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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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