Impact of Organizational Culture on Job Stress and Employee Engagement in Pakistan

Abstract

This study investigated the relationship between organizational culture, job stress, and employee engagement. It also attempted to find out the dominant organizational culture in Pakistan. For assessing the culture the competing values framework was adopted which differentiates culture in four types which are clan, adhocracy, hierarchy and market culture. Data were collected from 207 respondents by means of Likert scale type questionnaire that comprised of demographics, questions related to culture, stress, and engagement. For analysis, PLS CFA and SEM techniques were used. Results showed that market culture is the most dominant in Pakistan and has a significant positive relationship with job stress and significant negative relationship with employee engagement, hierarchy culture is the second most dominant and has an insignificant positive relationship with both stress and engagement. Clan culture is the third most dominant and has a significant negative relationship with job stress and a significant positive relationship with employee engagement, adhocracy culture is least present in Pakistan and has an insignificant negative relationship with stress and insignificant positive relationship with engagement. Job stress has a significant negative relationship with employee engagement. The findings suggested that organizations should make efforts to shift towards clan culture which has the highest engagement levels and lowest stress levels of employees.