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CALIFORNIA STATE UNIVERSITY, NORTHRIDGE
The Impact of Organizational Culture on Employee Retention in a Public Sector Organization
A graduate project submitted in partial fulfillment of the requirements
For the degree of Master of Public Administration in Public Sector Management and Leadership
By
Steven Galindo
August 2022
ii
Copyright by Steven Galindo 2022
iii
The graduate project of Steven Galindo is approved:
__________________________________ ______________
Dr. Kay K. Pih Date
__________________________________ ______________
Dr. Anais Valiquette L ‘Heureux Date
__________________________________ ______________
Dr. Henrik Palasani-Minassians, Chair Date
California State University, Northridge
iv
Acknowledgment
I want to acknowledge my wife, Julia Galindo, for providing me with the encouragement
and motivation to continue my education and pursue my goals. Without her support, I would not
be where I am today. I would also like to acknowledge my son, Joaquin Galindo, and my
daughter, Josephine Galindo, as I have become a better human being since you came into my
life.
v
Table of Contents
Copyright Page ii
Signature Page iii
Acknowledgement iv
Abstract vii
Chapter 1: Introduction 1
Chapter 2: Background 3
Chapter 3: Review of Literature 5
Organizational Culture 5
Relationship between Organizational Culture and Employee Retention 7
Employee Values 7
Job Satisfaction 8
Leadership Style 9
Transactional Leadership 9
Transformational Leadership 10
Public Service Motivation (PSM) 10
Person-Organization Fit 11
Limitations 12
Summary 12
Chapter 4: Research Questions and Aim 14
Chapter 5: Methodology 15
vi
General Approach 15
Sampling 15
Recruitment 16
Research Hypotheses 16
Data Collection 17
Data Analysis 17
Chapter 6: Discussion 19
Ethical Considerations 19
Methodological Limitations 19
Potential Implications 21
Future Research 21
Conclusion 23
References 24
Appendix A 30
vii
Abstract
The Impact of Organizational Culture on Employee Retention in Public Sector Organizations
By
Steven Galindo
Master of Public Administration in Public Sector Management and Leadership
Organizational culture has become a growing theme in management research. Little
research has previously described how an organization's culture impacts employee retention.
Public sector organizations must adapt and evolve to find new ways to retain employees and
establish an efficient succession plan. Due to the unexpected COVID-19 pandemic, it has
become even more crucial that public sector organizations find a way to retain current employees
and attract new ones. This study will examine the correlation between organizational culture and
employee retention by surveying entry-level and non-management employees within a local
municipality. This study aims to explore the overall organizational culture of the City of Chino,
a local government agency. This study will use a quantitative approach by utilizing a haphazard
nonprobability design to survey entry-level and non-management employees. This research aims
to provide local government agencies with data to improve employee retention strategies.
Keywords: Organizational Culture, Organizational Values, Employee Retention, Employee Job
Satisfaction
1
Chapter 1: Introduction
Public organizations have many ongoing components internally and externally that
impact the overall effectiveness and day-to-day operations. One of these components is the
organizational culture that resides within the organization. Organizational culture can be
explained as the set of beliefs, values, and basic assumptions taught, shared, and learned by
members of an organization (Allaire & Firsirotu, 1984; Kim, 2012; Marcoulides & Heck, 1993).
Organizational culture silently influences an organization’s structure, working conditions, and
day-to-day operations. By examining this aspect of an organization, we can better understand
why specific organizations have more success retaining employees.
Employee retention has become an essential task in private sector organizations and
public sector organizations. The success and effectiveness of an organization rely heavily on the
assumption that the employees can complete the objectives and goals of the organization (Meier
& Hicklin, 2007). Employee turnover can also result in lost institutional knowledge, which can
lead to relying on new employees who may not yet fully understand the processes and
procedures of the organization (Hur, 2013). When retention is low, the remaining employees
must take on more responsibility to maintain the day-to-day operations, which can affect the
employee's morale and induce workplace stress (Hur, 2013).
In tandem with organizational culture, employee job satisfaction is another critical
element. If job satisfaction is unfavorable, it can contribute to poor morale and lower retention
rates (Hur, 2013). The organization's culture influences job satisfaction. With higher morale
comes higher employee efficiency (Arunchand & Ramanathan, 2013). With millennials and
generation Z shifting as the dominant age range in the workforce, it is time to explore and
identify ways to improve public sector employees’ job satisfaction.
2
Research is limited among public organizations, and the impact organizational culture has
on employee retention. This study's main objective is to understand better how organizational
culture influences employee retention by surveying local municipality employees. This research
project will collect data proving that employees' perception of their organization's culture
influences employee retention. Along with the retention of employees, this study will have a
sub-focus on overall job satisfaction. Job satisfaction, along with organizational culture, plays a
vital role in the retention of employees (Jung, 2014).
This research proposal comprises six chapters: Following this general introduction,
Chapter 2 will give a brief background of the issue. Chapter 3 will present findings from the
literature on organizational culture, employee retention, and job satisfaction. The literature
review will include research conducted in private organizations and public organizations.
Chapter 4 will provide the research questions and aim of the study. The research methodology
will be presented in Chapter 5. Chapter 6 will discuss ethical considerations, research
limitations, potential implications, and future research.
3
Chapter 2: Background
Employee retention is an essential aspect of a successful organization. Retaining
employees keep the organization functioning and demonstrate to other employees that the
organization is solid and valuable (Hur, 2013). Allen et al. (2010) suggest that the overall cost of
replacing an employee typically exceeds 100% of the employee's salary. This financial burden
will keep organizations from utilizing funds in other areas that may help overall retention, such
as employee development. Aside from the financial costs of replacing employees, organizations
need to strategize and implement a succession plan as many baby boomers are retiring
(Jayathilake et al., 2021). In addition to the generational shift in the workforce, the effects of the
pandemic, especially on employment, are now becoming visible, and organizations must become
aware of strategies to retain employees (Jayathilake et al., 2021).
The City of Chino is one such organization that is beginning to see the results of the
COVID-19 pandemic, the generational shift in the workforce, and the change in leadership. The
City of Chino is a local municipality with around 94,000 residents and about 1,000 employees,
including its Police Department (City of Chino, 2022). Over the last two years, the organization
has seen many employees come and go, especially within the Community Services and Public
Works departments. Many of these employees who have resigned were from entry-level and
non-management positions.
In 2021 the City of Chino presented a new strategic plan. This plan aims to guide all
departments within the organization to exemplify the City's values, mission, and vision. With
the rollout of the new strategic plan, the City also unveiled strategic issues that the organization
will look to resolve. One such strategic issue presented is exemplary leadership. This area
states, "The City will maintain its commitment to recruiting, training, and retaining a highly
4
skilled workforce by developing its leaders so that community, citizen, and employee satisfaction
results” (City of Chino, 2022, n.p.). Positive employee retention will be a critical indicator of the
success of solving this strategic issue.
This research proposal will analyze organizational culture and its impact on employee
retention. The study will provide strategies and suggestions for local government agencies and
how they can improve the retention of employees, specifically entry-level and non-management
positions.
5
Chapter 3: Literature Review
This literature review chapter analyzes and summarizes existing research on
organizational culture and its impact on issues such as employee retention and overall job
satisfaction. Specifically, the literature review will examine various components describing how
organizational culture impacts employee retention. This chapter will be structured as follows:
first, the concept of organizational culture will be defined; second, the relationship between
organizational culture and employee retention will be discussed; third public service motivation
will be reviewed; fourth, leadership styles will be presented; and lastly an analysis of the overall
literature will be proposed.
Organizational Culture
Various attributes of an organization, such as compensation, benefits, location, and
culture, may all affect overall employee retention (Allen et al., 2010). Sometime in the mid-80s,
research focused heavily on organizational culture, and its popularity rose among organizational
management researchers. Organizational culture began to gain interest, especially in research
conducted among private sector organizations. Concepts regarding organizational culture look at
organizations as small sociocultural systems that share traditions, ideas, and values (Allaire &
Firsirotu, 1984; Arunchand & Ramanathan, 2013; Bellot, 2011; Ionescu, 2014). An
organization’s culture cannot be seen from the surface level; instead, it is infused in daily
operations and how employees look to solve problems, accomplish goals, and determine
acceptable behaviors (Bellot, 2011; Hogan & Coote, 2014; Ravasi & Schultz, 2006; Schein,
1984). Many definitions of organizational culture seem to come to the similar conclusion that
organizational culture is the set of shared values and beliefs created over time that shape
behavioral norms that are used to solve common problems and goals (Allaire & Firsirotu, 1984;
6
Arunchand & Ramanathan, 2013; Hogan & Coote, 2014; Ionescu, 2014; Martinez et al., 2015;
Schein, 1984). Every organization has its unique culture that, over time, has evolved and
determined the acceptable values, ideas, and norms. At the same time, organizational culture can
be viewed as guidance, interpretation, and action when defining appropriate behavior within
various situations (Ravasi & Schultz, 2006).
Organizational culture is such a critical attribute for an organization that it influences
many aspects, including creating action, resolving divergence, and creating a sense of belonging
among employees (Schein, 1984). When cultivating culture, it is much more impactful for
organizations to use visible, tangible, and audible manifestations of their culture to construct
meaning and organize action (Ravasi & Schultz, 2006). Because organizations are viewed as
“mini societies,” which demonstrate their values, norms, and structures, organizations need to
have employees assimilate to this culture to increase the chance that organizational expectations
and goals are met (Allaire & Firsirotu, 1984). An organization can influence employee
motivation, leading to higher or lower job satisfaction (Ilham, 2018). Wright (2007) explains
that the more intrinsic value an employee sees within their organization’s mission, the more
motivated the employee is to succeed with their work.
Similar to the literature organized in this review, this study will examine culture as the
traditions, values, and norms that guide the decisions and behaviors of an organization. By
defining organizational culture, there is a clear understanding of what this research will examine
when analyzing the City of Chino and its part-time non-management employees. The next
section of this literature review will explore the relationship between organizational culture and
the retention of employees.
7
Relationship between Organizational Culture and Employee Retention
Employee retention is crucial when it comes to the overall effectiveness of an
organization. Organizations find it difficult to accomplish goals when facing the challenge of
having enough employees to provide services to their primary clientele. Rehiring can be lengthy
and costly, and depending on the employee’s classification to be replaced can impact overall
organizational knowledge and productivity (Allen et al., 2010; Hur, 2013; Sheridan, 1992). It
becomes more costly for the organization to replace highly productive employees than weak-
performing ones (Sheridan, 1992). An organization’s primary goals cannot be met if all aspects
do not work harmoniously. Turnover challenges require the organization to devote an impactful
amount of resources to replace employees lost. More than a quarter of employees leave an
organization due to poor culture (Ott et al., 2018). High turnover can be seen as a negative
aspect of the organization’s culture which can affect recruiting new employees and cause low
morale for current employees (Meier & Hicklin, 2007).
Employee Values
Individual employee values have been examined as an essential aspect of employee
retention (Florea et al., 2013; Lee et al., 2020; Longenecker, 2013; Ott et al., 2018). Sheridan
(1992) found in their study that organizations whose organizational culture emphasized values
such as interpersonal relationships and respect for other members had their employees stay an
average of 14 months longer than those whose culture emphasized work tasks, responsibilities,
and stability. Another critical relationship is found in the individual employee’s values in
comparison to that of the organization. An individual’s values determine the choices and
perceptions of the individual (Itziar Ramírez García et al., 2019).
8
When employee values mirrored that of the organization, the employee was more likely to stay
with the organization longer and vice versa if values did not match (Florea et al., 2013;
Longenecker, 2013; Sheridan, 1992). Those who join an organization committed to service may
become frustrated when their desire to serve is constrained by strict institutional rules and
competition for organizational values (Paarlberg & Lavigna, 2010).
The literature examining the relationship between organizational culture and employee
retention presents the idea that culture determines why an employee leaves an organization
(Florea et al., 2013; Longenecker, 2013; Ott et al., 2018). An employee's values are also
presented as an aspect determining employees staying with an organization for extended periods.
The literature provides evidence of a relationship between organizational culture and employee
retention.
Job Satisfaction
Job satisfaction is defined as the extent of positive response an employee has to their
place of work (Jung, 2014; Kucharska & Bedford, 2019). Employees with higher job
satisfaction tend to be happier, more productive, and commit to the organization for extended
periods (Arunchand & Ramanathan, 2013). Public organizations' culture tends to see financial
rewards as a lower value when compared to the value of helping others and being involved in the
community (Jung, 2014). When an individual’s values align with the organization’s mission, the
individual will display higher job satisfaction, leading to a long tenure with the organization
(Arunchand & Ramanathan, 2013). Employee job satisfaction correlates with retention rates, as
employees with higher job satisfaction will more likely commit to staying with their organization
for extended periods (Jung, 2014). The more opportunities an organization gives its employees
to present conflict resolutions over work areas and feel heard regarding these issues, the higher
9
the likelihood the employee will remain with the organization (Spencer, 1986). Arunchand and
Ramanathan (2013) found that many public sector employees displayed lower overall morale due
to the bureaucratic culture in most public organizations.
Leadership Style
Leaders of an organization are given the difficult task of motivating employees, keeping
employees satisfied with their job, and producing results (Jung, 2014). Leadership style is a
significant component of an organization's culture and can have enough influence to garner
change, keep job satisfaction high, and empower employees to reach goals (Carter et al., 2013;
Chan, 2014). Silva (2016) defines leadership as “the process of interactive influence that occurs
when, in a given context, some people accept someone as their leader to achieve common goals."
Leadership has evolved from an individual quality to a complex process of motivation, influence,
and accomplishing team goals (Ledimo, 2014; Silva, 2016). The two leadership styles that will
be examined further are transactional and transformational.
Transactional Leadership
Bass (1990) defines transactional leadership as transactions between subordinates and
managers in rewards, incentives, and punishments. When employees do their job well, they are
rewarded, and when they fail to meet standards, they are punished (Bass, 1990). Leaders with a
transactional style of leadership tend to be more reactive to situations rather than proactive
(Asencio, 2016). Transactional leadership, although not ideal, has still been shown to influence
positive job satisfaction among employees (Cho et al., 2019). An inadequate amount of
literature provides evidence showing organizational culture influences leadership style.
10
Transformational Leadership
Transformational leadership is a leadership style that utilizes individual goals,
empowerment, and motivation to accomplish the organization's goals (Asencio, 2016; Bass,
1990; Ledimo, 2014). Transformational leaders demonstrate behaviors such as inspirational
motivation, intellectual stimulation, and trust (Asencio, 2016). Rather than using a rewards or
punishment approach, transformational leaders look to inspire and motivate employees through
opportunities to problem solve and present different approaches to challenges (Bass, 1990). Cho
et al. (2019) found that employees responded positively to leaders who demonstrated a mixed
style of transformational and transactional behaviors.
Public Service Motivation (PSM)
The idea of public service motivation (PSM) is the thought that public sector employees
are intrinsically motivated to serve and give back to the public (Belrhiti et al., 2020). Public
service motivation involves a set of beliefs, values, and attitudes that go beyond self-interest and
the organization’s interests and guides the individual to make decisions with the public’s interest
in mind. Public service motivation can affect an employee's morale level because employees
who demonstrate high morale are often more motivated to complete tasks and goals. Other
positive outcomes of a high public service motivation include individual motivation, prosocial
behaviors, higher job satisfaction, and a more substantial commitment to the organization (Lee et
al., 2020).
Belrhiti et al. (2020) found that public service motivation was strongly influenced by the
leadership style an employee experienced within their organization. The study discussed four
types of leadership: laissez-faire, transactional, transformational, and distributed. Laissez-faire
and transactional leadership decreased intrinsic motivations, including PSM (Belrhiti et al.,
11
2020). Transformational and distributed leadership styles were found to have the opposite effect.
When applied correctly, these styles saw an increase in areas such as communication, and
connectedness, enhancing the perception of autonomy support and increased intrinsic motivation
(Belrhiti et al., 2020).
Person-Organization Fit
Organizations set minimum standards for hiring. An employee’s first encounter with an
organization's culture and values occur during recruitment. Person-organization fit refers to the
degree of congruence or compatibility between individuals' and organizations' characteristics
(Kim, 2012; O’Reilly et al., 1991).
O'Reilly et al. (1991) suggest that organizations display more or less attractive cultures to
certain types of individuals. This idea implies that organizations that display their culture are
more likely to find and recruit better-fit employees. Job attraction involves a job seeker who
estimates how well their personal needs and values fit with the organization's culture.
Understanding the factors that can cause an immediate impact on these possible job seekers is
vital. This understanding will help provide the organization with the necessary means to attract
the most qualified applicant pool possible (Kim, 2012).
Kim (2012) found that organizational cultures could either be more masculine or
"competitive" in nature compared to others that were feminine or "supportive." The company's
overall culture varied with the overall culture of the country the organization was located. For
example, American organizations had more competitive and masculine cultures than other
countries like Sweden and Norway (Kim, 2012). An organization’s culture alone is enough to
recruit various qualified candidates.
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Limitations
The literature presented in this section provides evidence that there has been a significant
amount of research conducted on the concept of organizational culture (Allaire & Firsirotu,
1984; Arunchand & Ramanathan, 2013; Bellot, 2011; Hogan & Coote, 2014; Ionescu, 2014;
Martinez et al., 2015; Ravasi & Schultz, 2006; Schein, 1984; Wright, 2007). However, there is
an absence of literature examining a local municipality's organizational culture. The same is true
in regards to the literature presented for employee retention. Although research has been
conducted on the phenomena of employee retention, there is a lack of research done at the local
government level. Public administration topics such as leadership styles, job satisfaction, and
public service motivation have all been explored (Arunchand & Ramanathan, 2013; Belrhiti et
al., 2020; Jung, 2014; Kim, 2012; Kucharska & Bedford, 2019; Lee et al., 2020; Silva, 2016;
Spencer, 1986). Regardless of the attempt of these studies to examine different aspects of
organizational behavior, there is still a scarcity of research conducted at the local government
level to explore the organizational culture and how it impacts employee retention.
Summary
Organizational culture and its impact on various facets of organizational management
have been reviewed in various types of public organization settings (Allen et al., 2010;
Arunchand & Ramanathan, 2013; Bellot, 2011; Hartmann & Khademian, 2010; Hogan & Coote,
2014; Hur, 2013; Ilham, 2018). However, there is a lack of recent literature designed explicitly
to study organizational culture in local American government agencies. In addition to the lack of
research done at the local level of the American government, there is also a gap in research
between organizational culture and its direct impact on employee retention. Current literature
looks at organizational culture and employee retention as individual aspects rather than the
13
relationship between the two. More research must be conducted to evaluate the impact
organizational culture has on employee retention and strategies that can be applied to improve
the culture and retention of employees within a local government organization.
14
Chapter 4: Research Questions and Aim
This study's main objective is to explore organizational culture's impact on employee
retention by examining the City of Chino, a local government agency. By examining a local
municipality, the study can recommend actions that will help the City of Chino create an
employee-friendly culture and improve the retention of their employees. This study will
examine the following specific research questions:
1. How does the perceived culture of an organization from the employee’s viewpoint affect
the overall retention rate of employees?
2. Do employees who feel their values match the organization's values have higher overall
job satisfaction?
15
Chapter 5: Methodology
The researcher proposes this study to fulfill the requirement for the degree of Master of
Public Administration in Public Sector Management and Leadership.
General Approach
The function of this study is to examine organizational culture and its impact on
employee retention. A sub-focus will be placed on the employees' overall job satisfaction.
Conducting this study will assist public organizations, specifically local municipalities, by
providing data that can be used to improve employee retention. The need for this study is high
due to the lack of research conducted at the local level of government. This research will add to
the understanding of organizational culture, job satisfaction, and employee retention techniques
that can improve the efficiency of local government agencies.
This study will utilize a quantitative approach to the research by using a survey as the
primary tool to collect data. The study will use a haphazard nonprobability design to survey
entry-level and non-management employees in various departments within the organization.
Sampling
The sample group for this study will be chosen through a haphazard nonprobability
selection of current entry-level and non-management employees from the City of Chino. This
type of sampling was chosen due to the ability to sample a large group based on minimal criteria.
Employees surveyed will be from various departments throughout the organization. They will
only need to meet minimal criteria such as being a current employee of the City of Chino,
holding an entry-level position, and not having any employees report directly.
16
Recruitment
The survey will be sent to 200 entry-level and non-management employees within
various departments, including Public Works, Human Resources, Finance, Community
Development, Community Services, and the Police Department. Emails will be sent to the
candidate’s city email. For those who do not have a city email, the survey will be sent to the
email on file with Human Resources. The researcher employed with the organization may
improve the response rate of participants. In addition to the response rate, the researcher may
have more access and ability to speak with employees due to the researcher's status as an
employee.
Research Hypothesis
The following hypotheses were created upon review of the literature and will be tested.
H1 – There is a positive correlation between organizational culture and employee retention.
H2- There is a positive correlation between employee retention and job satisfaction.
This study will take a quantitative approach to assess the relationship between an
organization's culture and employee retention. This study will look at two dependent variables
that focus on 1) overall job satisfaction and 2) retention rate. Both variables bring on challenges
a local government may face with employees. The variable of overall job satisfaction will be
analyzed by an ordinal scale based on participant responses to Likert-type questions. Overall job
satisfaction will be measured from excellent to poor, depending on how respondents answer the
survey (see appendix A). The variable of employee retention will be measured twofold. The
first measurement will be analyzed by an ordinal scale based on participant responses to Likert-
type questions. The second will be by assessing the organization’s average length of
employment via data collected from the human resources department. The independent variable
17
of organizational culture will be measured through an ordinal scale based on responses to Likert-
type questions. Organizational culture will be examined through two scales measuring the trust
management has in employees and the level of communication within the organization.
Organizations will have one of four possible cultures, which are as follows: strong trust and good
communication; poor trust and good communication; strong trust and poor communication; poor
trust and poor communication.
Data Collection Method
This study's primary data collection instrument will be an anonymous structured survey
(Appendix A) comprising 20 closed-ended questions. The survey will be split into three sections
to measure the employees' perception of their organization's culture, the employees' values, and
the employees' overall job satisfaction. Questions will include items such as “I enjoy coming to
work each day” and “I believe that the organization values my work.” The survey will be
administered via an online platform such as survey monkey. The survey will be distributed
through either the employee’s organization email or on paper file for those who do not have
organization emails. In this email or paper form, participants will be given a brief explanation of
the study, the purpose of the study, voluntary consent of participation, anonymity, and
confidentiality of the data collected. Participants will be given 21 days to complete the survey.
Researchers will use an additional 45 days to analyze and transcribe the data collected.
Data Analysis
Once all surveys are collected, the data will be coded, analyzed for errors, and entered
into a database. Although all participants may not answer all questions, this research will accept
surveys with unanswered questions. All answers will be given a numerical value between 1-5.
Questions that are not answered will be given a score of 0. Answers will be coded as follow:
18
1=Strongly Agree; 2=Agree; 3=Neither Agree Nor Disagree; 4=Disagree; 5=Strongly Disagree.
Coding the responses will assist the researcher in determining outliers (Pallant, 2020).
The researcher will use a scatterplot graph to assess the data for any response outliers.
Once all data is collected, coded, and reviewed, the researcher will use the Pearson product-
moment correlation model to assess the correlation between organizational culture and employee
retention. The collected data will also analyze the correlation between job satisfaction and
employee retention. Schober et al. (2018) define correlation as the monotonic association
between two variables. Correlation coefficients range from -1 to +1 (Pallant, 2020).
Correlations are falling closer to the -1 share a negative correlation, and correlations are falling
closer to +1 share a positive correlation (Schober et al., 2018). By utilizing the Pearson product-
moment correlation model, we can determine if the variables correlate with one another.
19
Chapter 6: Discussion
Ethical Considerations
When conducting this study, we must consider the research’s ethical aspects. While
conducting this study, the researchers will follow the applicable IRB guidelines and principles of
ethical research. The researcher will make the purpose of the study and the anonymity of the
respondents well known to all participants before conducting the survey. Participants will be
asked to consent that they are fully aware that any submitted responses will be recorded
anonymously and will not be shared with any other employees, including supervisors, the
executive team, and elected officials. Some participants may feel uncomfortable completing the
survey at work, so they will be given the option to complete the survey anywhere with an
internet connection, any time of day during the twenty-one-day survey period. To avoid biases,
the researchers will report all findings, both positive and negative feedback from all respondents.
Proper storage and distribution of the results will take place. Data collected will be used for the
intended study, will not be distributed to any third-party entities, and will be destroyed upon the
study’s completion.
Methodological Limitations
During this research study, there will be limitations experienced which we will review in
detail in this section. This study will focus on the organization’s culture during a specific period
within the organization’s history. Organizational culture is not permanent but constantly
evolving and changing depending on many factors, including personnel in leadership positions,
the vision of elected officials, and the employees within the organization (Ionescu, 2014). By
conducting the study during this specific moment, researchers will be able to find the
relationship between the current organizational culture and the current employees within the
20
organization. Future studies may need to be done to find the changes happening over time with
the evolution of the culture and how future employees perceive the organization’s culture.
The validity, both internal and external, is another limitation of this study. Internal
validity must consider that the research is designed, conducted, and analyzed to answer the
research question (Andrade, 2018). Due to this study being uniquely conducted to examine local
government agencies, it may have flaws that will need to be examined for future studies.
External validity looks to verify that the study being conducted can be generalized or reproduced
if done with a different sample group (Andrade, 2018). In this study, due to the sample group
being any entry-level non-management position, it cannot be determined that this sample
represents the population demographic of other local government agencies. Demographic
identifiers such as gender, race, and education can vary from employee to employee and within
an organization. These differences can result in perceptions of an organization’s culture varying
from organization to organization.
In addition to the validity of this study, there may also be limitations to the reliability.
The reliability of a study looks to determine whether the measuring instrument, in this case, a
survey, will provide similar results if used in future studies (Sürücü & Maslakçi, 2020). Due to
the limited research on organizational culture done at the local government level, this study will
need to review the questions from the survey to improve its ability to measure an employee’s
perception of their organization’s culture and overall job satisfaction.
Another limitation that may be faced is the truthfulness of the respondent’s responses.
For fear of retaliation or distrust of the research being conducted, some employees may not
answer all questions truthfully. This study will look at the overall perceived culture of the
organization but within this culture lies subcultures that vary from department to department.
21
Future research will need to examine the subcultures within an organization to find the
relationship and level of influence these subcultures may have with the challenge of employee
retention.
Potential Implications
Retention of employees has become an ongoing challenge for many organizations, both
in the private and public sectors. It has become more challenging for public organizations due to
competing with private sector organizations in such areas as compensation, benefits, and the
roadblocks associated with completing tasks. Public organizations must understand that the
traditional methods and procedures must be evolved and adapted to appeal to a new generation
of workers who may not find the strictness and tightly structured characteristics of public sector
organizations appealing.
This study looks to contribute data that will support the importance of organizational
culture and provide suggestions on how to improve employee retention. Findings from the study
will assist executive-level management in determining more efficient methods for improving the
methods used to motivate, lead, and retain their most important resource; their employees.
Furthermore, this research looks to open a path for future studies at the local and county level of
government.
Future Research
Due to the current limitations, future research will need to examine how an organization
can create a sustainable long-term culture that can survive leadership changes. Research must
also be done to examine the various subcultures within an organization and how these
subcultures might influence employee retention. Other research will examine the relationship
22
between organizational values and how they can create a strong culture. Overall, more research
must be conducted to examine organizational culture within local governments.
23
Conclusion
Retaining employees will always be challenging, especially within public organizations
where modest compensation and procedures are saturated with red tape. Leaders of
organizations must come to realize that their decisions and leadership style have much impact on
the overall dynamic of the organization. Leaders must look to create a vision to follow while
maintaining motivation and momentum to solidify an organizational culture that will retain
employees (Ionescu, 2014). Hartmann & Khademian (2010)suggest that future research
regarding organizational culture be looked at with the awareness that organizational context is
central to the organization and that organizational culture is an ongoing process that can adapt
and change over time. Employees look to join organizations in which they share similar values
and beliefs. The next challenge for leaders will be to create a culture of which younger
generations, such as millennials and gen z, will want to be part of.
24
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30
Appendix A
Organizational Culture Survey
Purpose:
The following survey is designed to examine the organization's perceived culture from the
employees' point of view.
This survey is 15 questions and will take about 20 minutes to complete. For this survey to
accurately describe the organization, please answer each question as honestly as possible.
Anonymity:
All responses to this survey will be kept confidential. Only the data collector and researchers
will view the completed survey.
Directions:
From your personal experience, please read each question carefully and choose which answer
best represents your point of view.
Part 1 – Organizational Culture Assessment
1
Strongly
Agree
2
Agree
3
Neither Agree
nor Disagree
4
Disagree
5
Strongly
Disagree
1. Teamwork is encouraged
and rewarded.
2. Individual performance is
encouraged and rewarded.
3. Strong emphasis is put on
following policies,
procedures, and guidelines
4. Management is open and
supports change
5. Management trusts the
decisions I make.
31
6. Communication from
management is clear,
transparent, and given
promptly.
7. Management has provided
a clear vision of roles and
expectations.
8. Management encourages
professional growth.
9. Management takes into
consideration the input of
employees before making
decisions.
10. Management
communicates the
organization's core values
Part 2 – Personal Value Assessment
1
Strongly
Agree
2
Agree
3
Neither Agree
nor Disagree
4
Disagree
5
Strongly
Disagree
1. I value teamwork and
helping others.
2. I value trust and integrity.
3. I value open
communication
4. I value growth and
development
5. I value inclusion and
equality
32
Part 3 – Job Satisfaction
1
Strongly
Agree
2
Agree
3
Neither Agree
nor Disagree
4
Disagree
5
Strongly
Disagree
1. I enjoy coming to work
every day
2. I feel valued by the
management team.
3. I feel the organization
invests in my professional
growth
4. I feel that the work I do
makes a positive impact
5. I see myself staying with
this organization for 3+
years.
Part 4 – Additional comments/suggestions.
Please use the area below to include any additional comments on your views of the
organization’s culture, values, or commitment to the organization.
Thank you for your participation and contribution to this study.

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Galindo-Steven-thesis-2022.pdf

  • 1. CALIFORNIA STATE UNIVERSITY, NORTHRIDGE The Impact of Organizational Culture on Employee Retention in a Public Sector Organization A graduate project submitted in partial fulfillment of the requirements For the degree of Master of Public Administration in Public Sector Management and Leadership By Steven Galindo August 2022
  • 2. ii Copyright by Steven Galindo 2022
  • 3. iii The graduate project of Steven Galindo is approved: __________________________________ ______________ Dr. Kay K. Pih Date __________________________________ ______________ Dr. Anais Valiquette L ‘Heureux Date __________________________________ ______________ Dr. Henrik Palasani-Minassians, Chair Date California State University, Northridge
  • 4. iv Acknowledgment I want to acknowledge my wife, Julia Galindo, for providing me with the encouragement and motivation to continue my education and pursue my goals. Without her support, I would not be where I am today. I would also like to acknowledge my son, Joaquin Galindo, and my daughter, Josephine Galindo, as I have become a better human being since you came into my life.
  • 5. v Table of Contents Copyright Page ii Signature Page iii Acknowledgement iv Abstract vii Chapter 1: Introduction 1 Chapter 2: Background 3 Chapter 3: Review of Literature 5 Organizational Culture 5 Relationship between Organizational Culture and Employee Retention 7 Employee Values 7 Job Satisfaction 8 Leadership Style 9 Transactional Leadership 9 Transformational Leadership 10 Public Service Motivation (PSM) 10 Person-Organization Fit 11 Limitations 12 Summary 12 Chapter 4: Research Questions and Aim 14 Chapter 5: Methodology 15
  • 6. vi General Approach 15 Sampling 15 Recruitment 16 Research Hypotheses 16 Data Collection 17 Data Analysis 17 Chapter 6: Discussion 19 Ethical Considerations 19 Methodological Limitations 19 Potential Implications 21 Future Research 21 Conclusion 23 References 24 Appendix A 30
  • 7. vii Abstract The Impact of Organizational Culture on Employee Retention in Public Sector Organizations By Steven Galindo Master of Public Administration in Public Sector Management and Leadership Organizational culture has become a growing theme in management research. Little research has previously described how an organization's culture impacts employee retention. Public sector organizations must adapt and evolve to find new ways to retain employees and establish an efficient succession plan. Due to the unexpected COVID-19 pandemic, it has become even more crucial that public sector organizations find a way to retain current employees and attract new ones. This study will examine the correlation between organizational culture and employee retention by surveying entry-level and non-management employees within a local municipality. This study aims to explore the overall organizational culture of the City of Chino, a local government agency. This study will use a quantitative approach by utilizing a haphazard nonprobability design to survey entry-level and non-management employees. This research aims to provide local government agencies with data to improve employee retention strategies. Keywords: Organizational Culture, Organizational Values, Employee Retention, Employee Job Satisfaction
  • 8. 1 Chapter 1: Introduction Public organizations have many ongoing components internally and externally that impact the overall effectiveness and day-to-day operations. One of these components is the organizational culture that resides within the organization. Organizational culture can be explained as the set of beliefs, values, and basic assumptions taught, shared, and learned by members of an organization (Allaire & Firsirotu, 1984; Kim, 2012; Marcoulides & Heck, 1993). Organizational culture silently influences an organization’s structure, working conditions, and day-to-day operations. By examining this aspect of an organization, we can better understand why specific organizations have more success retaining employees. Employee retention has become an essential task in private sector organizations and public sector organizations. The success and effectiveness of an organization rely heavily on the assumption that the employees can complete the objectives and goals of the organization (Meier & Hicklin, 2007). Employee turnover can also result in lost institutional knowledge, which can lead to relying on new employees who may not yet fully understand the processes and procedures of the organization (Hur, 2013). When retention is low, the remaining employees must take on more responsibility to maintain the day-to-day operations, which can affect the employee's morale and induce workplace stress (Hur, 2013). In tandem with organizational culture, employee job satisfaction is another critical element. If job satisfaction is unfavorable, it can contribute to poor morale and lower retention rates (Hur, 2013). The organization's culture influences job satisfaction. With higher morale comes higher employee efficiency (Arunchand & Ramanathan, 2013). With millennials and generation Z shifting as the dominant age range in the workforce, it is time to explore and identify ways to improve public sector employees’ job satisfaction.
  • 9. 2 Research is limited among public organizations, and the impact organizational culture has on employee retention. This study's main objective is to understand better how organizational culture influences employee retention by surveying local municipality employees. This research project will collect data proving that employees' perception of their organization's culture influences employee retention. Along with the retention of employees, this study will have a sub-focus on overall job satisfaction. Job satisfaction, along with organizational culture, plays a vital role in the retention of employees (Jung, 2014). This research proposal comprises six chapters: Following this general introduction, Chapter 2 will give a brief background of the issue. Chapter 3 will present findings from the literature on organizational culture, employee retention, and job satisfaction. The literature review will include research conducted in private organizations and public organizations. Chapter 4 will provide the research questions and aim of the study. The research methodology will be presented in Chapter 5. Chapter 6 will discuss ethical considerations, research limitations, potential implications, and future research.
  • 10. 3 Chapter 2: Background Employee retention is an essential aspect of a successful organization. Retaining employees keep the organization functioning and demonstrate to other employees that the organization is solid and valuable (Hur, 2013). Allen et al. (2010) suggest that the overall cost of replacing an employee typically exceeds 100% of the employee's salary. This financial burden will keep organizations from utilizing funds in other areas that may help overall retention, such as employee development. Aside from the financial costs of replacing employees, organizations need to strategize and implement a succession plan as many baby boomers are retiring (Jayathilake et al., 2021). In addition to the generational shift in the workforce, the effects of the pandemic, especially on employment, are now becoming visible, and organizations must become aware of strategies to retain employees (Jayathilake et al., 2021). The City of Chino is one such organization that is beginning to see the results of the COVID-19 pandemic, the generational shift in the workforce, and the change in leadership. The City of Chino is a local municipality with around 94,000 residents and about 1,000 employees, including its Police Department (City of Chino, 2022). Over the last two years, the organization has seen many employees come and go, especially within the Community Services and Public Works departments. Many of these employees who have resigned were from entry-level and non-management positions. In 2021 the City of Chino presented a new strategic plan. This plan aims to guide all departments within the organization to exemplify the City's values, mission, and vision. With the rollout of the new strategic plan, the City also unveiled strategic issues that the organization will look to resolve. One such strategic issue presented is exemplary leadership. This area states, "The City will maintain its commitment to recruiting, training, and retaining a highly
  • 11. 4 skilled workforce by developing its leaders so that community, citizen, and employee satisfaction results” (City of Chino, 2022, n.p.). Positive employee retention will be a critical indicator of the success of solving this strategic issue. This research proposal will analyze organizational culture and its impact on employee retention. The study will provide strategies and suggestions for local government agencies and how they can improve the retention of employees, specifically entry-level and non-management positions.
  • 12. 5 Chapter 3: Literature Review This literature review chapter analyzes and summarizes existing research on organizational culture and its impact on issues such as employee retention and overall job satisfaction. Specifically, the literature review will examine various components describing how organizational culture impacts employee retention. This chapter will be structured as follows: first, the concept of organizational culture will be defined; second, the relationship between organizational culture and employee retention will be discussed; third public service motivation will be reviewed; fourth, leadership styles will be presented; and lastly an analysis of the overall literature will be proposed. Organizational Culture Various attributes of an organization, such as compensation, benefits, location, and culture, may all affect overall employee retention (Allen et al., 2010). Sometime in the mid-80s, research focused heavily on organizational culture, and its popularity rose among organizational management researchers. Organizational culture began to gain interest, especially in research conducted among private sector organizations. Concepts regarding organizational culture look at organizations as small sociocultural systems that share traditions, ideas, and values (Allaire & Firsirotu, 1984; Arunchand & Ramanathan, 2013; Bellot, 2011; Ionescu, 2014). An organization’s culture cannot be seen from the surface level; instead, it is infused in daily operations and how employees look to solve problems, accomplish goals, and determine acceptable behaviors (Bellot, 2011; Hogan & Coote, 2014; Ravasi & Schultz, 2006; Schein, 1984). Many definitions of organizational culture seem to come to the similar conclusion that organizational culture is the set of shared values and beliefs created over time that shape behavioral norms that are used to solve common problems and goals (Allaire & Firsirotu, 1984;
  • 13. 6 Arunchand & Ramanathan, 2013; Hogan & Coote, 2014; Ionescu, 2014; Martinez et al., 2015; Schein, 1984). Every organization has its unique culture that, over time, has evolved and determined the acceptable values, ideas, and norms. At the same time, organizational culture can be viewed as guidance, interpretation, and action when defining appropriate behavior within various situations (Ravasi & Schultz, 2006). Organizational culture is such a critical attribute for an organization that it influences many aspects, including creating action, resolving divergence, and creating a sense of belonging among employees (Schein, 1984). When cultivating culture, it is much more impactful for organizations to use visible, tangible, and audible manifestations of their culture to construct meaning and organize action (Ravasi & Schultz, 2006). Because organizations are viewed as “mini societies,” which demonstrate their values, norms, and structures, organizations need to have employees assimilate to this culture to increase the chance that organizational expectations and goals are met (Allaire & Firsirotu, 1984). An organization can influence employee motivation, leading to higher or lower job satisfaction (Ilham, 2018). Wright (2007) explains that the more intrinsic value an employee sees within their organization’s mission, the more motivated the employee is to succeed with their work. Similar to the literature organized in this review, this study will examine culture as the traditions, values, and norms that guide the decisions and behaviors of an organization. By defining organizational culture, there is a clear understanding of what this research will examine when analyzing the City of Chino and its part-time non-management employees. The next section of this literature review will explore the relationship between organizational culture and the retention of employees.
  • 14. 7 Relationship between Organizational Culture and Employee Retention Employee retention is crucial when it comes to the overall effectiveness of an organization. Organizations find it difficult to accomplish goals when facing the challenge of having enough employees to provide services to their primary clientele. Rehiring can be lengthy and costly, and depending on the employee’s classification to be replaced can impact overall organizational knowledge and productivity (Allen et al., 2010; Hur, 2013; Sheridan, 1992). It becomes more costly for the organization to replace highly productive employees than weak- performing ones (Sheridan, 1992). An organization’s primary goals cannot be met if all aspects do not work harmoniously. Turnover challenges require the organization to devote an impactful amount of resources to replace employees lost. More than a quarter of employees leave an organization due to poor culture (Ott et al., 2018). High turnover can be seen as a negative aspect of the organization’s culture which can affect recruiting new employees and cause low morale for current employees (Meier & Hicklin, 2007). Employee Values Individual employee values have been examined as an essential aspect of employee retention (Florea et al., 2013; Lee et al., 2020; Longenecker, 2013; Ott et al., 2018). Sheridan (1992) found in their study that organizations whose organizational culture emphasized values such as interpersonal relationships and respect for other members had their employees stay an average of 14 months longer than those whose culture emphasized work tasks, responsibilities, and stability. Another critical relationship is found in the individual employee’s values in comparison to that of the organization. An individual’s values determine the choices and perceptions of the individual (Itziar Ramírez García et al., 2019).
  • 15. 8 When employee values mirrored that of the organization, the employee was more likely to stay with the organization longer and vice versa if values did not match (Florea et al., 2013; Longenecker, 2013; Sheridan, 1992). Those who join an organization committed to service may become frustrated when their desire to serve is constrained by strict institutional rules and competition for organizational values (Paarlberg & Lavigna, 2010). The literature examining the relationship between organizational culture and employee retention presents the idea that culture determines why an employee leaves an organization (Florea et al., 2013; Longenecker, 2013; Ott et al., 2018). An employee's values are also presented as an aspect determining employees staying with an organization for extended periods. The literature provides evidence of a relationship between organizational culture and employee retention. Job Satisfaction Job satisfaction is defined as the extent of positive response an employee has to their place of work (Jung, 2014; Kucharska & Bedford, 2019). Employees with higher job satisfaction tend to be happier, more productive, and commit to the organization for extended periods (Arunchand & Ramanathan, 2013). Public organizations' culture tends to see financial rewards as a lower value when compared to the value of helping others and being involved in the community (Jung, 2014). When an individual’s values align with the organization’s mission, the individual will display higher job satisfaction, leading to a long tenure with the organization (Arunchand & Ramanathan, 2013). Employee job satisfaction correlates with retention rates, as employees with higher job satisfaction will more likely commit to staying with their organization for extended periods (Jung, 2014). The more opportunities an organization gives its employees to present conflict resolutions over work areas and feel heard regarding these issues, the higher
  • 16. 9 the likelihood the employee will remain with the organization (Spencer, 1986). Arunchand and Ramanathan (2013) found that many public sector employees displayed lower overall morale due to the bureaucratic culture in most public organizations. Leadership Style Leaders of an organization are given the difficult task of motivating employees, keeping employees satisfied with their job, and producing results (Jung, 2014). Leadership style is a significant component of an organization's culture and can have enough influence to garner change, keep job satisfaction high, and empower employees to reach goals (Carter et al., 2013; Chan, 2014). Silva (2016) defines leadership as “the process of interactive influence that occurs when, in a given context, some people accept someone as their leader to achieve common goals." Leadership has evolved from an individual quality to a complex process of motivation, influence, and accomplishing team goals (Ledimo, 2014; Silva, 2016). The two leadership styles that will be examined further are transactional and transformational. Transactional Leadership Bass (1990) defines transactional leadership as transactions between subordinates and managers in rewards, incentives, and punishments. When employees do their job well, they are rewarded, and when they fail to meet standards, they are punished (Bass, 1990). Leaders with a transactional style of leadership tend to be more reactive to situations rather than proactive (Asencio, 2016). Transactional leadership, although not ideal, has still been shown to influence positive job satisfaction among employees (Cho et al., 2019). An inadequate amount of literature provides evidence showing organizational culture influences leadership style.
  • 17. 10 Transformational Leadership Transformational leadership is a leadership style that utilizes individual goals, empowerment, and motivation to accomplish the organization's goals (Asencio, 2016; Bass, 1990; Ledimo, 2014). Transformational leaders demonstrate behaviors such as inspirational motivation, intellectual stimulation, and trust (Asencio, 2016). Rather than using a rewards or punishment approach, transformational leaders look to inspire and motivate employees through opportunities to problem solve and present different approaches to challenges (Bass, 1990). Cho et al. (2019) found that employees responded positively to leaders who demonstrated a mixed style of transformational and transactional behaviors. Public Service Motivation (PSM) The idea of public service motivation (PSM) is the thought that public sector employees are intrinsically motivated to serve and give back to the public (Belrhiti et al., 2020). Public service motivation involves a set of beliefs, values, and attitudes that go beyond self-interest and the organization’s interests and guides the individual to make decisions with the public’s interest in mind. Public service motivation can affect an employee's morale level because employees who demonstrate high morale are often more motivated to complete tasks and goals. Other positive outcomes of a high public service motivation include individual motivation, prosocial behaviors, higher job satisfaction, and a more substantial commitment to the organization (Lee et al., 2020). Belrhiti et al. (2020) found that public service motivation was strongly influenced by the leadership style an employee experienced within their organization. The study discussed four types of leadership: laissez-faire, transactional, transformational, and distributed. Laissez-faire and transactional leadership decreased intrinsic motivations, including PSM (Belrhiti et al.,
  • 18. 11 2020). Transformational and distributed leadership styles were found to have the opposite effect. When applied correctly, these styles saw an increase in areas such as communication, and connectedness, enhancing the perception of autonomy support and increased intrinsic motivation (Belrhiti et al., 2020). Person-Organization Fit Organizations set minimum standards for hiring. An employee’s first encounter with an organization's culture and values occur during recruitment. Person-organization fit refers to the degree of congruence or compatibility between individuals' and organizations' characteristics (Kim, 2012; O’Reilly et al., 1991). O'Reilly et al. (1991) suggest that organizations display more or less attractive cultures to certain types of individuals. This idea implies that organizations that display their culture are more likely to find and recruit better-fit employees. Job attraction involves a job seeker who estimates how well their personal needs and values fit with the organization's culture. Understanding the factors that can cause an immediate impact on these possible job seekers is vital. This understanding will help provide the organization with the necessary means to attract the most qualified applicant pool possible (Kim, 2012). Kim (2012) found that organizational cultures could either be more masculine or "competitive" in nature compared to others that were feminine or "supportive." The company's overall culture varied with the overall culture of the country the organization was located. For example, American organizations had more competitive and masculine cultures than other countries like Sweden and Norway (Kim, 2012). An organization’s culture alone is enough to recruit various qualified candidates.
  • 19. 12 Limitations The literature presented in this section provides evidence that there has been a significant amount of research conducted on the concept of organizational culture (Allaire & Firsirotu, 1984; Arunchand & Ramanathan, 2013; Bellot, 2011; Hogan & Coote, 2014; Ionescu, 2014; Martinez et al., 2015; Ravasi & Schultz, 2006; Schein, 1984; Wright, 2007). However, there is an absence of literature examining a local municipality's organizational culture. The same is true in regards to the literature presented for employee retention. Although research has been conducted on the phenomena of employee retention, there is a lack of research done at the local government level. Public administration topics such as leadership styles, job satisfaction, and public service motivation have all been explored (Arunchand & Ramanathan, 2013; Belrhiti et al., 2020; Jung, 2014; Kim, 2012; Kucharska & Bedford, 2019; Lee et al., 2020; Silva, 2016; Spencer, 1986). Regardless of the attempt of these studies to examine different aspects of organizational behavior, there is still a scarcity of research conducted at the local government level to explore the organizational culture and how it impacts employee retention. Summary Organizational culture and its impact on various facets of organizational management have been reviewed in various types of public organization settings (Allen et al., 2010; Arunchand & Ramanathan, 2013; Bellot, 2011; Hartmann & Khademian, 2010; Hogan & Coote, 2014; Hur, 2013; Ilham, 2018). However, there is a lack of recent literature designed explicitly to study organizational culture in local American government agencies. In addition to the lack of research done at the local level of the American government, there is also a gap in research between organizational culture and its direct impact on employee retention. Current literature looks at organizational culture and employee retention as individual aspects rather than the
  • 20. 13 relationship between the two. More research must be conducted to evaluate the impact organizational culture has on employee retention and strategies that can be applied to improve the culture and retention of employees within a local government organization.
  • 21. 14 Chapter 4: Research Questions and Aim This study's main objective is to explore organizational culture's impact on employee retention by examining the City of Chino, a local government agency. By examining a local municipality, the study can recommend actions that will help the City of Chino create an employee-friendly culture and improve the retention of their employees. This study will examine the following specific research questions: 1. How does the perceived culture of an organization from the employee’s viewpoint affect the overall retention rate of employees? 2. Do employees who feel their values match the organization's values have higher overall job satisfaction?
  • 22. 15 Chapter 5: Methodology The researcher proposes this study to fulfill the requirement for the degree of Master of Public Administration in Public Sector Management and Leadership. General Approach The function of this study is to examine organizational culture and its impact on employee retention. A sub-focus will be placed on the employees' overall job satisfaction. Conducting this study will assist public organizations, specifically local municipalities, by providing data that can be used to improve employee retention. The need for this study is high due to the lack of research conducted at the local level of government. This research will add to the understanding of organizational culture, job satisfaction, and employee retention techniques that can improve the efficiency of local government agencies. This study will utilize a quantitative approach to the research by using a survey as the primary tool to collect data. The study will use a haphazard nonprobability design to survey entry-level and non-management employees in various departments within the organization. Sampling The sample group for this study will be chosen through a haphazard nonprobability selection of current entry-level and non-management employees from the City of Chino. This type of sampling was chosen due to the ability to sample a large group based on minimal criteria. Employees surveyed will be from various departments throughout the organization. They will only need to meet minimal criteria such as being a current employee of the City of Chino, holding an entry-level position, and not having any employees report directly.
  • 23. 16 Recruitment The survey will be sent to 200 entry-level and non-management employees within various departments, including Public Works, Human Resources, Finance, Community Development, Community Services, and the Police Department. Emails will be sent to the candidate’s city email. For those who do not have a city email, the survey will be sent to the email on file with Human Resources. The researcher employed with the organization may improve the response rate of participants. In addition to the response rate, the researcher may have more access and ability to speak with employees due to the researcher's status as an employee. Research Hypothesis The following hypotheses were created upon review of the literature and will be tested. H1 – There is a positive correlation between organizational culture and employee retention. H2- There is a positive correlation between employee retention and job satisfaction. This study will take a quantitative approach to assess the relationship between an organization's culture and employee retention. This study will look at two dependent variables that focus on 1) overall job satisfaction and 2) retention rate. Both variables bring on challenges a local government may face with employees. The variable of overall job satisfaction will be analyzed by an ordinal scale based on participant responses to Likert-type questions. Overall job satisfaction will be measured from excellent to poor, depending on how respondents answer the survey (see appendix A). The variable of employee retention will be measured twofold. The first measurement will be analyzed by an ordinal scale based on participant responses to Likert- type questions. The second will be by assessing the organization’s average length of employment via data collected from the human resources department. The independent variable
  • 24. 17 of organizational culture will be measured through an ordinal scale based on responses to Likert- type questions. Organizational culture will be examined through two scales measuring the trust management has in employees and the level of communication within the organization. Organizations will have one of four possible cultures, which are as follows: strong trust and good communication; poor trust and good communication; strong trust and poor communication; poor trust and poor communication. Data Collection Method This study's primary data collection instrument will be an anonymous structured survey (Appendix A) comprising 20 closed-ended questions. The survey will be split into three sections to measure the employees' perception of their organization's culture, the employees' values, and the employees' overall job satisfaction. Questions will include items such as “I enjoy coming to work each day” and “I believe that the organization values my work.” The survey will be administered via an online platform such as survey monkey. The survey will be distributed through either the employee’s organization email or on paper file for those who do not have organization emails. In this email or paper form, participants will be given a brief explanation of the study, the purpose of the study, voluntary consent of participation, anonymity, and confidentiality of the data collected. Participants will be given 21 days to complete the survey. Researchers will use an additional 45 days to analyze and transcribe the data collected. Data Analysis Once all surveys are collected, the data will be coded, analyzed for errors, and entered into a database. Although all participants may not answer all questions, this research will accept surveys with unanswered questions. All answers will be given a numerical value between 1-5. Questions that are not answered will be given a score of 0. Answers will be coded as follow:
  • 25. 18 1=Strongly Agree; 2=Agree; 3=Neither Agree Nor Disagree; 4=Disagree; 5=Strongly Disagree. Coding the responses will assist the researcher in determining outliers (Pallant, 2020). The researcher will use a scatterplot graph to assess the data for any response outliers. Once all data is collected, coded, and reviewed, the researcher will use the Pearson product- moment correlation model to assess the correlation between organizational culture and employee retention. The collected data will also analyze the correlation between job satisfaction and employee retention. Schober et al. (2018) define correlation as the monotonic association between two variables. Correlation coefficients range from -1 to +1 (Pallant, 2020). Correlations are falling closer to the -1 share a negative correlation, and correlations are falling closer to +1 share a positive correlation (Schober et al., 2018). By utilizing the Pearson product- moment correlation model, we can determine if the variables correlate with one another.
  • 26. 19 Chapter 6: Discussion Ethical Considerations When conducting this study, we must consider the research’s ethical aspects. While conducting this study, the researchers will follow the applicable IRB guidelines and principles of ethical research. The researcher will make the purpose of the study and the anonymity of the respondents well known to all participants before conducting the survey. Participants will be asked to consent that they are fully aware that any submitted responses will be recorded anonymously and will not be shared with any other employees, including supervisors, the executive team, and elected officials. Some participants may feel uncomfortable completing the survey at work, so they will be given the option to complete the survey anywhere with an internet connection, any time of day during the twenty-one-day survey period. To avoid biases, the researchers will report all findings, both positive and negative feedback from all respondents. Proper storage and distribution of the results will take place. Data collected will be used for the intended study, will not be distributed to any third-party entities, and will be destroyed upon the study’s completion. Methodological Limitations During this research study, there will be limitations experienced which we will review in detail in this section. This study will focus on the organization’s culture during a specific period within the organization’s history. Organizational culture is not permanent but constantly evolving and changing depending on many factors, including personnel in leadership positions, the vision of elected officials, and the employees within the organization (Ionescu, 2014). By conducting the study during this specific moment, researchers will be able to find the relationship between the current organizational culture and the current employees within the
  • 27. 20 organization. Future studies may need to be done to find the changes happening over time with the evolution of the culture and how future employees perceive the organization’s culture. The validity, both internal and external, is another limitation of this study. Internal validity must consider that the research is designed, conducted, and analyzed to answer the research question (Andrade, 2018). Due to this study being uniquely conducted to examine local government agencies, it may have flaws that will need to be examined for future studies. External validity looks to verify that the study being conducted can be generalized or reproduced if done with a different sample group (Andrade, 2018). In this study, due to the sample group being any entry-level non-management position, it cannot be determined that this sample represents the population demographic of other local government agencies. Demographic identifiers such as gender, race, and education can vary from employee to employee and within an organization. These differences can result in perceptions of an organization’s culture varying from organization to organization. In addition to the validity of this study, there may also be limitations to the reliability. The reliability of a study looks to determine whether the measuring instrument, in this case, a survey, will provide similar results if used in future studies (Sürücü & Maslakçi, 2020). Due to the limited research on organizational culture done at the local government level, this study will need to review the questions from the survey to improve its ability to measure an employee’s perception of their organization’s culture and overall job satisfaction. Another limitation that may be faced is the truthfulness of the respondent’s responses. For fear of retaliation or distrust of the research being conducted, some employees may not answer all questions truthfully. This study will look at the overall perceived culture of the organization but within this culture lies subcultures that vary from department to department.
  • 28. 21 Future research will need to examine the subcultures within an organization to find the relationship and level of influence these subcultures may have with the challenge of employee retention. Potential Implications Retention of employees has become an ongoing challenge for many organizations, both in the private and public sectors. It has become more challenging for public organizations due to competing with private sector organizations in such areas as compensation, benefits, and the roadblocks associated with completing tasks. Public organizations must understand that the traditional methods and procedures must be evolved and adapted to appeal to a new generation of workers who may not find the strictness and tightly structured characteristics of public sector organizations appealing. This study looks to contribute data that will support the importance of organizational culture and provide suggestions on how to improve employee retention. Findings from the study will assist executive-level management in determining more efficient methods for improving the methods used to motivate, lead, and retain their most important resource; their employees. Furthermore, this research looks to open a path for future studies at the local and county level of government. Future Research Due to the current limitations, future research will need to examine how an organization can create a sustainable long-term culture that can survive leadership changes. Research must also be done to examine the various subcultures within an organization and how these subcultures might influence employee retention. Other research will examine the relationship
  • 29. 22 between organizational values and how they can create a strong culture. Overall, more research must be conducted to examine organizational culture within local governments.
  • 30. 23 Conclusion Retaining employees will always be challenging, especially within public organizations where modest compensation and procedures are saturated with red tape. Leaders of organizations must come to realize that their decisions and leadership style have much impact on the overall dynamic of the organization. Leaders must look to create a vision to follow while maintaining motivation and momentum to solidify an organizational culture that will retain employees (Ionescu, 2014). Hartmann & Khademian (2010)suggest that future research regarding organizational culture be looked at with the awareness that organizational context is central to the organization and that organizational culture is an ongoing process that can adapt and change over time. Employees look to join organizations in which they share similar values and beliefs. The next challenge for leaders will be to create a culture of which younger generations, such as millennials and gen z, will want to be part of.
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  • 37. 30 Appendix A Organizational Culture Survey Purpose: The following survey is designed to examine the organization's perceived culture from the employees' point of view. This survey is 15 questions and will take about 20 minutes to complete. For this survey to accurately describe the organization, please answer each question as honestly as possible. Anonymity: All responses to this survey will be kept confidential. Only the data collector and researchers will view the completed survey. Directions: From your personal experience, please read each question carefully and choose which answer best represents your point of view. Part 1 – Organizational Culture Assessment 1 Strongly Agree 2 Agree 3 Neither Agree nor Disagree 4 Disagree 5 Strongly Disagree 1. Teamwork is encouraged and rewarded. 2. Individual performance is encouraged and rewarded. 3. Strong emphasis is put on following policies, procedures, and guidelines 4. Management is open and supports change 5. Management trusts the decisions I make.
  • 38. 31 6. Communication from management is clear, transparent, and given promptly. 7. Management has provided a clear vision of roles and expectations. 8. Management encourages professional growth. 9. Management takes into consideration the input of employees before making decisions. 10. Management communicates the organization's core values Part 2 – Personal Value Assessment 1 Strongly Agree 2 Agree 3 Neither Agree nor Disagree 4 Disagree 5 Strongly Disagree 1. I value teamwork and helping others. 2. I value trust and integrity. 3. I value open communication 4. I value growth and development 5. I value inclusion and equality
  • 39. 32 Part 3 – Job Satisfaction 1 Strongly Agree 2 Agree 3 Neither Agree nor Disagree 4 Disagree 5 Strongly Disagree 1. I enjoy coming to work every day 2. I feel valued by the management team. 3. I feel the organization invests in my professional growth 4. I feel that the work I do makes a positive impact 5. I see myself staying with this organization for 3+ years. Part 4 – Additional comments/suggestions. Please use the area below to include any additional comments on your views of the organization’s culture, values, or commitment to the organization. Thank you for your participation and contribution to this study.