International Journal of Academic Research in Business and Social Sciences

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The Relationships of Organizational Culture on Employee Performance in Public Universiti in Malaysia

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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.
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