Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Prepared by:
Shyam Bhavan Rajbhar
MBA 4rd Semester
Roll Number : 1404070028
Enrollment No. :
Training Supervisor:
Dr. Neetu Singh
(Senior Lecturer)
Department of Business Administration
2015-16
Certificate
This is to certify that Shyam Bhavan Rajbhar pursuing MBA 4th
Semester from this institute, has prepared the research project report
entitled Organizational Culture And Climate In Indian Companies
in partial fulfillment of the requirements of the degree of Master of
Business Administration from Dr. A.P.J. Abdul Kalam Technical
University, Lucknow, for the session 2015-16.
This report is based on research project report undertaken by
Shyam Bhavan Rajbhar under my supervision of during the course of
fourth semesters and fulfills the requirements of regulations relating to
the nature and standard of MBA course of U.P. Technical University.
I recommend that this project report may be sent for
evaluation.
Senior Lecturer,
Declaration
I, Shyam Bhavan Rajbhar, hereby declare that this research
project report entitled Organizational Culture And Climate In
Indian Companies has been prepared by me on the basis of research
done during the course of my fourth semester of MBA programmed
under the supervision of
Index of Contents
Page No.
Preface
Acknowledgements
[1-2]
[3]
Chapter 1
Introduction of the Forex market
Objectives of the study
Importance of the study
Scope of the study
[4-6]
[54-55]
[56]
[57]
Chapter 2
Research Methodology
[58-62]
Chapter 3
Data analysis & Interpretation
[63-73]
Chapter 4
Findings & Recommendations
[74-76]
Chapter 5
Conclusion & Limitations
[77-79]
[80-81]
Acknowledgements
Every person who touches heights reaches that level with the grand support, blessings of his /her
loved ones, guides, teachers, elders. He cant deny the fact that they are the people behind his
success. I am very thankful to the people who provided me their help and support.
I owe my special thanks to Dr. Neetu Singh Senior Lecturer & training and placement Incharge
Dept. of Business Administration for her grand support, guidance, and for being a helping hand
in every possible way in this project.
I am very thankful to Mr. Rahul Anand Singh (HOD, Department of Business Administration)
for devoting his precious time and for leaving no stone unturned for the completion of this
project.
Chapter 1
Introduction
Organizational culture
Organizational culture is a system of shared beliefs & attitudes that develop within an
organization & guides the behavior of its members. It is also known as "corporate culture", & has
a major impact on the performance of organization & especially on the quality of work life
experienced by the employees. Organizational culture "consists of the norms, values & rules of
conduct of an organization as well as management styles, priorities, beliefs & inter-personal
behaviors. Together they create a climate that influences how well people communicate, plan &
make decisions".
Organizational culture is a set of beliefs, assumptions, values, shared feelings & perceptions
which influence the actions & decisions taken by the organizational members. For e.g., if the
culture encourages innovativeness, any problem will make people take initiative & risks, &
try out new ways of doing things. On the other hand, if the organizational culture is security
oriented, the same problem situation would cause people to start looking for rules,
procedures as a mode of response.
"Organizational Climate" is different from "Organizational Culture". According to Stephen P.
Robbins "Organizational culture is a relatively uniform perception held by the organization, it
has common characteristics, it is descriptive, it can distinguish one organization from another
& it integrates individual, group & organization system variables". Each & every
organization has a culture that influences the behavior of the employees toward colleagues,
supervisors, subordinates, clients, competitors, etc. Internal environment of an organization is
often referred to organizational climate. This makes one organization unique; such
differences are found in various kinds of employees in terms of personal characteristics of
members such as their values, needs, attitudes, expectations, stay in organization. When
considered collectively, the actions of the individuals become more meaningful for viewing
the total impact upon the climate & determining the stability of the work environment. It
should be noted that the climate is to be viewed from a total system perspective. While there
may differences in climates within departments these will be integrated to a certain extent to
denote overall organizational climate.
1. Organizational culture creates the boundary beyond which no employees are allowed to
go. They automatically observe the organizational standards & norms of behavior.
2. An organization is well recognized by its culture. The culture of an organization provides
its stability. People like to continue with the organization. Employees, customers,
financers & other related persons like to remain with the organization.
3. The social recognition of the organizational culture makes the organization grow &
develop in all ways.
4. Organizational culture acts as a motivator that guides & controls the employees. Satisfied
employees get more spirit & enthusiasm for performing their jobs.
5. The attitude & behavior of the employees are directed towards the achievement of goals
through a sound culture. Disciplined employees make other employees disciplined &
well-behaved.
6. Culture gives rise to a positive attitude & behavior which are again an addition to culture.
Culture leads to good behavior & good behavior makes good culture which is useful for
better behavior. Both employees & the organization enjoy culture.
A strong culture ensures better performance. Culture enhances organizational commitment &
increases the consistency of employee behavior.
Any obedience is punished severely to set an example to others. The basic assumption is
that the leader knows what is good for the organization & he always acts in its interests.
2. MECHANISTIC & ORGANIC CULTURES:- The mechanistic organizational culture has
the values of bureaucracy & so is also called "Bureaucratic Culture". Organizational jobs
are created around narrow specializations & people think of their careers mainly within
these specialization. There is a great deal of departmental loyalty. This sort of culture
resists change & innovation. In organic culture formal hierarchy of authority,
departmental boundaries, formal rules & regulations & prescribed channels of
communications are found. Emphasis is on task accomplishment, team work, free flow of
communication formal & informal. There is a understanding within the staff like at the
of problems, threats & opportunities the organization is facing & willingness to take part
in solving the problems. The cultures stresses flexibility, consultation, change &
innovation.
3. SUB-CULTURE & DOMINANT CULTURE:- Each department of an organization may
have its own culture representing a sub-culture of the system. An organizational culture
takes place when there is an integration of all the departments. Within any given unit the
tendency for integration & consistency will be assumed to be present, but it is perfectly
possible for coexisting units of a larger system to have cultures that are independent &
even in conflict with each other.
with the leader who implements particular ideas & values as a vision, philosophy or business
strategy. When these ideas & values lead to success, they become institutionalized & give
shape to an organizational culture.
Creation of an organization culture is a very lengthy & complicated process. Culture has 3
levels. Namely:1. Artifacts.
2. Beliefs & Values.
3. Assumptions.
1. OBSERVABLE ARTIFACTS:- These are the symbols of culture in the physical & social
work environment & are most visible. Following are the things found in artifacts:(i). ORGANIZATIONAL HEROES:- As a reflection of the organization's philosophy,
concerns the behavior of top executives & their leadership styles. These leaders become the
role models of an organization's culture. They represent what the company stands for &
reinforce the values of the culture.
(ii). CEREMONIES & RITES:- Ceremonies & rites tell about activities that are done on
important occasions. Members of the organization who have achieved success are recognized
& rewarded on such occasions. Annual convocations at colleges & universities where
degrees, diplomas & medals are distributed to the students are reflections of culture in
educational institutions. These ceremonies bond organization members together. Such
ceremonies as company picnics, retirement dinners, encourage interpersonal communication
& togetherness.
(iii). STORIES:- Stories about organization's heroes are powerful tools to reinforce cultural
values throughout the organization. These stories tell about cultural network & remind
employees as to why we do things in a certain way.
(iv). CULTURAL SYMBOLS:- Symbols tell about organizational culture. Certain code of
dress or company's logo can reflect its values. Some of the material artifacts created by an
organization might also speak of its cultural orientation.
2. SHARED VALUES:- Values are reflected in the way individuals actually behave. Values
reflect an organization's beliefs as to what should be & what should not be. Values are those
principles & qualities that shape our thinking & behavior. Values can be of 2 types. Namely:(i). INSTRUMENTAL VALUES:- Are beliefs that certain behaviors are appropriate at all
times irrespective of the objectives or outcomes.
(ii). TERMINAL VALUES:- Are beliefs that certain more tangible objectives are worth
striving for & the objectives become more important than the behavior in achieving such
objectives.
Values are emotionally charged. For example, Mahatma Gandhi in promoting hand-woven
khadi as against textiles produced by technologically sophisticated machinery, expressed
values of human survival.
3.
organization's culture. These are deeply held beliefs which are not objectively observed. For
example, an organization may establish values based on 3 basic assumptions. Namely:-
(i). People are basically good. This assumption is reflected in the company's emphasis on
trust.
(ii). People are willing to learn, grow & achieve if they are given proper opportunities. This
assumption is reflected in the company's extensive training programs.
(iii). People are motivated by the challenging work. This assumption is reflected by the
process of common goal setting & goal achievement by participation of members.
MAINTAINING A CULTURE:- Following are the practices that help to maintain the
culture:1. SELECTION PROCESS:- The main purpose of selection process is to select right type
of person for the right job. When for a given job 2 or more candidates with identical skills
& abilities are available then the final selection is influenced by how well the candidate
fits into the organization. It is by selecting the candidates who can match the
organizational culture, the management can think of maintaining organizational culture.
2. ACTIONS OF TOP MANAGEMENT:- Besides managerial vision the actions of the top
executives also have a major impact on the organizational culture. Through what they say
& how they behave, senior executives establish norms that help the organization to take
risks, how much freedom managers should allow their subordinates, what actions will
pay off during promotions & other rewards.
introduced by human relations in the late 1940s. Now it has become very useful for thinking
& describing the social system.
Organizational climate is the summary perception which people have about an organization.
It is a global expression of what the organization is. Organization climate helps to tell about
the attitude of the organizational members towards the organization itself.
2. POSITION STRUCTURE:- In this the objectives of the job & methods for
accomplishing it are established & communicated to the employees. In other words it
means the extent of direct supervision, formalization & centralization in an organization.
3. REWARD ORIENTATION:- It means an organization rewards individuals for hard work
or achievement. Reward orientation is high when organizations ask people to perform
better & rewards them for doing so.
4. TASK ORIENTATION:- If the management is task oriented, the leadership style will be
autocratic. The employees will have to seed up the pace of work to please their bosses.
5. RELATIONS ORIENTATION OR CONSIDERATION:- The organizational climate will
be considerate & supportive if the managers are relations oriented while dealing with the
workers. The needs of the workers will be given due importance. This will produce team
spirit in the organization.
6. JOB SATISFACTION:- The satisfaction the workers get on their jobs is also an important
part of organizational climate. The workers feel happy if the jobs are designed to allow
the workers to use their innovative skills.
organization. Their productivity will also be higher. Thus, good organization climate helps in
employee satisfaction, better human relations & higher productivity.
Organizational climate influences satisfaction & performance through change in behavior in
different ways:1. It influences behavior through evaluation of the self & others such evaluation is based on
different physiological variables.
2. It causes problem upon individual freedom of choice & decision making. The behavior is
influenced by attaching different rewards & punishments.
3. It influences the behavior of the employee towards the whole organization & of his own
ability. Ability is influenced by the nature & clarity of the job, degree of freedom, extent
of authority, scope of responsibility, supervisory support, training, safety, physical
working conditions & previous experience.
EMPLOYEE MORALE:- Morale means extent to which individual needs are satisfied & the
extent to which the individual gets satisfaction is from his job. Morale is direct & indirect
satisfaction & need fulfillment through work. Morale is based on both individual & group. In
group high morale is reflected in good team work & team spirit. In high morale situation
people have few grievances, frustration & complaints. They are clear about the goals & tasks
both organizational & individual & interactions between them. Morale is sometimes
regarded as the effect of a complex of personality & situational variables. Job content, nature
of job, quality of supervision, types of rewards, family circumstances, culture, working &
living conditions have a positive influence on morale.
TYPES OF MORALE:- Following are the types of morale:1. HIGH MORALE:- It exists when employees attitude is favorable towards their fellow
workers favorable to total situation of the group & to the attainment of its objectives.
Employees with high morale like their jobs & co-operate fully with the management
towards the achievement of goals of the organization. It results in job satisfaction &
increases job enthusiasm. High morale of employees leads to the following benefits:(i). Willing co-operation towards objectives of the organization.
(ii). Loyalty to the organization & its leadership.
(iii). Good discipline i.e., voluntary conformity to rules & regulations.
(iv). High degree of employee's interest in the job & the organization.
(v). Pride in the organization.
(vi). Reduction of rates of absenteeism & labor turnover.
2. LOW MORALE:- It indicates the presence of mental unrest. The mental unrest not only
hampers production but also leads to ill-health of the employees. Low morale exists when
doubt & suspicion are common & when individuals are depressed & discouraged, i.e.,
there is a lot of mental tension. Such a situation will have the following consequences:(i). Higher rates of absenteeism & labor turnover.
(ii). Excessive complaints & grievances.
(iii). Frustration among the workers.
(iv). Friction among the workers.
(v). Lack of discipline.
their attitudes towards supervision, peers, management & work. The data maybe
compiled & classified to draw interferences about the state of morale of the employees.
3. STUDY OF MORALE INDICATORS:- The attitudes of the workers can be known by
studying a large number of factors which reflect their behavior. Some of these factors are
as follows:(i). PRODUCTIVITY:- Generally low level of productivity is associated with low degree of
morale.
(ii). ABSENTEEISM:- Greater rate of absenteeism reflects a low morale. But exceptions
maybe there due to sickness, etc.
(iii). JOB SATISFACTION:- If the workers are satisfied with their jobs, their morale will be
higher.
(iv). RELATIONS WITH OTHER EMPLOYEES:- The morale of the workers is high, if they
feel belongingness & togetherness among themselves.
(v). NUMBER OF ACCIDENTS:- Generally, low morale leads to more accidents.
(vi). NUMBER OF GRIEVANCES:- If the number of grievances increases, there will be low
morale of the workers.
(vii). EMPLOYEE TURNOVER:- If there is higher employee turnover due to avoidable
causes, there will be low morale.
factors such as market share and market environment, as well as internal company factors
including organizational culture, management styles and human resource management practices.
Recently, the increasing level of competition worldwide has led managers and researchers to
focus even more sharply on these questions. Reducing labor costs in some countries, particularly
in countries in the process of industrialization, has raised the level of competitive threat for
countries which have been industrialized for some time.The pressures on managers to manage
the complex and varied influences on company performance are greater than ever before.
Culture-Structure Effectiveness
Culture, in organizational context, may be broadly defined as a groups or nations way of
thinking, believing, feeling, and responding. Culture is the way of life of a group of people. More
formally culture is defined as the complex whole which includes knowledge, belief, art, morals,
customs and any other capabilities and habits adopted by members of a society. A society may be
represented by the members of a nation or by members of an organization. The individualismcollectivism dimension illustrates this shift from cultural dimensions to cultural syndromes.
(Gregory, 1983) Often, it is observed that the Actual Culture is quite different from Official
Culture with respect to participation in decision making and social orientation in a company.
If we assume that organizational structure is measured by four dimensions (specialization,
standardization, formalization, and centralization) and culture is also defined also by four
dimensions
(individualism/collectivism,
power
distance,
uncertainty
avoidance,
and
organizational form, is the function of the actions of people in the organization, perhaps in
response to conditions outside the organization. (Frank & Fahrbach, 1999) Rather than
concentrating upon the culture of the organization, the performance of the management depends
on the mind-set of the employees. Here the argument arises that any organizational form must
comprise of such an environment that contributes to the optimum performance of the
organization. Here the attitudes of the employees play an important role; they are responsive to
the factors that exist internally as well as externally in the organization. Managers are required to
make an effort through which organizational form integrates with the attitude of the subordinates. Being contradictory to the proposition above still it can prove to increase
organizational effectiveness.
Cultural Strength and
Organizational Performance
Organizational culture is interpreted here as the aggregate of employees perceptions of aspects
of the organization, for example, quality of communication, support for innovation, level of
supervisory support and so on. However, the evidence for the influence of culture upon
organizational productivity is limited. The voluntarism, commitment, and identification with the
humanistic mission were seen by the organization's members (and the researchers) as having a
positive effect on the organization's functioning, particularly in the early stages. (Denison &
Mishra, 1995) Organizational culture is the set of values, norms and beliefs shared by member of
organization. Organization develop a unique culture and employees share common values and
beliefs about work-related issues. Organizational culture also can support company mission and
strategy. Even companies in the same industry tend to have entirely different cultures based to
their own mission and goals. This helps in providing the organization a clear direction to work
towards. Ultimately when the organizational culture starts to support company strategy, mission,
and policies; indirectly the employees will be redirect towards a collective motive. The strength
of the culture depends on how strongly member share its values and basic assumption.
The pervasiveness of an organizations culture requires that management recognize the
underlying dimensions of their corporate culture and its impact on employee-related variables
such as satisfaction, commitment, cohesion, strategy implementation, performance, among
others. One consistent theme in the culture literature concerns the impact of a strong culture on
organizational performance. The hypothesis is that an organization with a high level of shared
meaning, a common vision, a clan-like attitude toward members, and a high level of normative
integration will perform well.
Some authors have argued that this theory has universal application, while others have argued
that the culture of an organization, in addition to having these characteristics, must also fit the
business environment. The multicultural organization is characterized by pluralism, full
integration of minority-culture members both formally and informally, an absence of prejudice
and discrimination, and low levels of inter-group conflict; all of which should reduce alienation
and build organizational identity among minority group members. (Cox, 1991) Aligning
organizational culture with strategy is a powerful means for gaining competitive advantage and
industry or sector leadership. Organizations that seek leadership and sustainability make the
choice for culture by design, not default.
employees themselves arent clear on what they do well and what matters most to them, its
unlikely that any work situation will engage them.
Cultural diversity is a part of organizational life. In the present business environment it cannot be
ignored. The question arises how to manage it? When a manager focuses attention on cultural
differences, it causes problems as it is often confused with evaluation of a culture. According to
Sadri and Lees (2001), a positive corporate culture could provide immense benefits to the
organization, and thereby a leading competitive edge over other firms in the industry. However, a
negative culture could have a negative impact on the organizational performance as it could deter
firms from adopting the required strategic or tactical changes. Such type of culture could inhibit
future changes in an organization. The changes cultivated by organizational culture have a
positive relationship with the financial performance of the firms.
Objective
The following are the objectives of the research project report:
1. To examine the variables affecting the Organizational Culture and Climate.
2. To examine the various variables which can have bearing on the Organizational Culture and
Climate?
3. To examine the various variables which need to be improved for better Organizational
Culture and Climate.
Scope
Consistency goes to the heart of what company culture entails. You cannot promote a message of
teamwork one day and rugged individualism the next. A consistent culture of shared objectives
can move your company forward on a daily basis. Examine the messages you send out through
company emails, speeches at meetings, directives and posted notices to see if you deliver a
consistent message. Then, examine that message to see if it is in line with your objectives. For
example, if you encourage a culture of teamwork, yet offer bonuses to individuals rather than
teams, you may be working against your objective of increasing sales through a group effort.
Chapter-2
Research Methodology
Research Methodology
Research as A systematicinvestigation, including- research development, testing and evaluation,
designed to develop or contribute to generalizable knowledge. Activities which meet this
definition constitute research for purposes of this policy, whether or not they are conducted or
supported under a program which is considered research for other purposes. For example, some
demonstration and service programs may include research activities
Introduction
According to Cassel, C. &Symon, G., (2004), all research involves data collection and
analysis, whether through observation, reading, measurement, asking question or a combination
of these or other strategies. The collection of the data and for research may, however vary
considerably in its characteristics. In simple words research can be primary or secondary. In
primary research the collection of data is specifically for study at hand. It can be obtained by
communicating directly or indirectly with the subject or directly by the investigator. Qualitative
research and quantitative research are included in the direct communication techniques. For the
purpose of this research, a combination of primary and secondary data has been used; and, under
primary, although largely quantitative data was collected, room for qualitative data was made
available whenever thought necessary.
Secondary Research
Secondary research as data which already exist in some form, having been collected for a
different purpose, perhaps even by a different organization, and which might be useful in solving
a current problem. Although secondary research less expensive than primary research, it is not
always accurate, useful, as specific, custom-made research. There are various sources available
to the marketer, and the following list is by no means conclusive:
Census data
Public records
Business libraries
Trade directories
Trade Associations
Websites
Omnibus surveys
Research Process
The research process is the step-by-step procedure of developing one's research and
research paper. However, one can seldom progress in step-by-step fashion as such. It is often
necessary to revise an initial research plan. The research process involves identifying, locating,
assessing, analyzing, and then developing and expressing your ideas. These are the same skills
that will be needed in the post-university "real world" when you produce reports, proposals, or
other research for your employer. All of these activities will be based on primary and secondary
sources from which recommendations or plans are formulated. There is no fixed number of
stages to be followed since it varies from research to research. At the same time every research
process does in reality follow a common trend in its completion. This includes formulating and
clarifying a topic, reviewing the literature, choosing a strategy, collecting the data, analyzing the
data collected and finally writing up.
Research Design
Naresh K. Malhotra (2004) opines that research design is a blueprint or framework for
conducting the research project. It is in simple words, a plan for study that guides the collection
and analysis of data. It, in fact, is the central part of any activity involving any work of research.
It serves as a guide to the investigation methods, the instruments in research used, nature of data
with the sampling frame and plan. One of its key features should be to hold the parts and phases
of the enquiry together. It should be comprehensive in its coverage of the work i.e. it should
allow for logic, tight-ness, precision, and effective use of resources. A research design lays the
foundation for conducting the project. A good research design will ensure that the research plan
is conducted efficiently and effectively.
Sampling
Organizational Culture and Climate in India
.
Website Referred:-
th
Web1 Derivative Definition (Online) (Cited on 27 April 2013) Available from
<www.cperformance.com/glossary.htm>
th
Web 2 Definition of Forward Contract (Online) (Cited on 29 April 2006) Available from
<www.ers.usda.gov/Briefing/RiskManagement/glossary.htm>