The Effect Of Organizational Culture On Employee Commitment: A Mediating Role Of Human Resource Development In Korean Firms

Abstract

The purpose of this study is to examine the effect of organizational culture defined as communication, trust, and innovative production on employees’ organizational commitment. Furthermore, we explored the possibility the role of HRD (Human Resource Development) activities in mediating the aforementioned relationship. Using the national employer survey data conducted by Korean government in 2011, the results find that organizational culture, in particular, defined as better communication among superiors and subordinates, trust, and appreciation of innovation from superiors, is positively related to organizational commitment. In addition, firm’s investment in HRD or employee participation in HRD would play a mediating role in influencing the relationship between organizational culture and organizational commitment. Therefore, organizational culture is a critical factor to increase workers’ motivation through the participation in HRD training program, thereby increasing worker’s commitment. The results provide theoretical and practical implications in HRD and its link to organizational culture in organizations.