THE INFLUENCE OF ORGANIZATIONAL CULTURAL FACTORS ON EMPLOYEES‘ COMMITMENT LEVELS: A STUDY OF THE BANKING SECTOR

Abstract

Although a lot of international research studies have highlighted organizational culture to be an important determinant of employees‘ commitment to their organizations, little attempt has been made to explore the relationship of these two concepts by researchers in Pakistan. The purpose of this study was to provide an insight into how Organizational Commitment and its three subscales namely Affective, Continuance and Normative Commitment can be influenced and enhanced by organizational cultural factors. Organizational culture was studied as a multi - dimensional construct consisting of teamwork, rewards, training and communication. This study also examines the association of demographic variables with Organizational Commitment and its subscales. Data were collected from a random sample of 200 commercial bank employees in Lahore through a survey questionnaire. Correlational, multiple and stepwise regression analysis were conducted to study the association between the dependant and independent variables. ANOVA tests were also run to examine if levels of Organizational Commitment and its subscales varied across demographic groups. Results revealed that on the whole, organizational cultural factors were important determinants of employees‘ commitment levels, while demographic factors had a relatively less significant association with the organizational commitment and its forms (dependant variables). Continuance form of commitment also showed weaker association with cultural factors as compared to Affective and Normative Commitments. Implications and recommendations have been presented as to enhance employees‘ commitment levels by utilizing the organizational cultural factors.