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Impact of organizational culture on employee commitment: The Case of Ace Hardware

A Concept Paper and Review of Related Literature Matrix Presented To

Mr. Raymond D. Paderna
Of the Decision Sciences and Innovation Department
RVR-College of Business

In partial Fulfillment of the Course Requirements in

Business Research Methodology
(RESBUSM)

Submitted by:

Calixto, Gian Carlo U.

Ellescas, Jose Emmanuel
Masong, Janina Richa R.
Sagun, Chyle Samuel G.
Tumagay, Alexandra Ysabella Teresa D.

November 2021
RESEARCH CONCEPT PAPER

1. Proposed Research Title

Impact of organizational culture on employee commitment: The Case of Ace

Hardware

2. Brief description of the research

Companies have always been distinct from one another, from having their own organizational
culture, core values, or type that shapes how the company operates and makes decisions. One can’t deny
the fact that a lot of factors contribute to the success of these companies, but one may not realize the fact
that the product or service of the company is not the only driver for success, but the employees and
workers that also play a big role in this. Leonard (2019) argues that employees are needed by companies
since they are responsible for making the plans to happen which makes them a crucial part of the success
of the business.

In line with this, the researcher's goal is to determine how the company though their
organizational culture affects the commitment of the employees. Heinz (2019) states that organizational
culture attracts top candidates and makes good employees stay. He also added that companies that have a
winning company culture result to higher employee engagement that highly contributes to the
productivity of the company.

With this being said, this research of determining the impact of organizational culture towards
employee commitment can help companies improve management decisions towards their employees so
that the company and the employees form a system where they work together coherently.

3. Background of the study

In today’s modern business environment, reputation is one of the key criterias in an employee’s
checklist when it comes to looking for a job. Perception of an employee when it comes to the work
culture of a company allows them to decide whether this is what they would want to commit themselves
to. A study to determine the reasons of workers of choosing to stay with their current employer done by
Randstad USA (2018), found out that there are two primary drivers of an employee’s behavior, these are
the elements of a job such as (pay,commute,paid time off) and the other one is the personal relationship or
experience that an employee has with his/her boss, and it was found out that personal experience
outweighs the former as 58% of workers would rather stay at their current job even if meant lower
salaries as long as they are working for a great boss. The researchers of this study would want to find out
the impact of organizational culture on an employee and overall performance and what are possible
strategies to implement a positive and a welcoming culture for future employees as per (Hirsch, 2015)
business problems mainly stem from the inability of senior managers to establish an effective
organizational culture within the company. Therefore, This study would benefit not only the employees,
company but most importantly its managers as it will allow them to have a new perspective on how things
should be run in the workplace and how to keep their employees committed and loyal to their company.
 4. Research Problem/Objective

a. Research Problems

1. What is the impact of organizational culture on employee commitment?

2. What are the different types of employee commitment influenced by organizational
culture?
3. What is the most effective organizational culture that causes a huge impact on employee
commitment?

b. Objectives

1. To identify the impact of organizational culture on employee commitment.

2. To determine different types of employee commitment influenced by organizational
culture.
3. To determine the most effective organizational culture on employee commitment.

5. Expected Output

Given the fact that this study uses the mixed method to achieve its objectives, this research aims
to produce a model that will help organizations and management to come up with solutions in the
betterment of their own organizational culture. In addition, this research aims to determine the most
effective organizational culture that will help the organization improve employee commitment.
Furthermore, this study will help the organization create a healthier business environment that will
effectively and efficiently boost employee commitment and performance by applying organizational
culture concepts in their business.

6. How do you plan to do your research?

a. How do you plan to gather data for analysis?

Since this study will be undergoing the mixed method, the researchers will gather
data through surveys and interviews. The sample for this study will be the employees and
the branch manager of Ace Hardware. The independent variables that will be used in this
research are age, gender, marital status, and length of stay of the employees. These
variables will be crucial in measuring the impact of organizational culture on employees’
commitment in the company. Conversely, the dependent variable would be the
commitment level of employees in the organization.

b. Where will you get the data?

The researchers decided to conduct their primary data through direct surveys and
direct interviews to the employees of Ace Hardware. This will be made possible to
conduct directed to the employees because one of the researchers is a direct franchisee of
 this company. These surveys will be designed in an online manner in order for us to
remain safe during this pandemic. This will then be designed in a way where it is
user-friendly and in a language that is easy for the employees to understand.

The secondary data of this research will be taken from the initial review of
literature. Since we believe that citing studies previously done can project a certain level
of expertise on the issue at hand. Examples of such data are: an article published, written
by Sulakshna Dwivedi and Luxmi entitled Impact of Organizational Culture on
Commitment of Employees: An Empirical Study of BPO Sector in India; an article
published, written by Saini entitled Impact of Ethical Leadership on Organizational
Commitment & Productivity in India; written by Dwivedi entitled Impact of
Organizational Culture on Turnover Intentions in BPO Sector in India; written by Pham
Thi entitled The Influence of Organizational Culture on Employees' Satisfaction and
Commitment in SMEs: A Case Study in Vietnam; written by Sarpong entitled The Role
of Commitment in the Relationship between Components of Organizational Culture and
Intention to Stay.

c. What statistical tools will you use to process and analyze data?

The statistical data that will be used in the research will be through the use of
correlation analysis. Correlation analysis is used to compare the association between two
variables, which in this study will be the age, gender, marital status, length of stay, and
the commitment level of employees. In addition, using the correlation analysis will help
in identifying the relationship between the organizational culture and the commitment
level of the employees.

d. Timeline of the research activities

Proposed Timeline

Activity 3rd week of 4th week of 1st week of 2nd week 3rd week of
November November December of December
December

Meeting of researchers to
finalize collection of data

Creating and designing of

online survey

Distribution of online
survey

Data collection

Data extraction and

analysis

Write-up of manuscript

Finalization of research
paper
7. References

Alharbi, M., & Alyahya, M. (2013, March). Impact of organizational culture on employee performance.
International Review of Management and Business Research . Retrieved November 17, 2021,
from https://www.irmbrjournal.com/papers/1364462611.pdf.

Baldacchino, G. Island Entrepreneurs: Insights from Exceptionally Successful Knowledge-Driven SMEs

from 5 European Island Territories. Journal of Enterprising Culture. 13 (2): 145 – 170.
https://doi.org/10.1142/S0218495805000100.

Dwivedi, S., Kaushik, S., & Luxmi. (2013). Impact of Organizational Culture on Turnover Intentions in
BPO Sector in India. Indian Journal of Industrial Relations, 48(4), 679–691.
http://www.jstor.org/stable/23509823

Heinz, K. (2019, September 12). Why is organizational culture important? Built In.
https://builtin.com/company-culture/why-is-organizational-culture-important

Lakshimi, P., & Bhavani Shree A. (2020,August 8). Impact of Organizational Culture on Employee
Behavior In FMCG Retail Outlets. Journal of Critical Reviews, 7(19), 6088-6092. https://
doi.org/10.31838/jcr.07.19.704

Lareche, W. (n.d.). Your best employees are leaving. but is it personal or practical? Staffing Agency and
Employer Solutions | Randstad USA.
https://rlc.randstadusa.com/press-room/press-releases/your-best-employees-are-leaving-but-is-it-p
ersonal-or-practical

Leonard, K. (2018, October 19). The importance of coaching and mentoring. Small Business -
Chron.com. https://smallbusiness.chron.com/importance-coaching-mentoring-23704.html

Pham Thi, T. D., Ngo, A. T., Duong, N. T., & Pham, V. K. (2021). The Influence of Organizational
Culture on Employees’ Satisfaction and Commitment in SMEs: A Case Study in Vietnam. The
Journal of Asian Finance, Economics and Business, 8(5), 1031–1038.
https://doi.org/10.13106/JAFEB.2021.VOL8.NO5.1031

O’Reilly III, C. A., Caldwell, D. F., Chatman, J. A., & Doerr, B. (2014). The promise and problems of
organizational culture: CEO personality, culture, and firm performance. Group & Organization
Management, 39(6), 595-625.

Saini, D. (2017). Impact of Ethical Leadership on Organizational Commitment & Productivity in India.
Indian Journal of Industrial Relations, 52(3), 456–468. https://www.jstor.org/stable/26536409

Sarpong, S., Akom, M.S., Kusi-Owusu, E., Ofosua-Adjei, I., Lee, Y.., (2021). The Role of Commitment
in the Relationship between Components of Organizational Culture and Intention to Stay.
Sustainability. 2021; 13(9):5151.
Srinivasan, K., Desalew, G.Y., Belayneh, T., (2018). Effect of Organizational Culture on Employee
Commitment-Faculties-Arba Minch University, Ethiopia. International Journal of Science and
Research (IJSR)

Tedla, T. (2016), "The Impact of Organizational Culture on Corporate Performance". Walden

Dissertations and Doctoral Studies. 2509. https://scholarworks.waldenu.edu/dissertations/2509

Uddin, M. J., Luva, R. H., & Hossian, S. M. M. (2013). Impact of organizational culture on employee
performance and productivity: A case study of telecommunication sector in Bangladesh.
International Journal of Business and Management, 8(2), 63.
 REVIEW OF RELATED LITERATURE MATRIX

JOURNAL SUMMARY OF METHODOLO MANAGEMENT AREAS FOR

ARTICLE AND FINDINGS GY USED IMPLICATIONS FUTURE
DATE RESEARCH

Impact of Norms and values Data was gathered For an organization Since the study
Organizational of a company or through literature to ensure stability has proved that
Culture on organization have review to and productivity, organizational
Employee been identified to determine and organizational or culture
Performance be dependent on analyze the company culture influences the
(Alharbi & employee organizational must be work
Alyahya, 2013) relationships and culture through strategically capabilities of
the researchers process, established by the the employees,
were also able to employees, and management in future
identify a variety systems. order for the researchers can
of cultural employees to have focus on
dimensions. It something to research that
was also depend on that can heavily
identified that the increase their discusses the
increased level of productivity which most effective
performance results in the strategy
through strategies company’s success. executed by
design have been Likewise, the organizations
the goal of an management is that increases
organization. responsible for employee
While, balance cultivating this productivity and
scorecard, culture in the engagement.
understanding workplace as the
nature, and the study shows that
organization’s this is highly
ability of system essential and
culture are used to influential on how
measure the the employee
performance works.
management
systems.

Impact of The study Information was Having an effective An area for

Organizational concluded with gathered through a organizational future research
Culture on the participants semi-structured culture does not for this study
Corporate identifying that face to face only benefit the would be to
Performance having a strong interview of 20 company, analyze the
(Tedla, 2016) and well-defined senior managers in employees and impact of
mission & vision Ethiopia. With the overall performance corporate
is a successful criteria being at of the whole group culture on the
ingredient in least a minimum but it also affects perspective of
creating an of 5 years of society as a employees,
effective experience with whole.The core stakeholders
organizational successful values that were and even
 culture. Moreover, strategies in important in customers as
corporate values establishing an establishing an this study only
are also essential effective effective analyzed the
to a company’s organizational organizational manager's
group success. culture in the culture were also perspective on
The corporate corporate group. necessary in the impact of
values that were The data gathered changing the organizational
identified were from the interview society, as culture. This
customer was transcribed, improving the life study also only
satisfaction, categorized and standards of these focused on
employee coded and it was employees also Ethiopia,
empowerment, also triangulated improves the leaving it to be
teamwork, or to widen society and its only limited to
corporate identity, interpretations. community that area, thus
integrity,quality members. The further studies
and excellence. social values that on successful
The study also the corporate group strategies could
identified that promotes and be developed in
employee-focused advocates benefits analyzing the
leadership is vital the customers as impact of
in establishing an they receive organizational
effective excellent service, culture from the
organizational trust and customer perspective of
culture and helps satisfaction coming other countries
improve the from the as there may be
company. employees. Having a difference
an organization that when compared
also invests its time to the study
and resources into done here.
social initiatives
benefits the society
as this opens up
new job
opportunities.
Lastly, with the
improved
performance of the
employees through
these effective
strategies, it will
open up or lead to
new innovation that
will greatly benefit
the society in the
future.

Impact of Based on the The data was Turnover intention An area for
Organizational research paper gathered through of employees in the future research
Culture on and its findings, primary and BPO sector is would be about
Turnover they have found secondary data. highly influenced the different
 Intentions in the that the Their primary data by organizational impact of
BPO Sector in organizational was collected culture and organizational
India. (Dwived, et culture has found through direct commitment. This culture on
al., 2013) to be an important questionnaires, is significantly turnover
input to turnover interviews, and related to intentions in
intentions and direct discussions commitment and another business
46.3% of the with BPO turn-over sector. Since
variance. Where employees. While intentions. Since this research
the main goal of their secondary this shows that it only focuses on
the management data was taken mediates the the BPO sector,
should be on through research relationship yet as we all
augmenting the journald, reports, between know there are
organizational and websites of organizational varieties of
culture and its BPO businesses. culture and turnover business sectors
corresponding intentions. The and industries.
dimensions. That BPO sector’s
employee's turnover of
perception about employees is highly
their influenced by its
organizational organizational
culture may culture and
positively commitment.
influence the
turnover
intentions, yet
they will less
likely leave the
organization.

Impact of Ethical Based on the The data was Ethical leaders can An area for
Leadership on research paper gathered through influence the future research
Organizational and its findings, primary data using followers, foster would be about
Commitment & the rise in ethical the instrument of a positive employee considering
Productivity in leadership will questionnaire. attitudes and leader and
India (Saini, 2017) give a rise to Their behaviours. This subordinate sets.
organizational questionnaire study shows that a Also would be
commitment. The consists of four positive helpful for
regression parts: relationship offers future
findings indicated demographic, further researchers to
support of information, understanding, conduct similar
Hypothesis 1 is ethical leadership organizational testing with
that employees scale, commitment, and some
led by highly organizational productivity has a modifications,
ethical leaders commitment positive impact on such as
exhibit or show questionnaire, and employee other-rating
greater productivity scale. performance. rather than
organizational Ethical leaders self-rating
commitment highly influence instruments by
compared to their followers, not only using
employees led by where this study convenient
 unethical leaders. supports that ethical sampling.
leadership leads to
positive employee
attitudes and
conducts.

Impact of Based on the The Study used a This study shows An area for
Organizational study done, When sampling method that some of the future research
Culture on analyzing factors and gathered at problems of an would be further
Employee that affect an least 250 organization mainly studies on the
Behavior in FMCG organizational employees from stems from its top area of Retail
Retail Outlets culture, it was different FMCG management as industry or retail
(Lakshimi & found out that Retail Outlets. The sometimes the culture as this is
Shree, 2020) 36% of the sampling method facilities and the important in
employees agreed used was Simple pay are not enough analyzing the
that they are Random Sampling to convince an many factors in
currently satisfied which mainly employee to stay. the retail
with their peer targeted Once an employee industry that
group, while 13% middle-level feels that they are may be different
of the employees employees and undervalued by from the other
are not. c 34% of front-line workers. their managers, industries. This
the employees A questionnaire he/she will will give a new
also believed that was used for the immediately leave perspective on
personal freedom data collection due to frustration how different
and behavior are from the with regards to each industry is
in the employees. incentives, pay etc.. when it comes
organization, Therefore, Top to core values,
while 10% felt Management needs experiences and
that they do not to ensure that they organizational
have personal provide better culture.
freedom at all. facilities,incentives
35% of the and pay that will
employees also satisfy an
agreed that their employee. Regular
relationship with feedback from their
their employer is employees should
good. 27% also be taken into
strongly agreed consideration to
while 8% improve
remained neutral. communication
Moreover when it between both
comes to factors parties.
affecting
employee
behavior, 42%
agreed that they
get motivated by
their supervisor,
32% strongly
agreed while
 9-10% disagreed
as they do not get
any motivation
from their
supervisor.
Overall the study
concludes that
having a good
organizational
culture helps
motivate
employees which
thereby increases
productivity and
organizational
development.

The Influence of The research has The study used a It was also stated in Since this study
Organizational proven that job quantitative the study that the falls under the
Culture on satisfaction and approach in management should quantitative
Employees' an open working gathering data to also play their role approach, future
Satisfaction and environment has a achieve its in knowing their researchers can
Commitment in positive objectives. The employees and use this study to
SMEs: A Case correlation. The said data were considering their further research
Study in Vietnam respondents have gathered from a personal upon the
(Pham Thi, et al., also stated that the sample of 240 capabilities and qualitative
2021) working office employees. personalities. In this characteristics
environment of a Also, the way, organizational of the paper
workplace highly researchers used culture can be such as different
influences their Structural patterned not only organizational
job satisfaction. Equation to the core values of culture that can
Whereas a Modeling to the company, but discuss the
workplace that determine the also its employees factors that are
has a negative influence of as well. The highly effective
environment organizational managers need to for the
restricts the culture realize that they employees.
employees upon dimensions, also need to tap on
realizing and including open their employees and
exerting their full working ask about what they
potential. environment, need and want for
salary, and them to work
rewards, properly in the
empowerment, organization.
management style,
corporate values,
on employees'
satisfaction and
organizational
commitment.
 The Role of Based on the The study used a As stated in the Future research
Commitment in the study, there is a stratified sampling study, the human can focus on the
Relationship positive technique where a resource of the management of
between correlation total of 216 company is one of an organization.
Components of between the responses were the most important For instance,
Organizational organizational sought. The study assets since it since it was
Culture and culture and population classifies whether stated that the
Intention to Stay employee consists of staff the institution is management is
(Sarpong, et al., commitment. The from Kumasi one of the best or a necessity for
2021) researchers also Technical worst. an employee to
stated that a University in Mismanagement in be committed,
well-structured Ghana. A the company can then a study
reward system, structured also affect the which highly
conducive work questionnaire was quality of training discusses the
environment, and given to the for the upcoming influence of the
quality leadership respondents and employees. management to
from the were delivered to organizational
management is a them by hand. culture would
necessity for an be best.
employee to be
committed.

Effect of The study The study used a Based on the study, The future
Organizational concluded that probability one of the researchers can
Culture on there is a positive sampling method determining factors use this study as
Employee and significant where a total of for success are the a basis and
Commitment-Facul relationship 314 academic staff employees of the focus on the
ties-Arba Minch between the were chosen as the organization. effects of
University, correlation of sample population. Moreover, the organizational
Ethiopia organizational It was conducted commitment of the culture on
(Srinivasan, et al., culture and at Arba Minch employees play a employee
2018) employees’ University, vital role in an commitment in
commitment in Ethiopia and the organization’s a business
the Arba Minch primary data was growth and organization to
University in obtained through a development. There further develop
Ethiopia. It is also comprehensive are various types of the study.
stated that the structured commitment
consistency trait questionnaire. existing in an
is the most organization such
important trait as affective
when it comes to continuance and
increasing the normative
level of affective, continuance.
continuous and
normative
commitment in
the institution.

Impact of The research The study used a Based on the The future
Organizational concluded that qualitative findings of the researchers can
 Culture on there are approach in research, increase the
Employee numerous gathering data. organizational number of
Performance and attributes of Specifically, the culture plays a vital participants and
Productivity: A organizational study obtained role not only in interview more
Case Study of culture that data through improving employees from
Telecommunicatio significantly in-depth employee different
n Sector in affects the interviews in performance, but departments and
Bangladesh performance of an GrameenPhone also improving the different
(Uddin, et al., organization. (GP), the biggest overall performance managerial
2012) Moreover, the cellular operator in and productivity of levels. By
research showed Bangladesh with the firm. Hence, the interviewing
the vital more than 32 management should more
relationship million be able to create an employees, the
between culture subscribers. A effective future
and performance. total of 34 organizational researchers will
In addition, the interviews were culture framework be able to
findings of the conducted in GP that fits the nature minimize
paper successfully and the of their business perceptual
showed both participants and as well as each errors and bias
positive and included a variety of their employees’ in the data and
negative of top level, mid subjective view on arrive at a more
mannerisms of level, and culture. This accurate
culture and how operational level includes providing conclusion.
they affect employees. In a positive and
employees and addition, data was healthy
the overall also obtained environment that
performance of through enhances
the organization. observations organizational
The findings of gathered by the culture and helps to
the paper would researcher during meet the
add value corporate social benchmarks and
to organizations events to grasp a expectations of
by providing an better employee
important understanding of performance
qualitative organizational factors. Moreover,
perception culture. After the the management
towards data was collected, should ensure that
organizational all the information employees are
culture and data collected given a friendly and
and performance. were accumulated supportive working
Furthermore, the in structured environment and
paper would standing to weigh that rules and
initiate further the significance of regulations are
discussions to each record. reasonable and not
create an effective being forced.
organizational
framework
between
organizational
culture and its
 impact on
employee and
firm performance.

The Promise and The study The study used Based on the The future
Problems of emphasized that two steps in their findings of the researchers can
Organizational more often than research design. research, the increase the
Culture: CEO not, First, the personality of the sample size and
Personality, organizational researchers used CEO is associated find more
Culture, and Firm culture is based previous available with types of respondents.Thi
Performance on two data for their organizational s will allow
(O’Reilly, et. al., assumptions: factor analyses to culture and that future research
2014) senior leaders are assess the culture culture can be to be more
the prime in their sample related to firm accurate and to
determinant of the organizations. The performance. The minimize
culture, and data used was a specific links that misinterpretatio
culture is related slightly revised were found in the n. In addition,
to consequential version of the research that future research
organizational OCP to collect management can may find
outcomes. culture data in implement were respondents
Furthermore, the 2009 from a set of that CEOs who are from a different
research focuses large, publicly higher on Openness industry to
specifically on the traded, to Experience are compare their
link of CEO high-technology more likely to be findings and
personality to the firms in the United associated with remove
organizational States and a cultures that generalization
culture of the separate set of emphasize from the
company and the privately held adaptability than research
effects of these to firms in Ireland. those who are not. findings.
the overall Second, the In addition, CEOs
performance of researchers used a who are more
the firm. subset of U.S. firm Conscientious have
samples to collect cultures that are
data on CEO more detail oriented
personality as Lastly, CEOs who
rated by company are less Agreeable
employees and (skeptical,
firm performance competitive) are
for 2011. The more likely to have
researchers organizational
identified 60 U.S. cultures that are
firms and 44 Irish more results
firms to invite to oriented.
participate in the
study that fit their
criteria. The final
sample size of the
research is 32
firms. The data
was used to
 construct a factor
analysis- Rotated
Component
Matrix. In
addition, the data
was also used to
show the
relationship of
CEO personality
and Organizational
Culture and as
well as,
Organizational
Culture and Firm
Performance.