EXAMINING THE INFLUENCE OF ORGANIZATIONAL CULTURE ON EMPLOYEE RETENTION AND TURNOVER 

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Organizations are complex entities with various internal and external factors affecting their overall effectiveness and daily functions. One critical internal factor is the organizational culture, which shapes the environment within the organization. Organizational culture refers to the beliefs, values, and underlying assumptions that are instilled, shared, and acquired by members of the organization (Allaire & Firsirotu, 2019; Kim, 2022; Marcoulides & Heck, 2018). This culture quietly impacts the organization's structure, work environment, and everyday activities. Similarly, organizational culture is a blend of basic assumptions, practices, principles, beliefs, norms, and values that shape the behavior and actions of individuals within a specific organization, community, or society (Marcoulides & Heck, 2018). It represents a unique pattern of human behavior tailored to a particular organization and serves as a significant influencer on employees' conduct and the organization's overall success or failure. Furthermore, according to Marvin (2019) organizational culture establishes the core values, beliefs, and principles that form the foundation for all organizational practices and procedures. It consists of shared fundamental assumptions that are created, discovered, or developed by a particular group or organization as a framework for successful operations, which are then passed on to new members as the accepted way to perceive, think, feel, and act within that organization (Emerson, 2018).  It  has a significant effect on employee morale and retention. It is not just about being a good employer, but about having an employee committed to the vision, mission and the strategy of the organization, and possessing the will and means to make these a reality. On the other hand, scholars have emphasized that organizational culture is a potent force that shapes both employee attitudes and institutional achievements (Akhigbe et al., 2018; Bellary et al., 2020). In addition to defining acceptable behavior within an organization, organizational culture also affects employee happiness on an individual basis and reduces employee turnover. Both public and private sector organization now consider employee retention to be a critical job. The idea that employees can accomplish the organization's aims and objectives is crucial to its success and effectiveness (Meier & Hicklin, 2017). Employee turnover can also contribute to a loss of institutional knowledge, which makes it necessary to rely on recently hired staff members who might not be completely conversant with the organization's policies and procedures (Hur, 2018).  

Turnover intention refers to how likely an employee is to leave a particular organization, which significantly impacts the organization's stability and reputation. It occurs when an employee decides to leave their current job for another position, reflecting their personal expectation of quitting in the near future. Turnover intention is also the consideration or contemplation of leaving a job (Long & Thean, 2021). High turnover intention poses a significant challenge for organizations of all sizes, locations, and industries, as it negatively affects the quality of products or services provided by the organization. Additionally, low employee retention forces the remaining staff to shoulder additional responsibility for maintaining daily operations, which can lower morale and lead to stress at work. Beyond that, factors within the organization itself, such as policies, motivational strategies, and organizational culture, can influence and contribute to the emergence of turnover intention among employees. Therefore, a survey will be conducted in order to examine the influence of organizational culture on employee retention and turnover.

1.2 Statement of the Problem

The human factor plays a significant role in determining the success or failure of any organization. Therefore, it's crucial for organizations to pay close attention to their human capital. The culture within an organization can greatly influence whether staff members choose to stay or leave. Organizational cultures that are not supportive of their employees may lead to a higher intention among staff to leave the organization. Studies have shown that turnover intention among employees in organization, especially private organization is often high (Lalah, 2019). This can negatively impact organizational functions and services, including increased costs associated with replacing staff, training needs, loss of investments in employees, and a slowdown in work processes. This is a significant concern. While some studies, like Seed et al. (2020), have addressed this issue, most of them are conducted by foreign researchers. Therefore, there is a need for research specifically focusing on the situation in Cameroon. Thus, it is in the light of these that the study seeks to examine the influence of organizational culture on employee retention and turnover. 

1.3 Objectives of the Study

The main purpose of this study is to examine the influence of organizational culture on employee retention and turnover. Specifically, the study will;

1.Investigate the correlation between organizational culture and employee retention.

2.Assess the impact of organizational culture on employee turnover.

3.Examine the role of organizational culture in fostering employee engagement.

4.Examine the effectiveness of organizational culture in improving retention rates and reducing turnover costs for the organization. 

1.4 Research Questions

The following questions have been prepared for the study:

Is there a significant correlation between organizational culture and employee retention?

How does organizational culture impact employee turnover within the organization?

What role does organizational culture play in promoting employee engagement?

How effective is organizational culture in enhancing retention rates and decreasing turnover costs for the organization?

1.5 Research Hypotheses

Ho: Organizational culture has no significant influence on employee retention and turnover.

Ha: Organizational culture has a significant influence on employee retention and turnover.

1.6 Significance of the Study

Investigating the influence of organizational culture on employee retention and turnover is significant for organizations in Cameroon as it will provide valuable insights into factors affecting employee turnover rates and retention strategies. Also, organizations will be able to create interventions to enhance retention-boosting features of their culture and address turnover-causing bad aspects by recognizing how organizational culture affects employee behaviour and decision-making. Furthermore, this study will ultimately assist organizations in Cameroon in creating a more engaged and committed workforce, leading to reduced turnover costs and increased organizational effectiveness. Additionally, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the influence of organizational culture on employee retention and turnover.

1.6 Scope of the study

The scope of this study is to examine the influence of organizational culture on employee retention and turnover. Empirically, this study will investigate the correlation between organizational culture and employee retention, assess the impact of organizational culture on employee turnover, examine the role of organizational culture in fostering employee engagement and examine the effectiveness of organizational culture in improving retention rates and reducing turnover costs for the organization.

Geographically, the study will be delimited to residents of Douala, Cameroon

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.8 Definition of Terms

Organizational culture: the shared values, beliefs, norms, and practices that characterize an organization and guide the behavior of its members.

Employee retention: is the ability of an organization to keep its employees engaged and committed to their jobs for an extended period. It involves implementing strategies and practices to retain talented and skilled employees within the organization, thus reducing turnover rates.

Employee turnover: the rate at which employees leave an organization and need to be replaced.