The Effect of Organizational Culture on Employee Well- Being: Work-Related Stress, Employee Identification, Turnover Intention

Abstract

Direct and indirect costs of work-related stress can be measured in both humanistic and financial terms. In Hungary and the other Central and Eastern European countries chronic stress-related diseases, like depression, premature cardiovascular illnesses, and overall mortality rates are higher in comparison to western countries, primarily among men. The vast majority of the adult population is employed in some capacity and the average person spends more time working than in any other waking activity. Working conditions can exert influence on employee well-being. The present study aimed to explore the relationship between the perceived type of organizational culture (team, adhocracy, market, hierarchy) and employee well-being (perceived work-related stress, organizational identification, and turnover intention). Employees (N= 256) from different Hungarian companies (Study 1) and employees (N= 112) from Hungarian information technology firms (Study 2) completed a questionnaire battery measuring demographics, perceived organizational culture (OCAI), work-related stress (CSP), job satisfaction (JSS), and turnover intention (TIS-6). Our results show that the perceived organizational culture can significantly influence employees’ well-being as reflected in their perceived stress level, turnover intention, and organizational identification. Our study is cross-sectional and explorative. Common method bias could overestimate the results due to the use of self-reported measures. Decreasing chronic stress factors and increasing employees’ well-being are common objectives in the 21st century. In relation to these objectives, the present study provides information on employee well-being and optimal working conditions focusing on the fastest- growing industry.