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Organisational culture is defined as a pattern of basic assumptions, invented, discovered or developed by a given group as it learns to cope with its problems of external adaptation and internal integration that have worked well enough to be considered valid and therefore is to be taught to new members as the correct way to perceive, think and feel in relation to those problems (Megginson, Mosley & Petri, 2006 Schein, 2001). Previous studies have identified different models of culture. Among the more prominent models is Handy’s (1985) cultural model which identifies four kinds of organisational culture as: Power culture, Role culture, Achievement culture and Support culture. Power Culture is a type of culture which is characterised by control and power emanating from the central leader and usually operates informally with few rules and procedures. Handy (1985) noted that this type of power suits the figurehead and can result in what Hofstede (1980) identified as power distance where there is high willingness on the part of less powerful individuals in a group to accept the unequal distribution of power without question and to regard it as normal. Role Culture is a type of culture which is characterised by bureaucracy as work is coordinated by a manager or small number of managers at the top. In this culture, roles are seen to be more important than the people who fill them and people have clearly delegated authorities within a highly defined structure. Achievement Culture focuses on the mission of the organisation and on completing the job. This engenders a strong sense of purpose in members which tend to override all other considerations. Priority is given to ends rather than means and individual expertise are highly valued. Support Culture is a type of culture which is consensual with limited management control. According to Schein (2001), support culture is one in which people contribute out of a sense of commitment and solidarity. Relationships are characterised by mutuality and trust and the organisation exists primarily to serve the needs of its members. In a support cultured organisation, individuals are expected to influence each other through examples and assistance.

2.2. Employee Retention

According to Griffeth and Hom (2001), retention refers to measures that organisations take to encourage employees remain in their organisation for the maximum period. To them, highly skilled employees contribute a great deal towards the success of an organisation and hence organisations face lots of consequences when such key employees quit. Employee retention is also defined by Hom (2005) as a process in which employees are encouraged to remain loyal and stay with their organisations for the maximum period or until the completion of a particular project. Understandably, the retention and further development of highly skilled employees is often the priority in terms of an organisation’s retention strategy (Dibble 1999). Dibble (1999) suggests “If you think that it is hard to retain your employees now, be aware that in the future it will be worse” (p. 3). Therefore, such organisations may focus not only on high achievers at the present time, but also on those with the potential of becoming high achievers in the future. High potential employees are those who are recognised by senior management as persons with the potential to fill executive functions within the organisation (Dries & Pepermans, 2008). The literature concerning high potential employees suggests that these employees have multiple characteristics – intelligence, team spirit, negotiation skills, social skills, and proactivity (Lombardo & Eichinger, 2000; Snipes, 2005). These characteristics can therefore be seen as core characteristics of high potential employees. Research indicates that employees with high potentials, in general, have strong organisational commitment (Dries & Pepermans, 2008). This preference causes organisations to invest more in these high potential employees than in others.

Allen (2008) identifies three main methods employers can use to enhance the retention of their valuable employees for the maximum period without the employees showing the intention to leave the organisation. These are: Person-Environment (P-E) Fit, Person-Person (P-P) Fit and Perceptual Fit (PF). Person-Environment Congruence refers to a harmony between the personal values of the employee and corporate culture of the organisation in which he or she works. Someone with a high P-E congruence feels personally in tune with his company’s stated policies and goals. Conversely, someone with a low P-E congruence feels a sense of disharmony between his own values and the stated policies and goals of his organisation. Person – Person Congruence measures the extent of solidarity between all members of the organisation (co – workers, colleagues, superiors, and subordinates). An organisation with high P–P fit indicates a high sense of solidarity with one’s co-workers, colleagues, superiors, and subordinates in terms of shared values, assumptions, and goals. A low P-P congruence on the other hand indicates a high sense of isolation from co-workers, colleagues, superiors, and subordinates brought about by the absence of shared values. Perceptual Fit measures the level to which the values an employee perceives the organisation to have corresponds to the values their co-workers perceive the organisation to have. A strong PF however suggests a strong correspondence between the values that an employee perceives his company to have (whether the company does) and the values that his co-workers perceive the company to have (again, whether it does). A weak PF on the other hand implies that an employee’s perception of his company’s values differs significantly from the values their co-workers perceive the organisation to have (Allen, 2008).