IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE ORGANIZATIONAL COMMITMENT: A STUDY OF FRONT LINE EMPLOYEES IN PUBLIC SECTOR FINANCIAL INSTITUTES IN SRI LANKA

Abstract

Employee or human resource are key aspect of any organizational success. Thus, committed employees are crucial for achieving organizational success. Achieving employee commitment within an organization has become a crucial challenge in the contemporary business context specially for service-oriented organizations. Financial industry is mostly labor-intensive sector and they are facing several issues with lack of committed employees. This is one of the hardest and most exclusive workplace cultures that have a higher level of burden among its staffs as the workers have to deal with enormous workload during the year. Accordingly, the present study focuses on identifying the “effect of organizational culture of employees’ commitment with special reference to the public sector financial institutes in Sri Lanka”. Cross-sectional survey conducted among 150 front line employees among 8 major public financial institutes in the country. Data were collected through a self-administered questionnaire. Organizational culture measured through four variables such as organizational control, innovativeness, organizational values and employee engagement & teamwork. The findings revealed that organizational control has a negative effect on employees’ commitment and innovativeness, organizational values and employee engagement & teamwork have a positive impact on employees’ commitment respectively. Further, the findings of the study generate several suggestions for managers and human resource practitioners to make better strategies to increase organizational culture and employees’ commitment in the public sector financial institutes.