Organizational Culture and Job Satisfact

International Journal of Research in Economics and Social Sciences (IJRESS)
Available online at: http://euroasiapub.org

Vol. 7 Issue 12, December- 2017
ISSN(o): 2249-7382 | Impact Factor: 6.939 |
ORGANIZATIONAL CULTURE AND JOB SATISFACTION: A LITERATURE REVIEW
Reshma Mariam Mohan1
M.Phil. Commerce &Management
Department of Commerce &Management
Amrita School of Arts & Sciences,Kochi
Amrita Vishwa Vidyapeeth,India
Dr.Anoop KK.2
Assistant Professor
Department of Commerce &Management
Amrita School of Arts and Sciences,Kochi
Amrita Vishwa Vidyapeeth,India
ABSTRACT
Organizations today are functioning in a volatile and challenging environment. To survive

in this intensively competitive environment employees are trying to adapt themselves to
changing scenarios in organizations. So adaptability can be identified as a key factor in moulding
an individual to an organization’s unique environment, referred to as organizational culture. Each
organization is characterized by its beliefs, values, systems, rules and regulations. Organization
culture is what distinguishes one organization from the other. A concept which is used along with
culture is job satisfaction. In simple terms job satisfaction is the contentment an individual
derives from his work. The extent to which an employee is satisfied with his or her job determines
the tenure of the individual with the organization. Job satisfaction is the cumulative sum of
various factors which includes organizational factors, work environmental factors, work itself
and personal factors. Job satisfaction is often affected by one’s feeling towards the job. If an
employee has a positive attitude towards job he will be able to face any difficult situation that
comes his way. Organizational culture and job satisfaction are two relevant concepts in today’s
organization. A positive culture leads to a happy and motivated work force. The paper focuses on
organizational culture and job satisfaction and the extent to which they are correlated.
Keywords: Contentment, Employees, Environment, Job satisfaction, Organizational Culture.
International Journal of Research in Economics & Social Sciences

Email:- editorijrim@gmail.com, http://www.euroasiapub.org
193
(An open access scholarly, peer-reviewed, interdisciplinary, monthly, and fully refereed journal.)
Vol. 7 Issue 12, December- 2017,
ISSN(o): 2249-7382 | Impact Factor: 6.939
Introduction
The present era is marked by constant changes in the business and organization
environment. The changing dynamics of organization due to external changes in business
environment requires a long term strategic plan to deal with unexpected scenarios. In this context
it becomes essential to discuss about organizational culture and the impact it can bring on the job
satisfaction level of employees. Organizational culture is one of the dominant factors that shape
up an organization’s identity. Needle (2004), defines organizational culture as the collective
values, beliefs and principles of organizational members and is a product of such factors as
history, product, market, technology, strategy, type of employees, management style, and national
culture; culture includes the organization's vision, values, norms, systems, symbols, language,
assumptions, environment, location, beliefs, and habits.
Every organization has its own set of values, beliefs and norms that gives it a distinctive feature
that differs from the rest. It is culture that an employee has to get accustomed to while working.
During the initial phase of one’s career an individual tries to adjust to the setting of his work place.
After a certain period he gets adapted to the nature of work and its environment. An employee
who has adapted himself to the workplace can be referred to as a person happy and contented
individual. This contentment is the job satisfaction he has from his work. Locke (1976), defines
job satisfaction as a pleasurable or positive emotional state resulting from the appraisal of one's
job or job experiences.
An organization which provides a positive environment for work raises the motivation and work
satisfaction level of its employees. A positive organizational culture is characterized by autonomy
in work, cooperation among employees, shared values, flexible working hours etc. An employee
may be receiving a good pay cheque but may be operating in a negative environment. Sooner or
later that employee would opt out of the organization to a place offering better environment,
which would offer him the same or even better salary. Retaining employees with requisite skills
is one of the major tasks that human resource professionals throughout the world face. During
the induction training of a new employee a human resource executive tries to acquaint him with
the culture of the organization. Some employees quite easily adapt themselves and even go on to
become an integral part of the organization, others who can’t adjust with the environment leave.
Today’s organizations are based on survival of the fittest. People who are not able to withstand
the pressure and competition ultimately don’t survive.
Significance of the Study
Organizational culture and job satisfaction are two concepts which have gained a lot of
prominence in recent times. In the present era there is an alarming rate of increase in the number
of job hoppers. Researchers have identified that organizational culture directly affects individual
and his behaviour as well as the extent to which he is satisfied with his work which in turn reflects
in the progress and performance of the organization. If the employees are comfortable in the
values adopted by an organization they tend to operate effectively. A cultural mismatch prompts
an employee to quit the job, than a smaller pay cheque.Millennials in present era amount for
greater number of job hoppers than baby boomers as per the data by U.S.Bureau of Labour
194
Statistics. Therefore culture and satisfaction are deciding factors in employee tenure in today’s
world.
Research Methodology
Present study is descriptive in nature. Here the researcher has made an attempt to bring out and
analyse all relevant literature in area of job satisfaction and organizational culture. For this
purpose researcher has collected various literatures. Data was collected through various journals,
books and articles.
Literature Review
Maham Fatima (2016) in her study assessed the impact of organizational culture types on job
satisfaction level of employees. The study was basically based on four cultural types named as
clan, adhocracy, market and hierarchy structure. The objectives of the study included to examine
the job satisfaction in entrepreneurial organization and to understand the influence of culture on
job satisfaction. The key variables of organizational culture included dominant characteristics,
leadership of organization, the organization bond, the strategic emphasis of organization and
success factor. Key variables of job satisfaction included work satisfaction, satisfaction in relation
to co-workers, supervisors, wages and excelling opportunities. The findings of the study showed
that clan and adhocracy showed higher levels of satisfaction than market and hierarchy. The most
popular culture was clan.
Crispen Chipunza & Malo Bulelwa (2017) in his study analysed the impact of organizational
culture on job satisfaction among academic professionals at South University of technology. The
main objective of the study was to investigate the perceptions of organizational culture and their
resultant impact on job satisfaction level among academic professionals.Propotinate stratified
random sampling method was used. The key dimensions of organizational culture included
innovation and risk taking, attention to detail, outcome orientation, people orientation, team
orientation, aggressiveness and stability. Dimensions of job satisfaction included work itself,
advancement opportunities, salary, supervision support and co-worker relations. The findings
showed that academic professionals had moderate positive perceptions about organizational
culture. The mean scores of various dimensions were analysed to observe that outcome
orientation had the highest score.
Seyyed Motaharch (2013) in his study examined the correlation between organizational culture
and job satisfaction of employees in biotechnology companies. The components of culture include
cultural mission, continuation of culture, cultural adaptation and participatory culture. The
results of the study show that there is significant positive correlation between organizational
culture and job satisfaction.
ME Sempane,HS Reiger & G.Roodt(2002) in their study assessed whether a relationship existed
between the variables of job satisfaction and organizational culture of employees within the
service organization. The secondary objective of the study was to establish whether there was a
relationship between biographical variables, culture and job satisfaction scores. The culture and
Minnesota job satisfaction questionnaires were administered to a sample of 160 employees. It
was concluded that a clear relationship existed between the variables of job satisfaction and
organizational culture.
195
Nancy Gilbert in her study examined the type of organizational culture to determine the
relationship between organizational culture, affective outcomes and behavioural outcomes in
hospital food service organizations in Canada and US. The sample included 436 food service
employees from ten hospitals. The study showed positive relationship between supportive and
innovative cultures, job satisfaction and organizational commitment. Organizational Index
developed by Ellen Wallach was used.
Salma Habib,Amjab Hussain ,Sana Yasmeen & Muhammed Ibrahim(2014) in their study analysed
the impact of organizational culture on job satisfaction, employees commitment and turnover
intentions. The research was based on primary data, the data was collected from employees in
different organizations within Mallad region ,Punjab. Results show that the nature of organization
has significant effect on job satisfaction and turnover intentions.
Osibanjo Omotaya Adewale & Adeniji Adenike Anthonia(2013) in their study observed the
impact of organizational culture on human resource practises in some selected Nigerian private
universities. The statistical analysis in their study was based on 237 respondents in selected
private universities; the analysis revealed that a close relationship existed between
organizational culture, recruitment process, training programmes, job performance
management, pay structure ad compensation practises. The sampling procedure used was cluster
ad stratified random sampling. Questionnaire was the primary data collection tool. Correlation
analysis was used to study the impact of organizational culture on each of the human resource
practises. The study recommends that prospective employees should endeavour to familiarize
themselves with organizations before accepting job offers.
The study by Daulatram B.Lund (2003) examined the impact of organizational culture on job
satisfaction in a survey of marketing professionals in cross sections of firms in USA.Camero and
Freeman’s model was used as conceptual model. The results showed that job satisfaction levels
varied across corporate cultural typology. Job satisfaction was positively corelated to clan and
adhocracy culture, while it was negatively related to market and hierarchy cultures.
Priya Vij,Sapna &Suri Sukhbir Singh (2012) identified the impact of organizational culture and
job satisfaction in Banks in relation to various factors like receptiveness to change, cooperation
among peers ,team orientation, organization goal identity and union management cooperation.
The study compared both private and public banks and which factors had higher correlation
among them.
Yafang Tsai (2011) in his study on relationship between organizational culture, leadership
behaviour and job satisfaction assessed how culture influences leadership and satisfaction. For
the purpose of the study cross sectional analysis was undertaken that focussed on hospital nurses
in Taiwan. The results showed significantly positive correlation.
Pirzada Sami Ullah Sabri & Muhammed Iyas (2011) studied about the impact of organizational
culture on job satisfaction level of teachers in public and private sector higher secondary
educational institutes and universities of Lahore, Pakistan. The study used regression analysis
and the results showed positive relation.
196
Wendrila Biswas (2015) in her study found that positive relationship exists between
organizational culture, job satisfaction and corporate performance. Denison’s model was the
conceptual model used.
Abdul Hakim(2015) in his study observed that organization culture has significant impact on job
satisfaction level of employees in banks. Key variables identified as part of culture were
working conditions, compensation and benefits, respect from co-workers, relationship with
supervisors and opportunity for advancement. The most dominant factor in the variables listed
above in affecting job satisfaction was respect from co-workers.
H.Teman Koesmon in his study of organizational culture, servant leadership and job satisfaction
towards Organizational Commitment and job performance observed that commitment and
satisfaction are necessary motivating factors for lecturers in private universities in East Surabaya.
The results of the study showed positive relationship between all variables concerned.
CONCEPTUAL MODEL
Based on literature review a conceptual model for the current paper was developed.
Organizational culture is viewed as a system consisting of shared values, beliefs, organizational
working environment, norms, regulations, personality of employees and structural components
like size. On the other had job satisfaction is sum total of various factors that includes
organizational factors, work environmental factors, work itself and personal factors.
SHARED BELIEFS
ORGANIZATIONAL PERSONAL
VALUES
L
ORGANIZATIONAL
NORMS JOB SATISFACTION FACTORS
CULTURE
ORGANIZATION STRUCTURE WORK WORKING

ENVIRONMENT AND SIZE ITSELF
LEADERSHIP ENVIRONMENT
ENVIRONMENT
T
FINDINGS AND CONCLUSION
From the literature review it was found that organizational culture is made up of several subE
components like values, beliefs, norms, regulations and organizational environment. All these
197
variables together have a direct impact on job satisfaction which in turn is affected by various
factors that includes organization, work environment, work itself and personal factors. Through
analysis of existing literature we can conclude that organizational culture whether positive or
negative affects job satisfaction level of employees. A positive organizational culture motivates
an employee, while a negative one demotivates him. So in the current scenario of predominantly
dynamic organizations, organizational culture should be made to adapt with dynamic changes
and varying needs so as to gain greater competitive advantage and helps in performing
organizations day to day operations smoothly. Hence through a well-structured organizational
culture greater levels of job satisfaction can be achieved.
REFERENCES
Fatima Maham,2016, “The Impact of Organizational Cultural Types on the Job Satisfaction of
Employees’’ ,Journal of Management Studies ,3(2) ,pp16-22.
Vij Priya,Suri Sapna & Singh Sukhbir,2012, “Impact of Job Satisfaction of Employees and
Organizational Culture in Banks on Receptiveness to Change, Cooperation among Peers, Team
Orientation, Organizational Goal Identity and Union Management Cooperation”, Journal of
Business and Management,5(3),pp 47-53.
Davoodalmousavi, S.M., 2013, “The correlation between organizational culture and job
satisfaction of employees in biotechnology production companies”, European Journal of
Experimental Biology, 3(5),pp 389-399.
Chipunza Crispen &Malo Bulelwa,2017, “Orgaizational Culture and job satisfaction among
academic professionals at South African university of technology”, Journal of Problems and
Perspectives in Business,15(2)pp148-161.
Habib Salman et al.,2014, “The Impact of Organizational Culture on Job Satisfaction, Employees
Commitment and Turnover Intention” ,Journal of Advances in Economics and Business
,2(6),pp215-222.
Biswas Wendrila ,2015, “Impact of Organizational Culture on Job Satisfaction and Corporate
Performance” ,Journal of Research in Humanities and Social Sciences ,3(8),pp14-16.
Sempane ME,Rieger & G Roodt ,2002, “Job Satisfaction in Relation to Organizational Culture”
,Journal of Industrial Psychology ,28(2),pp23-30.
Adewale O.O. & Anthonia A.A, “Impact of Organizational Culture on Human Resource Practises:
A Study of Selected Nigerian Private Universities”, Journal of Competitiveness, 5(4), pp115-133.
Lund D.B., 2003, “Organizational Culture and Job Satisfaction”, Journal of Business and Industrial
Marketing, 18(3), pp219-236.
IIyas Muhammad et al., “Organizational Culture and its Impact on the Job Satisfaction of the
University Teachers of Lahore”,International Journal of Business and Social Sciences,2(24).
Koesmono H.T.,2014, “The Influence of Organizational Culture, Servant Leadership, and Job
Satisfaction Toward Organizational Commitment and Job Performance Through Work Motivation
198
as Moderating Variables for Lecturers in Economics and Management of Private Universities in

East Surabaya”, Journal of Educational Research International 3(4).
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Reactions of Employees”, Journal of Global Disclosure of Economics and Business,4(2).
Tsai Yafang, 2011, “Organizational Culture, Leadership Behaviour and Job Satisfaction”, Journal
of BioMed Central, 11(39).
Nancy M.Gilbert, 1991, “Influence of Organizational Culture on Job Satisfaction, Organizational

Commitment, Turnover, Absenteeism and Productivity in Hospital Food Service”, University of
Tennessee, Knoxville.
Gupta S.K. and Joshi Rosy,(2009).Organisation Structure and Dynamics,Kalyani Publishers, New
Delhi.
http://www.talenteconomy.io/2017/09/11/job-hoppers/.Accessed on 23 December 2017.
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International Journal of Research in Economics and Social Sciences (IJRESS)

Available online at: http://euroasiapub.org

ORGANIZATIONAL CULTURE AND JOB SATISFACTION: A LITERATURE REVIEW

Reshma Mariam Mohan1

M.Phil. Commerce &Management

Department of Commerce &Management

Amrita School of Arts & Sciences,Kochi

Amrita Vishwa Vidyapeeth,India

Department of Commerce &Management

Amrita School of Arts and Sciences,Kochi

Amrita Vishwa Vidyapeeth,India

Organizations today are functioning in a volatile and challenging environment. To survive

Keywords: Contentment, Employees, Environment, Job satisfaction, Organizational Culture.

International Journal of Research in Economics & Social Sciences

Significance of the Study

ORGANIZATION STRUCTURE WORK WORKING

as Moderating Variables for Lecturers in Economics and Management of Private Universities in

Nancy M.Gilbert, 1991, “Influence of Organizational Culture on Job Satisfaction, Organizational

http://www.talenteconomy.io/2017/09/11/job-hoppers/.Accessed on 23 December 2017.

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