Organizational Culture, Employee Engagement, and Performance

Verified

Added on  2023/04/21

|21
|7169
|375
Report
AI Summary
This report investigates the impact of organizational culture on employee engagement and performance within service-led organizations. It highlights that a strong and effective culture serves as a competitive advantage, fostering long-term strategy development and business success. The research explores how implementing the right culture can improve organizational performance and employee engagement, considering factors such as leadership, policies, organizational environment, and rewards. The study employs a deductive approach, descriptive research design, and survey strategy, utilizing both primary and secondary data collection techniques and SPSS data analysis to examine the relationship between organizational culture, employee engagement, and overall performance.
Document Page
Running head: RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
A study that researches if the right culture in a services-led organisation exists, then performance
and employee engagement should follow
Name of the University:
Name of the Student:
Authors Note:
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
1RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
Table of Contentss
Chapter 1: Introduction........................................................................................................2
1.1 Background to the research.....................................................................................2
1.2 Research question....................................................................................................3
1.3. Research Objectives..................................................................................................3
1.4 Justification for the research....................................................................................4
1.5 Outline methodology...............................................................................................5
1.6 Outline of the chapters..............................................................................................5
1.7 Definitions...............................................................................................................6
1.8 Summary...................................................................................................................6
Chapter 2: Literature Review...............................................................................................6
2.1 Introduction..............................................................................................................6
2.2. Kinds of Organizational Culture...............................................................................7
2.3. Employee Engagement...........................................................................................10
2.4. Relationship between Organizational Culture and Employee Engagement...........12
2.5. Conceptual model...................................................................................................15
2.6. Summary.................................................................................................................16
References..........................................................................................................................17
Document Page
2RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
Chapter 1: Introduction
1.1 Background to the research
A strong along with effective culture serves as a corporate asset which cannot be
replicated or limited by the business competitors. It has also been pointed out that team culture is
an aspect that can never be purchased or generated by implementing scientific methods. For this
reason, the existence of service led organizational culture within the business results in increase
of organizational performance within the service-led organizations. A strong and effective
business cultureis often considered as competitive advantage for the business as strong culture
facilitates in development of long term strategy and facilitates in maintaining business success.
Al Mehrzi and Singh, (2016) revealed that a service led organization being a social entity attains
a number of distinct people with distinct backgrounds together to operate in the direction of
defined objective. Employees join an organization with distinct beliefs, values along with distinct
methods of carrying out tasks. For the purpose of attaining such conjoint objective, the service-
led organization must demarcate a culture along with attempting to instill it with the employees
of the organization. Alagaraja and Shuck, (2015) also pointed out that organizational culture is
likely to be professed as unsupportive or supportive along with being negative or positive. It is
also gathered that each employee join the service-led organization which itself have particular
belief, values along ith defined method of carrying out tasks. The following research will focus
on verifying in the fact that right culture implementation within the business organization can
result in improvement of organizational performance and can also observe better employee
engagement in the companies.
Alas and Mousa (2016) also revealed that culture and engagement are the important
aspects in the era of increased corporate transparency, increased workforce mobility and severe
skills shortages In addition, engagement, culture along with employee retention has turned out to
be among the major concerns for the business leaders that is not simply recorded as HR concern.
Culture along with employee engagement is deemed as vital issue for the service-led
organizations all through the world. More than 87% of the companies cite that employee
engagement and culture serve to be most important issues those are needed to be addressed in
attaining exceptional organizational performance (Alvesson&Sveningsson, 2015). Companies
Document Page
3RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
that develop a culture explained by meaningful work by developing job and organizational fit
along with strong leadership are outperforming their peers that deals with competition in
attracting top talent. Employee engagement holds a considerable place in the human resource
departments list all though the world. This is because of the employee engagement concept
touches the bottom line of the service-led organization and decreases the degree to which the
employees totally feel as company’s part and work as per the personal effort. The research will
also explain the contributing factors of leadership related to engagement, service-led
organization policies and procedures, organizational surrounding, recognition amongst other
individuals, organizational structure and rewards. Such contributing factors related with
engagement are incorporated within company’s culture and for this reason and a result of
significance of improving an effective culture that involves the personnel. A number of related
researches are carried out based on company culture. It is observed that culture is socially leaned
as well as transmitted by the service-led organizational members as it offers rules for suitable
behaviors within the companies. The organizationalculture has a belief that can guide employees
in training employees to include practices, value along with assumptions related with work. Job
performance based on several dimensions includesorganizational, promotion, job content,
reward, working partnerand environment.
1.2 Research question
The research question that is to be answered through completion of the study is indicated
below:
Is there existence of right culture within a service-led company than performance and
employee engagement requires following?
1.3. Research Objectives
The objectives of the research are indicated below:
To recognize the suitable culture for the service led organizations
To recognize the manner in which the service led organizations employ the culture within
the business
To recognize the manner in which service led organizations increases their productivity
over a given timeframe
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
4RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
1.4 Justification for the research
The purpose of the research is also on highlighting the reasons behind increase in
employee engagementalong with the function that the existence of positive culture has on the
business organizations. The research will focus on discussing the cultural values, employee
engagement along with increase in the organizational performance regarding business (Barrick et
al., 2015). The involvement of such vital factors along with establishing a common link that such
elements share its self-provide an increased scope in research. Employee engagement holds a
considerable place in the human resource departments list all though the world. This is because
of the employee engagement concept touches the bottom line of the organization and decreases
the degree to which the employees totally feel as company’s part and work as per the personal
effort. The research will also explain the contributing factors of leadership related to
engagement, organization policies and procedures, organizational surrounding, recognition
amongst other individuals, organizational structure and rewards (Bhuvanaiah& Raya, 2016).
Such contributing factors related with engagement are incorporated within company’s culture
and for this reason and a result of significance of improving an effective culture that involves the
personnel. A number of related researches are carried out based on company culture. Existing
research on this subject indicated that a company relationamongst engagement along with
company culture (Bin, 2015). A number of researchalso indicate that the employees those are
involved carry out their duties in an effective way in contrast to their corresponding individuals
that might involve more than a few company measures. The aim of the research is to analyze the
presence of suitable culture in the company will result in superior performance that result in
increased employee engagement within the company along with performance of the following
business organization. The use of previously existing theories and models facilitate in making
positive impacts in business along with making employees highly motivated towards the
business company (Blattner& Walter, 2015). In this specific case the researcher will focus on
attaining data from previously existing models and theories on the organizational
performancesand culture along with the employee performances. Organizational culture is
defined as the underlying beliefs, values, assumptions along with the manner of interacting
which contributing to exceptional psychological surrounding of the company. Employee
engagement is explained as the extent to which the employees are content and indicates level of
Document Page
5RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
involvement, motivation and emotional commitment towards attaining common organizational
goals (Carasco-Saul, Kim & Kim, 2015).
1.5 Outline methodology
The researchmethodology used in this study will include several methodological tools
which were employed by the researcher in completing the study and attain reliable findings. The
reserveapproach used in this study was deductive as it facilitated the researcher in testing the
developed hypotheses on whether use of suitable cultural strategy facilitates in enhancing
performance of organizations and its employees (Driskill, 2018). Descriptiveresearch design was
used in this study as it offers an opportunity for the researcher to clarify developed hypotheses
along with analyzing cause-effect of research rationale. Survey researchstrategy will be used in
this research as it offers a better opportunity for the researcher to gather relevant data from
organizational perspectives. Systematic profitability sampling method has been used as it
facilitates in attaining an idea of the managerial and employees viewpoint (Hanaysha, 2016).
Both primary and secondary data collection techniques have been used as this has facilitated in
developing a clarified concept regarding cultural context within a company which facilitates in
enhancing business organizations and employees performance. SPSS data analysis technique was
employed for carrying out logical batched as well as non-batched evaluation on the variables
developed for the research (Hartnell et al., 2016).
1.6 Outline of the chapters
The first chapter of this research will offer a detailed introduction on the topic “existence
of right culture within a service-led company than performance and employee engagement
requires following” that will include explaining the background, research question, justification,
outline methodology along with important definitions. The second chapter of this study will be
focused on analyzing the literature review in which detailed explanation will be provided on the
types of organizational culture, employee engagement and relationship between organizational
culture and company culture. The third chapter of this study willsanalyses different approaches,
methods, strategies, data collection techniques and researchanalysis techniques employed in this
investigation. The fourth chapter will explain the research analysis carried out in this study for
gathering suitable findings and the fifth chapter will conclude the study findings along with
Document Page
6RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
offering suitable recommendations in improving organizational culture for increasing better
employee engagement.
1.7 Definitions
Organizational Culture: Huhtala, Tolvanen, MaunoandFeldt, (2015) defined
organizational culture as the underlying beliefs, values, assumptions along with the
manner of interacting which contributing to exceptional psychological surrounding of the
company.
Employee Engagement: Jhaand Kumar, (2016) defined employee engagement as the
extent to which the employees are content and indicates level of involvement, motivation
and emotional commitment towards attaining common organizational goals.
1.8 Summary
The introduction chapter focused on explaining background on the research topic
“existence of right culture within a service-led company that performance and employee
engagement requires to follow” that included explaining the background, research question,
justification, outline methodology along with important definitions. Moreover, it was also
gathered that organizational culture is likely to be professed as unsupportive or supportive along
with being negative or positive. It is also gathered that each employee join the organization
which itself have particular belief, values along ith defined method of carrying out tasks. The
right culture implementation within the business organization can result in improvement of
organizational performance and can also observe better employee engagement in the companies.
It was gathered from completion of this chapter that the researchmethodology used in this study
will include several methodological tools which was employed by the researcher in completing
the study and attain reliable findings.
Chapter 2: Literature Review
2.1 Introduction
The literature review section focused on analyzing several applicable theories on which
the organizational culture is based upon. The chapter further converses in relation to analyze the
association among organizational culture and employee engagement. Moreover, the explanations
will be based on findings gathered from past researches on “existence of right culture within a
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
7RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
service-led company that performance and employee engagement requires to follow” that
represents an evaluation of distinct organizational culture along with the indicators of employee
engagement (Jiang & Men, 2017). The section has developed a conceptual model that facilitated
in conducting the research in a detailed manner through implementing suitable research analysis
techniques.
2.2. Kinds of Organizational Culture
Kent et al., (2016)stated that organizational culture demarcated the stable fundamental set
of ideals, suppositions along with interpretations along with the manner in which the company
members deal with distinct issues. Culture in any organization might be observed from the
manifold scopes. One center is based on the conversation of interior which is incorporation along
with leveling in contradiction to the exterior relation, distinction along with competition along
with stress on the organic procedures, dynamism along with flexibility against the procedures
that are machine such as firmness and control. Researchers namely Khalid and Khalid,
(2015)stated that assimilating the two focuses on the contending value results in four distinct
types of cultures such clan culture, market culture, adhocracy along with hierarchy culture.
Researchers namely Kumar and Pansari, (2015)stated that assimilating the two focuses on the
contending value results in four distinct types of cultures, which are demonstrated briefly as
follows:
Power culture dimension:
In any organization, there is need of using power for exercising control as well as
influencing behavior. According to Mann and Harter, (2016), power culture could be defined as
organizational culture, which relies on the inequality of access to resources. This type of culture
is characterized by increased centralization and minimized formalization operating modes. It has
only source of power from which there is exertion of influence on the entire organization. This
denotes the centralization of power and the organizational members are associated with the
center by specialist and functional strings.
In power culture, a dominant individual sits in the center surrounded by a number of
individuals, mainly subordinates that depend on the dominant. This increases the valuation of an
informal, personal and power management style. This type of culture could be seen in small as
Document Page
8RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
well as big organizations. It uses a top down approach of communication and decisions are
undertaken based on influence, instead of logical explanations or procedural steps (Peng et al.,
2016).
Role culture dimension:
In the words of Popli and Rizvi, (2015), role culture could be defined as a replacement of
a group of procedures and structures for the sole power of the leader. The primary concentration
of this culture is on job specialization and description. This culture is observed to have both high
formalization and centralization on operating modes. The strength of this culture relies on its
specialties or functions, which include production, financing, purchasing and others. Thus, it
could be adjudged as a group of pillars that are coordinated and controlled from the end of a
limited number of senior officials. Thus, the firms following this culture are characterized by a
group of roles tied together logically. These job descriptions are coordinated at the superior level
with the help of a narrow band of senior management. The common point that could be observed
between power culture and role culture is that they rely on external punishments and rewards for
motivating the members of the organization (Popliand Rizvi, 2015).
The organizations following this culture function on the assumption that it is not possible
to trust people, which restrict them to provide individual freedom or discretion to lower level
members. It leads to a hierarchical command chain resulting in predictability and stability. This
could offer security for the members of the organization by providing an estimated rate of
moving up a ladder and an opportunity of acquiring specialist skill in the absence of any risk.
Thus, this culture focus on that the employees do not make mistakes along with laying stress on
legitimacy, legality and responsibility (Reis, Trullenand Story, 2016).
Achievement culture dimension:
This culture could be defined as the aligned culture that steers the individuals towards a
similar vision or purpose. The operating mode of this culture is low in centralization and high in
formalization. This states that natural balance is maintained between centrality and formality of
power shared within the business organizations. The allocation of power is made depending on
short-term horizon like classification of projects. It is necessary to ensure task completion as
team work, instead of promoting individual work or position. Rofcanin, Las Herasand Bakker,
Document Page
9RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
(2017)indicated that the major strategic objective of this culture is to bring the correct individuals
together in order to attain common organizational goals. This also suggests that achievement
based culture is identical to team orientation that serves as a characteristic of organizational
culture. These reasechers also explained team orientation as the extent to which organizational
work activities are organized all through teams rather than the individual employees. Through
bringing together a cluster of employees those are specialistsin their job fields by means of
which the companies are capable of meeting the market demand.
Support Culture Dimension
Singh, (2016)revealed that the support culturedimension can be explained as an
organizational climate which is relied on mutual trust among the organization and its employees
and for this reason this culture is also termed as person-oriented culture. These reasechers also
added that support culture based company exists solely for the companies those compromise it
and that might be represented as a cluster in which no employee dominates. Taneja, Sewell, and
Odom, (2015)confirmed that the support culture resembles the individual’s orientation
characteristic based on organizational culture. Such culture is explained as the degree which
management decisions take into account the impact of outcomes on employees. On the other
hand, this culture implies that the employee’s well-being is vital for the managers in this kind of
organization. Ünaland Turgut, (2015)elaborated that the organizations following such culture is
generally smaller in size and employees have worked together over a long time and have been
efficient in building relationships. Such type of relationship is in the form of trust and mutuality
that binds employees to one another.
Zhong, Wayne and Liden, (2016)explained in their research that the functions of
organizational culture is to determine the organizational behavior through recognizing the major
goals, work methods along with the manner in which employees must interact and address one
another along with explaining ways in which they can develop personal relationships. Such
functions of organizational culture include conflict resolution, coordination and control,
uncertainty reduction, motivation and attaining competitive advantages. Taneja, Sewell and
Odom, (2015)added that organizational culture facilitates in maintaining employee commitment
along with developing employee self-interests to retain them in the organization.
tabler-icon-diamond-filled.svg

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
10RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
2.3. Employee Engagement
Taneja, Sewell and Odom, (2015)stated that at the time employees are engaged or
involved, each individual benefit as the employees have a notion that they are capable to use
their talents along with maintaining a productive relation in addition to increasing proficiency
through the means of the relation theyhave generated. It is additionally proclaimed by Taneja,
Sewell and Odom, (2015)that the performance of the engaged employees regularly levels along
with the enterprise intervention that moves the organizationfrontward. These reasechers also
proclaims that employee engagement is a situation in which personnel work as well as articulate
themselves emotionally, mentally, physically when the employees perform their functions. It is
also further expressed that the staff those are not involved repetitively have the chance to
withdraw from performing their parts along with trying to buffer themselves emotionally,
mentally along with physically. Zhong, Wayne and Liden, (2016) stated those
employeesthoseare engaged are the ones those are present at work mentally. It is also expressed
that the engagement of employees as work related with satisfying along with positive mental
state that is characterized by the means of job absorption, dedication along with vigor at work.
According to Zhong, Wayne and Liden, (2016) “Maslow’s Needs Hierarchy theory” has
an engagement with the employee engagement in orgaanzations as this explains aspects those
serve as effective manner in engaging with them. In addition, it is also stated that this theory
must be followed by the companies in order to better management their employee engagement
programs. Concentrating on the needs of employees can serve to be an effective manner in
increasing employee loyalty and engagement levels. As per this theory, in the survivalaspect
employees need basic requirements such as financial and job independence and safety is the
dotage where they feel confident and engaged towards their work and perform them in a better
manner. Zhong, Wayne and Liden, (2016) explained that the sense of belonging also increases
employee engagement levels and for this reason they must be provided with volunteering
activities along with health and wellness programs so that they are engagement in their job role.
These reasechers also added that the highest in the hierarchy that is desired to be attained by all
the orgaanzations are highly engaged employees set those are deeply rooted within the firm and
fosters the culture followed by the organization.
Document Page
11RIGHT CULTURE IN SERVICE-LED ORGNIZATIONS
On the other hand, revealed that “Gallup’s Engagement Hierarchy” explains employee
engagement through learning and development along with developing sense of career
opportunities andbelongings to increase staff engagement. These reasechersalso indicate that
employers must focus on thestrengths of employees along with constructing developing plans
relied on the same. As per this theory these factors that matter for employees in attaining job
engagement is not just focused on receiving but also on the aspects that they are giving back to
the companies in attainingorganizational goals. Zhong, Wayne and Liden, (2016) stated that
when the employees feel that their work is not that appreciated or has no important impact on the
organization they feel low which results in high employee turnover rate. For this reason, it is
based on the employers to decide the motivational factors offered by them to employees along
with making them feel engaged within the workplace. “IES Model of Engagement”
alsorecognized ten important factors those resulted in employees to feel valued along with
maintaining belongingness to stay engaged within the organization.
Zhong, Wayne and Liden, (2016)revealed that the suggested finding from the
engagement model includes the drivers that are important for all the companiesregardless of the
industry, however, certain unevenness is likely to occur. This engagement model puts more focus
on the sense of feeling valued and involved which an employee gets at the time of working in a
company. Such feeling of getting involved comes from factors such as co-operation,
communication, family friendliness and feeling of being valued which areattained by fair
treatment, equal opportunities, training and development. In contrast to such factors, explained
“Robinson Model of Employee Engagement” that put more focus on feeling valued along with
getting involved by employees within companies. Such feeling of values derives from numerous
policies and practices those are followed within the companies. Such policies and procedures
include communication, training and development along with co-operation which makes
employees feel that they are highly valued, job satisfaction, health and safety and pay benefits
and conditions. Zhong, Wayne and Liden, (2016)added that the major ingredients of employee
engagement involves offering an individual with an environment in which the person can attain a
meaningful and enriching work experience.
Along with that, employees use several emotional, physical along with cognitive levels of
themselves within their daily work performances. Thesereasechers also confirmed that rational as
chevron_up_icon
1 out of 21
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]