Saturday, June 20, 2020

Organizational Culture and Employee Turnover


Organizational Culture

Organizational culture works a lot like this. Every company has its own unique personality, just like people do. The unique personality of an organization is referred to as its culture. In groups of people who work together, organizational culture is an invisible but powerful force that influences the behavior of the members of that group.
Under this set of definitions, organizational culture is a set of shared assumptions that guide what happens in organizations by defining appropriate behavior for various situations (Ravasi & Schultz, 2006). Organizational culture affects the way people and groups interact with each other, with clients, and with stakeholders. Also, organizational culture may influence how much employees identify with their organization (Schrodt, 2002).

Relationship between Organizational Culture and Employee Turnover

Turnover is the number or percentage of employees who leave an organization either voluntarily or involuntarily and are replaced by new employees. Employee turnover is one of the most costly human resource challenges confronting both public and private organizations. High turnover has been experienced in many organizations due to globalization and technological advancement which have increased mobility of highly skilled employees and also competition. As per Armstrong (2009), a high rate of attrition can destabilize business and demotivate those who attempt to maintain a level of service and output against a background of vacant posts, experienced staff, and general discontent. So the culture or behavior has a direct impact on employee turnover ratio. A motivational and inspired culture will positively impact employee turnover and which directly connect with employee satisfaction as per Smith, Kendall, and Huhn (1969) contend that satisfied employees are those who have a positive attitude and achieve positive results for their organization as well as in relation to their jobs.   

Source : YouTube - Employee Turnover
References
Armstrong, M. (2009). Armstrong's handbook of human resource management
Ravasi, D.; Schultz, M. (2006). “Responding to organizational identity threats: Exploring the role of organizational culture”. Academy of Management Journal.
Schrodt, P (2002). “The relationship between organizational identification and organizational culture: Employee perceptions of culture and identification in a retail sales organization”. Communication Studies 53: 189–202.
Smith K, Kendall LJ (1969). Hulin. Measurement of Satisfaction, 3. Smith PC, Kendall LM, Huhn CL (1969). The measurement of satisfaction in work and retirement Chicago Rand McNally

4 comments:

  1. Nice article. Author has discussed organizational culture and employee turnover properly.

    Further,organisational culture is playing a vital role in view to keep the organisational environment happy and healthy.In another words, if the organization take care of your employees, they will definitely take care of the organisation.

    Therefore, by creating a positive experience for employees, the employer can drive long-term changes in the organization which will enhance the performance.

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  2. good article about organizational culture and turnover . Very clear to understand the idea author emphasize. I agree with author since culture directly affects the employee turnover. When an employee cannot adopt with organization culture it urge employee to leave that organization and if ghe conditions of organization culture is favorable, employees retain and satisfied with the workplace and this minimize the cost of continuous job hiring and training.

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  3. This comment has been removed by the author.

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  4. Author has clearly discussed about how organisational culture affects employee turn over.

    Turnover and organizational culture have a difficult, symbiotic relationship. Employee turnover creates fractured workplace relationships and an organizational culture that doesn't encourage long and productive working relationships.

    Employees in high-turnover industries typically don't spend enough time on the job to develop collegial relationships and friendships with their coworkers. Consequently, the phenomenon of high turnover can make teamwork impossible. Employers also may be reluctant to invest too much of their time and resources in training and employee development because that simply adds to the already high cost of replacing workers.

    ReplyDelete

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