AN EVALUATION OF THE IMPACT OF ORGANIZATIONAL CULTURE ON EMPLOYEE TURNOVERS IN THE CONSTRUCTION INDUSTRY OF CAMEROON

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The construction industry is a complex system that is influenced by several internal and external factors, which impact its daily operations and overall efficiency. An essential internal component is the organizational culture, which establishes the climate within the industry. According to Tharp (2019), organizational culture is now recognised as a valuable resource for companies, as it can be utilized to enhance corporate performance and shape employees' work attitudes. The management is focusing on the organizational culture, which refers to the shared values, beliefs, and attitudes among the people of the organization (Darmawan, 2018; Hakim, 2020). This is done to create a competitive advantage by developing a value-based organization. Dwirantwi (2022) defines organizational culture as the collective attitudes, experiences, beliefs, and values of an organization. These aspects are gained through social learning and influence the interactions between individuals and groups inside the organization, as well as with external parties. Therefore, workplace culture is an intangible yet highly influential factor that shapes individuals' behaviour and dictates their attire, conduct, and job performance. This suggests that each company possesses its own distinct personality, similar to that of persons, which is intentionally and purposefully developed and transmitted to new personnel. According to previous research, organizational culture is a powerful factor that influences employee attitudes as well as institutional accomplishments (Akhigbe et al., 2018; Bellary et al., 2020). However, organizational culture not only establishes expectations for behavior inside the workplace, but it also has a personal impact on employee satisfaction and lowers employees turnover. The term ‘ employee turnover’ is defined as a measurement of whether a business or organisation’s employees plan to leave their positions or whether that organization plans to remove employees from positions  (Curtis, 2018). Similarly, Hur (2018) states that employee turnover results in a depletion of institutional knowledge, necessitating dependence on newly hired staff members who may not be fully familiar with the organization's policies and processes. Beyond that, employee turnover refers to the probability of an employee departing from a certain organization, which significantly impacts the company's stability and reputation. It occurs when an employee decides to transition to a new role, signaling their intention to depart from their current job in the near future. However, turnover can be either voluntary or involuntary. Voluntary turnover occurs when the employee perceives another opportunity (that is more pay, more recognition or a more convenient location) as better than his current position. It can also occur when the employee has to leave for health or family reasons. If an employee plans to retire from a position, that’s voluntary turnover intention, too. Additionally, voluntary turnover can also be functional or dysfunctional for the organization (Kimazi & Schope, 2012). Functional turnover occurs when an employee's departure benefits the organization and can be easily replaced, resulting in a positive difference in workforce value that outweighs turnover costs. Conversely, dysfunctional turnover happens when the departure of a highly skilled or high-performing employee negatively impacts the organization, leading to a negative difference in workforce value or insufficient positive change to offset costs. While dysfunctional turnover may lead to the loss of firm-specific human capital, it can also benefit the organization by removing employees with burned-out performance or negative attitudes, which could otherwise affect the motivation and productivity of others. Overall, turnover is considered functional when replacements are expected to contribute more value to the job or organization compared to the employees they replace. on the other hand, involuntary turnover  occurs when the employee leaves the organization through disengagement, retirement, layoff, death among others (Kimazi & Schope, 2022). Also, organization plans to eliminate positions due to economic pressure or downturns in business also constitute involuntary turnover. Nevertheless, employee turnover is typically influenced by both employees' intentional decision to leave their current organizations in the future due to dissatisfaction, as well as their active efforts to make this decision a reality. Therefore, a survey will be conducted in order to examine the impact of organizational culture on employee turnover in the construction industry in Cameroon.

1.2 Statement of the Problem

The human component has a crucial part in influencing the outcome, whether positive or negative, of any organization. However, the organizational culture has a considerable impact on whether employees choose to stay or leave the organization. Furthermore, organizations that do not provide adequate assistance to their employees may increase the likelihood of employees seeking opportunities elsewhere. Research suggests that employee turnover, especially in the construction business, is often substantial (Lalah, 2019). This can have a negative impact on the functioning and provision of services inside the organization, resulting in higher expenses associated with employee turnover, training needs, loss of investments in people, and a drop in work efficiency. These problems present a significant obstacle. In recent years, there has been ongoing research in the field of organizational culture focusing on several constructs. The relationship between organizational culture and turnover intentions, has been studied by several researchers (Emerson, 2018; Long, Thean, Ismail & Jusoh, 2022; Kee, 2020). Prior research has examined the correlation between culture and different employee attitudes and behaviours. However, there is a lack of studies that specifically investigate the impact of culture on employee turnover, which is a major concern for businesses in the present day. It is in the light of these that the study seeks to examine the impact of organizational culture on employee turnover in the construction industry in Cameroon.

1.3 Objectives of the Study

The main purpose of this study is to examine the impact of organizational culture on employee turnover in the construction industry in Cameroon. Specifically, the study will;

Determine the correlation between organizational culture and employee turnover in the construction industry in Cameroon.

Determine the impact of organizational culture on employee turnover in the construction industry in Cameroon.

Investigate the role of organizational culture in fostering employee commitment in the construction industry in Cameroon.

4.Examine the effectiveness of organizational culture in reducing turnover in the organization. 

1.4 Research Questions

The following questions have been prepared for the study:

What is the correlation between organizational culture and employee turnover in the construction industry in Cameroon?

How does organizational culture impact employee turnover in the construction industry in Cameroon?

What role does organizational culture play in fostering employee commitment in the construction industry in Cameroon?

How effective is organizational culture in reducing turnover in organizations within the construction industry in Cameroon?

1.5 Research Hypotheses

Ho: Organizational culture has no significant impact on employee turnover in the construction industry in Cameroon..

Ha: Organizational culture has a significant impact on employee turnover in the construction industry in Cameroon.

1.6 Significance of the Study

Through the results of the study, management will have a broader awareness of the correlation between organizational culture and employee attitudes and behaviour. Additionally, it will enable management to address and improve some deficiencies while taking advantage of the importance of ensuring optimal satisfaction and retention of employees through a positive workplace culture. Furthermore,subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the impact of organizational culture on employee turnover in the construction industry in Cameroon.

1.6 Scope of the study

The scope of this study is to examine the impact of organizational culture on employee turnover in the construction industry in Cameroon. Empirically, this study will determine the correlation between organizational culture and employee turnover in the construction industry, the impact of organizational culture on employee turnover, investigate the role of organizational culture in fostering employee commitment and examine the effectiveness of organizational culture in reducing turnover in the organization. 

Geographically, the study will be delimited to employees in Temolu construction company, Bamenda, Cameroon.

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. 

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

19 Definition of Terms

Organizational culture: the shared values, beliefs, norms, and practices that characterize an organization and guide the behavior of its members.

Employee turnover: the rate at which employees leave an organization and need to be replaced. 

Employee retention: is the ability of an organization to keep its employees engaged and committed to their jobs for an extended period.