This paper tries to identify the key factors which affect employee performance and attempts to understand the effect of organisational culture on employee retention. In the modern organisation, employee retention is the key term which summarizes all HR efforts. Various methods are being employed in order to ensure high employee morale and also to asses employee expectation and match them in order to check attrition. However, for these methods to become effective, the quality of employees and the organisational culture play a major role. This paper explores the overall satisfaction of employee with regard to organisational culture. It also studies the expectations of employees from organisations to understand the changes needed in the organisational culture to improve retention rates. [PUBLICATION ABSTRACT]