Nowadays, Firm's environment is rapidly changing. In the information society, the source of firm's competitiveness lies in the abundance of creative human resources and the firm's innovative capacity on the basis of it. However, even if the firm ha...
Nowadays, Firm's environment is rapidly changing. In the information society, the source of firm's competitiveness lies in the abundance of creative human resources and the firm's innovative capacity on the basis of it. However, even if the firm has affluence of manpower full of creativity, it does not necessarily produce innovation without organizational culture and climate which is capable of making the best use of their creativity.
In order to produce firm's innovation, it has to be premised that employees should be clearly aware of management ideology and goal on the basis of high motivation and morale as well as shared value which goes in with all employees. Therefore it is important to manage organizational culture.
A good deal of empirical studies on organizational culture shows that groups divided by business units, functions and regions formulate subcultures within the organization, and this subculture influences each individual's consciousness and behavior, and consequently it plays an important role in achieving the goal of the whole organization. Therefore, it is also important to formulate and manage desirable subculture
The objectives of this study are firstly to verify the cultural fit between organization and division affects on organizational commitment by empirical test, and then to identify whether group cohesion has a moderating effect between cultural fit and organizational commitment.
To attain the objectives of this study, two hypotheses were generated and tested using data collected from 703 employees of the total 151 divisions from six domestic companies such as financial institutions, public communities, manufacturing companies, service companies and so on.
The first hypothesis is to examine whether the fitness between organizational culture and subculture influences organizational commitment . Empirical results are indicated as follows.
The correlation between organization-division cultural fit and organizational commitment showed positive and high relationship. Accordingly correlation between each component of organizational culture and organizational commitment also showed high relationship. As the result, the first hypothesis was accepted.
Meanwhile, when we compare organizational culture with divisional culture, two cases can be indicated. That is, in case divisional culture is more positive than organizational culture, we define it "leader culture" and in opposite case, we define it "follower culture." The result to examine which one is higher level of organizational commitment showed that leader culture had higher level of organizational commitment than follower culture. It implies that managing divisional culture is very important, since employee's positive recognition of divisional culture has higher influence on organizational commitment than that of organizational culture.
The second hypothesis is to verify that divisional cohesion and divisional characteristics have moderating effect between cultural fit and organizational commitment. The result showed that even though the degree of cultural fit is same between two divisions, the level of organizational commitment was different in case the level of divisional cohesion was different. The result also showed that divisional characteristic had moderating effect . between cultural fit and organizational commitment. Concretely speaking of this result, the clarity of work process and consequence showed high moderating effect and the degree of temporary work showed average moderating effect, and lastly the diversity of customer demands showed no moderating effect.
The implication of this study is as follows.
First, this study shows that the level of cultural fit between organization and division is highly related to organizational commitment. Therefore the effort to match the organizational values and divisional value is important to enhance organizational commitment..
Second, the positive awareness of divisional culture affects on organizational commitment. That is, the positive awareness of divisional culture has more affects on the organizational commitment than that of organizational culture
Finally, even though the level of cultural fitness is the same between two divisions, the level of organizational commitment is different in case that the level of divisional cohesion is not the same. This fact means that even if the gap is high between organizational culture and divisional culture, it is possible to enhance organizational commitment throughout the enhancement of divisional cohesion. Therefore, it is important to manage divisional cohesion for high organizational commitment.