The Influence of Organizational Culture on Employee Engagement and Retention: A Cross-Industry Analysis

Abstract

This study examines the impact of organizational culture on employee engagement and retention across three distinct industries: technology, health care, and manufacturing sectors. In this research, quantitative questionnaires and quantitative regression analysis are employed to identify the clan, adhocracy, market, and hierarchy cultural dimensions influencing the employees. The study also reveals that firms in the technology industry with high clan and adhocracy cultures have the highest EE and the lowest TI. On the other hand, the manufacturing firms that have adopted the market and hierarchy culture have lower engagement scores and higher turnover rates. The healthcare sector has a balanced structure, which is more suitable for the development of the clan culture as compared to adhocracy. The study suggests that the employees who are engaged and retained are the ones who work under a supportive, flexible, and collaborative culture, though cultures that are rigid and performance-oriented are not easy to work with. The study therefore emphasizes the importance of ensuring that the cultural practices that are adopted in the organizations are in harmony with the sectoral needs with a view to improving the levels of employee satisfaction as well as organizational performance. Limitations include the fact that the study is confined to selected industries and relies on survey data; thus, further research is recommended in various industries and about temporal changes.