Impact of Organizational Culture on Organizational Commitment: A Comparative Analysis between the Education and Financial Services Sectors

The culture of a group or organization is known to have an impact on the morale and overall attitude of people who are members of the particular group or organization. It is therefore understood that cultures of different organizations or groups may differ based on the behavior and values propagated by these organizations. Organizational culture has often been construed as an outcome of management philosophy and practices and may impact organizational commitment. The purpose of the current study is to analyze the influence of organizational culture on organizational commitment by studying responses from respondents working in two identified sectors (education and financial services) as both these sectors have seen an increase in growth and privatization, both evolving into profitable business models in the recent two decades or so, and therefore have been considered appropriate for this study. The results indicate that the two sectors differs significantly on the culture and commitment dimensions (p<.01). The study also explored the linkages among culture and commitment dimensions so as to explore the prediction and regression fit where organizational culture has come up as a definite predictor of organizational commitment (P<.04, p<.000). The results of the study have been used, to draw up a list of recommendations, to identify and highlight dimensions of organizational culture, which may enhance and encourage greater organizational commitment specific to nature of the industry.