Abstract
Leadership capabilities have been acknowledged to generate better employee performance, implicitly endorsing the thought that higher work motivation may be an outcome. Similarly, the culture of an organization may well be linked to the level of employee organizational commitment. The current research attempts to comparatively analyze the interaction of these variables in the banking and financial services and education industry in India. The study makes an attempt to analyze responses from these industries, with the intent of drawing comparisons, establishing similarities and general correlation between the variables as well as study the variance between the collected samples. Furthermore, the relationship between organizational culture and employee commitment proves culture to be a predictor of commitment, while retaining the difference between the two groups, on the dimensions of the variables. This analysis has been carried out in India previously in other sectors, and is valuable for these industries predicting exponential growth.
Keywords
Ms. Parashar has an MBA in human resource management from IMT Ghaziabad. She has to her credit, several research papers at national and international conferences. She is a certified Six Sigma Green Belt. She is currently pursuing her doctoral research in the area of leadership development and organizational culture.
Dr. Shaw currently serves as Associate Professor with the School of Management Studies at Ansal University, Gurgaon. She is the program director of the B.Com (H) and BA (H) Psychology programs. She is also a nominated member of ‘Board of Studies’ and is the co-coordinator of accreditation and ranking of the School of Management Studies.
Introduction
Owing to the rapid growth of the Banking and Financial Services as well as Education industries in the Indian Subcontinent, a huge, trained and qualified work force is necessary. Since such a work force is not readily available, it becomes imperative that employees recruited and selected by organizations remain committed and motivated to dispense with their work. The duration from 2008 to 2014, witnessed the world economy in turmoil. Globally, a significant number of corporations struggled to sustain growth. All sectors felt the pressure to innovate and improve their product and service offerings. The need for methods to generate higher revenues and remain in business pushed the foreign investors to look to India for providing greater margins and productivity.” Foreign private banks plan India headcount boost in revival of growth push”, Reuters report, dated February 2015, clearly indicated a phase of expansion in India. In a similar thrust, the still underdeveloped Education sector in India, witnessed the foray of many private and International Higher Education institutes into India. The prospect of revenue generation due to the potential scale of operation in India, owing to the number of eligible candidates in need of technical and graduate level education has proved irresistible for investors. Both sectors have witnessed unprecedented growth in India.
Under the circumstances, the two sectors of interest are facing a shortage of competent and qualified staff, necessary to cater to their plans of expansion. Additionally, due to an atmosphere of distrust between employers and employees, as a consequence of redundancies, work force is perceived to be in a state of disengagement. It is evident that drastic times need drastic measures, a positive approach to people management and a good organizational atmosphere maybe the key to influence the levels of commitment and motivation of current employees. Leadership has been found to influence the behavior as well as development and attitude of followers [1]. Just like Organizational Culture forms the set of norms, values, expressions and processes which define expected behavior in the work place which forms, “the deeper and more fundamental characteristics of organizational life” [2]. Organizational culture is linked to organizational commitment, and is the drive behind organizational outcomes. Tactical attributes like punctuality to work, regular attendance, low attrition etc. are only representative of this [3–8]. Inculcation of such values requires diligent encouragement in management and staff. A societal human system in the true sense of the term, which stems from collective purposefulness, entailing a self-determination capability is imperative for organizations to attract and retain competentprofessionals.
Literature review
The last decade has seen an increased interest in the study of variables impacting organizational behavior and human resource management. Consequently, many styles and types of leadership have been researched with the theories of transformational, participative, collaborative leadership gaining ground in industry. The reason why followers are able to relate to leaders and organizational units, their dependence on their leader, empowerment by the leader are considered a result of transformational leadership [9]. An ability to lead people effectively and be able to foster loyalty and motivation is an art which has continuously evolved. Researchers have identified the role of individual volition as a key component in the formulation of motivation theories [10]. Motivation has been correlated to leadership styles like transactional, transformational and laissez faire [11]. Leadership that makes employees feel empowered is related to team efficacy and performance [12]. Leadership and group performance have been found underpinning motivation. Research studies on group processes, including those in European and other Western countries [13], establish links between leadership and motivation. Team performance is influenced and improved by shared leadership [14]. These aspects have a bearing on talent management in organizations.
Numerous motivational models have been propounded but very few translate into practice, or used to improve teams, self and leadership efficacy [15]. Shared or decentralized leadership as opposed to a single leader increases motivation and cognitive learning of subjects [16]. The determination of causal processes, connecting leadership to positive outcomes was considered priority [17]. The degree of effort put into an assigned task is mediated by the relationship between leaders and subordinate [18]. Leadership has been discovered linked to strategic planning [19]. Leadership is also found to catalyze organizational change [20]. Studies in the education industry in geographies like Asia(Indonesia), establish leadership as an attribute, inspiring motivation and job satisfaction in workforce [21, 22]. Self-Efficacy of leaders also affects motivation and performance, as per research in middle-eastern countries like Abu Dhabi [23]. A recent research in Romania, France and Netherlands worked around a cross cultural dimension of the impact of leadership practices on work motivation using the leadership practices by Kouzes and Posner [24]. The study forms the inspiration for the exploration of the influence of leadership practices on work motivation with the help of the leadership practices model, within diverse industries in India.
As in the case of leadership practices and work motivation, many research efforts have tried to relate organizational culture to outcomes like organizational commitment. In this endeavor, the OCTAPACE organizational culture and related organizational commitment has generated adequate interest in researches, however, such a study has not been carried out in our sectors of interest. Due to the growth in these sectors, over the last two decades, these two variables need to be studied and results analyzed. A fairly recent research attempted to study ‘Organizational Culture as a Determinant of Organizational Commitment’ in the I.T. industry in India [25], using the OCTAPACE profile and the organizational commitment profile by Meyer Allen. This revealed that the commitment levels of employees can be enhanced by inculcating an open and inclusive culture within the organization, where creativity, experimentation, collaboration are encouraged and employees are participants in the decision making. Other IT industry based studies [26], have also concluded that a positively perceived organizational culture, definitely contributes to better productivity among employees.
Other studies in the BPO industry, in the north western states found that the perceived level of organizational commitment, as a consequence of organizational culture, is higher in the smaller BPOs in comparison to the larger ones [27]. In yet another study in the outsourcing industry, a study on the OCTAPACE profile, to ascertain the difference in perception of organizational culture amongst the executive and non-executive staff, revealed no significant difference [28]. It was also concluded that the practices of managers are a significant indication of the culture of their organization to their subordinates. Two noteworthy studies in the state of Jammu and Kashmir India, conducted nearly a decade apart, in the tourism industry established a correlation between the OCTAPACE profile of the organizations and the performance levels of the employees [29, 30]. The banking sector in the same state revealed a correlation between employee motivation and organizational culture. Other studies in various other parts of the country and a diverse range of industries established organizational culture as a pre-requisite to Organizational effectiveness [31–33].
In neighboring countries too, like Pakistan, Bhutan, Nepal, research studies in various sectors have been carried out to study the interaction between the two variables of OCTAPACE organizational culture and organizational commitment. In Bhutan specifically, the study aimed to study OCTAPACE culture as an effective tool for increased engagement of employees and better levels of commitment on all three dimensions, affective, normative and continuance. In Pakistan, too in a study on the telecom sector, to gauge the effect of support received from the organization on culture, performance, commitment and turnover, revealed a far reaching impact on effectiveness, loyalty as well as commitment [34, 35]. In Nepal, a study related to the impact of transformational leadership practices on culture and the future development of learning organizations proved a positive and significant correlation [36]. Although, past research proves a level of interaction between leadership practices, organizational culture and their influence on variables like work motivation and organizational commitment, such research in banking and financial services and education sectors, which compare and contrast groups and impact are rare. This study makes an attempt to bridge this gap and make recommendations.
Definition of the key variables and relationships
Leadership practices defined
“Leadership is the art of mobilizing others to want to struggle for shared aspirations”, as per Kouzes & Posner. This definition is based on the premise that exemplary people leaders subscribe to a set of specific behaviours and practices which help them to get the best from their people. These special capabilities aid leaders in getting the desired results and instilling a certain sentiment in their followers, which results in a sense of purpose. The book, The Leadership Challenge proposes five practices of exemplary leadership which are accepted as the Holy Grail, if a leader or organization’s management desires to leverage and realize the true potential of their human resources. These practices propounded by Kouzes and Posner are listed below: Model the way-serve as a role model and lead by example. Inspire a shared vision-create a vision for the future organization, which employees relate to. Challenge the process-break the status quo in favor of innovation and improvement. Enable others to act-give team members adequate autonomy and power to take decisions. Encourage the heart-celebrate and give credit for achievement and victory to team members.
Over and above the five practices of exemplary leadership, there are also 10 leadership commitments which have been prescribed by the same authors, in order to support the five practices. These 10 commitments for leadership are envisioned to instill a zeal for superlative performance and superior output from employees. These five practices and ten commitments form the code of conduct that every people leader ought to follow.
Work motivation defined
Researchers have defined motivation as that influence, which forms the stimulus for better performance, sustained enthusiasm and dispensing of discretionary effort by employees. As per numerous studies motivation incites, lends energy, direction and supporting effort to improve performance [37]. Therefore it is categorized as that stimulation which drives employees to action and helps achieve results. Stimulation needs to be effective, for employees to feel satisfied with and committed to their jobs. It has been ascertained that monetary gain is not the single influencer of the quantum of effort an employee dispenses with, to do a job. There are also additional factors like emotional and personal needs. Based on the standalone classification of monetary and non-monetary factors which hold a vital influence on motivation levels, two main dimensions have been identified, namely: (i). Internal factors-intrinsic needs motives, personal values and (ii). External factors –incentives, monetary rewards, goals. The mentioned set of dimensions form the framework for the study of work motivation in the current study. Motivation related factors like the following 6, form the key dimensions for the study: Dependence-emotional attachment with the organization. Organizational orientation-alignment with the purpose of the organization. Work group relations- feeling of co-operation among employees. Psychological incentives-softer aspects of reward and recognition. Material incentives – cash and other monetary aspects. Job situation-working conditions in the organization.
Internal or intrinsic factors have been widely acknowledged to affect motivation, particularly the way in which employees are treated by management and leaders, in organizations has a bearing. Although motivation is also said to be influenced by other variables like organizational culture, its design and other factors like whether the organization is vertical, horizontal, digitized, employee oriented etc.
OCTAPACE organizational culture defined
OCTAPACE organizational culture a framework revolving around eight dimensions of culture in organizations [38], describes, openness, confrontation, trust, authenticity, pro-action, autonomy, collaboration and experimentation as imperative for the running of successful corporations. OCTAPACE values are widely researched across industries in India and conclude that they can result in superior satisfaction and engagement, collaboration, growth and an uninterrupted transmission of communication in the organization. The dimensions of OCTAPACE are explained below: Openness-flexibility of uninhibited communication and expression. Confrontation-will to take on challenges head on. Trust-mutual confidence shared by members of the organization. Authenticity-congruence between what one feels and says which reduces distortion. Pro Action-taking preventive action and effective future planning. Autonomy-freedom to empower independent decision making. Collaboration-giving and receiving help and support from co-workers. Experimentation-developing creativity and innovation to solve problems.
It is acknowledged that organizational commitment is influenced by organizational culture, since it leads the employees to devise strategies to survive in the organization. Organizational culture is also said to be the indicator of “the deeper and more fundamental characteristics of organizational life”, in specific organizations or industry sectors. Organizationalculture is also known to be an influencing factor in the level of satisfaction and organizational commitment
Organizational commitment defined
Meyer, Allen, have defined organizational commitment as, “The employee’s emotional attachment to, identification with and involvement in the organization”, which was called affective commitment, “An awareness of the costs associated with leaving the organization”, was known as continuance commitment and “a feeling of obligation to continue employment” was called normative commitment. Commitment is also evident in the way an employee is mentally and emotionally engaged with the organization through feelings like fondness, pleasure, belongingness etc. [39], all aspects of affective organizational commitment. Continuance organizational commitment was the feeling of being obliged to continue in an organization due to the high costs of leaving and moral commitment stemmed from the internalization of the organization’s goals, values and mission, by the employee.
Researchers in India [40], developed the concept of organizational commitment further, and identified 8 key factors of organizational commitment, namely: work environment, affection towards the organization, contentment, goal fulfillment, positive thinking, career goal, empathy, empowerment
These 8 factors have been analyzed through factor analysis, to finally identify four key dimensions of organizational commitment. Belongingness – measured by a). affection towards organization, f). career goal, g). empathy, h). empowerment. Job satisfaction – measured by c). contentment, d). goal fulfillment. Optimism - measured by e). positive thinking. Quality of work life-measured by work environment.
These factors and dimensions [40], form the framework of organizational commitment, for the current study.
Researchers accept the influence of organizational culture on organizational commitment; similarly leadership practices are also known to impact work motivation, as is clear from the review of literature. Since these variables have not been widely researched in the Indian Banking and Education Industry, the current study attempts to study these variables and compare the results in the Banking and Financial Services and the Higher Education sector in India.
Rationale of the study in the banking and higher education sectors
The above mentioned industries in India, along with other sectors like Health Services, Manufacturing and Tourism have been witness to earlier studies focusing on similar variables. However, the banking and financial and the education sectors have specifically been chosen to execute this study, as they have been growing at a very rapid pace, as a consequence of which they have also become more prone to growth, people management and strategy related challenges. Since employees are the most critical resource for any organization, talent engagement and employee retention poses a key challenge. Therefore, the requirement to study the impact of leadership practices on employee work motivation and organizational culture on employee organizational commitment. These two industries are forecasted to create fresh employment in India. The banking and financial services is expected to generate new employment to the tune of 2 million in India, within the next decade or so. Whereas, the higher education industry, is expected to clock an estimated enrolment of 24 million by 2020 [41]. Since the demand for skilled workforce is huge, their management has emerged as an area of strategic concern.
The Banking and Financial Services sector has expanded in India, significantly over the last 25 years. Banking particularly is forecasted as a potential employer for 2 million new employees in India, over the next decade. Approximately 2000 Bank branches are added annually, to the existing network in India, thanks to the private and multi-national banking corporations like HDFC, ICICI, IndusInd, Kotak Mahindra, Axis, Standard Chartered Bank, Citibank, Deusche, Royal Bank of Scotland, HSBC and American Express, which have burgeoned in India, along with the growing reach of nationalized banks like the State Bank of India, Bank of India, Canara, Bank of Baroda, Punjab National Bank, Central Bank etc. Similarly, the higher education sector in India has also grown manifold in the past decade or so. At the time that India became independent only 20 major universities and 500 colleges existed in India [41] which has increased 26 times in terms of universities and 66 times in terms of colleges. Growth in the Indian economy has resulted in an educated middle class who have taken the enrolment several notches higher and the projected figure for the year 2020 is 24 million. Private and foreign investors have also shown keen interest in the Higher Education sector and an estimated 610 universities and 33023 colleges currently function, 76% of which are privatelyowned.
Human management and development systems have progressed significantly from the days when employees could be treated like a transactional extension of the organization, with goals and objectives assigned to each one to tirelessly produce robotic pre-programmed and near identical results without any consideration of the work environment. It has been found that the imposition of goals and objectives may actually produce undesirable and dysfunctional effects, in societal human system like reasonable sized business organizations. Due to the very nature of goals and objectives which are usually imposed top-down by virtue of the power and authority vested in personnel of a higher hierarchic rank, they may not be acceptable to employees seeking autonomy and self-development. Hence, as opposed to focusing on setting goals, which are abstract and intangible imposed expectations and objectives which are measurable outcomes of the imposed expectations, organizations should work towards a shared sense of purpose and purposefulness between employees and management. Purpose and purposefulness are characterized by the development of capability within the organization by the use of which its members are empowered to create conducive results even though not entirely conforming to convention. Therefore, deviating from goals and objectives, purpose and purposefulness are the more desirable and requisite conditions in professionally run and progressive organizations.
Due to the paucity of trained and employable resources, the management and retention of human resources becomes an imperative. This is a necessity if an organization is to realize its true potential and achieve its purpose. A comparison has been analyzed to ascertain similarities or differences in results between the two industries. Leadership practices have proved to create a motivating environment and generate better productivity. They may also inculcate a sense of psychological commitment in employees. Identically, organizational culture has also been found to create a very positive and conducive environment for higher achievement and foster attachment to the organization. Both these variables seem key to enhancement of the work life of employees. These attributes may prove useful when used as levers, to motivate and purposefully leverage discretionary effort from workers as well as enhance their commitment to their work and the organization as a whole in the BFSI and higher education sectors in India as well. Thus, the study, to understand and assess the strength of interaction between these two separate sets of variables, i.e. leadership practices and work motivation and organizational culture and organizational commitment. An action plan is proposed, as a result of the analysis.
Research intentions
A limited number of 20 to 40 respondents each were chosen in each of the chosen sectors, to respond to the 4 surveys related to leadership practices, organizational culture, organizational commitment and work motivation with the aim of achieving the below mentioned research intentions.
Intention 1. To study the employees’ perception of leadership practices and organizational culture and whether or not they influence work motivation and organizational commitment respectively, in the two sectors being studied.
Intention 2. To analyze differences in respondent groups from the two sectors, with regards to the perception of the practices of exemplary leadership and work motivation and in terms of organizational culture and organizational commitment.
Intention 3. To ascertain correlations between leadership practices and work motivation as well as organizational culture and organizational commitment.
Intention 4. To recommend devices and techniques related to leadership practices and organizational culture, for enhanced work motivation and organizational commitment respectively, in the industries of choice.
The following hypotheses have been proposed after the rigorous review carried out:
H1: The employees’ perception of leadership practices in the two data sets from two different sectors, differ significantly.
H2: The work motivation of employees in the two different samples from the two sectors, differs significantly.
H3: The perception of employees about organizational culture in the two samples from the two sectors differs significantly.
H4: The organizational commitment level of employees in two samples from the different sectors would differ significantly.
H5: The dimensions of leadership practices and work motivation are significantly correlated.
H6: Organizational culture and organizational commitment and their dimensions have a significant correlation.
H7: Organizational culture would be a significant predictor of organizational commitment among respondents from the two different sectors.
Methodology and measures
The research is a comparative study between the banking and financial services and the higher education industries. The measures of leadership practices and work motivation have been collated, using standardized questionnaires for both the variables, namely leadership practices and work motivation. Simultaneously, the measures of organizational culture have been collected using the OCTAPACE profile and that for organizational commitment too have been collated through a standardized questionnaire. A small sample of 20 respondents each, from both the chosen sectors were approached to respond to the four standardized questionnaires related to each of the variables of the current study. The LPI (Leadership Practices Inventory) developed by Kouzes and Posner [42] was used to capture data related to leadership practices. It was developed as a part of their well renowned work, “The Leadership Challenge”. It has 30 questions, collecting data around the 5 traits of exemplary leadership on a 10 point scale. The LPI has been used for a significant number of studies and across a wide cross section of industries. The work motivation questionnaire by K.G. Agrawal [43] uses 26 items to measure employees’ work motivation. The results are collated on a 5 point scale, beginning with alphabet (a) indicating presence of an organizational trait to a great extent and ending with alphabet (e) indicating absence.
Similarly, for the collection of primary data from the sectors of choice, with regards to organizational culture and organizational commitment, standardized questionnaires have been used. Data has been collected from across hierarchy and a different set of 20 respondents’ data has been analyzed. Organizational culture has been measured with the help of the OCTAPACE profile by Pareek, which collates responses around 8 key dimensions of culture, namely, openness, confrontation, trust, authenticity, pro-action, autonomy, collaboration, experimentation. These 40 items anchored around these eight cultural dimensions, were measured on a 4 point scale where 1 means the dimension is given very low value, and 4 means that the cultural attribute is highly valued in the organization. Organizational commitment in turn is measured using the organizational commitment scale by Hyde and Roy, collating data centered around the dimensions of belongingness, job satisfaction, optimism, and quality of work life. These 4 dimensions further bifurcate into 8 factors, including work environment, affection towards organization, contentment, goal fulfillment, positive thinking, career goal, empathy and empowerment. The scale has 30 items measured on a scale of 1 to 5, wherein 1 symbolizes strong disagreement and 5 stands for strong agreement.
Data collection
Responses were collected from the banking and financial services and higher education industries. The respondents were two separate sets of people employed in the mentioned sectors. A sample of 20 responses on the leadership practices Inventory and the work motivation scale were collated and a sample of 40 each was collated for OCTPACE organizational culture profile and organizational commitment scale. Respondents happened to be employees of two prominent organizations from each of the sectors of interest. Data was collated across hierarchies and varying tenures of employment. A cumulative sample of 120 surveys using primary interaction and physical hard copies of the surveys was collected.
Analysis
Since the intention of the study was to understand the impact of leadership practices on work motivation and likewise, the impact of organizational culture on organizational commitment in two separate groups from dramatically different occupational sectors, it was imperative to comprehend and ascertain differences between the separate groups, as far as the four variables of our interest are concerned. It also became necessary to attempt the establishment of a correlation between the two sets of variables, namely leadership practices and work motivation and organizational culture and organizational commitment. The responses were collated and statistically analyzed with the aid of SPSS package (21.0). Tools used for statistical analysis primarily include (i) t-test, to study the difference between responses from the two sectors, (ii) Pearson’s correlation, to ascertain the strength of this correlation between our two sets of two variables each and (iii) multiple regression to establish organizational culture as a predictor of organizational commitment.
Results
The t-test was used to ascertain if the two groups from the two industries showed significant differences in mean, for both sets of variables. Correlation was also tested to establish the strength of the relationship between each set of two variables in both sets of variables, i.e. leadership practices and work motivation as well as organizational culture and organizational commitment.
A significant difference in means in the two groups from the education and banking sector was revealed with the aid of an independent samples t-test on specific dimensions of leadership practices [Table 1]. Analysis reveals that the two groups differ significantly on the model the way dimension of leadership practices, t (40) = 12.792, p < 0.000, on inspire a shared vision dimension of leadership practices, t (40) = 8.890, p < 0.000, on challenge the process dimension of leadership practices, t (40) = 12.988, p < 0.000, on enable others to act dimension of leadership practices, t (40) = 9.960, p < 0.000. Overall a significant difference between the groups, on leadership practices is revealed, t (40) = 13.465, p < 0.000, this supports hypothesis 1. Similarly, the t-test [Table 2] reveals a significant difference in the groups dimensions of work motivation i.e., the groups differ significantly on dependence, t (40) = 6.970, p < 0.000, organizational orientation, t (40) = 3.211, p < 0.003, psychological work incentives, t(40) = 2.754, p < 0.009 and job situation, t (40) = 3.006, p < 0.005. There is a significant difference between the groups, on work motivation as a whole. Total work motivation as a whole, t (40) = 8.951, p < 0.000, as stated above. However, two specific dimensions, namely work group relations and material incentives reveal a low level of significance between groups. This supports hypothesis 2.
The t-test analysis [Table3] conclusively establishes a significant difference in the groups from the education and the BFSI sector on specific dimensions of OCTAPACE organizational culture. The two groups differ significantly on openness, t (40) = –3.036, p < 0.004., trust, t (40) = –1.978, p < 0.055, pro-action, t (40) = –3.989, p < 0.000, experimentation, t (40) = –2.570, p < 0.014. Despite the difference being significant on some dimensions, overall difference between the groups, on OCTAPACE organizational culture is not significant, Total OCTAPACE culture t (40) = –2.638, p < 0.12. This supports hypothesis 3. Similarly the t-test [Table 4] reveals a significant difference in the groups on dimensions of organizational commitment. They differ significantly on belongingness, t (40) = –7.268, p < 0.000., job satisfaction, t (40) = –3.825, p < 0.000, quality of work life, t (40) = –6.701, p < 0.000. There is also a significant difference between the groups, on organizational commitment as a whole, total organizational commitment, t (40) = –7.068, p < 0.000. This supports hypothesis 4.
Pearson’s correlation [Table 5] reveals a significant positive correlation between leadership practices and work motivation, r (40) = 0.730, p < 0.000. This supports hypothesis 5. A strong positive correlation between all the dimensions of leadership practices and work motivation is evident, i.e, inspire a shared vision dimension of leadership practices, r (40) = 0.715, p < 0.000 and model the way dimension of leadership practices, r (40) = 0.711, p < 0.000, reveal the strongest positive correlation with work motivation, while the leadership dimensions of challenge the process, r (40) = 0.707, p < 0.000, enable others to act, r (40) = 0.675, p < 0.000 and encourage the heart, r (40) = 0.543, p < 0.000 also reveal a significant positive correlation with work motivation. The dependence factor of work motivation reveals the strongest positive correlation with leadership practices, r (40) = 0.721, p < 0.001, followed by psychological work incentive, r (40) = 0.496, p < 0.001 while all other dimensions of work motivation do not reveal a significant positive correlation with leadership practices as a composite variable.
The correlation table [Table 6] for OCTAPACE organizational culture and organizational commitment also reveals a significant positive correlation, r (40) = 0.465, p < 0.003, supporting hypothesis 6. The dimensions of pro action, r (40) = 0.579, p < 0.000, and openness in organizational culture, r (40) = 0.544, p < 0.000, show the strongest positive correlation with organizational commitment, along with the organizational culture dimensions of experimentation, r (40) = 0.463, p < 0.003, collaboration, r (40) = 0.445, p < 0.004 and trust, r (40) = 0.384, p < 0.014 also revealing a significant correlation with organizational commitment. The quality of work life dimension of organizational commitment reveals the strongest positive correlation with OCTAPACE organizational culture, r (40) = 0.525, p < 0.001, followed by belongingness, r (40) = 0.395, p < 0.012 while all dimensions of organizational commitment reveal a positive correlation with organizational culture as a composite variable. This supports hypothesis 6.
For the final intention of the study to be fulfilled, a multiple regression to determine the causality of dimensions of organizational culture (independent variable) on organizational commitment (dependent variable) among the employees of the chosen sector was carried out. The table displays the summary with outlier variables removed.
The dimensions of organizational culture were regressed on those of organizational commitment [Table7] and it was revealed significant (β= 0.50, t = 2.01; p > 0.04). Adjusted R2 is 0.23, indicating that 23% variation in organizational commitment can be explained by OCTAPACE organizational culture variable. F value found in this model is also significant (F = 19.31, P < 0.000). The finding points to the fact that culture impacts the commitment of employees to a large extent, thus supporting hypothesis 7.
Discussion
Job satisfaction and organizational commitment are surely influenced by leadership practices [44, 45] along with impacting the morale of the employees [46], by inference and implication they also influence employee work motivation. The levels of employee motivation in organizations definitely impact knowledge and talent management. The preset study has tried to infer the strength of influence that leadership practices have on work motivation, as does the organization’s culture have on employee organizational commitment. The study analyzed data collated from workers in both industries and found a difference in leadership practices in the two industries. It was also discovered that they can be used effectively to influence motivation and general talent management within organizations. The analysis proves that employee perception of leadership practices inthe two
industries differs significantly, as stated in hypothesis 1. Positive psychological capital generated by leadership traits in banking services [47], were not found correlated, though it was established that the performance of employees could be improved using cognitive resources through leadership behaviour and employee’ psychological capital. A sense of purpose and purposefulness along with independent accountability and appropriate remuneration serve as a catalyst to self-developing mastery.
The most often used practices from the five propounded by Kouzes and Posner are model the way and enable others to act, followed by encourage the heart, inspire a shared vision and challenge the process. A study in a for-profit higher education institution indicated that perceptions of leaders’ behaviors by employees can be a predictor of job satisfaction, organizational commitment, and productivity [48]. An Australian study in financial services revealed significant correlations between the five practices of leadership and the sense of employee well-being and general attitude [49]. The general sense of well-being and a positive work attitude keeps employees motivated. The current study attempted to explore the difference between the work motivation of employees in the higher education and the banking and financial services sector and revealed that the work motivation of the two groups studied showed a significant statistical difference, thus accepting the second hypothesis 2. It is evident from studies that leadership practices can be an effective lever in the influencing of motivation levels of employees. A study in the distribution industry established significant correlations between the practices of leadership and all dimensions of job satisfaction [50].
Furthermore, the influence of organizational culture on employee outcomes also revealed linkages between culture and employee commitment. Organizational culture is considered an integral part of organizations and the effectiveness and efficiency of employees is said to depend on processes, rules and regulations, social and ideological conditioning. Commitment to the organization has been found to have linkages with that organization’s culture [2, 51]. Factors like job profile, quality of work, work related stress, employee sex ratio, structure of organization have been found to impact differences in organizational commitment [52, 53]. The current study attempted to also study the difference in the variables of organizational culture and organizational commitment in the two sectors wherein the context and content of work done by employees is diverse from one another. The higher education set up functions around the principles of long term accomplishments, whereas the banking and financial services sector is dominated by short term focus on daily performance and profitability. The current study revealed a difference in organizational culture between the two samples collected from the two different industries, accepting hypothesis 3.
It has been indicated that the ideology of the organization forms the main differentiating factor [54, 55] particularly in India [56], therefore there may be a difference in the way workers’ minds are programmed [57]. Various attributes and components in an organization form the culture of the organization, these include, size, leadership, technology, structure, environment, strategy, management and location etc. [58]. Therefore culture is an amalgamation of both visible and softer aspects of the working of any organization; hence the difference in the working of the two sectors is understandable [59–61]. Research studies carried out to study organizational commitment and its difference across sectors are also of the opinion that it is an important performance predictor and can vary across businesses, depending on the features and nature of business [62–64]. The nature of work and performance is a key component which causes the differences in the sectors.
Hypothesis 4, which asserts that the organizational commitment of employees differs significantly between the two groups being studied, is accepted. The difference in the level of employee organizational commitment in different industries has its roots in environmental robustness in the organization [65], its values, cost, and sense of obligation, other demographical factors like age, benefits and compensation, pension etc. also play a significant role [66]. In the education sector efficiency and satisfaction of employees and disciplinary difference clearly indicated performance output [67]. The higher education industry in the United States also revealed the impact of leadership practices on organizational effectiveness [68]. The current study shows a strong positive correlation between dimensions of leadership practices and work motivation for the respondents from the banking and financial services and education industry, thus accepting hypothesis, 5. Based on the results, the two organizations being studied ought to undertake further advanced exploration of the variables on a larger sample size.
The current study also observed a strong significant correlation between the dimensions of organizational culture and organizational commitment, thus validating hypothesis 6. Organizational culture has also been found to be a predictor of commitment in work set ups [37]. Similar studies across different contexts, structures and time frames across two decades have provided evidence for a direct correlation. [69–73]. The analysis of data from the two sectors of choice sets the stage for the similarities and differences in the context, the employees’ work ethics and level of commitment and performance. The results fulfill a gap between the comprehension of the relationship between culture and commitment. This linkage has also been studied by [74], wherein the researchers present the difference in expectations and performance as the reason for the varying commitment of employees as against attributing it to culture. Commitment is influenced by employees’ interpersonal relationships, compensation, performance, incentives etc., along with the culture of the organization playing a critical role, thus making the overall specificities, the focus area.
The testing of the seventh and last hypotheses with the intention of assessing the fit of the regression model, in order to identify organizational culture as a significant predictor of organizational commitment, using a multiple regression revealed hypotheses 7 to be accepted. Culture has emerged as a significant predictor of organizational commitment in global as well as in the Indian context [75–81]. The services and product offering of the organization maybe different but even in the diversity of sectors, the unanimous focus remains the devising of strategies and better talent retention [82, 83]. In the current study, organizational culture has emerged as the predictor of commitment, the sustained improvement of which is the most challenging task an organization is faced with. Culture encompasses and shapes human orientation which is evident in the way the employee behaves at the level of his society and organization [84, 85].
India, known as a traditional work environment, seeped in hierarchical convention and a more collectivist approach with high power distance with different levels in organizations [85] has followed a top-down approach to management in the past. However, with the emergence of wider avenues and a variety of opportunities for professional development and realization, the Indian work force is now more discerning than ever before. Thus, the tables have turned and the shift in paradigm, seems to have resulted in an inverted pyramid of sorts, wherein, the workforce is the most important asset and resource of an organization. The need for employees to feel like participants in the decision making and their contribution being valued, is more pronounced than ever. An imposition of top-down directives and decrees is no longer found conducive to the achievement of a shared sense of purpose for all levels of employees. Hence, as evidenced by the results of the hypotheses testing, an organizational culture and leadership practices which succeed in generating purposefulness will also succeed in inculcating high levels of commitment and consequently, higher motivation.
Conclusion
The study undertaken across the education and banking sectors indicates significant relationships between the variables being studied. It is also evident that the interaction of variables is different in the two different industries. The exploratory study points towards the need for further strengthening and development of practices related to leadership and culture, which in turn could improve the employees’ sense of motivation as well as commitment towards their work. More detailed research in the area could be instrumental in the development of superior practices which in turn could help organizations overcome talent management related challenges and eliminate the gaps in culture and management practices, which in turn could translate into better results for the organization. The current study has established correlations between leadership practices and work motivation and organizational culture and commitment, along with establishing culture as a predictor of commitment in the sectors of study. The education and the banking and financial services industries therefore seem to require better leadership practices and cultural dimensions to be developed with the aid of management and leadership development interventions.
It may also be worthwhile to use qualitative and quantitative assessments to track and measure the degree of improvement in the dependent variables thereof. The findings from such reports could also be helpful in predicting the root cause and consequence of challenges and newer more robust mechanisms could be instilled accordingly. Work motivation and organizational commitment along with the measurement of other variables like job satisfaction, organizational effectiveness and commitment, and productivity which are significantly associated with dimensions of leadership and cultural practices and may be improved with better techniques and management and work force interaction. The two organizations from where our study sample was derived could consider deeper levels of research and exploration into the relationship of these variables and further decipher practices which could be instrumental in enhanced talent management. As academics (education sector) and banking (financial) sector have witnessed significant changes in the past few years, leadership practices and organizational culture form key aspects in the influence and prediction of motivation, loyalty and commitment.
Limitations
The current study has been carried out as a pilot study with the intention of testing the feasibility of data collection, using four structured questionnaires, leadership practices, work motivation, OCTAPACE organizational culture and organizational commitment, therefore a limited sample from each of the sectors was collected. Due to a limited sample size the analysis remained restricted to a limited number of statistical tools. The scope of the study could be further broadened to include a larger sample from more diverse industries for deeper insight.
Authorship statement
It is hereby declared that the submitted work is original and our own work.
The submitted work is not currently under review by any other journal.
