Academic journal article ASBM Journal of Management

Role of Organisational Culture and Employee Commitment in Employee Retention

Academic journal article ASBM Journal of Management

Role of Organisational Culture and Employee Commitment in Employee Retention

Article excerpt

Introduction

People are the most important resource of any organisation. The best people are the reasons for the best organisations, and inept people result in inept organisations. Employee retention is a challenge in many organisations. Demographical and market changes have created a more confident and demanding workforce, which makes it necessary for organisations to be competitive and work harder at meeting employees' needs to retain their loyalty. Employees are the assets of any organisation and organisation cannot afford losing its key performers. Organisations are striving to retain their talents by implementing effective retention strategies. Organisational Culture and Employee Commitments are the strategies used to retain the employees. Employee Retention involves taking measures to encourage employees to remain in the organisation for the maximum period of time. The corporate world is facing a lot of problem in Em ploye e Re ten t io n th ese d a ys. Hirin g knowledgeable people for the job are essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for talented persons. There are many organisations which are looking for such employees. If a person is not satisfied by the job she/he -is doing, she/he may switch over to some other more suitable job. Thus, in today's environment it becomes very important for organisations to retain their employees.

When the right people are found for the organisation, they blend into the Organisational Culture. Organisations these days are going through a situation where the number of employees is large but the quality is lacking. Organisations are also finding it difficult to adapt to changing situations. An organisation's culture has a profound impact on the effectiveness of the organisation by influencing how decisions are made, how human resources are used and how people respond to environmental challenges. In this study, the factor Organisational Culture is taken into consideration on Employee Retention as Organisational Culture is increasingly being pushed as an important selling feature as companies attempt to attract and retain valued employees. Employers are being advised to evaluate their cultures and, where necessary, change them to increase their attractiveness to employees. Sheridan (1992), in his study, has suggest e d that a possib le d ilemm a for organisations interested in using culture as a retention tool. A culture that promotes strong 'relationship values' appears to increase the retention of both strong and weak employees. That is, it reduces both dysfunctional and functional turnover.

Organisational Culture is the behaviour of human beings within an organisation and the meaning that people attach to those behaviours. According to Needle (2004), organisational culture represents the collective values, beliefs and principles of organisational members and is a product of such factors as history, product, market, technology, and strategy, type of employees, management style, and national culture. Culture includes the organisation's vision, values, norms, systems, symbols, language, assumptions, beliefs, and habits. Ra va s i an d Sc hult z ( 200 6) wr ot e th at organisational culture is a set of shared assumptions that guide what happens in organisations by defining appropriate behaviour for various situations. Schein (1992), Deal and Kennedy (2000) and Kotter (1992) advanced the idea that organisations often have very differing cultures as well as subcultures. Though a company may have its "own unique culture", in larger organisations there are sometimes coexisting or conflicting subcultures because each subculture is linked to a different management team.

This study has also tried to find out the impact of organi sational commi tm ent on employee retention. Organisational commitment has been defined as the attitude which ties the individual to the organisation. On the other hand, satisfied and committed employees tend to be less attracted by alternatives. …

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