Impact of organizational culture on employees’ performance: A study in multinational corporations in Sarawak

Abstract

In this study, the relationship between both organizational culture and employees’ performance has been researched in several multinational corporations in Sarawak, Malaysia. Sarawak is one of the regions in Malaysia with different categories of races where different races practise different cultural conducts. As employees from different cultural backgrounds work in multinational corporations from different countries with respective cultures, this will influence the employees’ working professionalism with either positive or negative outcomes. The objective of the present study is to investigate whether the organizational culture will affect the employees’ performance within multinational corporations selected. This study has been conducted by using a quantitative correlational research design with a self-administered questionnaire distributed to the targeted respondents. In terms of organizational culture, Hofstede’s four cultural values, namely, Power Distance, Uncertainty Avoidance, Individualism versus Collectivism, and Femininity versus Masculinity have been adopted by the researcher to conduct this study. The data collected was analysed by using IBM SPSS 25.0. The study has found out that there is a significant relationship between organizational culture and employees’ performance within the multinational corporations. The study also recommended the multinational corporations to pay more attention to the factor that stimulating employees’ job performance.