The Moderation Effect of Organizational Culture on the Relationships between the Image of the Organization and Rewards and Recognition on Employee Engagement

Abstract

The success of an organization is closely tied to a positive and supportive culture. Organizational culture heightens the morale of employees and increases the level of engagement and productivity of the organization. Such cultures are characterized by strong leadership, clear values, open communication, and a nurturing work environment, all of which foster higher employee engagement and satisfaction. A robust organizational culture enhances the company's public image and reputation and transforms employees into brand advocates. Additionally, rewards and recognition are crucial in cultivating an engaged work culture, ultimately driving improved employee performance. The moderating role of organizational culture with employee engagement is an under-explored area among university staff in the Sri Lankan context.  Therefore, this article aims to identify how the moderation effect of the organizational culture works on the relationships between the image of the organization and rewards and recognition on employee engagement. The study sample was administrative staff in 15 national universities in Sri Lanka. A questionnaire was distributed using a Google form to collect primary data with a 68.9% usable response rate. Partial Least Square Structural Equation Modelling was executed to analyze data using the SmartPLS3 Software. The results revealed that both the image of the organization and Rewards and recognition have significant positive impacts on employee engagement. However, the moderation effect of organizational culture hinders the relationships between predictor variables and the dependent variable. In particular, the organizational culture has a significant negative impact on the relationship between the image of the organization and employee engagement. The findings from this study offer valuable insights into how organizational culture can strengthen or weaken the impact of the image of the organization and rewards and recognition on employee engagement. The outcome of this study is useful for university management and other government policy-making bodies to modify their rigid rules and regulations.