Managing The Learning Capacity of Organizational Culture in Relation To Organizational Commitment: Methodological and Empirical Overview
Managing The Learning Capacity of Organizational Culture in Relation To Organizational Commitment: Methodological and Empirical Overview
Managing The Learning Capacity of Organizational Culture in Relation To Organizational Commitment: Methodological and Empirical Overview
The primary objective of the paper is to offer qualitative analysis based on the previous relevant theoretical
and empirical work for the correlation between systematic and methodological implementation of organiza-
tional commitment throughout its learning capacity and organizational culture. The co-integration of the two
critical issues stresses the significance and influence of contemporary and holistic models, such as, the OCTA-
PACE model, and its convergence to High Commitment management Model (HCM), as highly important for
organizational growth and competitiveness of business entities.
Keywords: organizational culture, OCTAPACE model, organizational commitment, HCM.
Pagrindinis straipsnio tikslas yra pasiūlyti kokybinę analizę, pagrįstą ankstesniu atliktu teoriniu ir empiri-
niu tyrimu, siekiant suderinti sisteminį ir metodologinį organizacinių įsipareigojimų vykdymą pasitelkiant
organizacijos mokymosi gebėjimus ir organizacinę kultūrą. Dviejų svarbių klausimų integravimas pabrėžia
šiuolaikinių ir holistinių modelių, tokių kaip OCTAPACE modelis, svarbą ir įtaką bei jų sąsajas su aukšto
darbuotojų įsipareigojimo organizacijai valdymo modeliu, kuris labai svarbus verslo organizaciniam augimui
bei verslo subjektų konkurencingumui.
Raktiniai žodžiai: organizacinė kultūra, OCTAPACE modelis, organizacinis įsipareigojimas, aukšto
darbuotojų įsipareigojimo organizacijai valdymo modelis.
Leonid NAKOV – PhD in organizational sciences (management), associate professor; Director of the Centre for
Economic Researches (CER) at the Faculty of Economics, Ss. Cyril and Methodius University in Skopje, Republic of
Macedonia. Address: Skopje, Bul Goce Delcev bb., Republic of Macedonia. Phone: +389 23286842. E-mail: lnakov@
eccf.ukim.edu.mk.
Igor IVANOVSKI – PhD in organizational sciences and finance (insurance and pensions), assistant professor at the
Faculty of Economics, Ss. Cyril and Methodius University in Skopje, Republic of Macedonia. Address: Skopje, Bul
Goce Delcev bb., Republic of Macedonia. Phone: +389 23286836. E-mail: [email protected].
© 2018 Leonid NAKOV, Igor IVANOVSKI published by Sciendo.
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License.
90 Leonid NAKOV, Igor IVANOVSKI
Confrontation Trust
Facing problems Building a sense of
and challenges assurance and
boldly and not confidence in each
carpeting them other
Openness
Freedom to Authenticity
communicate, share Congruence
and interact without between what one
hesitation feels, says and does
Experimentation Proaction
Taking a fresh lo ok Taking initiative,
at things and preplanning and
fostering creativity taking preventive
action
Collaboration Autonomy
Giving help to and Using and giving
accepting help from freedom to plan and
others as in a team act in one’s own
sphere
of theoretical proofs. In order to test and level. They have made a selection of 15
validate the above given theoretical ori- BPO units with different industry profile
entations, in this empirical part, we are and number of employees, creating three
referring to certain prominent empirical strata, i.e., BPO units up to 250, from 250
work done on a comparable basis. Fur- up to 500 and over 500 employees. Funda-
thermore, we seek to stress the initiative mental analytical conclusions regarding
for empirical study, based on our created the tested relationship are the following:
theoretical model for national or regional, firstly, there is differentiation in the per-
South-eastern European countries, level. ception of the employees in the three stra-
We particularly point out that most of ta about organizational culture in terms
the analysed empirical work has been of more positive perception in the smaller
done at national level, and frequently is BPO units than in the following middle
segmented across the business sector, a and larger BPOs. In this regard, they con-
moment that raises dilemma for its entire clude through ANOVA testing that there
applicability, as a general process for all is no difference in the perception of the
institution types. Credible results can be dimensions of organizational culture,
found in the work of S. Dwivedi, S. Kau- openness, authenticity, autonomy and
shik and Luxmi (2014), that examined the collaboration. However, the other case
link between organizational commitment is with the dimensions of confrontation,
and organizational culture in the Busi- trust, proaction and experimentation, as
ness Process Outsourcing (BPO) in Indian the employees’ perception of them differs
economy, with an excessive usage of the (Table 1), confirming the first results that
OCTAPACE cultural model. The authors employees in smaller companies under-
selected 15 out of 40 BPO units in the final stand and perceive organizational culture
stage of their analysis, in which they have and some of its dimensions more closely
evaluated Questionnaires on 524 employ- compared to other BPO units in the sec-
ees at three levels – top, middle and lower ond and third stratum.
Std. Deviation
Std. Deviation
Std. Deviation
Std. Deviation
Std. Deviation
Std. Deviation
Std. Deviation
Mean
Mean
Mean
Mean
Mean
Mean
Mean
Mean
I 240 2.43 0.476 2.40 0.423 2.42 0.500 2.19 0.390 2.57 0.596 2.17 0.348 2.43 0.422 2.50 0.539
II 136 2.33 0.525 2.25 0.589 2.28 0.577 2.21 0.378 2.29 0.561 2.14 0.483 2.42 0.466 2.27 0.486
III 148 2.33 0.511 2.27 0.459 2.30 0.542 2.22 0.411 2.47 0.653 2.22 0.411 2.38 0.455 2.32 0.515
Total 524 2.37 0.500 2.32 0.485 2.35 0.535 2.20 0.393 2.47 0.614 2.18 0.405 2.41 0.443 2.39 0.528
F-Value: F-Value: F-Value: F-Value: F-Value: F-Value: F-Value: F-Value:
ANOVA 2.621 5.240 3.464 0.408 9.449 1.327 0.823 10.277
(p=0.074) (p=0.006) (p=0.032) (p=0.665) (p=0.000) (p=0.266) (p=0.440) (p=0.000)
Source: S. Dwivedi, S. Kaushik, and Luxmi (2014).
MANAGING THE LEARNING CAPACITY OF ORGANIZATIONAL CULTURE IN RELATION
TO ORGANIZATIONAL COMMITMENT: METHODOLOGICAL AND EMPIRICAL OVERVIEW 95
Secondly, the most important data can commitment, with exclusion of the dimen-
be seen in the authors’ correlation and re- sion of openness and autonomy. Regarding
gression analysis, treating the relationship the role of cooperation as an element of
between organizational commitment and the OCTAPACE model, we must note that
the dimensions of organizational culture. even though it has one of the highest cor-
In this case, there is significant Pearson relation coefficients, yet, in the regression
correlation between the commitment and model, its influence and statistical signifi-
the eight organizational culture dimensions cance is among the lowest one, as our most
for all three strata of employees, pointing important future research challenge. In
the proaction as the dimension with the addition, the under average coefficient of
strongest correlation and autonomy with determination that amounts to 31.5% of
the weakest correlation (Table 2). the population, does not allow too much
These results served as a basis for the space for general empirical conclusions.
regression model, in which organizational Other scholars (Simosi, Xenikou,
commitment was a dependent variable 2010), in a survey and empirical study of
(Table 3). The findings confirmed that the a Greek service company, examined the
dimensions of organizational culture are influence of organizational culture, parti-
predicting the perception, model and im- cularly the role of leadership in the em-
plementation of employees’ organizational ployees’ commitment – a methodological
Standardized
Regression
Dimensions Coefficients t Sig. Summary
Model
(Beta)
(Constant) 10.951 0.000 Adjusted R2= 0.315
representative constraint, consisted of 300 Correlation data was used in the ana-
employees, distributed by their age, gen- lysis for creation of the two regression
der and more important by the position model evaluating the influence between
(55% non-managers and 45% managers) transformational leadership and contin-
and length of service (74% > 4 years and gent reward, jointly with cultural orien-
24% < 4 years). They examined the em- tations on the affective and normative
ployees’ dimensions of commitment, i.e., commitment. The regression analysis
affective, continuance and normative. The confirmed, with different significance, po-
researchers placed the elements of trans- sitive correlation of leadership behaviour
formational leadership and contingent and contingent reward to the dimensions of
reward behaviour, as well as humanistic, organizational commitment.
affiliative, achievement and self-actuali- In our opinion, the most important
zation culture orientations as additional analytical conclusions of this second
variables to the main three dimensions. study are the following ones:
The results of correlation analyses (Table Firstly, the positive correlation between
4) showed positive and statistically signifi- transformational leadership and contin-
cant correlation between transformational gent reward to affective and normative
leadership and contingent reward regar- commitment, and this can be interpret-
ding the cultural orientations to affective ed as an organizational environment in
and normative commitment, whilst there is which transformational leaders have cre-
low correlation the aspects of cultural influ- ated conditions for fairness, performance-
ence to continuance commitment, i.e., per- based expectations and achievements,
sonal sacrifice and perceived alternatives. while contingent reward behaviour is
Variables (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
Affective Commitment (1)
-
Normative
Commitment (2) Con-
.49*** -
tinuance commitment:
Personal sacrifice (3) Con-
.27*** .40*** -
tinuance commitment:
Perceived alternatives (4) -.14* .03+ .26*** -
Transformational Leader-
.15* .20** .13+ .05+ -
ship (5)
Contingent Reward (6) .25*** .30*** .19** -.004+ .84*** -
Affiliative Culture (8) .26*** .28*** .15* .04+ .56*** .52*** .88*** -
Achievement Culture (9) .28*** .32*** .16** .03+ .63*** .51*** .82*** .77*** -
Self-actualizing Culture
.24*** .25*** .11+ .06+ .59*** .52*** .80*** .78*** .79*** -
(10)
Notes: N = 300; *p ≤.05; **p ≤ .01; ***p ≤ .001.
Source: M. Simosi and A. Xenikou (2010).
MANAGING THE LEARNING CAPACITY OF ORGANIZATIONAL CULTURE IN RELATION
TO ORGANIZATIONAL COMMITMENT: METHODOLOGICAL AND EMPIRICAL OVERVIEW 97
likely inspiring the feeling of honesty, certain affairs (rituals), and in the ways
faith and trust among employees. of promoting the desired and preventing
Secondly, their models, did not get the the undesirable behaviour (sanctions). A
full picture of the impact of transforma- closer determination of the learning or-
tional leadership on continuance commit- ganizational culture emphasizes that, as
ment, since only the element of personal one of the most advanced behavioural
sacrifice was linked to contingent reward, concepts that determines the organiza-
probably as a result of turbulent economic tional performances, it is defined as an
surrounding, economic crisis and mid- organization skilled at creating, acquir-
term instability, to which employees react ing and transferring knowledge, and at
with their determination to keep mem- modifying its behaviour to reflect new
bership in its organization. knowledge and insights.
And thirdly, limited correlation be- In order to increase the awareness for
tween organizational culture and organi- a higher level of business ethical dimen-
zational commitment, is followed by the sions within the learning model of organi-
authors’ conclusion that the more employ- zational culture, an OCTAPACE cultural
ees perceive their organization as a group model has been developed, comprising of
that promotes social support and construc- the most influential behavioural factors
tive interpersonal relations, goal achieve- necessary for the organizational success.
ment and self-actualization, the more they Organizational commitment, some-
would remain in the same organization, where stipulated as member identity, is
exercising moral reciprocity towards it. defined as a state in which an employee
identifies herself/himself with a particular
organization and its goals, and wishes to
Conclusions maintain her/his membership in the or-
ganization. The learning organizational
The tendency of managers to harmonize culture influences organizational com-
the process and behavioural segments of mitment both directly – through the fun-
managing their prevalent business model damental cultural values and beliefs and
is highly dependent on the organizations’ indirectly – through the practices of Hu-
orientation to build and sustain a model man Resource Development (HRD).
of organizational culture that is capable of As a brief conclusion to the relations-
identifying and permanently implement- hip of organizational culture and commi-
ing the desired organizational changes tment, the first empirical analysis perfor-
directed towards improving the over- med by S. Dwivedi, S. Kaushik and Luxmi
all business effectiveness and efficiency. made a pioneer attempt to test the cor-
Fundamentally, organizational culture is relation between organizational culture
perceived as cumulative, crystalized and and its dimensions with organizational
quasi stable life-style of people as reflect- commitment. Their findings are conclu-
ed in the presence of some states of life sive and affirmative for the role of orga-
over others, in the response predisposi- nizational commitment in the companies’
tions towards several significant issues functioning and growth. Even though
and phenomena (attitudes), in the or- they are limited in business profile as well
ganized way of filling time in relation to as in location, the empirical study is a
98 Leonid NAKOV, Igor IVANOVSKI
solid base for national and international Fundamentally, a serious role of the four
studies of this kind. cultural orientations to organizational
As a conclusion to the second ana- commitment stresses the role of organi-
lysed study, conducted by M. Simosi and zational culture and the positive role of
A. Xenikou, we can say that the authors leaders who inspire the follower’s crea-
made a sound study which, even with the tivity, initiative, promote organizational
systematic limitations of the non-causali- context and align personal to organiza-
ty possibility, as a cross-sectional analysis tional principles, in raising the employee’s
has been used, confirmed the previous emotional attachment to the group and
empirical and theoretical conclusions. organization itself.
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S a n t r a u k a
Šiuolaikinių verslo subjektų elgesys yra orientuotas į įmonių konkurencinį pranašumą. Be to, empiriniai
tendenciją sukurti integruotą organizacinės kultūros tyrimai patvirtina teorines išvadas ir pateikia esmines
plėtros modelį, kuris suvienytų ankstesnes vertybes, gaires, paveikiančias tam tikrą organizacinės kultūros
požiūrį, įsitikinimus, standartus ir normas, siekiant įvairovę ir orientavimąsi į organizacinį augimą, o tai
bendrų verslo tikslų. Šiame kontekste organizacinės leidžia dar labiau keisti ir transformuoti visus organi-
kultūros OCTAPACE modelio planavimas ir įgyven- zacinės plėtros subjektus.
dinimas yra procesas, kuris pabrėžia ir toliau tobulina Holistinis požiūris ir kūrybinis derinimas bei or-
organizacinės kultūros mokymosi elgsenos gebėjimus ganizacinės kultūros metmenų ir orientacijų rekom-
bei daugiausia siekia didinti organizacinio įsipareigo- binacija yra papildomas svarbus veiksnys inicijuojant
jimo gyvybingumą. Pagrindinis šios tarpusavio pri- ir išlaikant organizaciniam augimui ir organizacinei
klausomybės tikslas – suformuoti aukšto darbuotojų kultūrai pritaikomą įtaką, o ne praktika, orientuo-
įsipareigojimo valdymo modelį. ta į trumpalaikius prioritetus ar lūkesčius. Vidinės
Vidinio organizacinio įsipareigojimo modelio integracijos ir išorės prisitaikymo prie vyraujančios
sukūrimas, įgyvendinimas ir tobulinimas yra esminis sektorinės organizacijos kultūros tendencijų sinchro-
žingsnis link tvaraus organizacinės kultūros modelio, nizavimas turėtų būti grindžiamas konkrečių subjek-
kuris apima visus elementus ir susieja juos su įmonių tų pasiryžimu keisti ir nustatyti dinaminės aplinkos ir
organizacinio augimo samprata. Šiuo požiūriu orga- konkurencinio spaudimo metmenų derinį.
nizacinis elgesys ir tvarus vadovavimas yra svarbūs Metodologinės ir empirinės analizės bei orga-
veiksniai, kurie šiuo metu numato organizacinius įsi- nizacinės kultūros komponentų ir organizacinio įsi-
pareigojimus ir vėliau organizacinę kultūrą kaip vie- pareigojimo tarpusavio priklausomybės regioniniu
ną iš efektyviausių vidinių elementų siekiant sukurti ir tarptautiniu lygmeniu integracija yra mokslinė
100 Leonid NAKOV, Igor IVANOVSKI
tarpusavyje susijusių verslo subjektų, priklausančių vidaus procesų, skirtų ūkio subjektams valdyti, atsižvel-
Balkanų regionui, įskaitant Makedonijos Respubliką, giant į rinkos pažeidimus, riziką ir institucinį nestabilu-
santykių ir įtakos riba. Tai svarbu, ypač atsižvelgiant mą regione, kuris iš esmės mažina ir taip mažą vietos ir
į pažeidžiamumą ir konkurencingumo bei produkty- regiono verslo konkurencingumą, palyginti su Europos
vumo stoką, taip pat ir į tai, kad nėra stiprių ir tvarių Sąjungos bendrosios rinkos konkurencingumu.