Researching the relationship between Company Culture and Employee Loyalty will help company’s leader be able to structure a business in which employees contribute most to its development. In this research, the four questions will be focused are:
1.What is the Company culture?
2.What is the employee loyalty?
3.Will the innovation in Company Culture results in better Employee Loyalty? 4.What are the implications of the study in Vietnam?
Result of this research showed “There is a Positive Correlation between Company Culture and Employee Loyalty” is drawn out. Obviously the innovation in Company Culture will impact on improvement of Employee Loyalty, which results in Positive working performance and Long-term working commitment. INTRODUCTION:
The term “Brain-drain” is now becoming popular in Vietnamese business society to describe the reality of high-skilled and long-term experienced employees of a company moving to other organizations. Moreover not only the elite labor forces take it very easy to change their jobs but also a lot of young and fresh-employed people are usually jumping from one to another. The leaving of key persons in the organization is considered as a lost in human resource investment and it is also a seriously damage to other employees’ loyalty and even it is a great lost in company culture. Furthermore human resource experts said the cost of hiring and training new succeeded staff is almost 10 times in comparison with keeping the current qualified employees. Now is the time we raise a question: “In common cases, why a high qualified employee leaves his current hiring memorable company for other or just become discouraged and self idle in the work?”; The answer probably is his loyalty to the company could be changed. In order to keep and encourage excellent employees in the company, one of the best ways are company’s top management must improve the working environment or to a broaden extend is to build the company culture. So it is the time to study the questions? 5.What is the Company culture?
6.What is the employee loyalty?
7.Will the innovation in Company Culture results in better Employee Loyalty? 8.What are the implications of the study in Vietnam?
This review of the literature on Company culture & Employee Loyalty focuses on these four above questions. REVIEW OF THE LITERATURE
What is the Company culture?
“Culture” in general is the woven systems of knowledge such as traditions, legends, beliefs and faiths, experiences, rules, values... shared by a relatively large group of people in the human society. Company culture concept is a little different from Socio-culture because a company is established under business environment for making profit, it is not a natural human environment. Company Culture is a variable with different value in the eyes of researchers. There is a lot of different Company Culture types which depend on the scale or the original of a company. For instant, a company forces its entire employees to gather together in an area of 100 km from their home. Employees have to shout company’ slogans while practicing strange actions for 12 hours / day for 2 days then them all have to wake up and at 1.00 AM of the third day for walking 30 km with shouting on the top of their voice in the middle night. Do you think it is the culture of an American, German, Korean or Vietnamese company? Yes, it was a Culture training program of LG Electronics Vietnam. Thorsen, D. (http://www.culturebuilders.com/definition_of_corporate_culture.htm) defined Corporate Culture as: “1. an energy field that is created whenever a group of people come together to collaborate; 2. foundation for all decisions and actions within an organization; 3. the way things are around here”. Company Culture therefore was naturally created when people work together in the group. Each company has its own Culture and culture is the direction of all members’ identity, thinking, and behavior. In my opinion,...