P: ISSN No. 0976-8602 RNI No.  UPENG/2012/42622 VOL.- XII , ISSUE- IV October  - 2023
E: ISSN No. 2349-9443 Asian Resonance

The Effect of Organizational Culture on Employees’ Morale
Paper Id :  18169   Submission Date :  2023-10-12   Acceptance Date :  2023-10-18   Publication Date :  2023-10-25
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DOI:10.5281/zenodo.10049485
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Deepika
Former Research Scholar
Haryana School Of Business
GJUS&T
Hisar,Haryana, India
Abstract

This paper purposes to analyze the impact of organizational culture on employees’ morale. Organizational culture as a social phenomenon has therefore been affirmed as enhancing and sustaining morale among employees. Employees’ morale is a dominant phenomenon which is vital for all the employees working in organizations. The study adopts 360 respondents to analyze the impact of organizational culture on employees’ morale.  Smart PLS software was carried out in order to find the most important set of predictors that are most effective in predicting morale among employees’. The study reveals that organizational culture wields influence on the employees’ morale in the areas of salary and fringe benefits, supervision and reward. The paper concludes that organizations can be more efficient and achieve sustainable morale among employees if they focus their attention on those organizational elements that enhance their employees’ morale.
Keywords Organizational Culture, Employees’ Morale, Industrial sector, India.
Introduction

In this viable world, every organization is endeavoring hard for the existence. In the fast-changing business environment, an organization desires to have a strong organizational culture and morale among employees. Organizational culture commonly represents the routine activities taking place in an organization (Lundy and Cowling, 1996). A strong culture of an organization can helps raising employees’ morale in the organization and can accomplish greater heights in relations of growth, profit and market share. Organizational culture refers to the shared set of values and behaviors inside an organization (Deshpande and Webster, 1989). A decent organizational culture is a major aspect in shaping the achievement and growth of any organization. In short, organizational culture and employees’ morale go hand in hand and will confidently enhance the productivity and profitability of the organization

“Organizational culture is the set of values, beliefs, behaviors, customs, and attitudes that helps the members of the organization understand what it stands for, how it does things, and what it considers important.” Every organization has a different culture from other organization on the basis of different aspects. The organizational culture influences the attitudes at the workplace (David Towers, 2006).  Marguardt (2002) mentioned that “culture is an organization’s values, beliefs, practices, rituals and customs”. On the other hand, “Employee morale is the attitude, satisfaction, and overall outlook of employees during their association with an organization or a business”. A supportive culture and high morale among employees in an organization is essential in order to stimulate employees’ more productive, to be loyal and authentic. It assistances in reduce absenteeism and turnover rate among employees and upsurge the capacity of employees’ working in their respective projects.  The employees’ morale is most significant factor for an organization success. The advantage of high morale, leads to success and low morale brings to low productivity. 
Objective of study

The study is proposed to understand the impact of organizational culture on employees’ morale in the organization. 
Review of Literature

Roos & Eeden (2008) observed in their study relationship among corporate culture, job satisfaction and employee motivation. Culture and job satisfaction in the organization were measured to be the most prime factors which enhanced motivation among employees.

Mahal (2009) examined the effect of organizational culture and climate on the motivational level of employees. It was found that a constructive association exhibits among organizational culture and employees’ motivation.

Spangenberg (2010) examined a study to distinguish the perceptions of employees regarding organizational culture of banks and to observe the link between organizational culture and employees’ morale. Results inferred that culture of an organization has a significant effect on morale among employees.

Zia (2011) examined the impact of organizational team building on job retention and employees’ morale. Team presentation, individual involvement, team appraisal and coordination have a strong optimistic relationship between employee morale and retention.

Islam et al. (2012) observed association between morale and job satisfaction among employees of commercial bank of Bangladesh. It was observed that community status, sympathetic colleague and feeling safe were factors responsible for better job satisfaction and employees’ morale.

Jackson et al. (2012) discovered the interrelation among leader reward behaviour and employees’ behavior by taking morale or fairness as a mediator. It was concluded that a noteworthy association between leader and employees’ behavior due to the morale or fairness.

Sokro (2012) examined the association among organizational culture, performance and motivation. Effective organizational culture is necessary for rising level of motivation among employees.

Upadhya & Gupta (2012) assessed that morale, welfare actions, job satisfaction are key components for enhancing competitive advantage. It was found that communication has a dominant role in enhancing satisfaction among employees. Further, high morale was observed among contented employees.

H. & Ramanathan (2013) exposed the influence of organizational culture on employees’ morale. Results showed that male employees’ have a high morale as compared to female employees in the organization.

Tiwari (2014) observed the influence of employee morale on employee efficiency. It was concluded that morale significantly and absolutely effects employees’ efficiency.

Mary (2016) investigated a study for measuring factors influencing morale among employees. It was clinched that morale of employees displayed a significant role in the effectively running of an organization. Organizational management has a vital role to curb those factors which develop a low morale and main focus on those aspects which raises a high morale among employees.

Chukwudumebi & A (2018) presented the effect of fringe benefits on morale and productivity of employees. Outcomes exposed that a significant relationship exists among fringe benefits, employees’ morale and productivity.

Panthi (2019) explored the influence of employees’ morale on organizational performance. It was concluded that employees’ morale has a significant effect on the performance of an organization.

Sopiah et al. (2021) observed the effect of organizational culture on employee performance. Results revealed that organizational culture has a positive and significant effect on employees’ performance.
Methodology

The research method used for the study is descriptive cum exploratory research. Primary data is used for this study. The primary data is collected through questionnaire. The total population comprises of 360 employees working in the Industrial sector, India. Convenience sampling technique is used for the collection of data. Smart PLS software is used for the analysis of the data.
Analysis

In this part of research paper, the data have been collected it has to be analysis. The study explores two variables i.e. organizational culture and employees’ morale. For well defining the study, Organizational culture (OC) contains four factors – Hierarchy (HC1, HC2, HC3, HC4), Group (GC1, GC2, GC3, GC4, GC5, GC6), Rational (RC1, RC2, RC3, RC4, RC5, RC6) and Developmental Culture (DC1, DC2, DC3, DC4, DC5, DC6). Similarly, Employees’ Morale (EM) contains three factors - Salary and Fringe Benefits (SB1, SB2, SB3, SB4, SB5, SB7), Supervision (SU1, SU2, SU3, SU4, SU5, SU6) and Reward (RE1, RE2, RE3, RE4, RE5, RE6).


Figure: Relationship between Organizational Culture and Employees’ Morale

Source: Primary Data

Note: OC – Organizational culture, EM- Employees’ Morale

In the figure, depicts path coefficient is 0.777 between organizational culture and employees’ morale; which is found significant as the path coefficient should be range between -1 to +1 (Garson, 2016). T-value (30.424) is greater than 1.96 (as defined by Garson, 2016), is also confirmed the significant effect between organizational culture and employees’ morale. P-value also touched the probability level and significant at 0.05 percent as said by Garson, 2016. This is also explained by table 4.1.

Table 4.1: Relationship between Organizational Culture and Employees’ Morale

Relationship

Path coefficient

Standard deviation

T-Statistics

P-Value

Result

OC       EM

.777

.026

30.424

0.000

Supported

Source: Primary Data

Note: OC – Organizational Culture, EM – Employees’ Morale; Significant at 0.05 per cent

Based on the above table, it is explained that organizational culture significantly affects employees’ morale which is collaborated by the value of t-statistics (30.424) is greater than t-critical value (T-value is greater than 1.96). Therefore, it is concluded that the effect of organizational culture on employees’ morale is significant.
Conclusion

Organizational management must concentrate on organizational culture and employees’ morale. This study effectively examined the significant effect of organizational culture on employees’ morale. Both organizational culture and employees’ morale are most parsimonious term for the organizations. Therefore, the management of the organizations should more strive towards effective organizational culture and morale among employees’. Future studies conducted on the basis of taking other different dimensions of organizational culture and employee morale variables i.e. adaptive culture, communication, working conditions, by taking different zones of the country.
References

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