Relationship Between Organizational Culture And Employee Commitment

1.1 Introduction

This study is intention to review the relationship between organizational culture (OC) and employee commitment (EM): A study on manufacturing company in Kulim Hi-Tech Park, Kedah, Malaysia. In-depth, this study chapter will introduce the overview of the topic with the introduction, research background, the problem statement, research question and objectives, hypotheses, a significance and scope of the study on manufacturing company in Kulim Hi-Tech Park, Kedah, Malaysia.

Organization is a group of peoples to combine together to achieve the organizational goals. Every organization has the manager to assign duties to employee and relation between different activities of the organization and employees. Organization is flexible

Employee turnover has been a topic of interest to economists and academic experts (Mowday et al., 1982; Hom and Griffetch, 1995; Griffetch et al., 2000; Hayes et al, 2006). When employees feel dissatisfaction for their organizational culture, employees will be leaving the company or change jobs.

The rate of employee turnover is increased because the organizational commitment in a manufacturing company is low. Based on previous studies, organizational commitment is the reason to increase the rate of employee turnover (Law, 2005; Trimble, 2006; Pao-Long et al, 2007; Wagner, 2007). Organizational culture can produce the loyal employees or employee commitment (Kossek and Zonia, 1993; Fields and Weaver, 2002; Myers and Dreachslin, 2007; Sippola, 2007)

Therefore, need to change the organization's culture of newer technology and finds innovative ways of retaining employees. Many factors influence for the commitment of employees in an organization. Among those that are most frequently overlooked, are the organizational culture and environment (Smart and St. John, 1996; Cameron and Quinn, 1999; Smerek, 2010). Although there are studies conducted an organizational culture and organizational commitment, fewer studies look at the relationship between both variable especially from Malaysia perception (Schneider, 1990;

1.7 Scope

This study will do in the manufacturing company in Kulim Hi-Tech Park, Kedah, Malaysia, which is also an industrial area. The independent variable is the organizational culture. Denison's model of organizational culture that will be used including adaptability, involvement, adjustment, and mission. In this study, organizational commitment is the dependent variable will be reviewed. The normative commitment proposed by the Allen and Mayer's model will be used to measure organizational commitment. This study will do in the quantitative method and using the SPSS analysis software to analyse the data.

1.8 Significant of study

From this study can understanding the changes in organizational culture and affect the commitment of employees. Organizational culture is a significant effect on how employees view commitment, and how values and philosophy guide the employees’ performance in the organization. However, the employee commitment is important to ensure the successful implementation of the organizational plans and policies. The level of employee commitment helps to ensure successful implementation of the organizational strategies, plans, and actions. Employee commitment can achieve employee work. This is because they have the discipline, values and ethics as well as having a positive attitude to execute their work. There is both theoretical and practical importance of conducting this study.