The Adoption of Organisational Culture and Organisational Trust toward Enhancement of Employee Engagement in Malaysia Corporate Sector: Mediated by Employment Stability

Pua, Chen Yen (2023) The Adoption of Organisational Culture and Organisational Trust toward Enhancement of Employee Engagement in Malaysia Corporate Sector: Mediated by Employment Stability. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

Due to increasing competitive working environment, employee engagement is important to gain competitive advantage and motivation to work for the company. In light of the economic survival is threatened and the practice of new norms resulting from the post Covid-19 pandemic crisis, the line separating acceptable and unacceptable behaviour can, for some, become blurred. Therefore, it is vital to analyse empirically the possibility of employee engagement by using the theory of Social Exchange theory, Engagement Theory and Institutional Theory. Specifically, this research examines the impact of clan culture, adhocracy culture, hierarchy culture, market culture, organisational trust towards employee engagement. A total of 261 employees’ data were collected who working in either public or private in Malaysia corporate sector for the purpose of answering the three research objectives. The collected data was further analysed using statistical tools of Statistical Package for the Social Sciences (SPSS) and Partial Least Squares Path Modelling Method with Smart-PLS. The result reveals that the social exchange theory has a significant influence on organisational culture and trust to enhance engagement in workplace. Interestingly, internal CSR practice is found to be one of the predictors which contributes effect on the employee engagement. Besides, this research contributes to the literature of employee engagement by providing the initial evidence on the mediation role of employment stability as an antecedent towards employee engagement. From a practical perspective, this research demonstrates further insights by evincing the importance of using good culture, trust and internal CSR practice to create a work environment that increases happiness and engagement by building a secure work environment IV and incorporating good CSR policies for stakeholders in the company to help prevent employee disengagement in Malaysian companies.