about the company – employees should feel esteemed by being associated with the organization.
· Coworkers / team members – relationship with colleagues significantly increase employee engagement level.
Observations:
· Organizational culture enhances employee’s performance by motivating, shaping and channeling their behavior towards the attainment of organization’s objectives.
· Organizational culture creates a positive impact on employee’s attitude and behavior and in turn employees accomplish task prior to established deadlines.
· Organizational culture enables internal integration and coordination between companies operation and its employees so that employees can influenced positively. It unites employees of different demographics, promote better understanding, better coordination and less conflict.
· Organizational culture should be affective, continuance, and normative job satisfaction, job involvement, and occupational commitment.
· Positive organizational culture provides satisfaction, positive attitude, mutual trust, autonomy, good communication which results superior employee performance.
· Organizational culture helps to keep employee motivated and loyal to the management of the organization, they make employees eager to contribute to the organizations success and feel them sense of accomplishment.
· Organizational culture provides employees with a sense of guidance, direction and expectations that keep employees on task and make them understand about their role and responsibilities.
· Organizational culture plays an important role in creating environment of learning, innovative response to challenge competitive threats and new opportunities which ultimately enhances employee’s performance.
CONCLUDING REMARKS:
A good organizational culture always considered the employees as an integral part of the growth process of the organization. Employee’s engagement is a long term process and linked to core tenants of the business like as, values, culture and managerial philosophy. Employees require to be adopting in a working environment which will lead them to display behaviour that organizations are looking for. An organization has to promote the factors which have a positive effect of engagement through every business activity that they do. After reviewing research, it can also be concluded that high levels of employee engagement may lead to improved employee commitment and involvement towards respective jobs and thus creating a motivated workforce – that will work together to achieve the common goals of the organization. Organizations in creating employee job satisfaction and creating organizational commitment employees need to have a paradigm of thinking that job satisfaction is a need for commitment to emerging to fulfill it. Employee job satisfaction and employee organizational commitment can be realized by providing appropriate compensation, developing good careers, and creating a conducive work environment. A good organizational culture always considered the employees as an integral part of the growth process of the organization. An organization fosters the employee commitment towards the organization. Employees align their goals and objectives with organizational goals and feel responsible for the overall wellbeing of the organization. organizations should pay attention to the empowerment of employees who not only want the organization's goals to be achieved, but also create good internal organizational relationships to create a comfortable work environment for all levels of employees, both concerning the work itself and relationships with fellow employees.
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Received on 01.10.2020 Modified on 30.10.2020
Accepted on 21.11.2020 ©AandV Publications All right reserved
Asian Journal of Management. 2021; 12(2):201-204.
DOI: 10.52711/2321-5763.2021.00030