THE IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE RETENTION: EVIDENCE FROM A BEVERAGE COMPANY IN SRI LANKA

Abstract

Organization culture shapes up the behaviors of the employees who are working for an organization. Employee retention and satisfaction will be consequences of powerful organizational cultures. Highlighting the team orientation, innovation & risk taking, people orientation, output orientation, reward systems, attention to details and competitiveness, this article investigates the Impact of organizational culture on employee retention using a case of a beverage company in Sri Lanka. This is a quantitative study and data was collected through questionnaire case study method. The sample of this study was 104 employees who are currently working in this organization. Correlation analysis and multiple regression were used as principle techniques for the data analysis with the support of SPSS software. Results show that team orientation, attention to detail and competitiveness have a moderate linear relationship with employee retention while other variables show weak relationships. Thus, findings suggest that organizations must carefully identify the culture practices to improve the employee satisfaction and retention rates to gain sustainable competitive advantage with the support of the existing workforce.