The Influence of Organisational Culture on Employee Job Satisfaction

This report analyzes the impact of organisational culture on employee job satisfaction. It begins by defining organisational culture and its characteristics, emphasizing the role of values, beliefs, and practices. The report then defines job satisfaction and explores factors like compensation, work-life balance, and organisational culture itself. The core argument highlights how organisational culture significantly influences job satisfaction, leading to improved performance, commitment, motivation, and reduced turnover. Key elements of a positive organisational environment, such as supportive management, clear structures, effective communication, people orientation, rewards, teamwork, and innovation are discussed in detail. Each element is examined for its effect on employee satisfaction, with the report concluding that a positive and well-defined organisational culture is essential for employee well-being, productivity, and overall organisational success. The report references various journals and online resources to support its findings.

Impact of organisational culture
on employee job satisfaction

Table of Contents
Impact of organisational culture on employee job satisfaction.......................................................1
INTRODUCTION...........................................................................................................................1
Impact of Organisational Culture on Employee Job Satisfaction....................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Defined as underlying values, beliefs and assumptions and ways of interacting within
organisation that create unique environment of in social and psychological form is known as
organisational culture. Culture of organisation develop along with organisation itself but building
and developing a culture which allows employees to perform to best of their potential is
responsibility of employees. This report attempts to analyse impact of organisational culture on
employee satisfaction. For that organisational culture its characteristics and its impact on
employees have been discussed in this report.
Impact of Organisational Culture on Employee Job Satisfaction
To understand impact of organisational culture on job satisfaction of employee it is
important to understand what is organisational culture. An organisation culture can be defined as
integration of values that promoters of an organisation link with organisation, its vision and
mission and its objectives (Mathew, 2019). Policies and practices of organisation are also part of
organisational culture and beliefs and assumptions of organisation are also part of organisation
culture. All this factors differentiate an organisation from others.
Significant characteristics of organisation culture are as follows-
 Management Support.
 Structure.
 Conflict tolerance system.
 Performance reward system.
 Communication patterns.
 People orientation.
 Outcome orientation.
 Innovation.
 Team work.
 Competitive Orientation.
To understand its impact on job satisfaction of employee, to understand Job Satisfaction is also
important. Job Satisfaction is defined as extent to which employees feel self-motivated, content
and satisfied with their job. This refers to feeling of contentment that employee has about their
job. There are various factors that decide and affect job satisfaction of employees (Tomaževič,
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Seljak and Aristovnik, 2019). Job Satisfaction of employees is very important as this contributes
to efficient performance of employees at their job. The factors that affect Job Satisfaction of
employee are-
 Compensation and conditions of work.
 Work life balance.
 Rewards and recognition.
 Challenges.
 Career Growth and
 Organisational Culture.
The last factor in the list and most important factor that impact job satisfaction of employees is
culture of an organisation where employee works (Kuo and Tsai, 2019). From explanation of
organisational culture and job satisfaction it is clear that there are various factors which
contribute and build job satisfaction are characteristics and parts of organisational culture. This
report attempt to explain impact of organisational culture on job satisfaction, which gives a sense
that this is something significant which requires to explain the importance of job satisfaction
which is-
 Job satisfaction improves performance of employees.
 Job satisfaction build commitment of employees for their organisation and their job.
 This is an important factor for motivation of employees.
 Employees' job satisfaction reduces employee turnover.
 Contribute in competitiveness of organisation and attract competent employees towards
organisation.
 Job satisfaction contribute in higher productivity and profit and reduces cost of
organisation.
 Building an healthy and happy workplace with elements like trust, respect, security and
understanding.
These significances of Job Satisfaction requires analysing impact of organisational culture on job
satisfaction of employee is-
Elements of Positive Organisational environment are-
 Highly supportive management.
 Clear Structure of organisation.
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 Effective communication patterns.
 People Orientation.
 Effective system for reward and recognition.
 Team Work and
 Innovation.
These are being explained with its impact on job satisfaction of employees.
Employees having a supportive management feel free to share their problems and
concerns with management (Leithy, 2017). Support from management ensures that their
concerns and issues will be resolved. This satisfies employee from the side of management and
gives a feeling that they are important to the organisation. This positively impact job satisfaction
of employee.
Clear structure of organisation is also a factor that impact satisfaction of employees.
Clear structure refers to clarity of roles in organisation, to whom employees are supposed to
report and who are their superiors and subordinates what tasks employees are supposed to do all
these impact performance of employees positively as employee do not have any kind of
ambiguity about their roles and duties. On the other hand when these factors are not favourable
and structure of organisation underlie ambiguity it creates frustration in employees and
negatively affect their job satisfaction. This is responsibility of management that employees do
not have any confusion about their roles and duties and it develops an clear organisation
structure.
Many times performance gets affected because of unclear and miscommunication. This
may create frustration and hamper performance of employees and when employees feel that their
performance is being negatively affected due to reasons which are not in their control but within
control of organisation this also affect their job satisfaction (Shevchuk and Melnikova, 2019).
When communication pattern is effective and employees are able to communicate without any
barrier it contribute in job satisfaction of employees.
People orientation in organisation is another important factor that contribute in job
satisfaction of employees. People orientation refers to whether organisation is concerned about
people and well-being of its employees over completion of task or task completion and task
orientation is more important for organisation. Organisation when put its focus o well-being of
its employees. It impacts satisfaction of employee in positive manner whilst when management
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put more focus on task completion and ignore people it negatively affects job satisfaction. People
orientation also build respect for organisation in mind of employee which is an important factor
in performance and loyalty of employee in organisation and for organisation (Leithy, 2017).
People orientation also includes consideration of organisation for development of employees. In
present environment competent employees like to work in organisations that provide opportunity
to develop and grow. This also adds in job satisfaction of employees.
Compensation and Rewards are most important when employee is having all other factor
that contribute and build job satisfaction of employee but do not get satisfactory compensation
and reward it becomes difficult for employees to remain satisfied from their job. This is
important because this the main reason for which employees join organisation and work for
organisation (Ruch and et.al., 2018). Rewards which are result of effective and high standard
performance of employees which motivate them to improve their performance and maintain
current performance in case of performance as per standard and above standard. In case
employees do not get satisfactory compensation and their performance is not rewarded their job
satisfaction gets negatively affected and which result in poor performance of employees. Proper
reward system is an important factor of organisation culture and it manages to attract competent
employees to work in organisation.
Team Work and Relationships play an important role in job satisfaction of employees.
Employees spend most of the time at the place of their job and building informal relationships is
very natural. Employees when have quality relationships at their workplace their job satisfaction
gets positively affected and this also motivates employees to stay in organisation. In contrast,
when employees face conflict in organisation and when organisational conflict affect their
performance their motivation and job performance gets negatively affected. Team work is also
important when employees are working in a team they need to have good relations with others
with their existence of their individuality which means that employees do have a significant
place in organisation and at the same time they are having good and harmonious relationship
with other members of the team. This contributes in job satisfaction of employees (Khurshid and
Awan, 2017). Teams are vital part of organisation and that is why this is important that they are
having members who share a good relationship with each other. This also an important element
of effective team.
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Innovation, from above it may look what kind of effect it may have on job satisfaction of
employees (Khurshid and Awan, 2017). But when given due consideration it is very clear that
innovation and level and orientation towards innovation are very important for job satisfaction.
Innovation is supposed to be done by employees of an organisation and one innovation requires
many things like risk taking, investment and trust of management and organisation in employees.
When employees are trusted by organisation and for their capabilities and then they are given
opportunity to take risk this make positive impact on employees and enhance their job
satisfaction (Parray and Bhat, 2018). This factor also present challenges in front of employees
and research suggest that challenging task increase motivation of employees. There are few other
factors of organisation culture that affect job satisfaction of employees-
Competitive Orientation, what kind of competition do organisation have. Positive and healthy
competition is ideal and enhance job satisfaction and motivation of employees.
Conflict Resolution, Conflicts are natural and manner in which company deal with conflict is
also an important factor that impact job satisfaction of employees.
CONCLUSION
On the basis of above analysis it can be concluded that job satisfaction of employees is
very important and companies have to make sure that its employees are satisfied with their job.
This will increase profit and productivity of organisation and their employee turnover will be
reduced. Job satisfaction is mainly affected by culture of the organisation. The factors that build
culture have been analysed in context with their impact on job satisfaction in this report.
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REFERENCES
Books and Journals
Khurshid, F. and Awan, M.U., 2017. Service quality and organizational culture as predictors of
faculty job satisfaction. Pakistan Business Review. 19(2). pp.499-517.
Kuo, T. and Tsai, G.Y., 2019. The effects of employee perceived organisational culture on
performance: the moderating effects of management maturity. Total Quality
Management & Business Excellence. 30(3-4). pp.267-283.
Leithy, W.E., 2017. Organisational culture and organisational performance. International
Journal of Economics & Management Sciences. 6(42). pp.1-10.
Mathew, J., 2019. Organisational culture and effectiveness. Employee Relations: The
International Journal.
Parray, Z.A. and Bhat, S.A., 2018. The Effects of Organisational Cultural Functions and Job
Satisfaction on Turnover Intention-A Study of Health Care Industry. Journal of
Commerce and Management Thought. 9(3). pp.402-416.
Ruch and et.al., 2018. Team roles: Their relationships to character strengths and job satisfaction.
The Journal of Positive Psychology. 13(2). pp.190-199.
Shevchuk, I.A. and Melnikova, T.B., 2019. Job Satisfaction Exogenous Model. Humanities &
Social Sciences. 12(13). p.13.
Tomaževič, N., Seljak, J. and Aristovnik, A., 2019. Occupational values, work climate and
demographic characteristics as determinants of job satisfaction in policing. Police
Practice and Research. 20(4). pp.376-393.
Online
How Important is Job Satisfaction in Today’s Workplace? 2019.[Online]. Available through :
<https://www.villanovau.com/resources/hr/importance-of-job-satisfaction-in-the-
workplace/>.
What is organisational Culture? 2020. [Online]. Available through :
<https://gothamculture.com/what-is-organizational-culture-definition/>.
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