ISSN: 2222-6990
Open access
This research examines the correlation between organizational culture and employee performance at Sultan Idris University of Education (UPSI). A descriptive survey design was employed, with 309 structured questionnaires sent online to UPSI personnel. The results reveal a substantial association between corporate culture and employee performance, with employee involvement exhibiting the most pronounced relationship. The regression analysis indicates that employee involvement is the primary factor affecting employee performance. A culture of employee engagement fosters active participation, innovation, and accountability among employees, hence building a happy and supportive work environment. The dimensions of organizational culture, including Clan Culture (r = 0.324, p < 0.01), Adhocracy (r = 0.298, p < 0.01), Competitive Culture (r = 0.287, p < 0.01), and Hierarchy (r = 0.265, p < 0.01), exhibit positive correlations with employee performance. Employee involvement exhibits the most robust correlation with performance (r = 0.618, p < 0.001), establishing it as the variable with the highest degree of association. Multiple linear regression analysis reveals that employee involvement is the primary factor affecting employee performance, with a coefficient of ? = 0.583, p < 0.001, and a standard error of 0.057. The four elements of organizational culture were not statistically significant in the regression model (p > 0.05). The study finds that company culture significantly enhances employee performance. Management should enhance cultural components, like open communication, creativity, and well-defined work structures, to foster an environment that promotes motivation and work efficacy.
Abdelhakim, H. (2020). Organizational culture and its impact on employee performance: A review. International Journal of Business and Management, 15(6), 56-67. https://doi.org/10.5539/ijbm.v15n6p56
Allard, C. (2010). Innovation culture in organizations: The case of small and medium enterprises in the European Union. International Journal of Innovation Management, 14(5), 831-852. https://doi.org/10.1142/S1363919609002423
Cai, W. (2020). The impact of organizational culture on employee performance in China’s public sector. Journal of Management and Organizational Studies, 38(2), 102-113. https://doi.org/10.1016/j.jmo.2020.01.004
Cameron, K. S., & Quinn, R. E. (2011). Diagnosing and changing organizational culture: Based on the competing values framework (3rd ed.). Jossey-Bass.
Chowdhury, A. (2021). The influence of organizational culture on employee performance: Evidence from Bangladesh. Journal of Business Research, 57(4), 456-465. https://doi.org/10.1016/j.jbusres.2021.05.008
Denison, D. R. (1990). Corporate culture and organizational effectiveness. John Wiley & Sons.
Ganyang, T. (2019). The role of employee engagement in shaping organizational performance. International Journal of Human Resource Management, 34(1), 14-29. https://doi.org/10.1080/09585192.2018.1465587
Hu, C. (2020). Innovation-oriented culture and employee performance: The mediating role of psychological empowerment. Journal of Management Development, 39(4), 447-460. https://doi.org/10.1108/JMD-06-2019-0251
Iqbal, M. Z., & Ahmad, S. (2020). The impact of organizational culture on employee performance: Evidence from public universities in Pakistan. International Journal of Business and Society, 21(2), 530-546.
Javed, B. (2021). The role of organizational culture in enhancing employee performance: A review. Journal of Business Research, 134, 305–313. https://doi.org/10.1016/j.jbusres.2021.05.008
Kelloway, E. K. (2017). Organizational culture and its impact on employee satisfaction and performance. Journal of Applied Psychology, 45(3), 45-59. https://doi.org/10.1037/apl0000180
Magjuka, R. J. (1993). Employee involvement in organizations: The effects of participation on job satisfaction and performance. Journal of Applied Behavioral Science, 29(2), 131-150. https://doi.org/10.1177/0021886393292003
Mughal, M. A., & Zafar, M. (2020). Organizational culture and its impact on employee performance. Journal of Management and Economics, 56(2), 203-215. https://doi.org/10.1016/j.jme.2020.06.003
Osei, G. (2020). Hierarchical culture in organizations and its influence on performance. Journal of Organizational Behavior, 32(4), 120-130. https://doi.org/10.1002/job.2357
Saks, A. M., & Gruman, J. A. (2017). What do we really know about employee engagement? Human Resource Development Quarterly, 28(3), 265–291. https://doi.org/10.1002/hrdq.21282
Shaw, R. (2016). Organizational culture and its impact on employee motivation. Journal of Business Management, 19(1), 90-105.
Wang, Y. (2019). Organizational culture and employee well-being: The mediating role of work engagement. Journal of Organizational Behavior, 40(2), 234–245. https://doi.org/10.1002/job.2332
Zhang, T., & Hu, J. (2020). Organizational culture and employee performance: The moderating role of organizational commitment. Journal of Organizational Psychology, 56(3), 335–349. https://doi.org/10.1016/j.jorgpsy.2020.06.007
Yahya, M. F. B. M., Khalid, K. Bin, & Salleh, M. I. Bin. (2025). The Relationships of Organizational Culture on Employee Performance in Public Universiti in Malaysia. International Journal of Academic Research in Business and Social Sciences, 15(6), 511–519.
Copyright: © 2025 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode