Effects of Organisational Culture on Employee Motivation: A Research

This dissertation investigates the impact of organisational culture on employee motivation, examining various factors that influence employee behavior and performance. The research begins with an introduction to the concept of organisational culture, defining its key elements and significance within business organizations. It explores the relationship between organisational culture and employee motivation, highlighting how factors such as company values, leadership styles, working environments, and employee relations affect motivation levels. The study also examines the challenges in achieving a positive organisational culture and the consequences of a lack of employee motivation due to inappropriate cultural practices. The research methodology involves a literature review, survey data analysis, and interviews to gather insights into the topic. The findings reveal the importance of aligning organisational culture with employee needs to foster engagement and productivity. The dissertation concludes with recommendations for improving organisational culture and enhancing employee motivation, offering practical strategies for businesses to implement. The study aims to provide a comprehensive understanding of the complex interplay between organisational culture and employee motivation, contributing to the existing body of knowledge and offering valuable insights for practitioners.

Running head: PERFORMANCE MANAGEMENT
Effects of Organisational Culture on Employee Motivation
Name of Student
Name of University
Author Note

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Table of Contents
CHAPTER 1: INTRODUCTION..............................................................................................4
1.1 Overview of the research..................................................................................................4
1.2 Problem statement............................................................................................................5
1.3 Research aim....................................................................................................................6
1.4 Research objective............................................................................................................6
1.5 Research questions...........................................................................................................6
1.6 Research hypothesis.........................................................................................................7
1.7 Research rationale............................................................................................................7
1.8 Dissertation structure........................................................................................................8
1.9 Summary...........................................................................................................................9
CHAPTER 2: LITERATURE REVIEW.................................................................................10
2.1 Overview........................................................................................................................10
2.2 Conceptual Framework..................................................................................................10
2.3 Concept of organisational culture...................................................................................11
2.4 Factors affecting organisational culture.........................................................................11
2.4.1 Company value and policies........................................................................................11
2.4.2 Leadership...................................................................................................................12
2.4.3 Customers and clients..................................................................................................13
2.4.4 Employees...................................................................................................................14
2.4.5 Working environment..................................................................................................15

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2.5 Types of organisational culture......................................................................................16
2.6 Concept of employee motivation....................................................................................17
2.7 Factors affecting employee motivation..........................................................................18
2.7.1 Leadership...................................................................................................................18
2.7.2 Fellow workers............................................................................................................19
2.7.3 Working environment..................................................................................................20
2.7.4 Advanced opportunity.................................................................................................21
2.7.5 Beliefs and ideologies..................................................................................................21
2.8 Theory of employee motivation.....................................................................................22
2.9 Impact of organisational culture on employee motivation.............................................24
2.10 Challenges in achieving positive organisational culture..............................................25
2.11 Impact of lack of employee motivation due to inappropriate organisational culture...25
2.12 Summary.......................................................................................................................26
CHAPTER 3: RESEARCH METHODOLOGY.....................................................................27
3.1 Introduction....................................................................................................................27
3.2 Research philosophy.......................................................................................................27
3.2.1 Justification of selection of research philosophy.........................................................27
3.3 Research approach..........................................................................................................28
3.3.1 Justification of selection of research approach............................................................28
3.4 Research design..............................................................................................................29
3.4.1 Justification of selection of research design................................................................29

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3.5 Research strategy............................................................................................................30
3.6 Sampling technique and sampling size...........................................................................30
3.6.1 Justification of selection of sampling technique.........................................................31
3.7 Data collection technique...............................................................................................31
3.7.1 Justification of selection of data collection technique.................................................32
3.8 Data analysis technique..................................................................................................32
3.8.1 Justification of selection of data analysis technique....................................................32
3.9 Data validity, reliability and generalisability.................................................................33
3.10 Ethical considerations...................................................................................................33
3.11 Limitations of the research...........................................................................................33
3.12 Summary.......................................................................................................................34
CHAPTER 4: DATA ANALYSIS...........................................................................................35
4.1 Introduction....................................................................................................................35
4.2 Survey data analysis.......................................................................................................35
4.2.1 Demographic factors...................................................................................................35
4.2.2 Factors affecting employee motivation.......................................................................37
4.3 Discussion.......................................................................................................................49
4.4 Interview discussion.......................................................................................................56
CHAPTER 5: CONCLUSION AND RECOMMENDATION................................................63
5.1 Conclusion......................................................................................................................63
5.2 Linking with objective....................................................................................................64

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5.3 Recommendation............................................................................................................67
5.4 Future scope of study......................................................................................................68
Bibliography.............................................................................................................................69

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CHAPTER 1: INTRODUCTION
1.1 Overview of the research
Every organisation has varied cultures that are different in terms of beliefs, principles,
business environment and policies. According to Hogan and Coote (2014), the underlying
assumption based on beliefs and values highlight the organisational culture that is present
within a business organisation. Therefore, it can be said that abstract factors such as
ideologies, beliefs, principles and values within the business organisations is the formation
that provides the basis of organisational culture. As stated by Elsmore (2017) the importance
of organisational culture is that has possessed a huge impact on the manner in which the
employees work and maintain their behaviour within an organisation. At the same time, it can
be said that a healthy organisational culture can help in providing encouragement to the
employees so that they stay motivated, loyal and engaged towards the business organisations
and the work. Apart from this, appropriate organisational culture is important because it
promotes healthy competition within the workplace (Buschgens, Bausch and Balkin 2013).
As mentioned by Wressell, Rasmussen and Driscoll (2018) employees form the
backbone of the business organisations that maintain unity of work and share similar aims
and objectives so that success of the business organisations can be ensured. Every
organisation provides a diversified place that provides satisfaction of the employees working
for the company. The employees in an organisation also have different background, beliefs as
well as cultural factors. However, providing employees to install the cultural background that
exists within the country of origin may create conflict of interests. Therefore, setting up of an
organisational culture is important, as various opportunities for the business organisations to
the interests of the employees’ to a common ground can be established. At the same time, it is
necessary to ensure that motivation of the employees be provided so that they can work

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effectively in an organisation (Nica 2013). It has been seen that without motivation it can be
difficult to retain employees and the services provided. Therefore, examples can be provided
of several companies in a retail sector such as Woolworths, Sainsbury, Tesco and so on that
ensure motivation of employees are made with special emphasis on the development of
organisational culture.
1.2 Problem statement
The issues that can be attributed to organisational culture for the business
organisations are common and posses negative effect while trying to indulge in the
motivation of the employees. As observed by Anitha (2016) most of the times it has been
seen that lack of appropriate organisational culture can be harmful for any business
organisation. This is mainly because of the relationship between the employees and
employers. The main factors that contribute to the success of an organisation include
dedication and commitment of the individual employees along with the working environment
that can be hampered without the effectiveness of organisational culture. Organisational
culture can help in bringing about a sense of unity and provide an effective analysis of the
success factors that contribute towards the development of the reputation of a company.
According to Laforet (2016), inappropriate organisational culture can result in conflict and
negativity among the employees. This is mainly due to the unhealthy relationships at business
organisations particularly between the employees and the employers. In addition to this,
inappropriate organisational culture can result in the lack of support and cooperation among
the employees due to which the employees fail to enjoy the work assigned to them. Babnik et
al. (2014) observed that negative mind set and isolation at workplace can result in de-
motivation of the employees. Due to de-motivation, the employees provide low level of
dedication, commitment and engagement towards the job roles and responsibilities that are

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assigned. This usually leads to negative affects based on the success of the business
organisations (Azanza, Moriano and Molero 2013).
According to Wang and Rafiq (2014), rate of employee turnover can increase due to
lack of motivated employees that exists due to the inappropriate organisational culture. At the
same time, other important aspects such as innovation, creativity and competitive advantage
within the business organisations decreases. Hence, due to this the survival of the business
organisations in a competitive environment can be heavily threatened. As stated by Goode,
Hegarty and Levy (2018) in this intense and fierce competitive market, inappropriate
organisational culture can be harmful for business organisations. This is mainly because it
affects the motivation of the employees thereby causing harm to the pillar that provides the
actual support in an organisation.
1.3 Research aim
The aim of the research is to investigate the impact of organisational culture on
employee motivation for different business organisations.
1.4 Research objective
The objectives of the research include:
 To understand the concept of organisational culture and employee motivation
 To analyse critically the different factors affecting organisational culture and
employee motivation for business organisations
 To assess the relationship between organisational culture and employee motivation for
business organisations
 To provide suitable recommendations for improving organisational culture for
business organisations and motivating employees successfully

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1.5 Research questions
The research questions for the dissertation are:
 What do you mean by organisational culture and employee motivation?
 What are the different factors affecting organisational culture and employee
motivation for business organisations?
 What is the relationship between organisational culture and employee motivation for
business organisations?
 What are the suitable recommendations for improving organisational culture for
business organisations and motivating employees successfully?
1.6 Research hypothesis
The research hypotheses include:
H0: Organisational culture has no impact on employee motivation for the business
organisations.
H1: Organisational culture has an impact on employee motivation for the business
organisations.
1.7 Research rationale
The significance of the investigation of the impact of organisational culture on
employee motivation helps in understanding the mentality of the employees. This allows
addressing the potential gap that is in respect with the organisational culture that affects the
motivation of the employees. The importance of this research is that proceeding with this
study that help in the recognition of the probable reasons that inappropriate culture for the
business organisations can bring about. The effect it has on the motivation of the employees

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is another factor that is taken into consideration. The researcher can address the issues of
inadequate organisational culture for companies so that provision for the research can be
accessed by establishing the relationship between organisational culture and employee
motivation (Bortolotti, Boscari and Danese 2015). With the help of the research conducted,
the researcher can make comparisons and contrast organisational culture that is present in
various reputed and non-reputed companies.
This research is also significant because it can help in identifying the principle factors
that is the main reason for poor and inappropriate culture within business organisations. For
example, reputed companies like Unilever sometimes undergo massive employee turnover
that affects in the development of the organisation. The study tries to address the potential
gaps, so that suitable methods can be proposed for establishing an appropriate as well as a
positive organisational culture employee motivation at such work places. This can help in
motivating the employees suitably and ensure development of a strong organisational culture.
1.8 Dissertation structure
The first chapter of the dissertation provides an introduction and overview of the
topic. It also helps in setting the aims and objectives that need to be completed. Research
questions and hypothesis are developed to assist the dissertation further. The second chapter
consists of the literature review, which highlights the theories and models used for
understanding the topic more clearly. The dependent and independent variables are identified
in the chapter and proper link between the factors are made. Various scholarly articles are
referenced so that criticality of the topic can be achieved. The third chapter highlights the
research methodologies, tools and type of data analysis that has been used for the collection
of data. The fourth chapter analyses the topic by using appropriate analytical tools that are
suitable for the completion of the research. The fifth chapter helps in interpreting the data by
analysing the evidence received from the literature review and the results from the data

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analysis. The final chapter provides a conclusion of the topic and makes recommendations for
the improvement of the topic.
1.9 Summary
The analysis of the chapter can help in summarising that organisational culture can be
considered as one of the crucial factors that result in the motivation of the employees.
Employees are usually considered as the key pillars of the most business organisations that
represent the reputation as well as the significance of a company that exists in a business
environment. Most of the motivated employees display signs of responsibility, efficiency,
along with dedication and commitment to the work. Hence, providing better performances
can be considered as an opportunity for the organisations. Positive organisational culture can
help in influencing and supporting the employees so that best performance can be provided
with the assistance of better working environment, motivation and effective leadership styles.
Therefore, development of an appropriate organisational culture is crucial to ensure the
continuity of the motivation of the employees.

Organisational culture Employee motivation
Company values and policies
Leadership
Customers and clients
Employees
Working environment
Leadership
Fellow workers
Working environment
Advanced opportunity
Beliefs and ideologies
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CHAPTER 2: LITERATURE REVIEW
2.1 Overview
The literature review provides a critical analysis of the factors that affect the variables
of the topic. It takes into account every factor that can be associated with organisational
culture and employee motivation. These factors are linked with the topic so that a better
understanding of the concept can take place. At the same time, concepts of the topics, its
impact and the challenges that are faced while achieving an effective and positive
organisational culture is provided in the chapter. Various researches from scholars are taken
into consideration in this chapter.
2.2 Conceptual Framework
Figure 1: Conceptual framework
(Source: Created by author)