The Influence of Corporate Culture on Employees

The effectiveness of an organization is influenced by corporate culture, which affects the way managerial functions of planning, organizing, staffing, leading, and controlling are carried out. Organizational commitment is viewed as the psychological strength of an employee's attachment and involvement with the organization. A committed employee is determined to stay with the organization irrespective of whether the organization is in a favourable or unfavourable state. Corporate culture is pervasive and powerful as it either encourages or hampers change in the organization. For employees, corporate culture is either the glue that binds employees to the organization or the wind that blows them away.

Corporate culture is important in enhancing organizations' key capabilities and how they function. Culture is also essential in determining how well an employee fits into the organizational context. Meanwhile, the importance of a good fit between an employee and the organization cannot be overemphasized. Deal and Kennedy argue that corporate culture affects the commitment of employees within the organization and the strength of organizational commitment is correlated with the strength of corporate culture. A strong corporate culture enables employees understand the goals of the organization, and as they work towards organizational goals, their level of commitment increases.

Corporate culture is vital in developing and sustaining employee commitment and intensity levels that is often characteristic of successful organizations. In addition, shared values which are an aspect of corporate culture enhance employees' identification and attachment to the organization. This clearly shows that employees elect to be committed to organizations whose values they share. Similarly, Deal and Kennedy state that symbols are important in achieving organizational commitment.

Although empirical research has been carried out on corporate culture and employee commitment to the organization, there has been little evidence to prove the effect of corporate culture on organizational commitment. In a study of Hong Kong and Australian managers, Lok and Crawford found a positive effect of corporate culture on organizational commitment. Zain et al. examined the effect of four dimensions of corporate culture namely teamwork, communication, reward and recognition, and training and development on organizational commitment and found that all the four dimensions of corporate culture were important determinants of organizational commitment. While Mahmudah report a significant relationship between corporate culture and organizational commitment, research by Lahiry showed only a weak association between corporate culture and organizational commitment. This study seeks to further examine this relationship with particular reference to the Nigerian work environment.