The Effects of Organizational Culture on Employee Engagement: A Malaysian Manufacturing Company’s Perspective

Abstract

Employee engagement has been a global issue and organizations have to deal with it to strive for success. Employee engagement is defined as commitment and emotional attachment of an employee or group towards the organization. Organizational culture is one of the predictors that contributes to employee engagement. Therefore, the purpose of this research is to determine the roles of organizational culture (clan, adhocracy, hierarchy, and market) toward employee engagement in a manufacturing company in Malaysia. This research is a quantitative study, which used a self-administered questionnaire as an instrument to collect data. The data were successfully collected from 127 respondents out of 190 total population. The questionnaires and all data collected were conveniently distributed to all respondents and analysed using the Statistical Package for the Social Sciences (SPSS) software version 23 respectively. The multiple regression analysis indicated that clan, adhocracy and market culture had significant and positive relationship with employee engagement while hierarchy culture had no significant and negative relationship with employee engagement. Thus, only H1, H2 and H3 were supported. The contribution of the study is to examine how clan, adhocracy, hierarchy, and market culture affects employee engagement in manufacturing company in Malaysia. Organizational culture research in manufacturing sectors, specifically in Malaysia, remains mostly unexamined. Thus, by examining the four main working cultures, i.e., clan, adhocracy, hierarchy, and market, we can present manufacturing employers with insight into how to adapt their work culture to engage their employees.