Organizational Culture Theory and Employee Retention Strategies

This report delves into the application of Organizational Culture Theory to address the prevalent issue of employee turnover. It begins by highlighting the impact of globalization and automation on the workforce, leading to increased turnover rates. The report emphasizes the importance of organizational culture, defining it as a set of values and principles that promote a harmonious work environment and enhance productivity. The report discusses key principles of organizational culture, including fostering employee belief in shared values, incorporating changes in employee behaviors, deploying effective leadership, and promoting cross-cultural methods. The report then proposes solutions to employee turnover, such as providing training programs and development sessions to enhance employee skills. It also suggests on-the-job training and seminars led by experienced personnel. The report concludes by emphasizing the applicability of organizational culture theory for creating a positive working atmosphere, improving employee skills, and ensuring robust human resources. The provided references support the concepts discussed.

Running head: ORGANIZATIONAL CULTURE THEORY
ORGANIZATIONAL CULTURE THEORY
Name of the student:
Name of the university:
Author Note:

1ORGANIZATIONAL CULTURE THEORY
Table of Contents
1. Introduction............................................................................................................................2
2. Organizational Culture Theory..............................................................................................2
3. Solution to Employee Turnover.............................................................................................2
4. Contest of the Theory.............................................................................................................2

2ORGANIZATIONAL CULTURE THEORY
1. Introduction
With the progressive technologies spreading in the world due to globalisation, the
business processes are adapting automation systems to enhance their work productivity,
thereby increasing the profit margin of the organizations. No doubt, this is a progressive
revolution across the whole world; however, the most negative impact of automating the
processes is the turnover of the unskilled employees from the organization at mass to replace
them with only a few skilled employees who will be able to run the systems with proficiency
(Goldstein et al., 2017). When employees are bound to leave at mass from a particular
organization, both the organization and the leaving members are affected with the forced
change.
Staff turnover occurs due to various reasons, the major one being an incompetent
match between the skill set of the members and the skills required to accomplish the business
processes in a proficient way. If the organization requires immense practical knowledge
regarding their operations and activities from the employees who are not consistent about
their performance, the organization will have no option other than terminating the employee
(Ahammad et al., 2016). Furthermore, if an organization is not adequate in its infrastructure,
it will not be able to hold back employees for a sustainable amount of time; in this case, the
employees will resign themselves due to lack of growth.

3ORGANIZATIONAL CULTURE THEORY
Figure 1: Issue of Employee Turnover
Hence, the organizations are taking effective measures to make the work atmosphere
comfortable as well as up graded enough to make it attractive for the employees. They are
incorporating developed and technologically advanced machineries and equipment such that
the employees gain flexibility in conducting the operations of the business modules (Chan,
2019). Moreover, they are revising the wage structures of the employees and redefining the
organizational culture on various aspects to attain employee satisfaction. Thus, employee
turnover or failure of retention is one of the social issues faced by the organizations
worldwide.
2. Organizational Culture Theory
The culture in an organization defines the set of values and principles that will help in
accomplishing the common goal of the business. The strength of the organizational culture is
enhanced when the employees believes in the common values and ethics and works on them
to attain harmony in the work sphere as well as enhance productivity. If the culture of an
organization is strong, it ensures the employees about the activeness of the management
system in hearing out their issues and respond accordingly (Antonsen, 2017). The employees
will incorporate a belief that the organizational executives will resolve any big or small
problem and will acknowledge their effort towards the organization by providing rewards.
One of the basic principles of organizational culture is incorporating the change in
behaviours and mind-sets of the employees towards the good of the organization (Driskill,
2018). The HR officials of any organization can govern this huge area of developing the
change and maintain the cohesiveness amongst the employees during their work processes.
For instance, in a CRM department for any organization, if the service associates are
behaving badly with the clients, they should be provided with an empathy training on a

4ORGANIZATIONAL CULTURE THEORY
regular basis that will help them to improve their behaviour and thereby provide efficient
services on behalf of the organization.
Deploying an efficient leader with an appropriate leadership style is also another
principle amongst the organizational culture (Chatman & O’Reilly, 2016). It is often noticed
that promotion of a normal experienced employee to an executive position in a particular
department tends to enhance the biasness of the executive personnel. In addition, there also
exists leaders who do not have an effective managing style and cannot influence their
employees to perform better. On the other hand, if a leader is influential, employees feel
encouraged to give their best services to the organization. Hence, deployment of a leader
according to the need of the department and the employees is a necessity to meet a proficient
organizational culture.
Promoting cross-cultural methods in an organization is also a principle that various
organizations are incorporating nowadays due to its various beneficial effects in the work
activities of the organizations (Lehman, 2017). The basic step to promote cross-culture is to
allow the employees to interact with each other not only on social websites and platforms but
also within the office premises. If the employees of different departments share a cordial
relation and talk with each other, they will be more aware about the various business
functions and collectively contribute to enhance the culture of the organization. They will
also be able to grab knowledge about various work processes and thereby enhance their skill
sets to a significant volume.

5ORGANIZATIONAL CULTURE THEORY
Figure 2: Cross Cultural Work Environment
Linking the business objectives to the behaviour of the employees is another aspect
of organizational culture. If the any particular company is trying to reduce the cost in their
operational activities, the employees must be aware of it and thereby plan accordingly to
produce standard quality products and not waste the resources by developing errors in the
products. Hence, it is important for an organization to adopt the right set of objectives and
incorporate the right measures in spreading it amongst the employees to align them such that
they can contribute to the organizational goals.
3. Solution to Employee Turnover
The principles of organizational culture discussed in the above section highlights how
to maintain harmony in work atmosphere and gain maximum productivity along with
employee satisfaction. However, the issue of employee turnover due to lack of skills can be
abandoned only if the organizations provide training assemblies and development sessions to
their underperforming employees and thereby promote their skills for a standard level of
service to the organizations (Khan et al., 2016). If the organizations provide trainings to
enhance the skill set of the employees who are already in the organization, it will help them
to contribute more and will feel their importance in the workplace.

6ORGANIZATIONAL CULTURE THEORY
Apart from enhancing the capability of the employees, the training programs instils
confidence amongst them. The organizations should not limit itself to applying development
programs and seminars but also take regular assessments and deploy the employees to certain
tasks associated with the training purposes. If the employees can excel in those assessments,
it will automatically increase their confidence as well as their proficiency towards the work
(Awan, Kiren & Scholar, 2016). In this way, the organization can overcome the issue of
failing to retain employees and increase the longevity of their tenure period significantly. If
the employees provide service for longer terms they can guide their juniors well as well as
promote the productivity culture amongst the new joiners too.
Figure 3: Training Sessions in Organizations
There are various types of training that can be provided to the employees in an
organization. The on-job training is the most famous type of training that the organizations
provide their employees that enhances them to achieve the practical knowledge by working
on the fields and learning by trial and error methodology (Masud, 2019). Experienced
personnel from the organizations can also educate their juniors before their retirement
through seminars and lectures that will help to impart the tacit knowledge possessed by them.

7ORGANIZATIONAL CULTURE THEORY
4. Contest of the Theory
The organizational culture theory specifically helps the organizations to promote a
good working atmosphere in the workplace and enhance their employees in providing
optimum services to the organization that will contribute to the achievement of the mission
and vision statements of the company. Hence, to overcome the issue of turnover of the staffs
the organizations can implement organizational culture theory to provide the employees with
training programs and thereby improve their skills and incorporate approximately robust
human resources. This theory will be applicable for the upcoming generations because the
organizations are undergoing huge changes in their culture. In order to enhance the theory,
the organizations should ensure training programs as a consistent part of their processes that
will train the underperforming employees rather than releasing them from the business.

8ORGANIZATIONAL CULTURE THEORY
References
Ahammad, M. F., Tarba, S. Y., Liu, Y., & Glaister, K. W. (2016). Knowledge transfer and
cross-border acquisition performance: The impact of cultural distance and employee
retention. International business review, 25(1), 66-75.
Antonsen, S. (2017). Safety culture: theory, method and improvement. CRC Press.
Awan, A. G., Kiren, B., & Scholar, M. S. (2016). Impact of Training and Development on
employees performance in Banking sector of Pakistan. strategies, 17.
Chan, K. (2019). The Impact of Perceived Organisational Support on Employee Retention
and Successful Organisation Management (Doctoral dissertation, UTAR).
Chatman, J. A., & O’Reilly, C. A. (2016). Paradigm lost: Reinvigorating the study of
organizational culture. Research in Organizational Behavior, 36, 199-224.
Driskill, G. W. (2018). Organizational culture in action: A cultural analysis workbook.
Routledge.
Goldstein, H. W., Pulakos, E. D., Semedo, C., & Passmore, J. (2017). The Wiley Blackwell
handbook of the psychology of recruitment, selection and employee retention. John
Wiley & Sons.
Khan, A. A., Abbasi, S. O. B. H., Waseem, R. M., Ayaz, M., & Ijaz, M. (2016). Impact of
training and development of employees on employee performance through job
satisfaction: A study of telecom sector of Pakistan. Business Management and
Strategy, 7(1), 29-46.
Lehman, D. W. (2017). Organizational Cultural Theory and Research Administration
Knowledge Management. Journal of Research Administration, 48(2), 52-66.

9ORGANIZATIONAL CULTURE THEORY
Masud, M. B. (2019). A study on training and development of employees in NRB
Commercial Bank Limited (NRBCBL).