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Organizational Culture

MIT Sloan research on organizational culture

Kara Baskin

Jul 25, 2022

COVID-19 has upended traditional working arrangements: Remote and hybrid work have expanded geographic possibilities, while abbreviated work weeks and flex time have changed the parameters of the traditional workday and workers’ expectations.

In this new era, leaders at every level of the enterprise are struggling to articulate an organizational culture that’s right for this new moment.

Here’s what MIT Sloan experts and researchers think are the key steps to building an organizational culture that works now and into the future.

Embrace distributed leadership

Smart organizations are shifting from command-and-control leadership to distributed leadership, which MIT Sloan professor Deborah Ancona defines as collaborative, autonomous practices managed by a network of formal and informal leaders across an organization.

The practice gives people autonomy to innovate and uses noncoercive means to align them around a common goal, a structure that’s highly appealing to employees who are used to being autonomous and empowered.

“Top leaders are flipping the hierarchy upside down,” said MIT Sloan lecturer Kate Isaacs,  who collaborates with Ancona on research about teams and nimble leadership.

“Their job isn't to be the smartest people in the room who have all the answers,” Isaacs said, “but rather to architect the gameboard where as many people as possible have permission to contribute the best of their expertise, their knowledge, their skills, and their ideas.”

Nurture a digital workforce …

To transform a traditional workforce into one that is future-ready, leaders should equip workers with the technologies they need and give them the accountability and capabilities to fully exploit those tools, according to Kristine Dery, an academic research fellow with the MIT Center for Information Systems Research .

Companies should aim to make their employees empowered problem solvers, Dery said, by creating a supportive environment of continual and rapid learning where they can leverage technologies to solve unpredictable problems. These employees need to have confidence to solve problems, and the skills to work effectively in a digital world. 

This isn’t just a nice idea in theory: Companies that invest in the right experience for their people, and make sure they are ready for the future, tend to outperform their competitors. On average they deliver 19% more growth in revenue than their competitors and have 15% more profit. These companies are also more innovative, better at cross-selling, and deliver a significantly better customer experience, Dery said.

… but don’t ignore employee hierarchies

The ascension of junior employees needs to be handled with care. In a tech-first world, younger workers often possess more savvy than older colleagues — but quickly promoting them could create friction with senior co-workers, noted MIT Sloan work and organization studies professor Kate Kellogg.  She recommends creating peer-training programs that rotate both senior and junior employees through the role of trainer.

Strive for managers who understand nimble leadership

Nimble organizations are filled with people who feel free to step forward, propose new ideas, and translate them into action. Isaacs, Ancona, and co-researcher Elaine Backman have identified three types of leaders in a nimble organization:

• Entrepreneurial — lower- to mid-level idea generators who inspire trust through technical expertise and reputational credibility.
• Enabling — often middle managers who are good connectors and communicators and who remove obstacles for entrepreneurial leaders.
• Architecting — often high-level leaders who shape culture, structure, and values.

“In a lot of companies ‘purpose’ becomes a motto on the wall, it's not really lived, it’s just lip service,” Isaacs said during an MIT Sloan Executive Education webinar on nimble leadership . “In nimble organizations, [managers] are good at bringing the purpose down off the wall and into daily decision making.”

Turn to middle managers to help promote DEI

Nearly all companies have increased their efforts around diversity, equity, and inclusion. Research from Stephanie Creary , an assistant professor at The Wharton School, shows middle managers will be especially important when promoting diversity and inclusion within a workforce.

Speaking last year at the MIT Sloan Management Review Work/22  event, Creary explained that executives and senior managers are often motivated by market position and competition, but middle managers are typically focused on their team and its performance, making them ideal champions of DEI efforts.

Build a culture that supports remote teams

In their book “ Remote, Inc. ,” MIT Sloan senior lecturer Robert Pozen and  co-author Alexandra Samuel, offer ways for managers to effectively communicate with and encourage productivity in their remote employees.

The authors recommend four tools: ground rules, team meetings, one-on-ones, and performance reviews.

“Even experienced managers face new challenges when they first start managing an all or partially remote team,” the authors write. “You need to ensure your team gets its work done, but you also need to put some extra thought and TLC into managing the issues that crop up for remote workers, like personal isolation and trouble communicating with colleagues.”

Strengthen the link between worker well-being and company goals

Research by MIT Sloan professor Erin Kelly, co-author of  “ Overload: How Good Jobs Went Bad and What We Can Do about It ,” finds that happier employees are more likely to be engaged, enthusiastic about work, and likely to stay at their jobs.

To promote employee satisfaction, companies should consider pursuing a dual-agenda work redesign — that is, an action plan that links employees’ well-being and experience with a company’s priorities and goals.

A dual-agenda design prompts employees and managers to look at how work can be changed in ways that benefit employees and their families, and also the organization.

“Work redesign is not a change in company policy, it is an effort to construct a new normal, to reconsider and revamp how a team does its work,” Kelly said. “Dual agenda refers to the fact that these changes address both organizational concerns (working effectively) and employee concerns (working in ways that are more sustainable and reflect their personal and family priorities and protect their health).”

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The Importance of Organizational Culture

Research & advice for building a more magnetic culture.

65% of employees say their company culture has changed post-pandemic. Our research shows that employee perceptions of company culture have a direct impact on engagement and retention. This information can help leaders rethink their approach to culture and create a foundation for business success.

2022 Organizational Culture Research Report

Table of contents.

What is organizational culture

The top elements of organizational culture

What employees think about organizational culture

How culture impacts employee engagement & retention risk

Where organizational culture thrives

What employees want in an organizational culture

Who shapes organizational culture

5 tips for creating a strong, engaging culture

Make culture easier with quantum workplace.

Unpacking organizational culture 

Company culture has become a top priority for leaders across all industries. In fact, 66% of executives believe culture is more important than an organization's business strategy or operation model. 

The rise of remote and hybrid work has had a significant impact on the way we work. Our research shows 65% of employees say their company culture has changed since the start of the COVID-19 pandemic. As the workplace has changed, culture has too—for better or for worse.

Those organizations that have adapted their approach to culture have fared well over the past few years. They've created an attractive value proposition for prospective talent and have kept current employees engaged—even through periods of significant change. Those who have been slower to evolve have seen consequences of disengagement, burnout, and unwanted turnover.

Our research shows disengaged employees are 3.8 times more likely than their engaged counterparts to cite organizational culture as a reason for leaving. 

While most leaders agree a strong culture is key to business success, many have different ideas about what culture really is. This lack of clarity makes it difficult to make changes that move the needle. Leaders need to take a good look at the role culture plays in attracting, retaining, engaging, and empowering talent. They need to focus on the aspects of culture that drive employee, team, and business success.

Our organizational culture research offers a fresh perspective on workplace culture. It helps make clear the most critical aspects of creating an engaging and successful culture. It shows the link between culture, employee engagement, and retention. And it will help organizational leaders rethink their approach to culture in order to shape a foundation for business success.

What is organizational culture?

Culture has been historically defined as organizational norms, rituals, and values. But organizational culture is so much more than that. It’s about the day-to-day attitudes, actions, and behaviors at an organization. Essentially, it’s how work gets done within a business, including:

• The way you make decisions
• The way you communicate
• The way you celebrate employees
• The way you behave 
• The way you reward and recognize others 

Employees experience culture through many aspects of your organization. But our research shows that some aspects are felt much more powerfully than others. Culture is really about the day-to-day details of how work gets done. Here are the top ways that employees feel the culture at their organization.

50% of employees experience culture most strongly in their organization's approach to employee performance. 

The way you manage performance has a strong impact on engagement and organizational culture. How managers create alignment, communicate, recognize, and give feedback all shape an employee’s experience. Focus on performance management approaches that drive employee success and wellbeing. Read our research on creating an engaging performance management approach here >>

53% of employees feel culture most strongly through recognition and celebrations.

Employees want to feel valued for their contributions. How you recognize individuals and teams says a lot about your culture and what you value. When you publicly recognize employees for behaviors that align with your culture and values, it helps bring culture to life. 

54% of employees experience culture most strongly through their organization's mission and values. 

Your mission and values set the tone for how work gets done. If your mission is to help others, your culture might be more collaborative. If innovation is a core value, put systems in place that encourage innovation. To create a strong culture, leverage your mission and values to guide everyday initiatives.

What employees think about organizational culture 

Company culture is changing across all industries. Our research shows that while some employees believe this change is positive, others think differently. As culture continues to evolve, it impacts the employee experience in different ways than before. 

65% of employees say their company's culture has changed post-pandemic. 

35% say their culture has changed dramatically. As the workplace has changed, culture has changed too—for better or worse. Whether or not you’re actively investing in your culture, someone or something is shaping it. Leaders must keep a pulse on culture to ensure they’re driving the right changes at the right times.

2 in 3 employees say their organizational culture is "very positive." 

66% of employees say their culture positively impacts their work and behavior everyday.

Culture is a day by day, moment by moment experience. It’s key to create a culture that promotes the right outcomes and behaviors. Listen to what your employees have to say about the day to day happenings inside your organization—and make adjustments that improve their experience.

Culture—or “how work gets done”—is going to look different in your unique workplace. The way you communicate, treat each other, and make decisions can either positively impact engagement and retention, negatively impact it, or not impact it at all. 

Employees who say their culture is positive are 3.8x more likely to be engaged.

A positive culture strengthens employee engagement. When employees agree that their organizational cultures are positive, they are more likely to be highly engaged, (84%) than those who do not agree (22%).

Employees who say their culture has improved since the pandemic are 2.9x more likely to be highly engaged.

When employees say their culture has improved over the past two years, they are more likely to be highly engaged (81%) than employees who say it has declined (28%). This illustrates the link between culture and engagement. A strong culture drives employee engagement, whereas a weak culture can boost disengagement.

Disengaged employees are 2.6x more likely to leave their company for a better culture.

Roughly 60% of disengaged employees—and only 23% of engaged employees—would leave their company for a better culture. This suggests that employee engagement is the motivating factor behind retention. One of the ways to drive engagement? A positive workplace culture.

Where organizational culture thrives 

Remote and hybrid work environments are becoming the norm. While many leaders believe that culture suffers outside of the physical workplace, our research provides a different perspective. Those offered flexibility in the workplace are likely to see culture more favorably. 

Remote/hybrid employees are more likely to report a strong and positive company culture.

Only 65% of on-site employees believe their company has a strong culture, compared to over 70% of remote and hybrid workers. Only 58% of onsite employees say their culture is positive, compared to roughly 70% of remote and hybrid employees. Company culture isn’t attached to the physical workplace. In fact, it can be strengthened in a remote/hybrid environment. Giving employees the option to choose where they work fosters a culture of mutual trust and respect.

Remote/hybrid employees are more likely to say their culture has improved.

While remote (45%) and hybrid (44%) say their cultures have improved, only 37% of on-site employees say the same. Flexible work arrangements promote employee wellbeing, autonomy, work-life balance, inclusion and productivity.

Workplace employees are most likely to say their culture has declined.

28% of on-site workers say their culture has declined since the start of the pandemic. Now more than ever, employees expect flexibility, autonomy, and trust. When you can’t give your employees the option to work from home, try to find other ways for them to decide how their work gets done.

A Note on Industry Impact There are some industries and roles that are inherently less conducive to remote/hybrid work arrangements. Therefore, we explored whether other factors, like industry or company size, influence employees' perceptions of culture. While industry and company size can impact these perceptions, we found that where and how employees work has a stronger influence on their perceptions of culture. Regardless of the type of work you do, employees want a culture of flexibility and trust. That's why culture doesn't fizzle out in flexible or non-traditional work environments. 

Engaged and disengaged employees describe their cultures in different ways. But both engaged and disengaged employees know what they want—and don’t want—when it comes to culture.

No surprises here. Engaging cultures have a better reputation with talent.

It’s no surprise that engaged employees value their culture. After all, culture is a key factor behind engagement. The top words engaged employees use to describe their culture are:

• Inclusive 
• Caring 
• Collaborative

But disengaged employees have different thoughts. A few words disengaged employees use to describe their culture include:

• Disorganized
• Professional 

How employees describe an ideal culture

Regardless of engagement level, employees know what they want when it comes to culture. The top 5 words employees used to describe an ideal culture are:

1. Flexible 2. Inclusive 3. Supportive 4. Collaborative 5. Caring

To engage your employees, give them the flexibility to decide how, when, and where their work gets done. You should also prioritize inclusivity and give everyone the opportunity to succeed regardless of role, tenure or background. Regular check-ins, growth-focused coaching, and collaboration will support employee success further. Finally, ensure you show your people that you care about them as humans—not just employees. 

Who shapes organizational culture?

According to our research, employees believe leaders, managers, and HR are responsible for company culture. But to create a great culture, everyone needs to play a part. Culture should grow and evolve in a way that resonates with each employee, regardless of role. 

Employees believe that leaders and managers are responsible for culture.  

Culture starts at the top. In fact,  Leaders should clearly define culture, communicate about it regularly, set a good example, and tie business outcomes to company values. This will empower employees to practice, develop, and evolve cultural norms.   

57% of employees believe HR is responsible for creating company culture. 

Many employees expect HR to shape company culture. But while HR is probably trying to create culture, they need leadership and employees to support their efforts. Without company-wide adoption, you won’t see the culture change you want. 

57% of employees believe individual contributors are responsible for shaping culture. 

Each individual plays a part in culture. To create a strong culture, employees must understand and live out their culture, mission, and values. They must collaborate, recognize, communicate, and behave in a way that aligns with cultural norms. 

Everyone plays a part in culture. The healthiest cultures are shaped by every person within an organization. And the job of creating culture is never done. As your organization changes, it’s important to be intentional about how those changes impact culture.

A healthy culture looks different for everyone. Leaders should keep their unique business problems and opportunities in mind when creating a culture strategy. Shape your approach with these tips to foster a culture of engagement, performance, and long-term success.

1. Aim your culture strategies at engagement. 

A healthy culture drives employee engagement first and foremost. When you evaluate “how work gets done” at your organization, try to understand how each aspect could impact employee engagement. Engagement is all about connecting employees to their work, team, and organization—ensure your culture strategies do the same. 

2. Evolve your approach to employee performance. 

Employees say performance management is a key component of culture. With the right practices, you can drive alignment, motivation, growth, and engagement. With the wrong approach, you risk toxicity, distrust, and burnout. Use performance management as a tool to strengthen culture with continuous feedback, effective communication, company-wide alignment, and fairness and transparency.  

3. Focus on driving trust-building leadership practices.

To create a culture of trust , clearly outline your organization’s vision, strategy, progress, and goals. Leaders should communicate frequently and transparently to prevent employee confusion or resentment when change happens. Continue this communication when you gather employee feedback too, explaining how feedback was used—or why it wasn’t. Finally, allow employees to see leaders as real people—genuine relationships are needed to foster genuine trust. 

4. Weave employee recognition into all that you do.

Recognition happens in the way you communicate, promote, compensate, assign work, and provide opportunities. Build a system that recognizes behaviors critical to your organizational culture. You should prioritize authenticity when you recognize employees and tailor your communication to each individual. Employee recognition should happen every day—a simple thank you goes a long way. 

5. Invest in tech that helps you see, understand, and act on culture. 

A robust employee engagement, performance, and people analytics platform will outline the big picture behind your culture and help you understand where to focus and when. With the right tools, you can uncover deep insights, measure employee perceptions, and create a thriving culture. 

Every employee in the company builds culture. That's why it's crucial for every aspect of your business to intentionally reflect the culture you want your organization to have. 

Employee success tools and technology make it easy for your employees to contribute positively to your culture in their day-to-day tasks, goals, communication, and celebrations.

We make it easy to grow, develop, and retain your best talent.

Lack of career growth and development is one of the primary reasons employees leave their organization. Employees don’t want to feel stagnant. If they do, the result is a lack of engagement and impact. It is crucial to leverage tools that help managers and employees map and track development together.

We make it easy to connect and celebrate meaningfully. 

Your culture comes to life through the ways you celebrate and recognize your employees. Building a culture of connection and appreciation centered around your organization’s core values not only boosts employee morale, but also engagement and impact.

We make it easy to predict and prevent turnover.

You need to take a targeted approach to analyzing turnover and retention. To move from reacting to turnover to proactively addressing it, you have to understand what drives top talent to leave and continuously implement strategies to retain your best employees.

We make it easy to stand out and compete for talent.

Employees are your most vital asset. You need to have a dynamic strategy in place to stand out against your competitors and attract top talent. Benchmarking can help you understand the strengths and opportunities of your employee value proposition compared to your competitors. Transform your EVP into one that cannot be imitated.

Survey Methodology

The research from this report was derived from the   Best Places to Work   contest—powered by Quantum Workplace. This nationwide contest measures the employee experience of over 1 million voices across thousands of the most successful organizations in the United States.

From this respondent pool, we conduct an opt-in, independent research panel with over 32,000 individuals who share their workplace experiences. This unique vantage point gives us the ability to understand workplace trends to supply insights that help other organizations succeed.

Learn how to build a magnetic culture by making culture easier for you and your teams!

Published August 22, 2023 | Written By Kristin Ryba

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The Effect of Employee Competency and Organizational Culture on Employees’ Perceived Stress for Better Workplace

1 Department of Public Health, Graduate School, The Catholic University of Korea, Seoul 06591, Korea; moc.revan@anijmogg

Hye-Sun Jung

2 Department of Preventive Medicine, College of Medicine, The Catholic University of Korea, Seoul 06591, Korea

Associated Data

Used data for this study is not available.

Although the meaningful relationship between organizational culture and employee performance is a widely-researched topic, there is scant research available how organizational culture impacts on employees’ perceived stress in the workplace, affecting their performance. This might cause a difficulty to guide practitioners as to what organizational elements can be applied to reduce employee perceived stress. To add the level of robustness and fill the gap in the literature, the present research explores the effect of organizational culture with employee competency on workers’ perceived stress which has emerged as a common occupational disease and affected employees psychologically and physically; thus, affecting their performance. Using 641 responses, the statistical findings of the present research insists that HR practitioners should match the type of organizational culture and employee competency situationally to reduce employee stress. The current authors suggest that organizations desiring the adaptability competencies (Professional competency) for their employees should build a clan organizational culture. In contrast, organizations should encourage a market organizational culture for their employees who possess customer orientation competency (Simply result-oriented competency). The research outcomes provide additional knowledge to the existing literature, enhance academicians’ understanding of the research topic, and serve as a significant knowledge base for further empirical research.

1. Introduction

Organizational culture is the way employees perform assigned tasks and interact with others in the organization. Besides, it refers to symbols and values understood and adhered to by everyone in the organization [ 1 , 2 ] Organizational culture as can also be understood as individuals’ mindset that makes them distinct from others [ 3 ]. Thus, it is crucial in determining how employees perform in a company. Unlike other factors like lack of incentives, organizational culture might significantly impact workers’ stress [ 4 ].

Organizational culture is vital to employee performance. Performance is what employees do or do not do [ 5 ]. Employee performance is one of the most significant elements in an organization since it increases the organization’s efficiency and effectiveness [ 6 ]. Organizational culture represents the collective values, principles, and beliefs of corporate members [ 7 ]. Precisely, the culture with the company determines how employees perform and their engagement at the workplace. An organizations’ culture affects employee performance since it proposes to employees how to operate [ 8 ]. A strong organizational culture allows for open communication and participation in the decision-making. Accordingly, Shahzad [ 8 ] noted that employee participation, innovation and risk-taking, reward system, the openness of communication, and customer service orientation are essential parameters in understanding organizational culture’s impact on employee performance. Employee participation increases goal acceptance, and it entails delegating tasks based on individual’s responsibilities; thus, influencing their performance [ 9 ].

Prior literature has also mentioned that not only organizational cultures, but worker’s perceived job stress also contributes to organizational inefficiency, impacting on high staff turnover, absenteeism and finally, decreasing the quality and quantity of job performance thus, causing low job satisfaction [ 10 , 11 ]. This implies that employee job stress may cause worker’s burnout with serious reduced performance and employees are needed immediate social support [ 12 ]. Jamal [ 13 ] has proven that there is little doubt that job stress factors can clearly reduce the organizational profit due to low level of job performance. Prior studies have supported the negative linear relationship between the measures of job stress and performance [ 14 , 15 ].

In the perspective of employee competency, employee adaptability is one of the core competencies of employees which might affect their performance. Precisely, it involves an adaptive response to deal with new environmental situations. Adaptability is the employee’s ability to adapt to changes [ 16 ]. Besides, adaptability is how individuals cope with change and respond to dynamic environments [ 17 ]. Employees with adaptability competency tend to be flexible in dealing with diverse situations and thus, this competency is an increasingly important performance dimension in dynamic contexts than other individual competencies [ 1 , 2 ]. Also, they do not hesitate to cooperate with others to complete tasks accordingly. Workers who have improved adaptability capabilities could overcome their difficult and complex jobs and feel satisfied with their present situations [ 18 ]. Clan culture emphasizes flexibility, implying that it is in line with employee adaptability competency. Precisely, clan culture enhances workforce flexibility. Kang and Lee [ 1 ] have insisted that adaptability capabilities might be connected with attributes of clan culture. Thus, clan culture supports employee adaptability competency. Contrarily, employee adaptability competency negatively relates to market culture. A market culture stresses stability and individuality, where every person pursues their interests. This culture does not support adaptability since it does not encourage employees to be flexible and cooperate with others to attain the best outcomes.

Customer orientation competency entails serving and helping customers to meet specific demands. Besides, it involves reading the customer facet, delivering service, and keeping customers informed [ 19 ]. With this competency, employees can ascertain customer needs and find the most appropriate way to satisfy such needs. The current study selected this competency to use one of main factors for this research based on prior studies [ 1 , 2 ] which suggested a positive relationship between employee customer orientation competency and market culture. Accordingly, product capability and customer orientation significantly correlate, suggesting a positive relationship between market culture and customer orientation [ 2 ]. The market culture encourages individuality among employees, implying that they can work independently and satisfy customer needs as required. However, clan culture emphasizes cooperation and flexibility among employees; thus, negatively relating to customer orientation competency.

Previous studies have widely explored the organizational culture and employee competency. For instance, The prior studies [ 1 , 2 ] have extensively investigated different employee competencies and corporate culture, specifically focusing on market and clan organizational cultures. The current research explores the effect of corporate culture and employee competency on workers’ stress. Worker’s stress has emerged as a common occupational disease, which has affected employees psychologically and physically; thus, affecting their performance [ 20 ]. Besides, job stress affects employee outcomes and satisfaction [ 21 ]. Job stress occurs due to many factors, such as workload, lack of incentives, and motivation [ 22 ]. Besides, there is a need to explore the importance of employees’ stress management to enhance workers’ performance. Hence, this research provides additional insight into the existing knowledge on the employees’ job stress between organizational culture and workers’ competency, suspecting reasonably employees who have an adaptability competency could be more stressful within market culture than within clan culture and in contrast, customer-oriented workers could be less stressful within market corporate culture than within clan culture.

2. Literature Review

2.1. the importance of organizational culture to improve employee’s job performance.

Organizational culture delineates task completion and employee interaction within an organization. Organizational culture shapes how firms operate and perform [ 23 ]. Abu Khadar [ 24 ] associates culture with the various values, beliefs, symbols, and rituals that direct the functioning style of people with an entity. Apart from binding employees, organizational culture offers direct companies. Notably, the most challenging task for any company during change may be to transform its culture. Employees may be accustomed to a particular way of working, making it difficult to adjust to new requirements. According to Thi and his colleagues [ 25 ], organizational culture relies on various factors such as company objectives, management style, employee belief system, and operation environment. Therefore, many corporate cultures ranging from well-structured and highly bureaucratic companies to collaborative ones exist [ 25 ]. Although these cultures have varying effects on motivation levels and performance, employees tend to work harder to accomplish company goals when they consider themselves part of the organizational environment.

This paper focuses on the clan and market cultures to define how organizational culture and employee competency affect worker stress. The clan culture delineates organizations that operate like large families or tribes. Here, members have similar values and chase the same objectives. This culture highly values connection and consensus within the group and tends to de-emphasize competition. Fakhri and his associates [ 26 ] argue that the clan culture allows all team members to feel supported and valued. These feelings enable employees to pursue individual initiatives without feeling isolated. Moreover, they enable empowerment to thrive, although issues related to compromising an organization’s creative potential have been raised with this culture’s use. Conversely, market culture underscores accomplishment at an individual level and encourages competitiveness [ 27 ]. In this culture, personal performance is usually the most substantial factor in determining advancement, termination, and compensation decisions.

Employee job performance usually depends on the ability of organizations to implement the proper cultural foundation and clear priorities. Addullahi et al.’s [ 28 ] study on the Malaysian educational sector reveals that organizational culture drives job performance by encouraging innovation. Healthy and well-realized cultures tend to attract better and more often innovation than their counterparts with environments that do not value employees [ 28 ]. Healthy organizational cultures result in an established pool of professionals who can tackle problems in creative ways. Saha and Kumar [ 29 ] support these findings by describing corporate culture as the moderator of job satisfaction and affective commitment among employees. Highly-satisfied employees tend to be more committed to the success of their organizations and their colleagues.

Organizational culture also improves employee job performance by emphasizing shared goals and values. According to the previous study [ 30 ], a strong company culture implies observing corporate values and mission. A robust culture generates employees with a well-tuned direction sense and facilitates the creation of standard success definitions to allow organizations to develop as teams. Similarly, Narayana [ 31 ] argues that successful companies have cultures centered on decisively held and widely-shared beliefs reinforced by structure and strategy. Employees in such environments recognize how executive management requires them to address any situation and consider the expected reaction to being the appropriate ones [ 31 ]. They also understand the concept of reward for employees who demonstrate organizational values. Happy employees are more productive and highly engaged in the workplace [ 30 ]. Organizations with more engaged workers tend to have more revenues compared to those with less-involved ones.

2.2. Prior Studies, Which Have Already Provided the Meaningful Relationships between Organizational Culture and Employee Performance

The meaningful relationship between organizational culture and employee performance is a widely-researched topic. Studies such as Christine [ 32 ] help demonstrate this relationship by defining employees as a critical factor in guaranteeing longstanding organizational success and survival. By focusing on Hilton Hotel, United Kingdom, this study indicates that organizations with robust cultures benefit from positive environments that foster unity, uniformity, identity, engagement, and enthusiasm [ 32 ]. These aspects play a critical part in enhancing job satisfaction and worker’s capability. Organizational culture mainly involves cognitive systems explaining how workers reason and make judgments [ 33 ]. These systems also govern communication among employees and with external stakeholders. Although these systems are intangible, companies seeking to improve employee productivity and performance must address them as the first concern [ 34 , 35 ]. Positive cultures, especially those involving rewards, compensation, training, administrative support, growth opportunities, and communication, encourage increased employee performance.

Kang and Lee [ 1 ] support these findings by emphasizing the need for organizations to develop an employee compensation strategy to achieve a sustainable competitive advantage. Since the role of employees in establishing sustainable competitive advantage is unquestionable, organizations today are increasingly relying on compensation strategies to motivate employee performance. While some researchers have criticized the effectiveness of compensation for encouraging employee performance due to its short-term nature, others support this strategy as a critical aspect of positive organizational culture. Richard and Kang [ 2 ] also note this disagreement among academics about whether organizations should use compensation programs as a strategy to encourage employee performance. These findings help demonstrate why organizations should incorporate various strategies as part of their organizational culture instead of relying on compensation tactics alone since they can be counterproductive in some instances.

Modern-day organizations endeavor to realize profitability, fast growth, continued improvement, and future preparation. Despite this desire, working in a constantly-changing environment makes it challenging for companies to predict these changes [ 36 ]. This unpredictability has resulted in a situation whereby businesses dedicate extensive resources to achieve high performance. Organizations need to identify the factors impacting performance to achieve high productivity. In their study on the linkage between corporate culture and job enjoyment, Maswani and Rina [ 4 ] established that a strong culture is a key to good performance. Positive and robust corporate cultures can encourage brilliant individual performance. Conversely, weak and negative cultures may cause demotivation and dissuade outstanding employees from meeting their potential [ 7 , 35 ]. These findings demonstrate organizational culture’s direct and active part in performance management.

The prior study [ 37 ] defined consistency, involvement, mission, and adaptability as the four critical traits of corporate cultures. Organizations with an influential culture empower their people and build their working environment around teamwork and expanding human capacity [ 38 ]. Consistency, the ability to adapt to shifting business environments, and create change, separate companies with a solid organizational culture from weak ones [ 37 ]. Employees work hard in environments that have a clear sense of direction and purpose. Well-coordinated, integrated, and highly consistent environments are a powerful stability source for employees [ 38 ]. Employee performance in such environments often occurs in the form of greater productivity, higher customer satisfaction levels, reduced turnover, lower absenteeism levels, and higher customer satisfaction rates.

2.3. The Positive Relationship between Adaptability Competency and Clan Culture

The primary focus of the clan organizational culture is mentorship and teamwork. According to Kerr and Slocum [ 3 ], organizations guided by this culture value flexibility, discretion, integration, and internal focus. This culture is not only people-focused but also treats a company like a single big and happy family. The highly collaborative nature of this culture implies that each person is evaluated, and the relationship among employees is of top precedence. Clan culture-based companies tend to be action-oriented, highly flexible, and adaptable to change [ 39 ]. In such cultures, organizations survive and thrive in collaboration, loyalty, and tradition. At times denoted a collaborative culture, clan-based organizations tend to have great concern and affiliation with teamwork, collaboration, and participation.

Due to its highly flexible nature, the clan organizational culture tends to have a positive relationship with employee adaptability competency. Park & Park [ 40 ] define employee adaptability as the capacity to adjust to changes within the work environment. The level of adaptability competence can support positive outcomes related to increased work capability and career success. This competency can also facilitate organizational results, such as learning, change management, and sustaining shifting customer expectations [ 40 ]. According to Gorzelany et al. [ 41 ], clan cultures have high employee engagement levels. The culture’s highly adaptable nature implies that employees have an increased possibility for achieving market growth and pursuing personal initiatives like further education. Clan cultures tend to work well in companies where a large employee percentage work remotely [ 39 ]. In such environments, employee adaptability competency thrives since companies create a communicative and empathetic culture.

2.4. The Negative Relationship between Adaptability Competency and Market Culture

Unlike the clan culture, which underscores collaboration and mentorship, competition and growth are the primary focus in market-cultured organizations. According to Ali et al. [ 42 ], the market organizational culture focuses on stability, control, and external fixation. Companies with this culture prioritize profitability and evaluate every activity in the workplace with the bottom line in mind. Likewise, each position in such organizations possesses a goal that supports the overall or more significant objective. Na et al. [ 43 ] noted that there are usually several separation degrees between governance roles and employees in this culture. Due to the results-oriented nature of market-cultured organizations, they tend to emphasize external success instead of internal satisfaction [ 42 ]. A market-oriented culture emphasizes the significance of achieving results, meeting quotas, and reaching targets [ 44 ]. Such cultures also tend to rely on compensation-based strategies to encourage employee performance primarily.

Market organizational cultures are usually profitable and successful due to their external focus. Despite their extensive success, organizations with this culture tend to affect employee adaptability competency negatively. Due to the pressure of working hard to meet external objectives, this culture may make it challenging for employees to engage with their work meaningfully [ 45 ]. Pressure may, in turn, translate to workplace stress and have adverse repercussions on the mental welfare of workers. Workplace stress increases the risk of burnout, depression, anxiety, and substance abuse disorders among employees [ 45 ]. All these issues can drive employees out of the workplace due to increased absenteeism rates and high turnover. Adaptability competency implies having flexibility in addressing change, the capacity to handle multiple demands, embrace new situations with innovative or fresh ideas [ 44 ]. The pressure associated with market organizational cultures may compromise adaptability competency and the capacity of employees to achieve a professional purpose.

2.5. The Positive Relationship between Customer Orientation Competency and Market Culture

Companies with an advanced market culture promote close affiliations with customers, suppliers, unions, and contractors, improving employee customer orientation [ 1 , 46 ]. According to Racela [ 47 ], customer orientation in both service and product organizations depends on organizational capabilities, such as customer relating, market sensing, and customer response. According to the previous study [ 48 ], market culture is related to organizations that focuses on gaining competitive advantages. Therefore, a market culture within an organization enables the company to detect the changing market trends, retain and develop close relationships with the consumers, and satisfy the client’s needs through customer-response expertise.

Employee customer orientation, another form of employee competency, largely depends on the effectiveness of market corporate culture. Precisely, the product capacity that a company provides to its customers and the ability of these products to meet or exceed the client’s expectations serve as the significant proxy for customer orientation. According to Richard and Kang [ 2 ], companies with a market corporate culture produce and sell goods that address the customers’ needs and expectations. The existing corporate culture serves as an originator of market coordination. Companies with advanced levels of sooq orientation create an organizational culture that promotes trust, supports corporate-wide associations, and leverages the members’ capabilities and experiences [ 49 ]. Previous studies [ 50 , 51 ] describe market culture as the corporate-wide generation of market aptitude regarding the present and future consumer needs, organization-wide responsiveness, and dissemination of intelligence across the business. Hence, a market culture within an organization helps organizations deliver more excellent customer value by meeting the client’s needs and demands.

2.6. The Negative Relationship between Customer Orientation Competency and Clan Culture

Clan corporate culture adversely affects the employees’ focus in understanding the customer’s changing needs and wants. According to Kang and Lee [ 1 ], clan corporate culture contain some sense of tradition and group loyalty, focuses more on flexibility, discretion, and focuses primarily on the growth and acquisition of new resources. Besides, Tasgit et al. [ 52 ] denote a negative correlation between clan culture and customer orientation by describing this type of organizational culture as focusing on internal values and issues other than the needs and development of the external environment. A scientific study by Gao [ 53 ] found that clan cultures contain unique attributes, such as interpersonal cohesiveness, loyalty, and tradition, which results in a lack of attention in managing market needs and adversely influences market orientation.

Besides, Xiong and his associates [ 54 ] argue that organizations with clan corporative culture stress cohesiveness and teamwork, which improves the employee’s social performance and corporate achievements but does not encourage the employees to understand and meet the changing consumer needs. A work environment that stresses more on familial or class associations gives less focus to the consumer since the employees establish close relationships among themselves, a concept that raises a poor attitude in fulfilling customer needs [ 55 , 56 ]. Thus, organizations that primarily rely on clan corporate culture find it hard to meet the needs of the changing market.

2.7. Employee’s Stress Management and Its Relationship with Culture and Competency

Stress is a physical and mental condition that affects a person’s effectiveness, productivity, health, and quality of work. Indeed, perceived worker’s stress makes workers to decrease their job satisfaction seriously and reduced quality of worker’s performance. Workplace stress emerges from different factors, such as workplace conflict, family issues, role ambiguity, work overload, and a hostile working environment [ 20 , 57 ]. Whatever the cause of stress is within the workplace, high-stress levels influence the employees’ engagement levels, burnout, and performance. Hence, organizations need to have well-defined interventions to reduce the impact of workplace stressors on the employee’s well-being and productivity.

Effective stress management in any organization is a sure way to increase the employees’ productivity at any given time. Workplace stress management strategies like seminars on job burnouts, training, yoga, supportive corporate culture, affiliations between co-workers, and celebrations affect the employees’ efficiency levels in different positions. According to Patro and Kumar [ 58 ], engagement in all these stress management strategies positively influences the employee’s productivity levels, reduces labor turnover, improves interpersonal relations, reduces absenteeism, and promotes physical and mental health. In another quantitative meta-analysis based on 43 primary studies, the prior researchers [ 59 ] found that the use of flextime, telecommuting, cognitive-behavioral skills education, and other relaxation techniques to manage stress led to greater job satisfaction, improved psychological health, reduced absenteeism, and more excellent job satisfaction rates [ 60 , 61 ]. Effective stress management in any organization causes enhanced employee performance through improved employee effectiveness and efficiency [ 62 ]. Employees with more incredible stress management skills show more extraordinary skills in accomplishing corporate goals with minimum resources.

The present authors insist that to reduce the perceived work-related stress for workers, practitioners should consider an alignment of factors inside the firm to insure a work stress complimentary fit to those factors. This study contends that perceived stress management should be aligned with the organizational cultures and employee competencies. According to previous studies [ 1 , 2 , 63 ], employee adaptability competency is more matched with clan cultural attributes than market cultural attributes because the use of clan culture within an organization encourages knowledge creation and flexibility through employee development, promoting employee’s adaptability unlike market culture, which is suitable for simple and inflexible jobs within quite competitive circumstance. In addition, found to be conducive to creativity is the organizational encouragement inherent in a clan culture. Thus, organizations with influential clan culture promote employee adaptability competency and might reduce the prevalence of work-related stress among adaptable employees more than within market culture. Based on the findings of the past studies, the current researchers reasonably anticipate that clan culture is more reliable strategy to augment the employee’s adaptability competency and reduce their chances of experiencing workplace stress than market culture.

Employees with adaptability competence within a clan culture have lower levels of workplace stress than within a market corporate culture .

The present study also anticipates that employees in organizations with more incredible market culture tend to be less stressed than clan culture due to the greater mastery of customer orientation competency. Based on the findings of the past studies [ 1 , 2 , 63 ], market culture supports employee customer orientation competency, making the workers more competent to deal with workplace stressors. Besides, other scholars like Lagrosen and Lagrosen [ 64 ] argue that although employee customer orientation competency can increase the demand for corporate services and products, the practice also mitigates the stress that these demands create. Alternatively, customer orientation competency increases the demand without enhancing workplace stress due to increased control. Hence, the current researchers postulates that market corporate culture promotes greater customer orientation competency among employees, consequently reducing more work-related stress due to greater control of the business processes than within clan culture environment.

Greater customer orientation competency among employees within a market culture makes the employees less stressed than within clan culture .

3. Methodology (Research Design)

3.1. survey items (variables).

When it comes to earlier research on organizational factors to improve workers’ performance, reducing their perceived stress, there is little assistance to HR practitioners how they can apply their corporate cultures and competencies that employees possess for boosting employee performance with lower levels of stress. The current authors try to add an insight into HR literature, collaborating existing studies and adding new stress factor. For achieving this goal, the total survey items were used 32 questions to gather participants’ responses. In more detail, regarding two organizational cultures, the survey instrument contained total 12 questions (Clan: 6 items and market 6 items) based on previous studies [ 1 , 3 ]. To measure the two employee competencies, the instrument also included total 10 questions (Adaptability competency: 6 questions and Customer-orientation questions: 4 questions) based on existing studies [ 1 , 63 ]. Finally, perceived stress scale was investigated by 10 questions based on the prior study [ 65 ]. All items were borrowed by previous studies which already showed a high degree of reliability and validity (See the Table 1 and Table 2 ).

Summarized Variable based on Previous Resources.

Variable Information of the Current Research.

3.2. Data Collection Procedure and Analysis

In getting the aim of the contemporary research, the present authors conducted two kinds of statistical tools which are (1) SPSS 27 and AMOS 24.0 to measure that how particular employee competencies and corporate cultures affect workplace stress of employees. The authors could gauge the internal consistency of key factors and aptitude influences. Moreover, the author carried out the confirmatory factor analysis (CFA) to measure the validity concerning three major concepts through the suitability of organizational reckoning modeling and also investigate the discriminant validity to identify the overlapping level for the three key concepts, gauging whether the square root of the AVEs has considerable additional information than correlation coefficients with other concepts, for the closing examination was tested to determine the scaling of the study suggestion by use of an operational equation modeling [ 66 ].

Regarding obtaining the real dataset, the present research tried to collect more than five hundred samples between 6 September 2021, to 23 September 2021, with the survey credentials being sent online or through individuals. The questionaries distributed total eight hundreds while only six hundred and sixty-seven responses were given back out of the number. Some obtained survey responses which are determined as bad datasets was discarded because more than 20% of the items in the survey were not answered properly by the survey respondents or some respondents did not enter their answers illogically, marking same numbers for whole questions [ 1 , 66 ]. The detailed procedure of the statistical collection for the current study is shown in the Table 3 and the overall features (Demographic Information) of the participants in this study who gave out feedback are depicted in the Table 4 .

Procedure of Data Collection.

Demographic information.

To obtain the sample evenly, the present authors hired a professional research agency in South Korea so that they handled the data in a professional manner and provided accurate and high-quality data. The agency collected using a ‘Stratified Random Sampling’ method which classifies participants into similar characteristics groups. This sampling method allows that similar characteristic participants may be put into a same group, making sure that different groups were assigned equally. As a result, the current authors could collect the data which have similar age and gender distribution as requested to the agency.

4. Statistical Findings

4.1. descriptive statistics.

When it comes to earlier research on organizational factors to reduce worker’s stress as the procedure of the first statistical analysis, the current author conducted the descriptive statistical analysis which is included by numerous basic measuring statistics such as mean, median, standard deviation. Every main variable was gauged through a seven-point Likert scale measurement (1 = Strongly Disagree − 7 = Strongly Agree) (See the below Table 5 in more details). As seen the Table 5 , the mean of two organizational cultures indicated the highest value more than two employee competencies and employee’s workplace stress. Furthermore, Table 6 represents the information divided into four groups by the mean of two competencies to check how the mean of two cultures are different depending on the mean of two competencies.

Descriptive Statistics for Final Sample.

4.2. Reliability Analysis

The data examination results concerning the collection of the primary dataset ( n = 461) are presented in this part. The information was analyzed using SPSS software version 27 and AMOS 24.0 to determine the association between culture, competency, and perceived stress for employees. All arithmetical conclusions were represented in tables with their interpretations provided in the text. In deciding the interior steadiness that shows a measure of gauge dependability, Cronbach’s alpha value was applied using generally accepted law. For instance, if the Cronbach value is 0.6 or more significant, a set of items is composed as a collection [ 67 ]. Generally, the reliability coefficient value was 0.676 for clan culture and 0.707 for market culture. Statistically, reliability of constructs in the exploratory examination can be satisfactory if the trustworthiness is greater than 0.6 and desirable if trustworthiness is great than 0.7. As shown Table 7 , not only clan and market culture, the Cronbach’s alpha of two competencies and perceived stress was also higher than 0.6, which means all main factors have a high degree of internal consistency.

The Statistical findings of reliability investigation.

4.3. Confirmatory Factor Analysis

The current study also tested a confirmatory factor analysis (CFA) to measure a conversion validity to identify whether our three key constructs sensibly clarified the inactive characteristics. Altering acceptability attempts to examine the approximation of things dependably measure the essential idea and can be identified as the character load between the idle and perceived variables. Usually, if the factors are not less than 0.5, one can conclude that there is legitimacy [ 1 , 66 ]. As seen by Table 8 , all AVE values indicated greater than 0.5, confirming all our key constructs may be observed correct legality because every construct uncovered more than the relating reference esteem (0.5) [ 68 ].

The Statistical Results of CFA.

***  p < 0.00.

4.4. Discriminant Validity

Our research instrument was gauged by another complex tool to check the quality of construct. That implies that the present research also focused on discriminant validity which points out that if prior theories have not suggested the associations between constructs, they cannot be connected highly with each other through results less or negative association among variables [ 66 , 69 ]. This study generally anticipates less or pessimistic connections between the employee adaptability competency and market cultural characteristics influenced by the administrations based on the past examinations that suggest contradictory directions between corporate clan attributes and corporate market attributes, as already presented in Figure 1 . Thus, reasonably, workers who possess an adaptability capability indicates positive linkage with corporate clan attributes and negatively correlated with market culture.

Research Subject of the Present Study.

After the convergent validity was measured, the discriminant validity was tried utilizing the Fornell and Lacker [ 70 ]. Identifying these negative associations among our main constructs, we could recognize that there exists a strong discriminant validity [ 1 , 66 , 69 ]. After the convergent validity was measured, the discriminant validity was tried utilizing the Fornell and Lacker [ 70 ] law. Theoretically, the discriminant validity investigated the intercorrelation between main factors and noticeable covering figures. As shown in Table 9 , the study, based on the Fornell and Lacker’s approach, every value of square roots of AVEs is more significant in every circumstance than the off-slanting components in their comparison line and section. Thus, they indicate that the critical discriminant acceptability has been refined.

The Results of Discriminant Validity.

4.5. Verification Findings for the Path Analysis

To identify the research model’s suitableness, this study used RMR, X2, RMSEA, GFI, indicating research model’s fitness. That suggests that the absolute fitness was measured by RMSEA, X2, GFI, RMR, and in terms of the incremental fitness, both TLI and CFI were checked by the current structural equation modeling [ 71 ]. Finally, our path analysis showed that employees who have a high degree of adaptability within clan culture attributes were less stressful than within market culture attributes. In contrast, the statistical results also showed that employees who possess a high degree of customer-orientation competency within clan organizational culture are more stressful than within clan organizational culture. According to the statistical findings, fortunately, the first and second hypotheses figured out in the expected directions and therefore, the present authors could accept them (See the Table 10 , Figure 2 and Figure 3 ).

The result of Path Analysis (1).

The result of Path Analysis (2).

The main result of the research model.

<χ 2 = 243.32 ( df = 95, p < 0.001)), TLI = 0.951, RMR = 0.017, CFI = 0.955, GFI = 0.913, RMSEA = 0.061 (90% CI: From 0.044 to 0.063) *** p < 0.001.

5. Implications

5.1. academic implication.

The current research provides the basis for further empirical research on how organizational culture and employee competency impact workers’ stress. The study findings will serve as a significant foundation for the researchers or academicians to base their research. The study will provide valuable insight into the effects of organizational culture and employee competency on workers’ stress. The current research provides detailed information about the link between adaptability and customer orientation employee competencies and clan or market organizational cultures. Besides, the study links these variables to employee performance and worker stress. Therefore, the information will benefit future researchers and academicians who intend to explore similar or related topics. Precisely, they will base their research on the outcomes of the current study, thus reinforcing this study’s findings. In other words, the current research might offer meaningful information relating specific organizational characteristics (culture and competency) with the use of employee stress factors for researchers, who are trying to build their research frameworks that enhance employee performance within less stressful circumstance, thus, contributing to the existing body of knowledge on organizational culture, employee competency impact on workers’ stress. Precisely, it will improve the knowledge and understanding of the different types of corporate cultures and employee competencies and how they affect employee performance and stress.

Also, the study outcomes will enlighten potential scholars about what has already been done on the research topic and the research gap. Hence, the current research will guide scholars on what knowledge gap needs to be filled. For instance, workplace stress is a research area related to the present study, requiring further investigation. Workplace stress is individuals’ response when faced with work demands and pressures that do not match their knowledge and abilities [ 72 ]. Workplace stressors refer to conditions that subject employees to stress. These conditions include organizational change, autonomy, difficult relationships at work, job security, workload, and career development [ 73 ]. Burnout is one of the factors determining workplace stress and refers to a state of being exhausted psychologically, emotionally, spiritually, and physically [ 74 ]. It happens due to chronic stress, characterized by physical and emotional fatigue [ 75 ]. Stressful workplaces lead to increased absenteeism, employee turnover, and low productivity [ 76 ]. Accordingly, psychological symptoms like worries caused by stress can result in less work productivity [ 77 ]. Work stress is related to physical and mental health risks. Workplace stress affects mental health due to job insecurity, low reward, and social support [ 78 ]. The high-stress level at the workplace leads to psychological and physical problems among employees [ 79 ]. Notably, the negative relationship between job stress and satisfaction determines employees’ perception of meaningful work and engagement in decision-making [ 21 ]. Generally, the current research has various academic implications. The study outcomes will provide additional knowledge to the existing literature, enhance academicians’ understanding of the research topic, and serve as a significant knowledge base for further empirical research.

5.2. Practical Implication

The present study has several practical implications. First, the outcomes of the present study are significant since it will help the organizations understand employees’ level of job stress by using organizational elements (Culture and Competency) to gain new insights. Workplace stress is one of the major problems affecting the employees’ satisfaction level and performance, subsequently, organizational performance and productivity [ 20 , 57 ]. The adverse impacts of workplace stress need firms to properly manage it and create a conducive environment for all employees. Stress management is crucial in improving employee and organizational performance, which increases productivity and allows for company growth [ 58 ]. With the current research outcomes, HR Practitioners can establish effective policies and strategies to manage stress; thus, ensuring that their workplace stress is eliminated.

The present study covers how two employee competencies and work environments influence the level of stress. In this regard, company managers will gain valuable insight into the key stressors; thus, encouraging specific employee competencies, especially those that enable workers to cope with the changes within the organization [ 1 ]. Besides, the study findings might benefit practitioners as applying the current study’s findings to design and implement stress management strategies by influencing employee competency and changing the nature of the corporate culture. The current study explored the link between clan and market organizational cultures and workers’ stress. Therefore, the outcomes of this study might allow organizations to create a culture that makes employees feel less stressed and benefit company managers, especially in developing effective policies and strategies to manage stress, which will lead to improved performance and increased productivity.

Additionally, the research findings will allow organizations to address factors affecting employees to improve their performance. Notably, employees’ performances are affected by many issues, including stress, workload, and an unconducive work environment [ 20 , 57 , 62 ]. A high level of workplace stress is one of the significant factors contributing to poor performance among employees. Likewise, the workload is a significant stressor leading to an unmotivated and disengaged workforce, adversely impacting employee performance. Also, organizations with an unconducive work environment and ineffective cultures tend to experience poor employee performance [ 2 ]. The current study explored these factors; hence, the outcomes will be crucial for organizations and company managers to address factors that negatively influence employee performances. As a result, they will have a motivated workforce and subsequently improved performance and productivity.

Further, the current study outcomes will enable companies to prioritize job satisfaction to motivate employees to enhance their performance. Job satisfaction is one of the most significant determinants of employee happiness with their jobs. The study outcomes will enable firms to focus on satisfying their employees; thus, reducing turnover and stress and improving employee and organizational performances. Besides, organizations might benefit from the current study’s findings since they understand how different employee competencies affect workers in terms of stress. With such information, the companies can decide how to train their employees to possess the necessary competencies. Finally, the present study’s findings will allow companies to develop new policies and procedures to reduce the prevalence of occupational stress and improve employee productivity and corporate performance. The study will contribute to the existing knowledge [ 1 , 2 , 3 , 63 , 80 ] by elaborating on employee competency and organizational culture on workers’ focus and productivity. Therefore, the current study’s findings will benefit many business stakeholders from entrepreneurs, managers, employees, private and public businesses.

6. Limitation and Recommendation

6.1. limitation.

The current study has limitations. The researcher analyzed the relationship between employee performance and organizational culture. Precisely, the past studies focused on the relationships between clan and market corporate cultures with employee adaptability and customer orientation competencies [ 1 , 2 , 63 ]. Based on this, the present study focused on only two employee competencies to understand how they impact employee stress within organizations with a clan or market culture. The researcher ignored other significant employee competencies that can give in-depth insight into the link between organizational culture and employee performance. Besides, the current research only explored the relationship between corporate culture and employee performance, leaving out other vital variables such as employee job satisfaction, organizational performance, and customer satisfaction. Also, the research investigates the impact of corporate culture and employee performance on workers’ stress. Precisely, it fails to consider other significant stressors that affect employee performance. Thus, the present study’s scope is limited to understanding the relationship between organizational culture, employee competency, and worker stress.

Additionally, there is limited information on the impact of organizational culture and employee competency on workers’ stress. Much information that exists is about the relationship between corporate culture and employee performance [ 1 , 2 , 3 , 63 , 80 ]. Notably, a lack of reliable data requires the researcher to limit the analysis scope. Also, limited information can be a substantial obstacle in determining a meaningful relationship between variables. In this regard, the lack of sufficient data made it challenging for the researcher to find a significant relationship between organizational culture, employee competency, and stress. Also, few studies have attempted to link employee competency with corporate culture and workers’ stress. Thus, this implies that previous researchers have not widely explored the topic of the current research. As a result, the precious researchers failed to retrieve valuable and more in-depth information from secondary sources. Notably, citing previous studies is vital in completing a comprehensive literature review. Also, prior researches form the basis for understanding a given research problem. In this case, limited studies prevented the researcher from gaining an in-depth understanding of whether organizational culture and employee competency affect workers’ stress. Therefore, the limited available information prevented the researcher from exhaustively exploring the research topic.

Another study limitation is that it focused on secondary data to explore the effect of organizational culture and employee competency on workers’ stress [ 81 ]. Although secondary data provides detailed insight into the research topic, it does not cover the perceptions of the employees and the management. As a result, this implies the study outcomes do not reflect how employees feel concerning stressors. Exploring the topic by collecting primary data can provide valuable information to understand employees’ perspectives regarding the impact of organizational culture and employee competency on workers’ stress. Conducting empirical research is crucial in generating useful information about the topic. Specifically, the current researchers failed to utilize qualitative research methods such as interviews, focus group discussions, and questionnaires to examine stress determinants among workers. Based on this, the current researchers did not obtain sufficient data on the research topic, limiting an understanding of stressors in the workplace that affect employee performance. Besides, the current research has not limited the search to a specific organization or industry. The lack of a particular sector implies a broad research scope, making it difficult to understand the research topic. Generally, the research limitations may limit the generalizability of the study outcomes; hence, there is a need to address them by future researchers.

6.2. Future Suggestion

Given the study limitation, there is a need for further research to address the highlighted issues. These statistical findings of the present study corroborate the existing researches [ 1 , 2 , 3 , 63 ] pertaining to the relationship between two organizational cultures and two employee competencies and thereby, suggests for future researchers theoretically that two different types of competencies organizations desire to build and two different types of cultures organizations have established is associated with employee’s perceived stress. That indicates that the present study contributes to the literature in HR compensation practices by synthesizing the extant researches and extending this study based on current statistical results and thus, advocating the firm’s employee stress management ought not to exclude employee competencies and organizational cultures as a component of analysis. Based on this contribution of the current study, the detailed future suggestions.

First, future studies should explore additional employee competencies, including innovation, technical expertise, and result orientation. The current research explores two employee competencies, which are adaptability and customer orientation. Expanding the scope and exploring all the five employee competencies can give valuable insight into the impact of worker competency on stress. Also, it is imperative to understand how these competencies relate to the clan and market organizational cultures. Every employee competency relates differently with the clan or market culture; hence, their effect on workers’ stress varies. Therefore, future studies should provide additional information regarding adaptability and customer orientation and give insight into the other employee competencies. The current research hypothesizes that employees who possess adaptability competency and work in organizations with clan culture tend to be less stressed than their counterparts in companies with market culture. Besides, it hypothesizes that employees with customer orientation competency and working in firms with market culture are less stressed than their peers in organizations with clan culture. Given this, further research is needed to cover how employees possessing innovation, result orientation, and technical expertise competencies feel while working in organizations with clan and market cultures. Thus, there will be adequate data on the relationship between employee competency and organizational culture and stress. As a result, this will lead to broader coverage of literature, allowing for an in-depth understanding of how different employee competencies affect workers’ stress.

Second, future researchers should investigate other variables like employee job satisfaction, customers’ satisfaction, and organizational performance [ 80 ] to provide insight into their relationship with the organizational culture and impact on worker’s stress. Employee performance is just one of the factors affected by the organizational culture. Corporate performance, employee and customer satisfaction also relate to organizational culture and impact worker’s stress differently. Likewise, further research is needed to investigate other causes of stress on employees and how they affect worker performance. Precisely, employee performance is based on job satisfaction and organizational support, implying that lack of support and satisfaction causes stress and reduced performance. Thus, expanding the research scope to include these variables can help individuals to gain a comprehensive understanding of how various factors influence workers’ stress.

Additionally, the current research relied on prior studies [ 1 , 2 , 3 , 63 , 65 ] as an instrument to understand the research topic. In this regard, future studies should adopt additional tools or studies to determine the link between employee competence, organizational culture, and worker stress. Such research will provide similar outcomes to the current study’s findings, thus reinforcing the relationship between the three variables. Therefore, future researchers should extensively research the topic by exploring many prior studies to enrich secondary data.

Further, future studies should examine how different jobs are affected by employee competencies within the organization. Precisely, future researchers should aim at determining whether job positions control workers’ competencies. Hence, future studies need to examine if there is a correlation between organizational culture, employee competency, and job stress, seeking the generalizability of the outcomes. Precisely, future research may focus on empirically testing the relationships between these factors to understand if they can be generalized to the broad spectrum of organizations. Generally, future studies should focus on providing additional information critical to understanding the issue under investigation and reinforcing the current research outcomes.

7. Conclusions

The current research hypothesized that employees with advanced adaptability competence in a clan culture have lower levels of workplace stress than the employees within a market corporate culture. Based on the outcomes of previous studies [ 1 , 2 , 63 ], it is evident that clan culture supports employee adaptability competency. Precisely, employees that possess adaptability competency are more flexible and can adapt to any changes in the work environment. Besides, the clan culture promotes knowledge creation and proactive behavior among employees, enabling them to cope with the changes within an organization. Thus, employees working in a clan culture organization are less stressed than those working in the market organizational culture. Prior studies [ 1 , 2 , 3 , 63 ], also confirm that a market corporate culture does not support adaptability competency, making it difficult for employees to adapt to changes within the company. As a result, this increases stress and affects their job performance. Therefore, the current research confirms the hypothesis that employees with adaptability competence in a clan culture have lower levels of workplace stress than their counterparts in a market corporate culture. Moreover, the current study confirms that greater customer orientation competency among employees within a market culture makes the employees less stressed. Workers in organizations with market culture are less stressed than those with clan culture due to greater customer orientation competency. In this regard, market culture promotes employee customer orientation competency, allowing employees to handle workplace stressors accordingly. Thus, the current research holds that market organizational culture enhances employee customer orientation competency, which reduces work-related stress.

Organizational culture is essential in improving employee performance [ 63 , 82 ]. Precisely, it delineates task completion and allows for employee interaction within the company. Employee performance relies on the firms’ ability to execute clear priorities. A company’s culture enhances employee performance by stressing common values and goals. Organizations with solid cultures observe their values and engage employees, which motivates them to perform better. Many researchers have explored the relationship between organizational culture and employee performance [ 1 , 3 , 80 , 82 ]. The outcomes of these studies reveal a positive correlation between increased employee performance and corporate culture. Employees are critical players in organizational success. Likewise, organizations with strong cultures create a favorable work environment that allows employees to improve their performance. Positive corporate cultures involving compensation, rewards, management support, training, and growth opportunities facilitate improved employee performance. Besides, organizations with robust cultures promote employee performance by reducing turnover and absenteeism and increasing productivity. Therefore, prior studies have found a meaningful relationship between organizational culture and worker performance.

Employee adaptability competency positively relates to clan organizational culture. Organizations with clan cultures are flexible, action-oriented, and adaptable to change, enabling employees to feel less stressed and easily cope with any changes within the company. Contrarily, the market organizational culture negatively relates to adaptability competency. Organizations with a market culture prioritize control and stability. Also, they emphasize reaching targets and achieving results. Therefore, the pressures involved in market cultures make such organizations unsupportive of employee adaptability competency. Employee customer orientation competency positively relates to market culture. Precisely, employee market orientation relies on market culture effectiveness. Such organizational culture focuses on delivering excellent customer value to exceed client demands; thus, supporting customer orientation competency. However, it is negatively related to clan corporate culture since it emphasizes teamwork and flexibility and does not encourage employees to understand and meet consumers’ changing needs. Stress in the workplace is a common problem that affects many employees in terms of performance, productivity, and emotional well-being. In this regard, managing stress is necessary to employee performance and productivity.

Author Contributions

Data curation, J.K. and H.-S.J.; Investigation, J.K. and H.-S.J.; Methodology, J.K.; Resources, H.-S.J.; Software, J.K.; Supervision, H.-S.J.; Validation, J.K.; Writing— original draft, J.K.; Writing—review & editing, H.-S.J. All authors have read and agreed to the published version of the manuscript.

This research received no external funding.

Institutional Review Board Statement

Not applicable.

Informed Consent Statement

Informed consent was obtained from all respondents of this study.

Data Availability Statement

Conflicts of interest.

The authors declare no conflict of interest.

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations.

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• Research article
• Open access
• Published: 14 May 2011

Relationship between Organizational Culture, Leadership Behavior and Job Satisfaction

• Yafang Tsai 1 , 2  

BMC Health Services Research volume  11 , Article number:  98 ( 2011 ) Cite this article

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Organizational culture refers to the beliefs and values that have existed in an organization for a long time, and to the beliefs of the staff and the foreseen value of their work that will influence their attitudes and behavior. Administrators usually adjust their leadership behavior to accomplish the mission of the organization, and this could influence the employees' job satisfaction. It is therefore essential to understand the relationship between organizational culture, leadership behavior and job satisfaction of employees.

A cross-sectional study was undertaken that focused on hospital nurses in Taiwan. Data was collected using a structured questionnaire; 300 questionnaires were distributed and 200 valid questionnaires were returned. To test the reliability of the data, they were analyzed by Cronbach's α and confirmatory factors. Correlation analysis was used on the relationships between organizational cultures, leadership behavior and job satisfaction.

Organizational cultures were significantly (positively) correlated with leadership behavior and job satisfaction, and leadership behavior was significantly (positively) correlated with job satisfaction.

Conclusions

The culture within an organization is very important, playing a large role in whether it is a happy and healthy environment in which to work. In communicating and promoting the organizational ethos to employees, their acknowledgement and acceptance of it can influence their work behavior and attitudes. When the interaction between the leadership and employees is good, the latter will make a greater contribution to team communication and collaboration, and will also be encouraged to accomplish the mission and objectives assigned by the organization, thereby enhancing job satisfaction.

Peer Review reports

Organizational culture is described by Robbins & Coulter [ 1 ] as the shared values, beliefs, or perceptions held by employees within an organization or organizational unit. Because organizational culture reflects the values, beliefs and behavioral norms that are used by employees in an organization to give meaning to the situations that they encounter, it can influence the attitudes and behavior of the staff [ 2 ]. Understanding the organization's core values can prevent possible internal conflict [ 3 ], which is the main reason for our research into these cultural issues.

In other management fields, empirical research of organizational culture has involved the functionalist perspective, providing impressive evidence of the role of organizational culture in improving performance [ 4 ]. The pervasiveness of an organizational culture requires that management recognize its underpinning dimensions and its impact on employee-related variables, such as job satisfaction [ 5 ], organizational commitment [ 6 ], and performance [ 7 ]. Lund [ 5 ] believed that less research was done on the relationship between organizational culture and job satisfaction within the research topic of organizational culture and outcome. The organization consists of the staff, with the behavior of its individual members affecting outcomes. Since cultural research within the nursing field is not common [ 8 ], it is necessary to explore the way the culture influences the behavior of the nursing staff, and in turn how the behavior of the staff influences the organizational outcome.

A two-dimensional model of leadership that focuses on the concern for people and production has been used for many years in organizational research [ 9 ]. In the late 1970s, leadership research started focusing on behavior within organizational change and development [ 10 ]. Leadership implies authority in the broadest sense of the word and not simply the power to wield the stick [ 11 ]. It is based on objective factors, such as managerial ability, and more subjective characteristics that include personal qualities of the leaders. The factors are of even greater importance given the current emerging culture of the nurse who has a clear and assertive vision about the nature of clinical practice [ 12 ].

Currently, there is a shortage of nurses in clinical care, and good leaders can help any attrition. Furthermore, the leadership skills of nurse administrators can contribute to the success of their organization [ 13 ]. Leadership is of increasing importance in clinical nursing [ 14 ]. Although leadership and organizational culture constructs have been well studied, the relationship between them has not been established in the field of nursing [ 6 ]. This study explores the relationship between organizational culture and leadership behavior.

Berson & Linton [ 15 ] discovered that within the research & development (R&D) and administrative environments, leadership behavior of a manager is closely related to work satisfaction of the employees. Nielsen et al. [ 16 ] have stated that leadership behavior and job satisfaction will depend on the organizational context; therefore another objective of this research was to understand how the leadership behavior of the administrator in different organizational cultures affects job satisfaction. Casida & Pinto-Zipp [ 17 ] explored how nurses felt about the relationship between leadership and organizational culture, and found them to be correlated. Although the data indicated that the development of an organizational culture is related to the behavior of its leaders, the results failed conclude whether this affected their attitudes or behavior as employees. From the nursing administration perspective, the normal course of action taken to influence employee behavior and achieve the objectives set by the administrators comes through administrative management. Therefore, as well as discussing the relationship between leadership behavior and organizational culture, this research will investigate the effect of leader behavior and organizational culture towards employee job satisfaction. The findings clearly show that hospital administrators should be concerned about the effects of leadership behavior and organizational culture on the attitude towards work of their employees. This should help administrators alter their behavior in order to maintain a good mutual relationship with their subordinates, improving their working attitude and, more importantly, reducing potential conflicts.

Relationship between organizational culture and leadership behavior

Culture is socially learned and transmitted by members; it provides the rules for behavior within organizations [ 18 ]. The definition of organizational culture is of the belief that can guide staff in knowing what to do and what not to do, including practices, values, and assumptions about their work [ 19 ]. The core values of an organization begin with its leadership, which will then evolve to a leadership style. Subordinates will be led by these values and the behavior of leaders, such that the behavior of both parties should become increasingly in line. When strong unified behavior, values and beliefs have been developed, a strong organizational culture emerges. Leaders have to appreciate their function in maintaining an organization's culture. This would in return ensure consistent behavior between members of the organization, reducing conflicts and creating a healthy working environment for employees [ 20 ].

Hypothesis 1- Organizational culture is positively correlated with leadership behavior .

Relationship between leadership behavior and job satisfaction

Job satisfaction has been associated with nurses who perceive their managers as supportive and caring. A supportive manager shares values, believes in a balance of power, and provides opportunities for open dialogue with nurses [ 21 ], which in turn reduces the chances of internal conflicts. This type of leader is successful in his or her role and is supportive and responsive to clinical nurses, thereby preserving power and status within the hospital system. Such leaders are valued throughout the organization and have executive power to do what they see as necessary to create a positive environment for nursing [ 22 ]. Accordingly, they have a measurable effect on the morale and job satisfaction of nurses [ 23 ].

Hypothesis 2 - Leadership behavior is positively correlated with job satisfaction .

Relationship between organizational culture and job satisfaction

Organizational culture expresses shared assumptions, values and beliefs, and is the social glue holding an organization together [ 24 ]. A strong culture is a system of rules that spells out how people should behave [ 25 ]. An organization with a strong culture has common values and codes of conduct for its employees, which should help them accomplish their missions and goals. Work recognition and job satisfaction can be achieved when employees can complete the tasks assigned to them by the organization.

Hypothesis 3 -.Organizational culture is positively correlated with job satisfaction .

The measurement of organizational culture, leadership behavior and job satisfaction

A structured questionnaire was compiled based on similar studies published in international journals [ 26 , 27 ]. Twenty-three factors regarding organizational culture were taken from Tsui et al. [ 26 ], a study based on two groups of MBA students from two universities in Beijing, China. Our research was focused on clinical nurses in hospitals; therefore, refinements were made to the questionnaire designed by Tsui et al. [ 26 ] to cater for our particular research objective. The study invited three directors or supervisors from the medical center to validate the questionnaire. Lastly, there were 22 questions in the organizational culture section.

Thirty items regarding leadership behavior were taken from Strange & Mumford [ 27 ], and the questions structured using this literature. However, the proposed test was not empirically studied. Nurses from hospital A were used as a pilot study sample. Four question items were deleted to improve the validity of the questionnaire: "People will have an extreme reaction to the leader"; "Followers will sacrifice themselves for the leader and/or the leader's vision"; "The leader is motivated by the accomplishment of his vision"; and "The leader will take into account the needs of the organization in his decision making."

Vroom [ 28 ] classified job satisfaction into 7 dimensions: organizational, promotion, job content, superior, reward, working environment and working partners. We took into consideration that nurses' salary increases are based on promotion. Furthermore, a large number of variables in organization culture and leadership behavior were covered by this research. To prevent too few number nurses from responding to the questionnaires, we asked only 4 job satisfaction dimensions out of a total of 12 items: job recognition, reward and welfare, superior and working partners.

Study Design

A cross-sectional study was conducted in two hospitals in Central Taiwan.

Data Source and Analysis

We employed self-administered questionnaires to collect research data. Data was collected between October 1 and November 30, 2008. We selected 2 hospitals as our sample target and appointed a designated person at each to issue questionnaires to employees. The number of questionnaires issued depended on the designated person. The questionnaires were completed voluntarily by all respondents. During the research period, there were 325 nurses in hospital A; 100 questionnaires were distributed, and 57 valid questionnaires were returned. In hospital B there were a total of 572 nurses; 200 questionnaires were distributed, and 143 valid questionnaires were returned (total return rate 66.7%).

Of the subjects, 99.5% were female, 83.5% single or never married, 35.5% had a tenure at the hospital of 1-2 years, and 45.0% had had a college-level education. The majority of employees at the hospitals were general nurses (89.5%), and the average age was between 21 and 30 years (82.5%)(see Table 1 ).

All data were analyzed using the SPSS 17.0 software package. Cronbach's α coefficient was used to assessed the internal consistency reliability of scales. To explore the factor construct of scale, a series of exploratory factor analysis (EFA) were employed. Correlation analysis was used to test for the relationships among subscales of organizational culture, leadership behavior and job satisfaction scale. Finally, a series of regression analysis were used to identify the proposed hypotheses. For H1 and H3, two sets of simple linear regression were used to assess the association between independent variable and dependent variable. For H2, hierarchical regression analysis was used to assess the independent association between leadership behavior and job satisfaction after controlling for the effect of organizational culture. Partial R 2 (Δ R 2 ), F test and standardized regression coefficient ( β ) and their test statistics ( t value) were reported in all regression analysis.

Measurement

Given the latent character of the variables considered in the study, we used multi-item, 5-point Likert-type scales (1='strongly disagree' and 5='strongly agree'). After reliability analysis, the Cronbach's α of the organizational culture scale was 0.958 (22 items). The Cronbach's α of the leadership behavior scale was 0.966 (26 items), and for job satisfaction 0.855 (12 items).

The questionnaires used exploratory factor analysis. We extracted 4 factors from the organizational culture via principal component analysis, used the Varimax of the rotation method, and named them: employee orientation, customer focus, emphasizing responsibility, and emphasizing cooperation. We extracted 4 factors from leadership behavior and named them: leader's encouragement and supportiveness to subordinates, leader giving subordinates a clear vision and trust, leader's behavior is consistent with organization's vision, and leader is persuasive in convincing subordinates to acknowledge the vision. We extracted factors for job satisfaction and called them: working partners, rewards and welfare, superior and job recognition.

Descriptive statistics

The average score for organizational culture was between 3.73 and 3.19, but the highest score was 3.73: "satisfying the need of customers at the largest scale." The second highest score was 3.68: "the profit of the customer is emphasized extremely." The lowest score was 3.19: "concern for the individual development of employees" (see Table 2 ).

The average score for leadership behavior was between 3.77 and 3.42, where 2 items scored the highest score at 3.77: "the leader will act accordingly with a certain 'vision' that specifies a better future state", and "the leader will behaviorally role model the values implied by the vision by personal example". The second highest score was 3.69: "the leader will use positive rewards and reinforcement with his followers." The lowest score was 3.42: "the leader will try to persuade those who disagree with his vision to agree with it" (see Table 2 ).

The average score for job satisfaction was between 3.84 and 2.56, where the highest score was 3.84: "to certain people my work is extremely important." The second highest score was "I am satisfied with how colleagues communicate with each other in the office." The lowest score was 2.56: "I am satisfied with my salary as I have less workload compared to other employees in other divisions" (see Table 2 ).

Inferential statistical analysis

In relation to the 4 dimensions of organizational culture (employee orientation, customer focus, emphasizing responsibility, and emphasizing cooperation), the 4 dimensions of leadership behavior (leader's encouragement and support to subordinates, leader giving subordinates her/his clear vision, leader's behavior is consistent with the her/his vision and leader is persuasive in convincing subordinates to acknowledge the her/his vision), and the 4 dimensions of job satisfaction (working partners, rewards and welfare, superior and job recognition), variable analysis was carried out. The results of the analysis showed that only 2 dimensions from "leader giving subordinates her/his clear vision" and "behavior consistent with her/his vision" and "reward and welfare" under the job satisfaction were not significantly correlated, whereas the other dimensions showed significant correlation. The results also showed that organizational culture, leadership behavior and job satisfaction were positively associated with hypotheses one to three, which were supported (see Table 3 ).

Table 4 presents the results of several regression analyses. H1 was supported, as organizational culture was positively associated with leadership behavior ( β = .55, p < .001). H3 was also supported as organizational culture was positively related to job satisfaction ( β = .66, p < .001). Finally, H2 was supported as the partial regression coefficient of leadership behavior reached statistically significant ( β = .33, p < .001) after controlling the effect of organizational culture. The unique variance explained attributable to leadership behavior was 8% (Δ F = 30.58, p <.001) independent of organizational culture (see Table 4 ). The association among there three main variables was illustrated as Figure 1 .

The association between organizational culture, leadership behavior and job satisfaction . (The values shown were standardized regression coefficient and value in parenthesis was partially standardized regression coefficient)

Casida & Pinto-Zipp [ 17 ] studied nurses in determining the relationship between different leadership styles and organizational cultures, and showed a correlation between leadership and organizational culture, consistent with the findings of our research. However, by adopting regression analysis, we also found that leadership behavior impacts on organizational culture.

Laschinger et al. [ 29 ] proposed that the variables strongly correlated with job satisfaction included role conflict, head nurse leadership, supervisory relationships, autonomy, and stress. Mayo [ 30 ] argued that the key determinant of job satisfaction was group interaction, and highlighted the importance of good leadership and satisfying personal relations in the workplace. Management and leadership behavior at the hospital affected nurses' job satisfaction [ 31 ]. The research also discovered that leadership behavior will also influence employee job satisfaction. As well as the above-described individual factors, the research also showed that factors at the organization level, such as the organizational culture, also have an effect on job satisfaction. This result is consistent with the results of Gifford et al. [ 32 ]. It is recommended that it is also important for hospital administrators to establish a good organizational infrastructure in addition to improving the working environment in order to increase employee job satisfaction.

Decisions about patient care are often made by a team, rather than by a single individual [ 33 ]. To maintain open communication and better coordination, as well as avoiding possible conflicts, one must rely on the role of leaders to motivate the team to achieve the organization goal. It was found that encouragement and support by leaders, their trust and clear vision, their consistent behavior in this regard and their ability to convince subordinates to acknowledge their vision, can all influence employee job satisfaction. On the other hand, we found that the factors in achieving job satisfaction were not limited to the employee's working environment, but also included interactions between working partners. Good health care requires good team behavior, so it is also recommended that hospital administrators not only establish relationships within the health care teams, but also work to improve these relationships to increase employee job satisfaction.

Academics who study organizational culture as their research topic feel that organizational culture is complex. It will influence different employee attitudes and behavior [ 34 ]; for example Jacobs & Roodt [ 35 ] discovered a correlation between employee turnover intentions, knowledge sharing organizational commitment, organizational citizenship behavior, job satisfaction and organizational culture. Other academics have found that organizational culture is also related to organization or employee efficiency. Good examples are an organization's innovative ability [ 36 ], employee effectiveness (e.g. higher levels of goal orientation, self control) [ 37 ]. Kane-Urrabazo [ 20 ] believed that a satisfactory work environment can be created by the employees when an organisation possesses a healthy culture and thus has a positive attitude towards employee work. Therefore the relationship between organisational culture and employee behaviour/attitude has been emphasised by different academics from various fields [ 26 ]. Jacobs & Roodt [ 35 ] showed a positive correlation between organisational culture and employee job satisfaction that is consistent with the findings of our research.

Research limitations and future research

Since a wide range of variables were included in our study, only a limited number of clinical nurses were interested in participating. Furthermore, only 2 hospitals were involved in this research; therefore, it is proposed that in view of the response rate, future research should consider adjusting the research variables.

Organizations face challenges in the external environment and changing internal context, and leaders will alter their behavior to adapt to these environment changes. Therefore it is proposed that longitudinal research methods can be adopted in future investigations into how changes in organizational context impact on leadership behavior. Will these changes create a brand new organization culture? And how will these changes in leadership behavior influence employee behavior and their contribution to the organization?

Administrators usually adjust their leadership behavior in order to reach the organizational goal. It is proposed that future research can explore the type of leadership behavior that will shape a particular culture within an organization. Thus, administrators can achieve the objective of shaping a new organization culture by adopting different leadership behavior training programs.

Culture within an organization is very important, playing a large role in whether or not the organization is a happy and healthy place to work [ 20 ]. Through communicating and promoting the organizational vision to subordinates, and in getting their acknowledgement of the vision, it is possible to influence their work behavior and attitudes. When there is good interaction between the leader and subordinates, there will be contributions to team communication and collaboration, and encouragement of subordinates to accomplish the mission and objectives assigned by the organization, which in turn enhances job satisfaction.

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Special thanks to all persons who assist in distributing questionnaires and those hospital employees who assist in filling out the questionnaires.

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Organizational Behavior Research Paper Topics

This page provides a comprehensive list of 100 organizational behavior research paper topics that are divided into 10 categories, each containing 10 topics. These categories include communication and teamwork, organizational culture and climate, employee motivation and engagement, organizational leadership, diversity and inclusion, organizational communication, employee well-being and work-life balance, organizational change, human resource management, and organizational ethics and corporate social responsibility. In addition to the list of topics, the page also provides expert advice on how to choose a research topic and how to write an organizational behavior research paper. Finally, students can take advantage of iResearchNet’s writing services to order a custom organizational behavior research paper on any topic. With this page, students will be able to explore the wide range of topics in organizational behavior and excel in their academic pursuits.

Organizational Behavior Topics Guide

Organizational behavior is an important field of study that focuses on how individuals and groups behave in organizations. It is a multidisciplinary field that draws on insights from psychology, sociology, anthropology, economics, and management. Understanding organizational behavior is crucial for individuals who are interested in careers in management, human resources, or organizational development. Research papers are an important aspect of studying organizational behavior, as they allow students to explore various aspects of this field in-depth.

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The purpose of this page is to provide students with a comprehensive list of organizational behavior research paper topics that will help them choose a topic for their research paper. The page is divided into 10 categories, each containing 10 topics. The categories include communication and teamwork, organizational culture and climate, employee motivation and engagement, organizational leadership, diversity and inclusion, organizational communication, employee well-being and work-life balance, organizational change, human resource management, and organizational ethics and corporate social responsibility. By providing a wide range of topics, students can find one that aligns with their interests and career goals.

100 Organizational Behavior Research Paper Topics

Communication and Teamwork

1. Communication barriers in the workplace 2. Interpersonal communication and conflict resolution 3. The effects of technology on communication and teamwork 4. Cultural diversity and communication in global organizations 5. Communication strategies for effective leadership 6. Group dynamics and team performance 7. Decision-making processes in teams 8. Motivation and satisfaction in team-based work environments 9. Leadership styles and their impact on team effectiveness 10. Team training and development programs

Organizational Culture and Climate

1. The impact of organizational culture on employee behavior 2. The role of leadership in shaping organizational culture 3. Organizational change and resistance to change 4. Organizational culture and innovation 5. Ethical climates in organizations 6. Managing cultural diversity in organizations 7. The impact of organizational culture on employee well-being 8. Measuring and assessing organizational culture 9. The relationship between organizational culture and performance 10. The impact of organizational climate on employee motivation and job satisfaction

Employee Motivation and Engagement

1. Theories of employee motivation and their application in the workplace 2. The role of incentives and rewards in employee motivation 3. The impact of job design on employee motivation and engagement 4. The relationship between job satisfaction and employee motivation 5. Employee engagement and its impact on organizational performance 6. Employee empowerment and motivation 7. The role of leadership in employee motivation and engagement 8. The impact of organizational culture on employee motivation 9. Employee motivation and retention strategies 10. Employee motivation and its impact on organizational change

Organizational Leadership

1. Theories of leadership and their application in the workplace 2. Transformational leadership and its impact on organizational performance 3. Authentic leadership and its impact on organizational culture 4. Situational leadership and its effectiveness in different contexts 5. Servant leadership and its impact on employee well-being 6. The relationship between leadership and employee motivation 7. The impact of gender and cultural diversity on leadership 8. The role of emotional intelligence in leadership 9. The impact of leadership on organizational change 10. Developing effective leadership skills

Diversity and Inclusion

1. Defining diversity and inclusion in the workplace 2. The business case for diversity and inclusion 3. The relationship between diversity and innovation 4. Overcoming diversity challenges in global organizations 5. Managing diversity and inclusion through leadership 6. The impact of cultural diversity on team performance 7. Addressing diversity and inclusion in performance evaluations 8. The role of diversity and inclusion in employee retention 9. The impact of diversity and inclusion on organizational culture 10. Strategies for developing and implementing effective diversity and inclusion initiatives

Organizational Communication

1. The impact of communication on organizational effectiveness 2. Organizational communication strategies 3. Internal communication and its impact on employee engagement 4. The role of communication in change management 5. The impact of technology on organizational communication 6. The relationship between communication and organizational culture 7. The impact of communication on employee motivation and satisfaction 8. The role of nonverbal communication in organizational behavior 9. The impact of communication on organizational reputation 10. The role of feedback in organizational communication

Employee Well-being and Work-Life Balance

1. The impact of work-life balance on employee well-being 2. The relationship between stress and employee performance 3. Mental health in the workplace 4. Workplace wellness programs 5. The role of leadership in promoting employee well-being 6. The impact of job demands and resources on employee well-being 7. The impact of work schedule flexibility on employee well-being 8. The impact of job security on employee well-being 9. Burnout and its impact on employee well-being 10. Developing effective work-life balance policies

  Organizational Change

1. Theories of organizational change 2. Managing resistance to change 3. The role of leadership in organizational change 4. The impact of organizational culture on change management 5. The role of communication in change management 6. The impact of technology on organizational change 7. The impact of organizational change on employee motivation and satisfaction 8. The role of employee involvement in change management 9. Change management strategies for global organizations 10. The impact of organizational change on organizational performance

Human Resource Management

1. Recruitment and selection strategies 2. Performance management and appraisal 3. Training and development programs 4. The impact of compensation and benefits on employee motivation 5. The role of HR in promoting diversity and inclusion 6. The impact of technology on HRM 7. The impact of employee turnover on organizational performance 8. Employee retention strategies 9. HR metrics and analytics 10. HR strategy and its impact on organizational performance

Organizational Ethics and Corporate Social Responsibility

1. The importance of ethical behavior in organizations 2. Ethical decision-making processes in organizations 3. The impact of corporate social responsibility on organizational performance 4. The relationship between ethics and organizational culture 5. Ethical leadership and its impact on employee behavior 6. The role of codes of ethics in organizations 7. The impact of social media on organizational ethics 8. The impact of globalization on organizational ethics 9. The role of stakeholders in promoting ethical behavior 10. Developing ethical organizational policies

Choosing an Organizational Behavior Topic

Choosing a research topic can be a daunting task, especially when there are so many organizational behavior research paper topics to choose from. The key to choosing a successful topic is to select one that is relevant, interesting, and manageable. In this section, we provide expert advice on how to choose an organizational behavior research paper topic that will help students succeed in their academic pursuits.

The importance of choosing a relevant and interesting topic

The first step in choosing an organizational behavior research paper topic is to select a relevant and interesting topic. A relevant topic is one that aligns with the course curriculum and the student’s area of interest. An interesting topic is one that is engaging and will hold the student’s attention throughout the research and writing process. Choosing a relevant and interesting topic is important because it will make the research and writing process more enjoyable and fulfilling.

Tips for choosing a topic that aligns with the student’s interests and career goals

To choose a topic that aligns with the student’s interests and career goals, it is important to consider what topics are relevant to the student’s area of study and future career aspirations. Students should consider their personal interests, as well as the interests of potential employers. They should also consider the latest trends and developments in the field of organizational behavior, and choose a topic that is timely and relevant.

How to narrow down a broad topic into a manageable research question

Once a broad topic has been selected, it is important to narrow it down into a manageable research question. This can be done by breaking the topic down into smaller, more manageable sub-topics. Students should consider the scope of the topic and the available resources, and choose a research question that is focused and manageable.

Examples of how to brainstorm ideas for research topics

Brainstorming is an effective way to generate ideas for research topics. Students can start by listing the topics that interest them and then narrowing down the list to the most relevant and interesting topics. They can also read academic journals and textbooks to identify current trends and issues in organizational behavior. Finally, they can talk to their instructors or peers to get ideas and feedback.

How to conduct preliminary research

Before choosing a research topic, it is important to conduct preliminary research to ensure that the topic is feasible and has enough available resources. Students can start by conducting a literature review to identify the latest research on the topic. They can also use online databases and search engines to find relevant articles and publications. Finally, they can consult with their instructors or academic advisors to get advice on the available resources and potential research topics.

Choosing the right organizational behavior research paper topic is essential for success in academic pursuits. By following these expert tips and advice, students can choose a relevant and interesting topic, narrow it down into a manageable research question, and conduct preliminary research to ensure the topic is feasible and has enough available resources.

How to Write an Organizational Behavior Research Paper

Once a research topic has been chosen, the next step is to write the research paper. Writing an organizational behavior research paper can be a challenging task, but with the right guidance and strategies, it can be a rewarding and fulfilling experience. In this section, we provide expert advice on how to write an organizational behavior research paper.

The structure and format of a research paper

The structure and format of an organizational behavior research paper should follow the standard guidelines for academic research papers. It should include an introduction, literature review, methodology, results, and discussion sections. The introduction should provide an overview of the research topic and the purpose of the study. The literature review should summarize the relevant research on the topic. The methodology section should describe the research design, sample, and data collection methods. The results section should present the findings of the study, and the discussion section should interpret the results and provide conclusions and recommendations.

How to conduct research and gather sources

To conduct research and gather sources for an organizational behavior research paper, students should start by conducting a literature review. This involves searching for relevant articles and publications on the research topic. Students can use online databases, search engines, and academic journals to find relevant sources. They should also consider the credibility and relevance of the sources they choose, and use a variety of sources to support their arguments.

How to organize and outline the paper

Organizing and outlining an organizational behavior research paper is an important step in the writing process. Students should start by creating an outline that includes the major sections of the paper and the key points they want to make in each section. They should then organize their sources and research findings according to the outline. This will help them write a clear and coherent paper.

How to write an introduction, literature review, methodology, results, and discussion sections

Each section of an organizational behavior research paper has a specific purpose and format. The introduction should provide an overview of the research topic and the purpose of the study. The literature review should summarize the relevant research on the topic. The methodology section should describe the research design, sample, and data collection methods. The results section should present the findings of the study, and the discussion section should interpret the results and provide conclusions and recommendations. Students should use clear and concise language and support their arguments with relevant sources and research findings.

How to properly cite sources and format the paper

Properly citing sources and formatting the paper is essential for academic integrity and professionalism. Students should follow the guidelines for the appropriate citation style, such as APA or MLA. They should also ensure that the paper is formatted according to the guidelines provided by their instructor or academic institution. This includes proper margins, headings, and references.

How to revise and edit the paper for clarity and coherence

Revising and editing the organizational behavior research paper is an important step in the writing process. Students should read the paper carefully and revise it for clarity, coherence, and organization. They should also check for spelling and grammar errors and ensure that the paper meets the requirements and guidelines provided by their instructor or academic institution.

Writing an organizational behavior research paper can be a challenging task, but with the right guidance and strategies, it can be a rewarding and fulfilling experience. By following these expert tips and advice, students can write a high-quality research paper that meets the academic standards and expectations.

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Creativity is developed by guiding rather than being taught. For this, environments that allow creativity-rich and diverse experiences should be designed and affect lots of different issues in the organization. To build and sustain an organizational culture dominated by creativity and innovation, organizations must effectively identify and mobilize the creative resources of their members. When organizational members perceive a work environment that restricts or fails to encourage individual creative expression, a gap may exist between the level of individual creative potential and the actual amount of individual creativity practiced within the organization. Leadership development may represent one important key for unlocking this idle creative potential and enhancing overall organizational effectiveness. So, organizations should focus on leadership to develop creativity via all dimensions that affect organizational culture at all levels of the organization. To achieve this, reshaping organizational psychology and culture accordingly can be stated as one of the main missions of organizational leadership. Recent studies prove that creativity is necessary for both individual and organizational levels, and for achieving these levels together, leadership is crucial for organizations. This special issue aims to collect studies on how to develop creative organizations through leadership. To focus on this special topic, the following sub-topics may be studied in detail. Based on this main objective, this special issue will also reveal the effects of creative organizational culture, which is one of the most fundamental issues in terms of organizational psychology, and the factors affecting this culture in detail. In addition, this special issue aims to reveal how creative organizational culture is changing organizational behavior and psychology as well as organizational structure in today's rapidly changing world. Moreover, the creative organizational leaders who will produce this change, their characteristics, and the new skills they need to acquire can be stated as another important purpose of this special issue. This special issue aims to collect studies on how to develop creative organizations through leadership. For this aim, the issue seeks for the following sub-topics: 1. Emotional drivers of creativity 2. The relationship between creativity, intelligence, and brain function 3. Biological dimensions of creativity 4. Factors affecting creativity 5. The importance of creativity in organization development 6. How can a creative organizational culture be developed? 7. The relationship between creativity, sustainability and entrepreneurship 8. Creative leadership and its role in organization development 9. How can creativity be developed in organizations? 10. The role and functions of creativity in selecting and developing human resources 11. New leadership theories for creative organizations 12. Innovation, inclusion, creativity and leadership 13. Digital technologies for creative leadership 14. Autonomous systems for organizational creativity and development 15. Leadership models and organizational culture and climate'?

Keywords : Creativity, organizational development, leadership, entrepreneurship, emotional intelligence, organizational psychology, management

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What Is Organizational Culture? And Why Should We Care?

• Michael D. Watkins

What leaders need to know to change orgs for the better.

If you want to provoke a vigorous debate, start a conversation on organizational culture. While there is universal agreement that (1) it exists, and (2) that it plays a crucial role in shaping behavior in organizations, there is little consensus on what organizational culture actually is, never mind how it influences behavior and whether it is something leaders can change.

• Michael D. Watkins is a professor of leadership and organizational change at IMD , a cofounder of Genesis Advisers , and the author of The Six Disciplines of Strategic Thinking .

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Research: What Companies Don't Know About How Workers Use AI

By: Jeremie Brecheisen

Three Gallup studies shed light on when and why AI is being used at work - and how employees and customers really feel about it.

• Length: 1788 word count
• Publication Date: May 14, 2024
• Discipline: Information Technology
• Product #: H087EJ-PDF-ENG

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Leaders who are exploring how AI might fit into their business operations must not only navigate a vast and ever-changing landscape of tools, but they must also facilitate a significant cultural shift within their organizations. But research shows that leaders do not fully understand their employees’ use of, and readiness for, AI. In addition, a significant number of Americans do not trust business’ use of AI. This article offers three recommendations for leaders to find the right balance of control and trust around AI, including measuring how their employees currently use AI, cultivating trust by empowering managers, and adopting a purpose-led AI strategy that is driven by the company’s purpose instead of a rules-heavy strategy that is driven by fear.

May 14, 2024

Discipline:

Information Technology

Harvard Business Review Digital Article

H087EJ-PDF-ENG

1788 word count

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• Substance Use and Work
• Opioids and Work
• Tobacco Use in the Workplace
• Workplace Supported Recovery

About Workplace Supported Recovery

At a glance.

Employers should consider creating a Workplace Supported Recovery (WSR) program to prevent substance use, reduce stigma, and encourage recovery. This page offers strategies that employers can use to develop a program at their workplace.

According to the 2020 National Survey on Drug Use and Health, two-thirds of adults with substance use disorders (SUDs) have jobs. 1

Employers should consider creating a WSR Program to prevent substance use, reduce stigma, and encourage treatment and recovery. This may include staying at work or returning to work.

A recovery-supportive workplace aims to accomplish two things:

• Prevent work factors that could cause or prolong SUDs
• Lower barriers to seeking and receiving care, and maintaining recovery

A recovery-supportive workplace teaches managers and workers about substance use disorders to reduce the stigma around this.

WSR programs use evidence-based policies, programs, and practices to reduce multiple risk factors. A comprehensive WSR program would include a workplace naloxone availability and use program . This approach is consistent with Total Worker Health ® strategies that integrate all aspects to collectively address worker safety, health, and well-being.

About recovery

Recovery recognizes substance use disorder as a chronic condition from which individuals can recover. However, it requires access to evidence-based treatments and long-term support.

The Office of the Surgeon General defined recovery as "a process of change through which individuals

• Improve their health and wellness,
• Live a self-directed life, and
• Strive to reach their full potential.

When those positive changes and values become part of a voluntarily adopted lifestyle, that is called 'being in recovery.'"

Each person's path to recovery is unique. It is affected by the severity of the substance use disorder and the resources available to the individual. Recovery might include formal treatment (with or without medication-assisted treatment ), peer support networks, or a combination.

Explore the Research‎

Prevention strategies, evaluate working conditions.

Prevent work-related injuries and illnesses that could lead to substance use. Reduce difficult working conditions or work demands that might lead to daily or frequent pain. Evaluate the workplace to reduce working conditions that may lead to employee substance use, such as:

• Extra work demands.
• Personal conflict at work.
• Dangerous work.

Promote the use of alternatives to opioids for pain management.

Promote a supportive work culture and climate

Create a workplace culture that is supportive of workers in recovery. For example, build awareness, reduce stigma , and host alcohol-free and health-focused work social events.

Reducing stigma can help encourage entry into treatment and recovery. To help reduce stigma, put out educational materials and talk about the nature of substance use disorders and recovery. A key talking point is that a substance use disorder is not a moral failing and recovery is possible.

Evaluate workplace norms and drinking rituals that support substance use. While after-work drinks can help co-workers unwind and make friends, they can undermine the recovery of co-workers. Recovering co-workers may want to avoid alcohol use but might experience social exclusion at work for not participating.

Focus on the future workforce

Roughly 90% of individuals with severe substance use disorders began using before the age of 18. Workplaces that employ adolescents and focus on relevant prevention efforts may avoid problems for the next generation of workers. Additionally, a comprehensive WSR program could include resources for employees that are parents of adolescents.

Supportive policies

Develop and share clear and supportive workplace policies.

Inform employees about resources available through the employer or union. These resources may be part of a company employee assistance program and health insurance. If those are unavailable, provide resources available in the community.

Offer health and well-being programs that promote work-life fit and teach functional coping skills. Programs that promote and support employee well-being may help employees with their recovery efforts.

Provide information and access to care for a substance use disorder when required. This includes access to medication-assisted treatment, together with counseling.

Have expertise available in employee assistance or health insurance programs to address disparities. Barriers to treatment and willingness to enter treatment and recovery may vary across populations, based on:

• Religious and cultural norms or expectations
• Family history

Provide training to all supervisors and employees

In-person training is a best practice. Only use online training when in-person training is not feasible. Training should cover:

• Types of drugs (including alcohol) and their health impacts.
• How substance use can impact behavior and performance at work.
• Workplace policies involving substance use.

Provide peer support and peer coaching to increase the social support for workers in recovery

Offer second-chance employment

Employment provides economic stability, a meaningful social role, and often direct access to treatment and recovery services. When possible, keep employees who are in treatment at work. Offer second-chance employment for recovering individuals. Accommodate workers, as they return to work and offer other return-to-work assistance.

Resources and tools

Go to the Recovery-Ready Workplace Resource Hub to find more information and a comprehensive toolkit, plus state and local resources.

Learn more about Total Worker Health strategies here .

• https://www.samhsa.gov/data/release/2020-national-survey-drug-use-and-health-nsduh-releases

National Institute for Occupational Safety and Health (NIOSH)

The Occupational Safety and Health Act of 1970 established NIOSH as a research agency focused on the study of worker safety and health, and empowering employers and workers to create safe and healthy workplaces.