Do Organizational Cultural Factors Still Affect Employee Engagement? A Study of Two Apparel Companies in Sri Lanka Amidst Economic Instability

Abstract

Purpose: The objective of this study is to identify the impact of six main components of organizational culture namely; main characteristics, institutional leadership, management of employees, the glue that holds the organization, emphasis on strategy, and measures of success impact on employee engagement in the apparel industry in Sri Lanka. Theoretical framework: Recent literature suggests a positive correlation between the organizational culture that values employee empowerment and employee engagement (Jain et al., 2023). However, further research is needed to explore the impact of organizational cultural factors on employee engagement, particularly during economic crises. Design/Methodology/Approach: The study design is descriptive, focusing on all employees in X and Y apparel companies in Sri Lanka. The sample comprised 150 middle-level employees, chosen through simple random sampling from the target population. Primary data was collected using a structured questionnaire. Findings: The findings highlight the significant influence of organizational culture on employee engagement, with ‘management of employees’ and ‘main characteristics’ being positively related to employee engagement. Research, Practical & Social implications: Apparel companies should enhance their organizational culture by providing sufficient facilities and opportunities for employees to achieve their goals and objectives, thereby contributing to increased engagement levels. Originality/Value: This study is the first to incorporate the Organizational Culture Assessment Instrument (OCAI) in analyzing employee engagement during an economic crisis.