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“Organizational Culture and Climate In Indian Companies”
Research Project Report
Submitted to
Dr. A.P.J. Abdul alam !echnical "ni#ersit$% "ttar Pradesh% &uc'no(
In partial fulfillment of the requirements of the degree of
)aster o* +usiness Administration
Prepared b$, !raining -uper#isor,
Shyam Bhavan Rajbhar Dr. Neetu Singh
MBA 4rd Semester (Senior Lecturer)
Ro Number ! "4#4#$##%& De'artment o Business Administrationnroment No. !
/01203
De'artment o Business Administration
!echnical 4ducation 5 Research Institute*ost+,raduate -oege ,ha/i'ur 0 %11##" (2.*.)
http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwit3JTD9svJAhUTH44KHavEDg8QFggcMAA&url=http%3A%2F%2Fwww.uptu.ac.in%2F&usg=AFQjCNFBb2F6JIHEBQYIF5_s3eNMNAMzwg&bvm=bv.109332125,d.c2Ehttp://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwit3JTD9svJAhUTH44KHavEDg8QFggcMAA&url=http%3A%2F%2Fwww.uptu.ac.in%2F&usg=AFQjCNFBb2F6JIHEBQYIF5_s3eNMNAMzwg&bvm=bv.109332125,d.c2E
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Certi*icate
3his is to certiy that -h$am +ha#an Rajbhar 'ursuing MBA 4th
Semester rom this institute has 're'ared the research 'roject re'ort
entited “Organizational Culture And Climate In Indian Companies”
in 'artia uiment o the reuirements o the degree o )aster o*
+usiness Administration *rom Dr. A.P.J. Abdul alam !echnical
"ni#ersit$% &uc'no(% *or the session /01203.
3his re'ort is based on research 'roject re'ort underta5en by
-h$am +ha#an Rajbhar under my su'ervision o during the course o
ourth semesters and uis the reuirements o reguations reating to
the nature and standard o MBA course o 2.*. 3echnica 2niversity.
6 recommend that this 'roject re'ort may be sent or
evauation.
Rahul Anand -ingh Dr. 6eetu -ingh
Asst. *roessor 7 8ead Senior Lecturer
De't. o Business Administration De't. o Business Administration
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Declaration
6 -h$am +ha#an Rajbhar hereby decare that this research
'roject re'ort entited “Organizational Culture And Climate In
Indian Companies” has been 're'ared by me on the basis o research
done during the course o my ourth semester o MBA 'rogrammed
under the su'ervision o Dr. 6eetu -ingh Senior Lecturer De't.
o +usiness Administration% !4RI% 7hazipur.
3his research 'roject re'ort is my bona ide 9or5 and has not been
submitted in any orm to any 2niversity or 6nstitution or the a9ard o
any degree or di'oma 'rior to the under mentioned date. 6 bear the
entire res'onsibiity o submission o this 'roject re'ort.
-h$am +ha#an Rajbhar
MBA 6:th Semester De'artment o Business Administration
3echnica ducation 7 Research 6nstitute
*.,. -oege ,ha/i'ur
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Inde8 o* Contents
Page 6o.
*reace ;"+%<
Ac5no9edgements ;1<
Chapter 9 0
6ntroduction o the =ore> mar5et ;4+?<
@bjectives o the study ;4+<
6m'ortance o the study ;?<Sco'e o the study ;$<
Chapter 9
Research Methodoogy ;&+?%<
Chapter 9 :
Data anaysis 7 6nter'retation ;?1+$1<
Chapter 9 ;
=indings 7 Recommendations ;$4+$?<
Chapter 9 1
-oncusion 7 Limitations ;$$+$<
Bibiogra'hy 7 Reerences ;+&"
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Ac'no(ledgements
very 'erson 9ho touches heights reaches that eve 9ith the grand su''ort bessings o his Cher
oved ones guides teachers eders. 8e cant deny the act that they are the 'eo'e behind his
success. 6 am very than5u to the 'eo'e 9ho 'rovided me their he' and su''ort.
6 o9e my s'ecia than5s to Dr. 6eetu -ingh Senior Lecturer 7 training and 'acement 6ncharge
De't. o +usiness Administration or her grand su''ort guidance and or being a he'ing hand
in every 'ossibe 9ay in this 'roject.
6 am very than5u to )r. Rahul Anand -ingh (8@D De'artment o +usiness Administration)
or devoting his 'recious time and or eaving no stone unturned or the com'etion o this
'roject.
-h$am +ha#an Rajbhar
)+A I< -emester
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Chapter 9 0
Introduction
Organizational culture
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@rgani/ationa cuture is a system o shared beies 7 attitudes that deveo' 9ithin an
organi/ation 7 guides the behavior o its members. 6t is aso 5no9n as Ecor'orate cutureE 7 has
a major im'act on the 'erormance o organi/ation 7 es'eciay on the uaity o 9or5 ie
e>'erienced by the em'oyees. @rgani/ationa cuture Econsists o the norms vaues 7 rues o
conduct o an organi/ation as 9e as management styes 'riorities beies 7 inter+'ersona
behaviors. 3ogether they create a cimate that inuences ho9 9e 'eo'e communicate 'an 7
ma5e decisionsE.
-@N-*3 @= @R,AN6FA36@NAL -2L32R! + -uture consists o beies 7 behavior. 6t is
cutivated behavior in the sense that it is earnt rom the other members o the society.
@rgani/ationa cuture is the totaity o beies customs traditions 7 vaues shared by the
members o the organi/ation. @rgani/ationa cuture stress on sharing o norms 7 vaues that
guide the organi/ationa membersG behavior. 3hese norms 7 vaues are cear guideines as to ho9
em'oyees are to behave 9ithin the organi/ation7 their e>'ected code o conduct outside the
organi/ation.
NA32R @= @R,AN6FA36@NAL -2L32R!+ 3he main eatures o organi/ationa cuture are
as oo9s!+
". Li5e an individua every organi/ation has its o9n 'ersonaity.
%. 3he 'ersonaity o the organi/ation deines the interna environment o an organi/ation.
1. 6t dierentiates an organi/ation rom the others.
4. 6t is reativey enduring or stabe over time.
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. 6t e>ercises a signiicant inuence on the attitudes behavior 7 'erormance o
organi/ationa members.
@rgani/ationa cuture is a set o beies assum'tions vaues shared eeings 7 'erce'tions
9hich inuence the actions 7 decisions ta5en by the organi/ationa members. =or e.g. i the
cuture encourages innovativeness any 'robem 9i ma5e 'eo'e ta5e initiative 7 ris5s 7
try out ne9 9ays o doing things. @n the other hand i the organi/ationa cuture is security
oriented the same 'robem situation 9oud cause 'eo'e to start oo5ing or rues
'rocedures as a mode o res'onse.
E@rgani/ationa -imateE is dierent rom E@rgani/ationa -utureE. According to Ste'hen *.
Robbins E@rgani/ationa cuture is a reativey uniorm 'erce'tion hed by the organi/ation it
has common characteristics it is descri'tive it can distinguish one organi/ation rom another
7 it integrates individua grou' 7 organi/ation system variabesE. ach 7 every
organi/ation has a cuture that inuences the behavior o the em'oyees to9ard coeagues
su'ervisors subordinates cients com'etitors etc. 6nterna environment o an organi/ation is
oten reerred to organi/ationa cimate. 3his ma5es one organi/ation uniueH such
dierences are ound in various 5inds o em'oyees in terms o 'ersona characteristics o
members such as their vaues needs attitudes e>'ectations stay in organi/ation. Ihen
considered coectivey the actions o the individuas become more meaningu or vie9ing
the tota im'act u'on the cimate 7 determining the stabiity o the 9or5 environment. 6t
shoud be noted that the cimate is to be vie9ed rom a tota system 'ers'ective. Ihie there
may dierences in cimates 9ithin de'artments these 9i be integrated to a certain e>tent to
denote overa organi/ationa cimate.
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LMN3S @= @R,AN6FA36@AL -2L32R!+ =oo9ing are the eements o
organi/ationa cuture!+
". 6ND6:6D2AL A23@N@MJ!+ 6n this the individuas have res'onsibiity reedom 7
o''ortunities o e>ercising initiative that an individua has in the organi/ation.
%. S3R2-32R!+ 6n this the organi/ation creates objectives 'erormance e>'ectations 7
authority reationshi's.
1. MANA,MN3 S2**@R3!+ 6n this the managers 'rovide cear communication
assistance 9armth 7 su''ort to their subordinates.
4. 6DN363J!+ 6n this the members identiy 9ith the organi/ation as a 9hoe rather than
9ith their 'articuar 9or5 grou' or ied o 'roessiona e>'ertise.
. *R=@RMAN- RIARD SJS3M!+ Re9ard system o an organi/ation incude
increase in saary 'romotions etc. is based on em'oyee 'erormance rather than on
seniority 7 avoritism.
?. R6SK 3@LRAN-!+ 6n this em'oyees are encouraged to be innovative aggressive 7
ris5 ta5ing.
R@L 7 S6,N6=6-AN- @= @R,AN6FA36@NAL -2L32R!+ ach organi/ation is
recogni/ed by its cuture. Ihenever 'eo'e name an organi/ation the cuture attached to the
organi/ation is immediatey recaed. @ne organi/ation is dierent rom other organi/ations
because o cutura vaues beies 7 norms. =oo9ing are the unctions 'erormed by
organi/ationa cuture!+
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". @rgani/ationa cuture creates the boundary beyond 9hich no em'oyees are ao9ed to
go. 3hey automaticay observe the organi/ationa standards 7 norms o behavior.
%. An organi/ation is 9e recogni/ed by its cuture. 3he cuture o an organi/ation 'rovides
its stabiity. *eo'e i5e to continue 9ith the organi/ation. m'oyees customers
inancers 7 other reated 'ersons i5e to remain 9ith the organi/ation.
1. 3he socia recognition o the organi/ationa cuture ma5es the organi/ation gro9 7
deveo' in a 9ays.
4. @rgani/ationa cuture acts as a motivator that guides 7 contros the em'oyees. Satisied
em'oyees get more s'irit 7 enthusiasm or 'erorming their jobs.
. 3he attitude 7 behavior o the em'oyees are directed to9ards the achievement o goas
through a sound cuture. Disci'ined em'oyees ma5e other em'oyees disci'ined 7
9e+behaved.
?. -uture gives rise to a 'ositive attitude 7 behavior 9hich are again an addition to cuture.
-uture eads to good behavior 7 good behavior ma5es good cuture 9hich is useu or
better behavior. Both em'oyees 7 the organi/ation enjoy cuture.
A strong cuture ensures better 'erormance. -uture enhances organi/ationa commitment 7
increases the consistency o em'oyee behavior.
3J*S @= @R,AN6FA36@NAL -2L32RS!+ =oo9ing are the ty'es o organi/ationa
cutures!+
". A238@R63AR6AN 7 *AR36-6*A36: -2L32R!+ 6n the authoritarian cuture there
is centrai/ation o 'o9er 9ith the eader 7 obedience to orders 7 disci'ine are stressed.
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Any obedience is 'unished severey to set an e>am'e to others. 3he basic assum'tion is
that the eader 5no9s 9hat is good or the organi/ation 7 he a9ays acts in its interests.
%. M-8AN6S36- 7 @R,AN6- -2L32RS!+ 3he mechanistic organi/ationa cuture has
the vaues o bureaucracy 7 so is aso caed EBureaucratic -utureE. @rgani/ationa jobs
are created around narro9 s'eciai/ations 7 'eo'e thin5 o their careers mainy 9ithin
these s'eciai/ation. 3here is a great dea o de'artmenta oyaty. 3his sort o cuture
resists change 7 innovation. 6n organic cuture orma hierarchy o authority
de'artmenta boundaries orma rues 7 reguations 7 'rescribed channes o
communications are ound. m'hasis is on tas5 accom'ishment team 9or5 ree o9 o
communication 0 orma 7 inorma. 3here is a understanding 9ithin the sta i5e at the
o 'robems threats 7 o''ortunities the organi/ation is acing 7 9iingness to ta5e 'art
in soving the 'robems. 3he cutures stresses e>ibiity consutation change 7
innovation.
1. S2B+-2L32R 7 D@M6NAN3 -2L32R!+ ach de'artment o an organi/ation may
have its o9n cuture re'resenting a sub+cuture o the system. An organi/ationa cuture
ta5es 'ace 9hen there is an integration o a the de'artments. Iithin any given unit the
tendency or integration 7 consistency 9i be assumed to be 'resent but it is 'erecty
'ossibe or coe>isting units o a arger system to have cutures that are inde'endent 7
even in conict 9ith each other.
-RA36@N @= -2L32R!+ @rgani/ation cuture 'rovides the members 9ith a sense o
organi/ationa identity 7 generates a commitment. 3hough ideas that become 'art o cuture
can come rom any9here 9ithin the organi/ation an organi/ationGs cuture generay beings
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9ith the eader 9ho im'ements 'articuar ideas 7 vaues as a vision 'hioso'hy or business
strategy. Ihen these ideas 7 vaues ead to success they become institutionai/ed 7 give
sha'e to an organi/ationa cuture.
-reation o an organi/ation cuture is a very engthy 7 com'icated 'rocess. -uture has 1
eves. Namey!+
". Artiacts.
%. Beies 7 :aues.
1. Assum'tions.
". @BSR:ABL AR36=A-3S!+ 3hese are the symbos o cuture in the 'hysica 7 socia
9or5 environment 7 are most visibe. =oo9ing are the things ound in artiacts!+
(i). @R,AN6FA36@NAL 8R@S!+ As a reection o the organi/ationGs 'hioso'hy
concerns the behavior o to' e>ecutives 7 their eadershi' styes. 3hese eaders become the
roe modes o an organi/ationGs cuture. 3hey re'resent 9hat the com'any stands or 7
reinorce the vaues o the cuture.
(ii). -RM@N6S 7 R63S!+ -eremonies 7 rites te about activities that are done on
im'ortant occasions. Members o the organi/ation 9ho have achieved success are recogni/ed
7 re9arded on such occasions. Annua convocations at coeges 7 universities 9here
degrees di'omas 7 medas are distributed to the students are reections o cuture in
educationa institutions. 3hese ceremonies bond organi/ation members together. Such
ceremonies as com'any 'icnics retirement dinners encourage inter'ersona communication
7 togetherness.
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(iii). S3@R6S!+ Stories about organi/ationGs heroes are 'o9eru toos to reinorce cutura
vaues throughout the organi/ation. 3hese stories te about cutura net9or5 7 remind
em'oyees as to 9hy 9e do things in a certain 9ay.
(iv). -2L32RAL SJMB@LS!+ Symbos te about organi/ationa cuture. -ertain code o
dress or com'anyGs ogo can reect its vaues. Some o the materia artiacts created by an
organi/ation might aso s'ea5 o its cutura orientation.
%. S8ARD :AL2S!+ :aues are reected in the 9ay individuas actuay behave. :aues
reect an organi/ationGs beies as to 9hat shoud be 7 9hat shoud not be. :aues are those
'rinci'es 7 uaities that sha'e our thin5ing 7 behavior. :aues can be o % ty'es. Namey!+
(i). 6NS3R2MN3AL :AL2S!+ Are beies that certain behaviors are a''ro'riate at a
times irres'ective o the objectives or outcomes.
(ii). 3RM6NAL :AL2S!+ Are beies that certain more tangibe objectives are 9orth
striving or 7 the objectives become more im'ortant than the behavior in achieving such
objectives.
:aues are emotionay charged. =or e>am'e Mahatma ,andhi in 'romoting hand+9oven
5hadi as against te>ties 'roduced by technoogicay so'histicated machinery e>'ressed
vaues o human surviva.
1. -@MM@N ASS2M*36@NS!+ Assum'tions are the most undamenta eve o an
organi/ationGs cuture. 3hese are dee'y hed beies 9hich are not objectivey observed. =or
e>am'e an organi/ation may estabish vaues based on 1 basic assum'tions. Namey!+
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(i). *eo'e are basicay good. 3his assum'tion is reected in the com'anyGs em'hasis on
trust.
(ii). *eo'e are 9iing to earn gro9 7 achieve i they are given 'ro'er o''ortunities. 3his
assum'tion is reected in the com'anyGs e>tensive training 'rograms.
(iii). *eo'e are motivated by the chaenging 9or5. 3his assum'tion is reected by the
'rocess o common goa setting 7 goa achievement by 'artici'ation o members.
MA6N3A6N6N, A -2L32R!+ =oo9ing are the 'ractices that he' to maintain the
cuture!+
". SL-36@N *R@-SS!+ 3he main 'ur'ose o seection 'rocess is to seect right ty'e
o 'erson or the right job. Ihen or a given job % or more candidates 9ith identica s5is
7 abiities are avaiabe then the ina seection is inuenced by ho9 9e the candidate
its into the organi/ation. 6t is by seecting the candidates 9ho can match the
organi/ationa cuture the management can thin5 o maintaining organi/ationa cuture.
%. A-36@NS @= 3@* MANA,MN3!+ Besides manageria vision the actions o the to'
e>ecutives aso have a major im'act on the organi/ationa cuture. 3hrough 9hat they say
7 ho9 they behave senior e>ecutives estabish norms that he' the organi/ation to ta5e
ris5s ho9 much reedom managers shoud ao9 their subordinates 9hat actions 9i
'ay o during 'romotions 7 other re9ards.
-@N-*3 @= @R,AN6FA36@NAL -L6MA3!+ ust as every individua has a 'ersonaity
that ma5es himCher uniue each organi/ation has an organi/ationa cimate that distinguishes
its 'ersonaity rom other organi/ations. 3he conce't o organi/ationa cimate 9as
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introduced by human reations in the ate "4#s. No9 it has become very useu or thin5ing
7 describing the socia system.
@rgani/ationa cimate is the summary 'erce'tion 9hich 'eo'e have about an organi/ation.
6t is a goba e>'ression o 9hat the organi/ation is. @rgani/ation cimate he's to te about
the attitude o the organi/ationa members to9ards the organi/ation itse.
=A32RS @= @R,AN6FA36@NAL -L6MA3!+ =oo9ing are the eatures o
organi/ationa cimate!+
". @rgani/ationa cimate is an abstract 7 intangibe conce't. But it causes an im'act on the
behavior 7 'erormance o organi/ationa members.
%. 6t gives distinct identity to organi/ation 7 dierentiates it rom other organi/ations.
1. 6t is a tota e>'ression o 9hat the organi/ation is. 6t is the summary 9hich 'eo'e have
about the organi/ation.
4. 6t is a muti+dimensiona conce't. 6t consists o a organi/ationa actors e.g. authority
'attern eadershi' 'attern communication 'attern contro etc.
LMN3S @= @R,AN6FA36@NAL -L6MA3!+ =oo9ing are the eements o
organi/ationa cimate!+
". 6ND6:6D2AL A23@N@MJ!+ 6t ao9s the em'oyees to ee ree to manage
themseves have decision ma5ing 'o9er 7 are not continuousy accountabe to the
higher management. 6t means that individua have the reedom to e>ercise res'onsibiity.
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%. *@S636@N S3R2-32R!+ 6n this the objectives o the job 7 methods or
accom'ishing it are estabished 7 communicated to the em'oyees. 6n other 9ords it
means the e>tent o direct su'ervision ormai/ation 7 centrai/ation in an organi/ation.
1. RIARD @R6N3A36@N!+ 6t means an organi/ation re9ards individuas or hard 9or5
or achievement. Re9ard orientation is high 9hen organi/ations as5 'eo'e to 'erorm
better 7 re9ards them or doing so.
4. 3ASK @R6N3A36@N!+ 6 the management is tas5 oriented the eadershi' stye 9i be
autocratic. 3he em'oyees 9i have to seed u' the 'ace o 9or5 to 'ease their bosses.
. RLA36@NS @R6N3A36@N @R -@NS6DRA36@N!+ 3he organi/ationa cimate 9i
be considerate 7 su''ortive i the managers are reations oriented 9hie deaing 9ith the
9or5ers. 3he needs o the 9or5ers 9i be given due im'ortance. 3his 9i 'roduce team
s'irit in the organi/ation.
?. @B SA36S=A-36@N!+ 3he satisaction the 9or5ers get on their jobs is aso an im'ortant
'art o organi/ationa cimate. 3he 9or5ers ee ha''y i the jobs are designed to ao9
the 9or5ers to use their innovative s5is.
@R,AN6FA36@NAL -L6MA3 7 ==-36:NSS!+ very organi/ation reuires
organi/ationa cimate to reai/e its objectives. 3he study o the cimate is necessary because
it he's in communication co+o'eration creativity em'oyee satisaction 7 morae. A these
determine the eectiveness o the organi/ation. An organi/ation can be more eective i
there are % 9ay communication 7 em'oyees are co+o'erative 7 have better 5no9edge o
the organi/ation. Such em'oyees have higher job satisaction 7 ee committed to the
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organi/ation. 3heir 'roductivity 9i aso be higher. 3hus good organi/ation cimate he's in
em'oyee satisaction better human reations 7 higher 'roductivity.
@rgani/ationa cimate inuences satisaction 7 'erormance through change in behavior in
dierent 9ays!+
". 6t inuences behavior through evauation o the se 7 others such evauation is based on
dierent 'hysioogica variabes.
%. 6t causes 'robem u'on individua reedom o choice 7 decision ma5ing. 3he behavior is
inuenced by attaching dierent re9ards 7 'unishments.
1. 6t inuences the behavior o the em'oyee to9ards the 9hoe organi/ation 7 o his o9n
abiity. Abiity is inuenced by the nature 7 carity o the job degree o reedom e>tent
o authority sco'e o res'onsibiity su'ervisory su''ort training saety 'hysica
9or5ing conditions 7 'revious e>'erience.
M*L@J M@RAL!+ Morae means e>tent to 9hich individua needs are satisied 7 the
e>tent to 9hich the individua gets satisaction is rom his job. Morae is direct 7 indirect
satisaction 7 need uiment through 9or5. Morae is based on both individua 7 grou'. 6n
grou' high morae is reected in good team 9or5 7 team s'irit. 6n high morae situation
'eo'e have e9 grievances rustration 7 com'aints. 3hey are cear about the goas 7 tas5s
0 both organi/ationa 7 individua 7 interactions bet9een them. Morae is sometimes
regarded as the eect o a com'e> o 'ersonaity 7 situationa variabes. ob content nature
o job uaity o su'ervision ty'es o re9ards amiy circumstances cuture 9or5ing 7
iving conditions have a 'ositive inuence on morae.
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NA32R @= M@RAL!+ Morae is muti+dimensiona in nature in the sense that it is
com'e> mi>ture o severa eements. 6t recogni/es the inuence o job situation on attitudes
o individuas 7 aso incudes the roe o human needs as motivationa orces. Morae is
mosty regarded as a ong+term 'rocess. Raising morae to a higher eve 7 maintaining ong+
run 7 continuous 'rocess 9hich canGt be achieved through short+run measures such as
contests. Managers cannot estabish high morae once 7 then orget about it or years. 8igh
morae is to be buit 7 maintained by continuous eorts.
6M*@R3AN- @= M@RAL!+ Morae is im'ortant or any organi/ationa success because
it reects the attitudes 7 sentiments o organi/ationa members to9ards the organi/ation its
objectives 7 'oicies. 3hese attitudes 7 sentiments aect 'roductivity 7 the satisaction o
individuas. Morae is the tota satisaction o a 'erson derives rom his job his 9or5+grou'
his boss his organi/ation 7 his environment.
3J*S @= M@RAL!+ =oo9ing are the ty'es o morae!+
". 86,8 M@RAL!+ 6t e>ists 9hen em'oyees attitude is avorabe to9ards their eo9
9or5ers 0 avorabe to tota situation o the grou' 7 to the attainment o its objectives.
m'oyees 9ith high morae i5e their jobs 7 co+o'erate uy 9ith the management
to9ards the achievement o goas o the organi/ation. 6t resuts in job satisaction 7
increases job enthusiasm. 8igh morae o em'oyees eads to the oo9ing beneits!+
(i). Iiing co+o'eration to9ards objectives o the organi/ation.
(ii). Loyaty to the organi/ation 7 its eadershi'.
(iii). ,ood disci'ine i.e. vountary conormity to rues 7 reguations.
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(iv). 8igh degree o em'oyeeGs interest in the job 7 the organi/ation.
(v). *ride in the organi/ation.
(vi). Reduction o rates o absenteeism 7 abor turnover.
%. L@I M@RAL!+ 6t indicates the 'resence o menta unrest. 3he menta unrest not ony
ham'ers 'roduction but aso eads to i+heath o the em'oyees. Lo9 morae e>ists 9hen
doubt 7 sus'icion are common 7 9hen individuas are de'ressed 7 discouraged i.e.
there is a ot o menta tension. Such a situation 9i have the oo9ing conseuences!+
(i). 8igher rates o absenteeism 7 abor turnover.
(ii). >cessive com'aints 7 grievances.
(iii). =rustration among the 9or5ers.
(iv). =riction among the 9or5ers.
(v). Lac5 o disci'ine.
MAS2RMN3 @= @R,AN6FA36@NAL -L6MA3 7 M@RAL!+ =oo9ing are
measurement o organi/ationa cimate 7 morae!+
". @BSR:A36@N M38@DS!+ A manager can measure the morae o his subordinates by
observing their attitudes 7 behavior to9ards the management co+9or5ers 7 the 9or5.
Normay there is direct reationshi' bet9een morae 7 'roductivity. But it is 'ossibe
that o9 'roductivity is associated 9ith high morae. @vera behavior o the em'oyees
shoud be observed to determine the eve o their morae.
%. M@RAL S2R:J!+ 3his is a orma method o 5no9ing the morae o the em'oyees.
A uestionnaire maybe drated 7 the em'oyees maybe as5ed to 'rovide ans9ers about
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their attitudes to9ards su'ervision 'eers management 7 9or5. 3he data maybe
com'ied 7 cassiied to dra9 intererences about the state o morae o the em'oyees.
1. S32DJ @= M@RAL 6ND6-A3@RS!+ 3he attitudes o the 9or5ers can be 5no9n by
studying a arge number o actors 9hich reect their behavior. Some o these actors are
as oo9s!+
(i). *R@D2-36:63J!+ ,eneray o9 eve o 'roductivity is associated 9ith o9 degree o
morae.
(ii). ABSN36SM!+ ,reater rate o absenteeism reects a o9 morae. But e>ce'tions
maybe there due to sic5ness etc.
(iii). @B SA36S=A-36@N!+ 6 the 9or5ers are satisied 9ith their jobs their morae 9i be
higher.
(iv). RLA36@NS I638 @38R M*L@JS!+ 3he morae o the 9or5ers is high i they
ee beongingness 7 togetherness among themseves.
(v). N2MBR @= A--6DN3S!+ ,eneray o9 morae eads to more accidents.
(vi). N2MBR @= ,R6:AN-S!+ 6 the number o grievances increases there 9i be o9
morae o the 9or5ers.
(vii). M*L@J 32RN@:R!+ 6 there is higher em'oyee turnover due to avoidabe
causes there 9i be o9 morae.
B26LD6N, S@2ND @R,AN6FA36@NAL -L6MA3 7 M@RAL!+ Sound organi/ationa
cimate can be deveo'ed over a ong 'eriod o time. 3he ty'e o cimate that an organi/ation
see5s is contingent u'on its members its technoogy 7 other variabes. @rgani/ationa
cimate shoud re'resent the 'hioso'hy 7 goas those 9ho have created 7 9ho run the
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organi/ation. 6n order to deveo' a sound organi/ationa cimate managers must understand
their 'eo'e in the organi/ation. 3heir eorts shoud be to deveo' an organi/ationa cimate.
3his 9i aso buid u' the morae o the em'oyees.
6t is a very com'e> job to buid 7 maintain high morae in a 9or5+grou'. 6t is a continuous
'rocess 9hich cannot be sto''ed. =oo9ing are the techniues 9hich he' to maintain high
morae o 9or5orce!+
". 6N-N36: SJS3M!+ 3here shoud be a 'ro'er incentive system in the organi/ation
to ensure monetary 7 non+monetary re9ards to the em'oyees to motivate them. Morae
has been ound to be o9 in organi/ations 9here economic needs o the 9or5orce are not
met adeuatey.
%. IL=AR MAS2RS!+ Management must 'rovide or em'oyees 9eare measures
i5e canteens credit aciities s'orts cubs education aciities or their chidren.
ManagementGs concern or 9or5ers 9eare 9i increase the good9i o the management
in ront o the 9or5ers.
1. ==-36: -@MM2N6-A36@N SJS3M!+ 3here shoud be % 9ay communication
bet9een the management 7 the 9or5ers to inuence on morae. 3he 9or5ers shoud be
5e't inormed about the organi/ationGs 'oicies 7 'rograms through conerences
buetins 7 inorma discussions 9ith the 9or5ers. 3hey shoud be ao9ed to as5
uestions 7 satisy themseves about their doubts.
4. S@-6AL A-36:636S!+ Management shoud encourage socia grou' activities by the
9or5ers. 3his 9i he' to deveo' greater grou's 9hich can be used by the management
or buiding high morae.
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. I@RKRS *AR36-6*A36@N!+ 3here shoud be industria democracy in the
organi/ation. Management shoud ao9 9or5ers 'artici'ation in management. Ihenever
a change is to be introduced 9hich 9i aect the 9or5ers they must be consuted 7
ta5en into conidence. Ior5ers must be ao9ed to 'ut or9ard their suggestions on the
matters aecting their 9or5 ie to the to' management.
Determinants o @rgani/ationa ectiveness
Ihat actors most inuence com'any 'erormance and 9hat can managers do to ensure the
eectiveness o their com'anies 3he ans9ers to these uestions are in reaity com'e> because
o the vast number o actors that may inuence com'any 'erormance. 3hese incude e>terna
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actors such as mar5et share and mar5et environment as 9e as interna com'any actors
incuding organi/ationa cuture management styes and human resource management 'ractices.
Recenty the increasing eve o com'etition 9ord9ide has ed managers and researchers to
ocus even more shar'y on these uestions. Reducing abor costs in some countries 'articuary
in countries in the 'rocess o industriai/ation has raised the eve o com'etitive threat or
countries 9hich have been industriai/ed or some time.3he 'ressures on managers to manage
the com'e> and varied inuences on com'any 'erormance are greater than ever beore.
Culture-Structure Efectiveness
-uture in organi/ationa conte>t may be broady deined as a grou's or nations 9ay o
thin5ing beieving eeing and res'onding. -uture is the 9ay o ie o a grou' o 'eo'e. More
ormay cuture is deined as the com'e> 9hoe 9hich incudes 5no9edge beie art moras
customs and any other ca'abiities and habits ado'ted by members o a society. A society may be
re'resented by the members o a nation or by members o an organi/ation. 3he individuaism+
coectivism dimension iustrates this shit rom cutura dimensions to cutura syndromes.O
(,regory "&1) @ten it is observed that the PActua -uture is uite dierent rom P@icia
-uture 9ith res'ect to 'artici'ation in decision ma5ing and socia orientation in a com'any.6 9e assume that organi/ationa structure is measured by our dimensions (s'eciai/ation
standardi/ation ormai/ation and centrai/ation) and cuture is aso deined aso by our
dimensions (individuaismCcoectivism 'o9er distance uncertainty avoidance and
mascuinityCemininity) reationshi's bet9een these dimensions 9i describe the reationshi'
bet9een organi/ationa structure and cuture. Based on such assum'tions 9e can deduce that
cuture can reativey inuence organi/ationa structure in dierent variationsH conseuenty
enhancing organi/ationa eectiveness.
Employee Attitudes and Perormance
ven i a sma 'ercentage o the variation in organi/ationa 'erormance can be e>'ained by
em'oyee attitudes then managers are i5ey to ta5e considerabe interest in the actors that
inuence em'oyee attitudes. @n the other hand i there is no in5 bet9een em'oyee attitudes
and organi/ationa 'erormance then those charged 9ith running organi/ations may 9e argue
that concerns about job satisaction or e>am'e are mora and ideoogica rather than economic
issues. @rgani/ations do not decide to become bureaucratic. Bureaucracy or any other
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organi/ationa orm is the unction o the actions o 'eo'e in the organi/ation 'erha's in
res'onse to conditions outside the organi/ation.O (=ran5 7 =ahrbach ") Rather than
concentrating u'on the cuture o the organi/ation the 'erormance o the management de'ends
on the mind+set o the em'oyees. 8ere the argument arises that any organi/ationa orm must
com'rise o such an environment that contributes to the o'timum 'erormance o the
organi/ation. 8ere the attitudes o the em'oyees 'ay an im'ortant roeH they are res'onsive to
the actors that e>ist internay as 9e as e>ternay in the organi/ation. Managers are reuired to
ma5e an eort through 9hich organi/ationa orm integrates 9ith the attitude o the sub+
ordinates. Being contradictory to the 'ro'osition above sti it can 'rove to increase
organi/ationa eectiveness.
-utura Strength and
@rgani/ationa *erormance
@rgani/ationa cuture is inter'reted here as the aggregate o em'oyees 'erce'tions o as'ects
o the organi/ation or e>am'e uaity o communication su''ort or innovation eve o
su'ervisory su''ort and so on. 8o9ever the evidence or the inuence o cuture u'on
organi/ationa 'roductivity is imited. 3he vountarism commitment and identiication 9ith the
humanistic mission 9ere seen by the organi/ationGs members (and the researchers) as having a
'ositive eect on the organi/ationGs unctioning 'articuary in the eary stages.O (Denison 7
Mishra ") @rgani/ationa cuture is the set o vaues norms and beies shared by member o
organi/ation. @rgani/ation deveo' a uniue cuture and em'oyees share common vaues and
beies about 9or5+reated issues. @rgani/ationa cuture aso can su''ort com'any mission and
strategy. ven com'anies in the same industry tend to have entirey dierent cutures based to
their o9n mission and goas. 3his he's in 'roviding the organi/ation a cear direction to 9or5
to9ards. 2timatey 9hen the organi/ationa cuture starts to su''ort com'any strategy mission
and 'oiciesH indirecty the em'oyees 9i be redirect to9ards a coective motive. 3he strength
o the cuture de'ends on ho9 strongy member share its vaues and basic assum'tion.
3he 'ervasiveness o an organi/ations cuture reuires that management recogni/e the
underying dimensions o their cor'orate cuture and its im'act on em'oyee+reated variabes
such as satisaction commitment cohesion strategy im'ementation 'erormance among
others. @ne consistent theme in the cuture iterature concerns the im'act o a strong cuture on
organi/ationa 'erormance. 3he hy'othesis is that an organi/ation 9ith a high eve o shared
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meaning a common vision a can+i5eO attitude to9ard members and a high eve o normative
integration 9i 'erorm 9e.Some authors have argued that this theory has universa a''ication 9hie others have argued
that the cuture o an organi/ation in addition to having these characteristics must aso it the
business environment. 3he muticutura organi/ation is characteri/ed by 'uraism u
integration o minority+cuture members both ormay and inormay an absence o 'rejudice
and discrimination and o9 eves o inter+grou' conictH a o 9hich shoud reduce aienation
and buid organi/ationa identity among minority grou' members.O (-o> "") Aigning
organi/ationa cuture 9ith strategy is a 'o9eru means or gaining com'etitive advantage and
industry or sector eadershi'. @rgani/ations that see5 eadershi' and sustainabiity ma5e the
choice or cuture by design not deaut.
Building and Sustaining a Culture o
Employee Engagement
Buiding and sustaining a cuture o engagement reuires a u commitment rom eadershi' and
a cimate that reguary considers ho9 the organi/ationa environment inuences em'oyee
attitude 'roductivity 9e+being and oyaty. 6n any organi/ationa structure there are some
reguar oicia activities in 9hich 'artici'ation is reuired by every em'oyee. But the e>tent to
9hich the 'artici'ation is mandatory is the uestion to as5. 3he engagement o the em'oyees inthe organi/ationa structure is the 'rimary cause o their invovement in these activities. 3he
seemingy common structure o rituas i.e. meetings training 'rograms and orma sessions or
inormation e>change they serve contrasting unctions in high and o9 innovation+su''ortive
cutures.O (assa9aa 7 Sashitta %##%) 8ere it can be 'ro'osed that cutures o dierent
variation o notions can have a major im'act on the em'oyees attitudes concerning their
reuired 'erormance.
Ie see organi/ationa cuture as the critica oundation 9hich sha'es the 9ay that the 9or5 o
the organi/ation gets done (estabished through goas 'ans measures and re9ards) and the
inrastructure (systems 'rocess and structures) gets utii/ed.
ngagement reects aignment o each em'oyees very 'ersona goas and drivers o job
satisaction 9ith the organi/ations strategy and contribution reuirements. And reaisticay i
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em'oyees themseves arent cear on 9hat they do 9e and 9hat matters most to them its
uni5ey that any 9or5 situation 9i engage them.
-utura diversity is a 'art o organi/ationa ie. 6n the 'resent business environment it cannot be
ignored. 3he uestion arises Pho9 to manage it Ihen a manager ocuses attention on cutura
dierences it causes 'robems as it is oten conused 9ith evauation o a cuture. According to
Sadri and Lees (%##") a 'ositive cor'orate cuture coud 'rovide immense beneits to the
organi/ation and thereby a eading com'etitive edge over other irms in the industry. 8o9ever a
negative cuture coud have a negative im'act on the organi/ationa 'erormance as it coud deter
irms rom ado'ting the reuired strategic or tactica changes. Such ty'e o cuture coud inhibit
uture changes in an organi/ation. 3he changes cutivated by organi/ationa cuture have a
'ositive reationshi' 9ith the inancia 'erormance o the irms.
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Objecti#e
3he oo9ing are the objectives o the research 'roject re'ort,
0. 3o e>amine the variabes aecting the @rgani/ationa -uture and -imate.
. 3o e>amine the various variabes 9hich can have bearing on the @rgani/ationa -uture and
-imate
:. 3o e>amine the various variabes 9hich need to be im'roved or better @rgani/ationa
-uture and -imate.
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-cope
-onsistency goes to the heart o 9hat com'any cuture entais. Jou cannot 'romote a message o
team9or5 one day and rugged individuaism the ne>t. A consistent cuture o shared objectives
can move your com'any or9ard on a daiy basis. >amine the messages you send out through
com'any emais s'eeches at meetings directives and 'osted notices to see i you deiver a
consistent message. 3hen e>amine that message to see i it is in ine 9ith your objectives. =or
e>am'e i you encourage a cuture o team9or5 yet oer bonuses to individuas rather than
teams you may be 9or5ing against your objective o increasing saes through a grou' eort.
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Chapter2
Research )ethodolog$
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Research )ethodolog$
Research as A systematicinvestigation incuding+ research deveo'ment testing and evauation
designed to deveo' or contribute to generai/abe 5no9edge. Activities 9hich meet this
deinition constitute research or 'ur'oses o this 'oicy 9hether or not they are conducted or
su''orted under a 'rogram 9hich is considered research or other 'ur'oses. =or e>am'e some
demonstration and service 'rograms may incude research activitiesO
Introduction
According to -asse -. 7Symon ,. (%##4) a research invoves data coection and
anaysis 9hether through observation reading measurement as5ing uestion or a combination
o these or other strategies. 3he coection o the data and or research may ho9ever vary
consideraby in its characteristics. 6n sim'e 9ords research can be 'rimary or secondary. 6n
'rimary research the coection o data is s'eciicay or study at hand. 6t can be obtained by
communicating directy or indirecty 9ith the subject or directy by the investigator. Quaitative
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research and uantitative research are incuded in the direct communication techniues. =or the
'ur'ose o this research a combination o 'rimary and secondary data has been usedH and under
'rimary athough argey uantitative data 9as coected room or uaitative data 9as made
avaiabe 9henever thought necessary.
)ethods o* Collection o* Data
=o9er ("&) o'ines the choice o coection o data mode+mai 'ersona intervie9
grou' administration or tee'hone is directy reated to the sam'e rame research to'ic
characteristics o sam'e and the resources avaiabeH it has im'ication o rates o res'onse
uestion orm and survey costs. As mentioned earier that there are t9o main researches 9hich
are 'rimary and secondary research
-econdar$ Research
Secondary research as data 9hich aready e>ist in some orm having been coected or a
dierent 'ur'ose 'erha's even by a dierent organi/ation and 9hich might be useu in soving
a current 'robemO. Athough secondary research ess e>'ensive than 'rimary research it is not
a9ays accurate useu as s'eciic custom+made research. 3here are various sources avaiabe
to the mar5eter and the oo9ing ist is by no means concusive!
-ensus data
*ubic records
Business ibraries
3rade directories
3rade Associations
Iebsites
@mnibus surveys
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*ubished com'any accounts
'reviousy gathered mar5eting research
6norma contracts
NationaC 6nternationa governments
*roessiona institutes and organi/ations
Nationa and oca 'ress 6ndustry maga/ines
!$pes o* -econdar$ data include,
3here are basicay t9o ty'es o researchoresearch methods =ualitati#e and
=uantitati#e. Siverman (%###) o'ines that the danger in the tite ho9ever is it seems to assume
a i>ed 'reerence or 're+deined evauation o 9hat is good (i.e. uaitative) and bad (i.e.
uantitative) research.
Research Process
3he research 'rocess is the ste'+by+ste' 'rocedure o deveo'ing oneGs research and
research 'a'er. 8o9ever one can sedom 'rogress in ste'+by+ste' ashion as such. 6t is oten
necessary to revise an initia research 'an. 3he research 'rocess invoves identiying ocating
assessing anay/ing and then deveo'ing and e>'ressing your ideas. 3hese are the same s5is
that 9i be needed in the 'ost+university Erea 9ordE 9hen you 'roduce re'orts 'ro'osas or
other research or your em'oyer. A o these activities 9i be based on 'rimary and secondary
sources rom 9hich recommendations or 'ans are ormuatedO. 3here is no i>ed number o
stages to be oo9ed since it varies rom research to research. At the same time every research
'rocess does in reaity oo9 a common trend in its com'etion. 3his incudes ormuating and
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cariying a to'ic revie9ing the iterature choosing a strategy coecting the data anay/ing the
data coected and inay 9riting u'.
Research Design
Naresh K. Mahotra (%##4) o'ines that research design is a bue'rint or rame9or5 or
conducting the research 'roject. 6t is in sim'e 9ords a 'an or study that guides the coection
and anaysis o data. 6t in act is the centra 'art o any activity invoving any 9or5 o research.
6t serves as a guide to the investigation methods the instruments in research used nature o data
9ith the sam'ing rame and 'an. @ne o its 5ey eatures shoud be to hod the 'arts and 'hases
o the enuiry together. 6t shoud be com'rehensive in its coverage o the 9or5 i.e. it shoud
ao9 or ogic tight+ness 'recision and eective use o resources. A research design ays the
oundation or conducting the 'roject. A good research design 9i ensure that the research 'an
is conducted eicienty and eectivey.
-ampling
@rgani/ationa -uture and -imate in 6ndia.
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+ibliograph$ 5 Re*erences
+oo's Re*erred ,2
A Sri5anth and Anu'Menon (%##1) 0 6nde> =utures + the Sco'e o Arbitrage.
Aan -. Sha'iro (%###) *rentice+ 8a 0 PMutinationa =inancia Management.
Bansa M. Bansa N. (%##1) + Derivatives 7 =inancia 6nnovations Bombay Stoc5
>change.
Bharti : (").*atha5 *earson ducation 0 P6ndian =inancia System.
Ba>ter ("$) 0 8o9 to Research.
David Siverman (%###) 0 Do Quaitative research.
Dr. Narendrahadav (%###) 0 6ndian Ban5ing.
Donad S. 3u and De 6. 8a95ins ("1)+ Mar5eting Research
Journals Re*erred,2
Dhingra ,. (%#"#) PAn understanding o inancia derivatives o inancia derivatives
3he -hartered Accountant March
Kandathi -.(%##) P6ndian Derivatives Mar5ets 0 Structura 6ssues -hartered
=inancia Anayst December
>ebsite Re*erred,2
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Ieb" Derivative Deinition (@nine) (-ited on %$th
A'ri %#"1) Avaiabe rom
T999.c'erormance.comCgossary.htmU
Ieb % Deinition o =or9ard -ontract (@nine) (-ited on %th
A'ri %##?) Avaiabe rom
T999.ers.usda.govCBrieingCRis5ManagementCgossary.htmU
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