ORGANIZATIONAL CULTURE: IMPACT ON EMPLOYEE COMMITMENT AND RETENTION IN RETAIL FOOD SERVICE IN SELECTED CITIES IN THE NATIONAL CAPITAL REGION

Abstract

This study examined the impact of organizational culture on employee commitment and retention in retail food service in selected cities in the National Capital Region (NCR), Philippines. It evaluated the organizational culture of retail food service, how that culture improves employee commitment, and how it influences employees’ decision to stay in the organization. A descriptive evaluation and descriptive correlation design was used. Descriptive evaluation assessed respondents’ meaningful responses to leadership and management within the organization, while descriptive correlation tested the relationships among organizational culture, employee commitment, and retention. Two sets of self-made, expert-validated questionnaires (Cronbach’s α = 0.72–0.83) were administered to 399 respondents (105 managers, 189 supervisors, and 105 rank-and-file employees) from 105 branches of three retail food service chains in seven NCR cities. Document analysis of management and leadership, benefits and compensation, and other relevant documents complemented the survey. Data were treated with frequency, percentage, weighted mean, one-way ANOVA, Pearson’s r, and simple linear regression. Managers and supervisors agreed that the organizational culture of retail food service is expressed through core values (3.39; 3.41), leadership style (3.18; 3.17), communication pattern (3.30; 3.29), and decision-making process (3.10; 3.08), and strongly agreed on norms and behavioral expectations (3.57; 3.54). Rank-and-file employees agreed that culture affects their commitment (overall mean = 3.02) and retention (overall mean = 3.13). No significant differences in assessments were found across firmographic or demographic profiles (p > .05), whereas organizational culture was highly and significantly correlated with every commitment and retention indicator (r = .991–.999, p < .001). Organizational culture is the foundation that solidifies an organization, crafted from values, beliefs, norms, behaviors, and systems aligned with its vision and mission; it influences employees to participate, engage in organizational activities, and protect the organization’s welfare. Adapting to the culture is the most challenging part for every employee; if the organization takes no action, turnover will continue to rise and contribute to global attrition. The findings can guide organizations in crafting a culture based on their employees’ values and norms that adapts to employees regardless of ethnicity or beliefs, increasing commitment, maintaining loyalty, and fostering a sense of ownership. Programs recommended include specialized career and skills development that strengthen employees’ management ability, an internship program, recognition of employees’ contributions, and, most importantly, family-first activities that improve employee well-being.