A Study of Organizational Culture and It's Impact On Employe

A Study of the Organizational Culture And Its Impact
On Employee Performance.
Case Study !a" Palace# $elhi
Submitted by:
Rashi Dua
Enrollment No. 51190206
Submitted In Fulilment ! "he Re#uirement For "he
$%S"ER IN &'$%N RES!'R(E $%N%)E$EN"
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I%S!I!&!E O' (A%A)E(E%! !EC*%O+O),# $O+I
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200,
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I&$
.% *&ons.+ In &otel $ana/ement
'ni0ersity ! &uddersield
2001
A study of organizational culture and its impact on employee performance
$EC+A/A!IO%
I de2lare that this dissertation is the result o my o3n industrial eorts and that
it 2onirms to uni0ersity4 de5artmental and 2ourse re/ulations re/ardin/
2heatin/ and 5la/iarism. No material 2ontained 3ithin this dissertation has
been used in any other submission4 by the author4 or an a2ademi2 a3ard.
A0dfafs"
1anuary 2334
Rashi Dua
I
AC5%O6+E$)E(E%!
I 3ould li6e to than6 the 5rin2i5al o the I&$4 $r. 7ra0een Roy or /i0in/ me
this o55ortunity or 3or6in/ on this dissertation.
$y than6s are due to $s. %mbi6a .ablani4 "rainin/ $ana/er at "a8 7ala2e or
her 2o9o5eration and su55ort to 2ondu2t this resear2h in the hotel. S5e2ial
than6s to all the sta members or their 0aluable time and sharin/ their 0ie3s4
to ma6e this resear2h a su22ess.
I /rateully a26no3led/e the eorts o $r. :a5il %//ar3al 3ho has /uided me
throu/h this dissertation and or 5ro0idin/ me 3ith the ri/ht in5uts4 6ee5in/ in
mind and needs o the 'ni0ersity o &uddersield.
Rashi Dua 1
!a7le of Contents
$EC+A/A!IO% ...................................................................................................I
AC5%O6+E$)E(E%!......................................................................................8
!A.+E O' CO%!E%!S......................................................................................2
!A.+E O' 'I)&/ES............................................................................................
!A.+E O' )/AP*S.............................................................................................
C*AP!E/ 98 !*E P/O.+E( A%$ I!S SE!!I%)S...........................................
1.1 IN"R!D'("I!N ........................................................................................
1.2 "&E %77R!%(& ........................................................................................
1.1 "&E DISSER"%"I!N S"R'("'RE ................................................................
1.; S"%"E$EN" !F %I$S %ND !.<E("I=ES.......................................................
1.5 S(!7E....................................................................................................
C*AP!E/ 92 !*E S!&$, O' C&+!&/E A%$ I!S /E+A!IO%S*IP !O
S!/A!E), (A%A)E(%E!................................................................................
2.1 >&%" IS %N !R)%NI?%"I!N@.....................................................................
2.2 !R)%NI?%"I!N%A ('A"'RE........................................................................
2.1 S"R%"E)B %ND ('A"'RE..........................................................................
2.; "&E R!AE !F 7%R%DI)$ IN S"R%"E)B F!R$'A%"I!N.................................
C*AP!E/ 9: O/)A%I-A!IO%A+ C&+!&/E ....................................................
1.1IN"R!D'("I!N ...........................................................................................
1.2DEFININ) !R)%NI?%"I!N%A ('A"'RE ..........................................................
1.1I$7!R"%N(E !F ('A"'RE ..........................................................................
1.;EAE$EN"S !F %N !R)%NI?%"I!NCS ('A"'RE ...............................................
1.5('A"'R%A "B7!A!)IES...............................................................................
1.6S"R!N) =S. >EE: ('A"'RES......................................................................
1.,N%"'RE !F !R)%NI?%"I!N%A ('A"'RE .......................................................
1.D&!> IS ('A"'RE (RE%"ED@........................................................................
1.9I$7%(" !F ('A"'RE !N E$7A!BEE 7ERF!R$%N(E......................................
1.10 (!$$'NI(%"IN) ('A"'RE .......................................................................
1.11 %N%ABSIS !F ('A"'RE ............................................................................
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C*AP!E/ 9; E(P+O,EE PE/'O/(A%CE.......................................................
;.1 >&%" IS E$7A!BEE 7ERF!R$%N(E@.........................................................
;.2 7ERF!R$%N(E E=%A'%"I!N......................................................................
;.1 E$7A!BEE 7ERF!R$%N(E %S % :EB RES'A" %RE%.....................................
;.; %N%AB?IN) E$7A!BEE 7ERF!R$%N(E ......................................................
;.5 F%("!RS "&%" %FFE(" E$7A!BEE 7ERF!R$%N(E IN %N !R)%NI?%"I!N .. . .
C*AP!E/ <9 A '/A(E6O/5 'O/ E=A+&A!IO%...........................................
5.1 IN"R!D'("I!N ........................................................................................
5.2 R%"I!N%AES F!R !R)%NI?%"I!N%A ('A"'RE.............................................
5.1 !R)%NI?%"I!N%A ('A"'RE .......................................................................
5.; I$7%(" !F !R)%NI?%"I!N%A ('A"'RE !N E$7A!BEE 7ERF!R$%N(E.........
5.5 EE7A%N%"I!N "! "&E $!DEA ...................................................................
C*AP!E/ >9 /ESEA/C* (E!*O$O+O), .....................................................
6.1 IN"R!D'("I!N.........................................................................................
6.2 >&%" IS RESE%R(&@................................................................................
6.1 "&E RESE%R(& 7R!(ESS *&B7!"&E"I(! DED'("I=E $E"&!D+...................
6.; (%SE S"'DIES .........................................................................................
6.5 S'R=EB INS"R'$EN"................................................................................
6.6 7!7'A%"I!N4 S%$7AE %ND D%"% (!AAE("I!N............................................
6., S%$7AIN) %ND %D$INIS"R%"I!N ...............................................................
6.D &B7!"&ESES ...........................................................................................
6.9 7IA!" "ES"IN) .........................................................................................
6.10 (!N(A'SI!N ...........................................................................................
C*AP!E/ 49 P/I(A/, A%A+,SIS A%$ CO%C+&SIO%..................................
,.1 7%R" 19 EAE$EN"S !F "&E !R)%NI?%"I!N%A ('A"'RE ..............................
,.2 7%R" 2*%+9 "B7E !F ('A"'RE...................................................................
,.1 7%R" 2*.+9 (!$$'NI(%"I!N !F "&E ('A"'RE...........................................
,.1 7%R" 2*(+9 (RE%"I!N !F ('A"'RE............................................................
,.1 7%R" 1: !R)%NI?%"I!N%A ('A"'RE %ND E$7A!BEE 7ERF!R$%N(E ...........
C*AP!E/ ?9 CO%C+&SIO% A%$ /ECO((E%$A!IO%...................................
D.1 (!N(A'SI!N............................................................................................
D.2 S(!7E F!R F'R"&ER RESE%R(& ..............................................................
.I.+IO)/AP*, ..................................................................................................
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!a7le of 'igures
Fi/ure 2.1 "he role o 5aradi/m in strate/y ormulation .....................................
Fi/ure 2.2 "he 2ultural 3eb ................................................................................
Fi/ure 1.1 Aayers o or/aniFational 2ulture..........................................................
Fi/ure 1.2 Formation o or/aniFational 2ulture....................................................
Fi/ure 1.1 2ulture and or/aniFational ee2ti0eness............................................
Fi/ure ;.1 Relationshi5s amon/ 0ariables ae2tin/ em5loyee 5rodu2ti0ity........
Fi/ure ;.2 %nalyFin/ em5loyee 5erorman2e .....................................................
Fi/ure 5.1 Rationale or or/aniFational 2ulture....................................................
Fi/ure 5.2 Elements o or/aniFational 2ulture.....................................................
Fi/ure 5.1 Im5a2t o or/aniFational 2ulture on em5loyee 5erorman2e..............
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!a7le of )raphs
)R%7& 1. "&E R!'"INES "&%" %RE F!AA!>ED IN "&E !R)%NI?%"I!N ...................
)R%7& 2 !R)%NI?%"I!N%A S"R'("'RES..............................................................
)R%7& 1 7E!7AE !RIEN"%"I!N............................................................................
)R%7& ; >!R: IS 7ERF!R$ED !'" !F................................................................
)R%7& 5 DE(ISI!NS %RE $%DE .B.......................................................................
)R%7& 6 !NE 7ERS!N (!N"R!ACS "&E !"&ER %("I=I"IES >&EN...........................
)R%7& , 7R!7ER "R%ININ) (A%SSES %FFE(" B!'R 7ERF!R$%N(E......................
)R%7& D IF $ESS%)ES %RE (!$$'NI(%"ED "&EN I" %FFE("S B!'R
7ERF!R$%N(E......................................................................................
)R%7& 9 (!9!7ER"I!N >I"& B!'R (!9>!R:ERS %FFE("S B!'R 7ERF!R$%N(E. .
)R%7& 10 IF "&ERE IS % RES7E(" F!R "&E INDI=ID'%ACS RI)&" IN "&E
!R)%NI?%"I!N4 I" &EA7S IN IN(RE%SIN) "&EIR 7ERF!R$%N(E................
)R%7& 11 IF EE"R% IN(EN"I=ES %ND .!N'SES %RE )I=EN "! B!'4 D!ES I" AE%D
"! IN(RE%SE IN B!'R 7ERF!R$%N(E@..................................................
Rashi Dua 5
Chapter 89 !he Pro7lem and Its Settings
8.8 Introduction
"he 2ore issue in this dissertation is or/aniFational 2ulture and ho3 it ae2ts
the em5loyee 5erorman2e. E0en beore the terms G2ultureG and Gor/aniFationG
3ere used in 2ombination4 the term 2ulture had been deined in literally doFens
o dierent 3ays. %nthro5olo/ists su2h as :roeber and :lu26hohn*1990+
isolated 16; deinitions o 2ulture in 1952. In todayGs 3orld 2ulture 5lays a 0ery
im5ortant issue in the or/aniFation. It ae2ts the strate/y ormulation4
e0aluation and im5lementation and the 5erorman2e o the or/aniFation and o
the em5loyees. % #uestion li6e 3hat is or/aniFational 2ulture4 ho3 it ae2ts the
strate/ies that are made in the or/aniFation@ "he nature and elements o
or/aniFational 2ulture@ &o3 the 2ulture is e0aluated@ Dierent 3ays o
2ommuni2atin/ 2ulture@ In addition4 ho3 2ulture ae2ts the .5erorman2e o the
em5loyees in an or/aniFation ha0e been ans3ered in the dissertation.
"3enty years a/o or/aniFations 3ere sim5ly thou/ht o as rational means by
3hi2h to 2o9ordinate and 2o9ordinate a /rou5 o 5eo5le. "hey had 0erti2al
le0els4 de5artments4 authority relationshi5s and so orth. .ut in todayGs 2entury
or/aniFations are more. "hey too ha0e 5ersonalitiesH they 2an be ri/id or
leIible4 unriendly or su55orti0e4 inno0ati0e or 2onser0ati0e. "hey ha0e a
2ulture o their o3n 3ithin 3hi2h they o5erate. %22ordin/ to Robbins *1996+4
Organization Culture reers to a system o shared meanin/ held by members
that distin/uishes the or/aniFation rom other or/aniFations. (ulture has its
ori/in in the or/aniFational intera2tion.
E0ery or/aniFation has a 2ulture and4 de5endin/ on its stren/th4 2ulture 2an
ha0e a si/nii2ant inluen2e on the attitudes and the beha0iors o or/aniFation
members. !r/aniFational 2ultures are im5ortant to a irmGs su22ess or se0eral
reasons. "hey /i0e an or/aniFational identity to em5loyees9a deinin/ 0ision o
3hat the or/aniFation re5resents. "hey are also an im5ortant sour2e o stability
and 2ontinuity to the or/aniFation4 3hi2h 5ro0ides a sense o se2urity to its
Rashi Dua 6
members.
In order to ha0e a 5ositi0e4 sustained im5a2t on satisa2tion and 5erorman2e4
2ulture must be 0aluable4 rare4 and inimitable. I a 2ulture 2an be imitated4 then
ado5tion o the 2ulture by the 2om5etitors 3ill slo3ly eliminate the 2om5etiti0e
ad0anta/es o the 2ulture. (ulture has im5a2t on 2ontrol4 normati0e beha0ior4
inno0ation and member 5erorman2e and satisa2tion. Relationshi5 bet3een
2ulture and 5erorman2e is stron/ and not so bet3een 2ulture and satisa2tion.
8.2 !he Approach
1. "he dissertation be/ins by deinin/ the resear2h issue in the 2ha5ter 1. It
also states the aims and ob8e2ti0es and the limitations o the dissertation
2. "he in de5th study o the 0ariables that are or/aniFational 2ulture and
em5loyee 5erorman2e. %lso aims at introdu2in/ the 2on2e5t
or/aniFational 2ulture and its 6ey elements in detail.
1. %ims at studyin/ em5loyee 5erorman2e and its relation to
or/aniFational 2ulture.
;. "he establishment o the theoreti2al rame3or64 3hi2h states the
relationshi5 bet3een the t3o 0ariables Jor/aniFational 2ulture and
em5loyee 5erorman2eJ.
5. "he resear2h methodolo/y4 3herein the resear2her 3ill identiy the
0ariables.
6. Fo2uses on the analysis o the data 2olle2ted by the resear2her as a 5art
o the 5rimary resear2h o the dissertation.
,. In this 2ha5ter the resear2her aims to summariFe the study and the
3or6s done durin/ the 2ourse o the dissertation by statin/ the
2on2lusion o the 3hole resear2h 2arried out or the issue. .
8.: !he $issertation Structure
"he dissertation be/ins 3ith the sele2tion o the to5i24 ollo3ed by the
identii2ation o the aims and ob8e2ti0es. !n2e this is done4 2olle2tin/ material
rom the 3or6 done on the sub8e2t by the 0arious authors 3ill 2reate a 5latorm.
"hereater4 a theoreti2al rame3or6 3ill be made based on the literature re0ie3.
Rashi Dua 7
"he literature re0ie3 3ill be a 2om5ilation o the 3or6 o 0arious authors on the
sub8e2ts93hat is or/aniFational 2ulture4 its rationale and 3hat it 2om5rise o.
"his 3ill be ollo3ed by a brie on 3hat is em5loyee 5erorman2e a22ordin/ to
0arious authors. It 3ill be ollo3ed by the resear2h methodolo/y4 3hi2h 3ill lead
in to urther resear2h. It 5ro0ides a ully detailed a22ount o the resear2h
methodolo/y4 the reasons that the 0arious resear2h strate/ies are sele2ted4
and the rational or the sam5le sele2tion 5ro2ess. It also deals 3ith the issue o
3hy the 5arti2ular sur0ey instrument 3as sele2ted as bein/ a55ro5riate or the
2urrent study.
8.; Statement Of Aims And O7"ecti@es
"he aim o this dissertation is to study the or/aniFational 2ulture and its im5a2t
on the em5loyee 5erorman2e. "his dissertation 3ould 5rimarily re0ie3 and
2riti#ue the eIistin/ literature on or/aniFational 2ulture by authors 3ho ha0e
3ritten on the sub8e2t. "he literature re0ie3 3ould a2t as a 5latorm in studyin/
the im5a2t o or/aniFational 2ulture on em5loyee 5erorman2e. !n2e this
5latorm has been set then the 2ase study on "a8 7ala2e4 Delhi 2an be 2arried
out.
"he ob8e2ti0e is to study as to 3hat is or/aniFational 2ulture and 3hat im5a2t
does the 2ulture o an or/aniFation ha0e on its em5loyees. %t the end o this
dissertation the resear2her 3ould be able to re2ommend measures.
"he ob8e2ti0es set or the se2ondary resear2h 3ere as ollo3s:
"he resear2h aims at studyin/ the or/aniFational 2ulture and its
im5a2t on em5loyee 5erorman2e in the or/aniFation.
It aims also at studyin/ 3hat *ole does 2ulture 5lay in the strate/y
ormulation and im5le!1entation. It deals 3ith ho3 it leads to the
ormulation o the 5aradi/m and ho3 does strate/y ormulation and
or/aniFational 2ulture lead to better 5erorman2e in an or/aniFation.
"o study 3hat im5a2t does or/aniFational 2ulture ha0e on em5loyee
5erorman2e@
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"he ob8e2ti0es outlined or 2arryin/ out the 5rimary resear2h by the author
3ere:
"o study the elements 3hi2h 2onstitute the 2ulture o an
or/aniFation@
"o identiy the ty5e o 2ulture 5resent in the or/aniFation.
"o study the im5a2t o or/aniFational 2ulture on em5loyee
5erorman2e.
8.< Scope
% 2om5lete study o a 0ariable li6e 2ulture is not realisti2. "o 6ee5 the resear2h
on tra26 deinite s2o5e has been laid do3n. Ne0ertheless as the resear2h
5ro/resses this s2o5e 2ould be narro3ed or broaden.
"he resear2h 3ould be 2o0erin/ 0arious as5e2ts o or/aniFational 2ulture and
itGs relationshi5 to em5loyee 5erorman2e. E0en thou/h not all as5e2ts o
or/aniFational 2ulture 3ould be loo6ed in to due to time and 3ord limit dearth.
"he resear2h 3ould not be 2o0erin/ 2ertain areas li6e:
!r/aniFational 2ulture 2han/e
=arious sub 2ultures 3ithin an or/aniFation
!r/aniFational 2limate
Summary
"hus4 the intent o this dissertation is to eIamine in detail e0ery eature o
or/aniFational 2ulture and its im5ortan2e in the hos5itality industry. It also aims
to analyFe the im5a2t o or/aniFational 2ulture on the em5loyees o the
or/aniFation 3ith the in2rease in their le0el o satisa2tionKdissatisa2tion.
Rashi Dua 9
Chapter 29 !he Study Of Culture And Its /elationship to
Strategy (anagement
2.8 6hat Is An OrganizationA
%22ordin/ to "aylor and Farrell *199;+4 or/aniFations 2an be sim5le or 2om5leI
thin/s. %n or/aniFation is ormed 3hen t3o or more 5eo5le ha0e a 5roblem to
sol0e4 or a 5la2e to /et to4 or ha0e a de2ision to ma6e. It is a so2ial entity 3here
5eo5le stri0e to sol0e the 2onli2t bet3een their o3n and others ob8e2ti0es and
needs.
2.2 Organizational Culture
%22ordin/ to "hom5son *199,+ 3hen /rou5 o 5eo5le 3or6 to/ether or any
len/th o time4 they orm and share 2ertain belies about 3hat is ri/ht and
5ro5er. "hey establish beha0ior 5atterns based on their belies4G and their
a2tions oten be2ome matters or habit4 3hi2h they ollo3 routinely. "hese
belies and 3ays o beha0in/ 2onstitute the or/aniFationGs 2ulture.
"he resear2her eels that 2ulture is rele2ted in the 3ay 5eo5le in an
or/aniFation 5erorm tas6s4 set ob8e2ti0es and administer them. It ae2ts the
3ay that they ma6e de2isions4 thin64 eel and a2t in res5onse to the
o55ortunities and threats. (ulture is so undamental that it ae2ts beha0ior
un2ons2iously
"he 2ulture o an or/aniFation is related to the 5eo5le4 their beha0ior and the
o5eration o the stru2ture. It is en2a5sulated in the belies4 2ustoms and 0alues
and maniested in a number o symboli2 3ays.
2.: Strategy And Culture
%22ordin/ to "hom5son *199,+ or/aniFational 2ulture di2tates the 3ay
de2isions are made4 the ob8e2ti0es o the or/aniFation4 the ty5e o 2om5etiti0e
ad0anta/e sou/ht4 the or/aniFation stru2ture and systems o mana/ement4
Rashi Dua 10
un2tional strate/ies and 5oli2ies4 attitudes to3ard mana/in/ 5eo5le4 and
inormation systems.
For these reason styles o 2or5orate de2ision9ma6in/4 leadershi5 and 0alues is
a 2entral dri0in/ or2e. "hey are al3ays im5ortant4 and they are not easily
2han/ed 3ithout the a55ointment o a ne3 eIe2uti0e. .e2ause they a2t as a
dri0in/ or2e and ae2t all as5e2ts o strate/i24 mana/ement 2ulture is ully
eI5lored in the or/aniFation.
>ool3orthG *the hi/hest street retailers and are no3 a 5art o the 6in/isher
/rou5+ identiied their 2ustomer ser0i2e as bein/ a 3ea6ness4 5arti2ularly
2om5ared 3ith their main ri0als. 7eo5le they ar/ued are a ma8or strate/i2
resour2e4 and they rele2t the 0alues o the or/aniFation. >ool3orth introdu2ed
a 2ustomer 2are trainin/ 5ro/ram entitled GEI2ellen2eG4 and lin6ed it to sta
re3ards. "here ha0e been t3o a2hie0ements. First4 2ustomer 5er2e5tion o
sta hel5ulness and se2ond mere ha0e been inan2ial /ains.
Strate/i2 mana/ement has been built around three im5ortant elements:
Strategic analysis 9 I an or/aniFation understands the nature o its
mar6et and is /enerally a3are of, and res5onsi0e to4 2han/es in the
en0ironment as a 3hole4 it 2an be a su22essul 2om5etitor and a2hie0e
5roit and /ro3th. "he le0els o su22ess that it is a2hie0in/ 3ith 2urrent
strate/ies should be assessed4 and uture tar/ets or a2ti0ities4 3hi2h are
dierent4 determined.
"his re#uires an analysis o 2urrent results4 an e0aluation o 2urrent resour2es
and an assessment o o55ortunities and threats 5resent and de0elo5in/ in the
en0ironment. "he 0alues and 2ulture held by the or/aniFation are a 2ru2ial
a2tor to in2lude in this.
<ohnson and S2holes *1999+ 5oints out that 2ultural inluen2eL 3ithin the
or/aniFation and rom the 3orld around also inluen2es the strate/y an
or/aniFation ollo3s4 not least be2ause the strate/y an or/aniFation ollo3s4 but
Rashi Dua 11
be2ause the en0ironmental and resour2e inluen2es on the or/aniFation are
li6ely to be inter5reted in terms o the assum5tions inherent in that 2ulture.
"o/ether4 a 2onsideration o the en0ironment4 strate/i2 2a5ability4 the
eI5e2tations and the 5ur5oses 3ithin the 2ultural and 5oliti2al rame3or6 o the
or/aniFation 5ro0ides a basis or the strate/i2 analysis o an or/aniFation.
Strategic choice9 "his is 2on2erned 3ith establishin/ 8ust 3hat 2ourses
o strate/i2 a2tion are a0ailable to an or/aniFation and ho3 these may
be e0aluated and one or more sele2ted. Strate/i2 2hoi2e de2isions are
im5ortant or determinin/ uture 2ourses o a2tionH other strate/i2
2han/es may emer/e rom a more /radual 5ro2ess o trial and error.
Strategic implementation9 % strate/y is only useul 3hen it has been
im5lemented4 and hen2e the or/aniFation must ha0e an a55ro5riate
stru2ture4 2lear and 2ontributory un2tional strate/ies and systems that
ensure that the or/aniFation beha0es in a 2ohesi0e rather than a
ra/mented 3ay.
In order to im5lement the strate/y the man/ers should /i0e a lot o im5ortan2e
to the 2ulture o the or/aniFation. Im5lementation in0ol0es de0elo5in/ an
or/aniFational 2ulture that is 2onsistent and ali/ned 3ith the ormulated
strate/y. .rod3in and .our/eios *1991+ state that an or/aniFationGs 2ulture 2an
be a ma8or stren/th 3hen it is 2onsistent 3ith strate/y and thus is a 5o3erul
dri0in/ or2e in strate/y im5lementation.
.erry *19D1+ belie0es that ater 20 years o em5hasis on analyti2al te2hni#ues
in strate/i2 mana/ement4 the 2on2entration has s3it2hed to the soter as5e2t o
2ulture. "he em5hasis is no lon/er on the mar6et 5la2e4 but on 3hat man/ers
2ould do to resol0e internal 5roblemsH by usin/ 2ulture4 2om5anies 2ould
be2ome more strate/i2ally ee2ti0e.
Stron/ 2ultures4 then4 are an im5ortant strate/i2 asset. InternaliFed belies 2an
moti0ate 5eo5le to eI2e5tional le0els o 5erorman2e. %n ee2ti0e strate/i2
Rashi Dua 12
leader understands and moulds the 2ulture in order that a 0ision 2an be
5ursued and intended strate/ies im5lemented.
Deal and :ennedy *19D2+ ar/ue that em5loyees .must be re3arded or
2om5lian2e 3ith the essential 2ultural as5e2ts i these 0alues are to be
de0elo5ed and maintains o0er timeH and they 2on2lude that 5eo5le 3ho build4
de0elo5 and run su22essul 2om5anies in0ariably 3or6 hard to 2reate stron/
2ultures 3ithin their or/aniFations.
From their resear2h4 deal and :ennedy isolated i0e 6ey elements or
determinants o 2ulture.
"he en0ironment and 6ey su22ess a2tors9 3hat the or/aniFation must
do 3ell i it is to be an ee2ti0e 2om5etitor. EIam5les are inno0ation and
ast deli0ery.
"he 0alues9 that the strate/i2 leader 2onsiders im5ortant and 3ishes to
see ado5ted and ollo3ed in the or/aniFation. "hese should be relate to
the 6ey su22ess a2tors4 and to em5loyees re3ard systems.
&eroes9"hey are the 0isionaries 3ho 2reate the 2ulture. "hey 2an 2ome
rom any ba26/round. Rites and rituals: "he beha0ior 5atterns in 3hi2h
the 2ulture is maniest. "he 2ultural net3or6: the 2ommuni2ation system
around 3hi2h the 2ulture re0ol0es.
*Further eI5lained in 2ha5ter 1+
7eters *19DD+ 5oints out that essential 2ultural 2hara2teristi2s 3ill di2tate the
5reerred mode o strate/y 2reation in an or/aniFation. "he 2ulture 3ill
inluen2e the ability o a strate/y 0isionary to sell his or her ideas to other
members o the or/aniFation to /ain their su55ort and 2ommitment to 2han/e.
%n or/aniFation in 3hi2h en0ironmental o55ortunities and threats arises
2ontinuously in a situation o 2om5etiti0e 2haos an or/aniFation must be able to
deal 3ith them i it has to sur0i0e. It is the 2ulture4 3ith its amal/am o attitudes4
0alues4 5er2e5tions and eI5erien2es4 3hi2h determines the out2omes and
relati0e su22ess.
Rashi Dua 13
.erry *19D1+ ar/ues that i a strate/i2 leader really understands the 2om5any
2ulture he or she must4 by deinition be e#ui55ed to ma6e 3ise de2isions. !ne
2an a22om5lish 2ultural 2han/e in order to shit the irm to3ards a ne3
strate/y.
%22ordin/ to the resear2her i the business strate/ies and 2ulture are
intert3ined4 the ability to analyFe and 2onstru2t strate/ies and the ability to
man/e and ins5ire 5eo5le is also intert3ined. % /ood strate/y a26no3led/es
3here the or/aniFation is and 3hat the or/aniFation has to do. De0elo5in/ and
im5lementin/ strate/y is a human and 5oliti2al 5ro2ess that starts as mu2h 3ith
the 0ision4 ho5es and as5irations o a 2om5anyGs leaders as it does 3ith mar6et
analysis.
Further .rod3in and .our/eois *1991+ state that or/aniFational 2ulture is a
5rodu2t o the mission statement and strate/ies and is a 5rimary o2us in
sha5in/ uture missions and strate/ies it is 3idely a26no3led/ed in determinin/
the su22ess or ailures o business.
Further &i26man and Sil0a *19D6+ state that i the strate/y thin6in/ and 2ulture
are not 2ombined in the mana/ement o an enter5rise than the oundation and
the stru2ture o eI2ellen2e 3ea6ens. "he #uality o 5rodu2ts and ser0i2es
de2lines4 morale sa/s and sales and 5roit 5lummet. >ithout the unii2ation o
strate/y and 2ulture4 eIe2uti0es 2annot 2reate ne3 a/e eI2ellen2e or their
or/aniFations. I a brilliant strate/y 2annot rely on healthy 2ultures to 2arry it
out4 little ho5e eIists or a2hie0in/ /reatness.
$iles and Sno3 *19,D+ ha0e su//ested dierent ty5es o ty5olo/ies or
or/aniFations 3hi2h 2an be loo6ed on to relation to 2ulture and strate/y
ormulation:
$efenders9 Deenders are or/aniFations4 3hi2h ha0e narro3 5rodu2t
domain. In these ty5es o or/aniFation4 to5 mana/ers are eI5erts in the
limited area o o5eration. .e2ause o this narro3 o2us4 these
Rashi Dua 14
or/aniFations seldom need to ma6e ma8or ad8ustments in their
te2hnolo/y and methods o o5eration. "hey de0ote their attention in
im5ro0in/ the ei2ien2y o their eIistin/ o5erations.
Prospectors9 "hey are or/aniFations that 2ontinually sear2h or mar6et
o55ortunities and they re/ularly eI5eriment 3ith 5otential res5onses to
emer/in/ en0ironment trends. "hese or/aniFations are the 2reator o
2han/e and un2ertainty to 3hi2h their 2om5etitors must res5ond.
Analyzers9 "hey are or/aniFations that o5erate in t3o ty5es o 5rodu2t
mar6et domain4 one relati0ely stable and the other 2han/in/. In their
stable areas4 these or/aniFations o5erate ei2iently 3ith ormaliFed
stru2tures and 5ro2esses.
In 0ie3 o the resear2her these ty5olo/ies distin/uishes or/aniFations in term o
0alues and ob8e2ti0es4 and dierent ty5es 3ill ty5i2ally 5reer 5arti2ular
a55roa2hes to strate/i2 2reation. "hey ollo3 these strate/ies be2ause o the
2ulture that eIists in the or/aniFation. Deenders4 5ros5e2tors and analyFers
are all re/arded by $iles and Sno3 as 5ositi0e or/aniFationsH rea2tors must
ultimately ado5t one o the three a55roa2hes or than suer lon/9term de2line.
(ulture buildin/ attra2ts4 de0elo5s4 moti0ates and uniies the ri/ht 6ind o
em5loyees. Ea2h 5ie2e o an internally 2onsistent strate/y must it snu/ly 3ith
ea2h 5ie2e o an internally 2onsistent 2ulture in order to a2hie0e a /ood
em5loyee 5erorman2e.
2.; !he /ole Of Paradigm In Strategy 'ormulation
<ohnson and S2holes *1999+ 5oints out that the 2ulture o an or/aniFation is
im5ortant but it is not strai/htor3ard. % strate/y and the 0alues o an
or/aniFation may be 3ritten do3n4 but the underlyin/ assum5tions 3hi2h ma6e
u5 the 5aradi/m are usually e0ident in the day to day 2on0ersations or
dis2ussions o 5eo5leH or so may be ta6en or /ranted that they 2an be
obser0ed only in 3hat 5eo5le do. "a6en or /ranted may4 then4 mean bein/
0ery sensiti0e to si/nals rom the 3ider 2ulture o an or/aniFation.
Rashi Dua 15
It is im5ortant to understand these 3ider as5e2ts be2ause not only they /i0e
2lues about the 5aradi/m4 but also they are also li6ely to reinor2e the
assum5tions 3ithin that 5aradi/m. "hey are the re5resentation in
or/aniFational a2tion o 3hat is ta6en or /ranted. "hese dierent as5e2ts o
or/aniFational 2ulture4 to/ether 3ith the 5aradi/m itsel 2om5rise the 2ultural
3eb.
'igure 2.8 !he role of paradigm in strategy formulation
BSource 1ohnson and Schoels# 8CCCD
"he elements o the 2ultural 3eb in2lude:
"he routine 3ays that members o the or/aniFation beha0e to3ards
ea2h other4 and to3ards those outside the or/aniFation4 ma6e u5 the
3ay the thin/s are done in the or/aniFation. "his lubri2ates the 3or6in/
o the or/aniFation4 and may 5ro0ide a distin2ti0e and benei2ial
or/aniFational 2om5eten2y
"he rituals o the or/aniFational lie are the s5e2ial e0ents throu/h
3hi2h the or/aniFation em5hasiFes 3hat it is 5arti2ularly im5ortant and
reinor2es the 3ay the thin/s are done in the or/aniFation. EIam5les are
ormal trainin/ 5ro2esses li6e trainin/ and inter0ie3.
Rashi Dua 16
The role of paradigm in strategy formulation
Paradigm
Opportunities
and threats
trengths and
!ea"nesses
Opportunities
and threats
trengths and
!ea"nesses
trategy
#erforman$e
"he stories told by members o the or/aniFation to ea2h other4 to
outsiders4 to ne3 re2ruits embed the 5resent in its or/aniFational history
and also la/ u5 im5ortant e0ents and 5ersonalities. "hey ty5i2ally ha0e
to do 3ith su22esses4 ma0eri26s and 0illains 3ho de0iate rom the norm.
Sym7ols su2h as lo/os4 oi2es4 2ars and titles or the ty5e o lan/ua/e
and terminolo/y 2ommonly used4 be2ome a short hand re5resentation o
the nature o the or/aniFation. In a lon/ established or/aniFation there
3ould be many symbols o hierar2hy or deense to do 3ith ormal oi2e
layout4 the 3ay in 3hi2h 5eo5le address ea2h other and so on.
EIam5les may be mobile 5hones and dinin/ rooms.
PoEer structures are asso2iated 3ith the 6ey 2onstru2ts o the
or/aniFation. "he 5aradi/m is4 in some res5e2ts4 the ormula or
su22ess4 3hi2h is ta6en or /ranted and li6ely to ha0e /ro3n u5 o0er
years. . "he a22ountan2y irms may oer a 3hole ran/e o ser0i2es4 but
ty5i2ally4 the most 5o3erul indi0iduals or /rou5s are #ualiied
a22ountants 3ith a set o assum5tions about the business and its mar6et
rooted in the audit 5ra2ti2e. 7o3er is not based on seniority. In some
or/aniFations4 5o3er 2an be lod/e 3ithin other le0els o un2tions.
"he control systems4 measurements and re3ard systems4 em5hasiFe
3hat it is im5ortant to monitor in the or/aniFation4 and to o2us attention.
Organizational structure is li6ely to rele2t 5o3er stru2tures and a/ain
delineate im5ortant relationshi5s and em5hasiFe 3hat is im5ortant in an
or/aniFation. %n or/aniFation 3ith indi0idually based bonus s2hemes
related to 0olume 2ould ind it dii2ult to 5romote strate/ies re#uirin/
team3or6 and em5hasiFe on #uality rather than 0olume.
Rashi Dua 17
!he Cultural 6e7
'igure 2.2 !he cultural Ee7
BSource 1ohnson F Schoels# 8CCCD
In 0ie3 o the resear2her4 2ultural 3eb is a 2on2e5tual tool or understandin/
the underlyin/ assum5tions4 lin6ed to 5oliti2al4 symboli2 and stru2tural as5e2ts4
o an or/aniFation. "he 5aradi/m in2ludes the set o assum5tions4 3hi2h are
rarely tal6ed about4 3hi2h are not 5roblemati24 and about 3hi2h man/ers are
unli6ely to be eI5li2it.
%22ordin/ to <ohnson and S2holes *1999+ or an or/aniFation to o5erate
ee2ti0ely there has to be a /enerally a22e5ted set o assum5tionsG. It
re5resents 2olle2ti0e eI5erien2e 3ithout 3hi2h 5eo5le 3ould ha0e to rein0ent
their 3orld or dierent 2ir2umstan2es that they a2e. "he 5aradi/m allo3s the
eI5erien2e /athered o0er years to be a55lied to a /i0en situation. "he
5aradi/m is not4 then4 the same as eI5li2it 0alues o an or/aniFation.
Rashi Dua 18
TO%I&
'()O*
#O+&%
T%,-T,%&
O%./0I10TIO/0*
T%,-T,%&
-O/T%O*
'T&(
%IT,0*
0/2
%O,TI/&
THE
PARADIGM
"he relationshi5 bet3een the 5aradi/m and or/aniFational strate/y needs to be
2lear. En0ironmental or2es and or/aniFational 2a5abilities do not in
themsel0es 2reate or/aniFational strate/yH 5eo5le 2reate strate/y. "he or2es
at 3or6 in the en0ironment and the or/aniFationGs 2a5abilities in 2o5in/ 3ith
these are made sense o in terms o the indi0idual eI5erien2e o man/ers and
the 2olle2ti0e assum5tions 3ithin the 5aradi/m.
En0ironmental or2es and or/aniFational 2a5abilities 3hile ha0in/ this indire2t
inluen2e on the strate/y ormulation4 nonetheless im5a2t on or/aniFational
5erorman2e more dire2tly. "he ta6en or /ranted ness in or/aniFations or
industries may4 then4 ha0e 0ery 2onser0ati0e inluen2e on the strate/y. %t the
or/aniFational le0el the 5aradi/m is li6ely to be lin6ed to other as5e2ts o
or/aniFational 2ulture4 su2h as or/aniFational rituals4 stories and the e0eryday
routines o or/aniFational lie.
acd e!"d
19
Chapter G : Organizational culture
%utomati2 data 5ro2essin/ a 2om5uter ser0i2e 2om5any that 5ro2esses 5ayroll
2he26s4 taI statements4 and other orms o 1004000 2om5anies has a 5roit
re2ord any mana/ement team 3ould en0y. "he 2om5any has in2reased
earnin/s 5er share by 10M or more e0ery #uarter or the 5ast 112 years.
%22ordin/ to %D7Gs 2hairman and 2hie eIe2uti0e4 <ohn >eston 3as as6ed
ho3 2om5any his 2om5any does it4 he summed it u5 in one 3ord J2ultureJ.
:.8 Introduction
"his 2ha5ter 5ro0ides an o0er0ie3 on or/aniFational 2ulture4 the im5ortan2e
and nature o or/aniFational 2ulture. It also /i0es a brie on ho3 2ulture 2an be
2ommuni2ated and analyFed in an or/aniFation. It /i0es detail insi/ht in to the
elements4 3hi2h hel5 in sha5in/ the 2ulture o an or/aniFation. "he abo0e9
/enerated dis2ussion 3ould in turn hel5 in understandin/ the im5a2t o
or/aniFational 2ulture on em5loyeeGs 5erorman2e. "he abo0e /enerated
dis2ussion 3ould eI5lain 3hat im5ortan2e does or/aniFational 2ulture 5lay and
3hat re5er2ussions it has on the or/aniFation and in turn on the 5eo5le
3or6in/ in the or/aniFation. "his 3ould hel5 in identiyin/ 3hether the 2ulture
3ill ae2t the 5erorman2e o the em5loyee.
:.2 $efining Organizational Culture
In 0ie3 o4 Robbins *1996+ or/aniFational 2ulture is 2on2erned 3ith ho3
em5loyees 5er2ei0e the 2hara2teristi2s o an or/aniFationGs 2ulture4 not 3ith
3hether or not they li6e them.
% stron/ or/aniFational 2ulture li6e that 3as ound at %D7 5ro0ides em5loyees
3ith a 2lear understandin/ o the 3ay the thin/s are su55osed to be done.
E0ery or/aniFation has a 2ulture and4 de5endin/ on its stren/th4 2ulture 2an
ha0e a si/nii2ant inluen2e on the attitudes and the beha0iors o or/aniFation
members.
)eneraI ele2tri2 oi2es and 5eo5le are dierent rom the oi2es and 5eo5le at
)eneral. &ar0ard and $it are in the same business 9edu2ation9and se5arated
acd e!"d
20
only by the 3idth o the (harles Ri0er4 but ea2h has a uni#ue eelin/ and
2hara2ter beyond is stru2tural 2hara2teristi2s
"hus4 the role 5layed by or/aniFational 2ulture on the em5loyeeGs li0es 2ould be
understood by the abo0e eIam5le.
%22ordin/ to S2hein4 *1991+ there are se0en 5rimary 2hara2teristi2s that in4
a//re/ate the essen2e o an or/aniFationGs 2ulture.
8. Inno@ation and risH taHing9 "he de/ree to 3hi2h em5loyees are
en2oura/ed to be inno0ati0e and ta6e ris6s. Inno0ation means that
em5loyees are allo3ed to eI5eriment 3ith their 8obs and allo3ed to ta6e
ris6s in the de2isions that ta6e 5la2e.
2. Attention to details9 "he de/ree to 3hi2h em5loyees are eI5e2ted
to eIhibit 5re2ision4 analysis and attention to detail.
:. Outcome orientation9 "he de/ree to 3hi2h mana/ement de2isions
ta6e into 2onsideration the ee2t o out2omes on 5eo5le 3ithin the
or/aniFation.
;. People orientation9 "he de/ree to 3hi2h mana/ement de2isions
ta6e in to 2onsideration the ee2t o out2omes on 5eo5le 3ithin the
or/aniFation. 7eo5le orientation is a 0ery im5ortant as5e2t o an
or/aniFationGs 2ulture. "he em5loyees in the or/aniFation should be
satisied 3ith the a2ilities 5ro0ided to them4 in order to satisy and moti0ate
them.
<. !eam orientation9 "he de/ree to 3hi2h 3or6 a2ti0ities are or/aniFed
around teams rather than indi0iduals. (o9o5eration and 3or6in/ in teams
hel5s in im5ro0in/ or/aniFationCs ee2ti0eness and hel5s in im5ro0in/ the
5erorman2e o the em5loyees.
>. Aggressi@eness9 "he de/ree to 3hi2h 5eo5le are a//ressi0e and
2om5etiti0e rather than easy /oin/.
4. Sta7ility9 "he de/ree to 3hi2h or/aniFational a2ti0ities em5hasiFe
maintainin/ the status in 2ontrast to /ro3th.
Ea2h o these 2hara2teristi2s eIists on a 2ontinuum rom lo3 to hi/h.
%55raisin/ the or/aniFations on these se0en 2hara2teristi2s4 then4 /i0e a
acd e!"d
21
2om5osite 5i2ture o or/aniFationGs 2ulture. "his 5i2ture be2omes the basis or
eelin/s o shared understandin/ that members ha0e about the or/aniFation4
ho3 thin/s are done in it4 and the 3ay members are su55osed to beha0e.
S2hein *1991+ ar/ues that 2ulture should be reser0ed or the basi2 assum5tion
and belies that are shared by members o an or/aniFation4 that o5erate
un2ons2iously4 and that deine in a basi2 ta6en or /ranted ashion an
or/aniFationGs 0ie3 o itsel and its en0ironment.
(ulture sho3s itsel in a 2olle2tion o rules4 o0ert and 2o0ert4 in 5rin2i5les and
0alues4 all stron/ly rooted in tradition4 3hi2h inluen2e beha0ior 3ithin the
or/aniFation. It is the 2ommitment to 2ommon ob8e2ti0es and 0alues4 3hi2h run
throu/h an or/aniFation. Further !GReilly - (hatman *1996+ state that
or/aniFational 2ulture 2an be deined as Ja system o shared 0alues deinin/
3hat is im5ortant4 and norms4 deinin/ a55ro5riate attitudes and beha0iors that
/uide membersC altitudes and beha0iorsJ.
For 3riters and resear2hers 3ho ta6e an Ganthro5olo/i2alG stan2e4 or/aniFations
are 2ultures *.ate 199;+ des2ribin/ somethin/ that an or/aniFation is *Smir2i2h
19D1+ thus4 li6e national 2ultures4 an or/aniFation 2om5rises o:
1. % 5attern o shared basi2 assum5tions4
2. In0ented4 dis2o0ered4 or de0elo5ed by a /i0en /rou54
1. %s it learns to 2o5e 3ith its 5roblems o eIternal ada5tation and internal
inte/ration4
;. "hat has 3or6ed 3ell enou/h to be 2onsidered 0alid4 and4 thereore4
5. Is to be tau/ht to ne3 members o the /rou5 as the4
6. (orre2t 3ay to 5er2ei0e4 thin64 and eel in relation to those 5roblems
In this 5aradi/m4 or/aniFational 2ulture is both deined and 2ir2ums2ribed by
/rou5 5arameters *e./. lan/ua/e4 2on2e5ts4 boundaries4 ideolo/y+ and by
normati0e 2riteria that 5ro0ides the basis or allo2atin/ status4 5o3er4 authority4
re3ards4 5unishment4 riendshi5 and res5e2t *S2hein 1991+. (ulture determines
3hat a /rou5 5ays attention to and monitors in the eIternal en0ironment and
ho3 it res5onds to this en0ironment.
acd e!"d
22
(ulture4 in this 5aradi/m4 is not a se5arable a2et o an or/aniFation4 it is not
readily mani5ulated or 2han/ed4 and it is not 2reated or maintained 5rimarily by
leaders. !0er time4 early leadersG belies and beha0iors are li6ely to be
translated into assum5tions that subse#uently /uide the or/aniFation. .e2ause
these assum5tions o5erate oten at a sub92ons2ious le0el and 2ome to be
shared by all or/aniFation members4 they are not easily dis5la2ed by ne3
or/aniFational 0alues and belies arti2ulated by later leaders. %lthou/h the use
o re3ards or san2tions may 5rom5t 2han/es in an em5loyeeGs beha0ior to
brin/ it into line 3ith ne3 stated 0alues4 it is usually a lon/ time beore these
2han/es inluen2e the dee5 assum5tions held by members entren2hed in the
2ulture.
Further .ate *199;+ states that or/aniFational 2ulture is but one as5e2t o the
2om5onent 5arts o an or/aniFation4 a a2et that 2an be measured4 mani5ulated
and 2han/ed as 2an or/aniFational 0ariables su2h as s6ills4 strate/y4 stru2ture4
systems4 style and sta.
In this 5aradi/m4 or/aniFational 2ulture is 5rimarily a set o 0alues and belies
arti2ulated by leaders to /uide the or/aniFation4 translated by mana/ers and
em5loyees into a55ro5riate beha0iors and reinor2ed throu/h re3ards and
san2tions. NS2ientii2 rationalistC 3riters thus tend to tal6 about 2ulture as i it is a
deinable thin/ 9 the 2ulture o the or/aniFationH the or/aniFation has a ser0i2e
2ulture 9 and their strate/ies or 2han/e o2us on Gmodular4 desi/n9and9build
a2ti0ityC oten related to stru2tures4 5ro2edures and re3ards. *.ate 199;4+
"hey dis2uss or/aniFational 2ulture rom the 5ers5e2ti0e o mana/ers4 rather
than 3or6ers4 and oten em5hasiFe the leaderGs role in 2reatin/4 maintainin/ or
transormin/ 2ulture: Nleaders hel5 to sha5e the 2ulture. "he 2ulture hel5s to
sha5e its members 2ulture4 then4 stands at the a5eI o the leaderGs
res5onsibility hierar2hyC *&am5den9"urner 1990+.
"he resear2her iners that !r/aniFational 2ultures e0ol0e rom the so2ial
5ra2ti2es o member o the or/aniFations and are4 thereore4 so2ially 2reated
acd e!"d
23
realities that eIist in the heads and minds o or/aniFational members as 3ell as
in the ormal rules4 5ID8es4 and 5ro2edures o or/aniFational stru2tures. (ulture
is an on/oin/ 5ro2ess o reality 2onstru2tion4 5ro0idin/ a 5attern o
understandin/ that hel5s members o or/aniFations to inter5ret e0ents and to
/i0e meanin/ to their 3or6in/ 3orlds.
"he 2on2e5t o or/aniFational 2ulture is deined in many 3ays. $u2h o the
2onusion bet3een 3ritin/s on or/aniFational 2ulture stem rom the
undamental dieren2es in ho3 2ulture is deined. !r/aniFational 2ulture
resear2hers do not a/ree about 3hat 2ulture is or 3hy i should be studied.
"hey do not study the sane 5henomena. "hey do not a55roa2h the 5henomena
they do study rom the sane theoreti2al or methodolo/i2al 5oints o 0ie3.
:.: Importance of Culture
!r/aniFational 2ultures are im5ortant to a irmGs su22ess or se0eral reasons.
"hey /i0e an or/aniFational identity to em5loyees9a deinin/ 0ision o 3hat the
or/aniFation re5resents. "hey are also an im5ortant sour2e o stability and
2ontinuity to the or/aniFation4 3hi2h 5ro0ides a sense o se2urity to its
members. %t the same time4 6no3led/e o oneGs or/aniFational 2ulture hel5s
ne3er em5loyees inter5ret 3hat /oes on inside it4 by 5ro0idin/ an im5ortant
2onteIt o e0ents that 3ould other3ise seem 2onusin/. $ore than anythin/
else4 5erha5s4 2ultures hel5 stimulate em5loyee enthusiasm or their tas6s.
(ultures attra2t attention4 2on0ey 0ision4 and ty5i2ally honor hi/h 5rodu2in/ and
2reati0e indi0iduals.
Robbins *1996+ 5oints out that 2ulture 5erorms a number o un2tions 3ithin an
or/aniFation. First4 it has a boundary9deinin/ role4 that is4 it 2reates distin2tion
bet3een one or/aniFation and others. Se2ond4 it 2on0eys a sense o identity or
or/aniFation members. "hird4 2ulture a2ilitates the /eneration o 2ommitment
to somethin/ lar/er than oneGs indi0idual sel9interest. Forth4 it enhan2es so2ial
system stability. (ulture is the so2ial /lue that hel5s hold the or/aniFation
to/ether by 5ro0idin/ a55ro5riate standards or 3hat em5loyees should say
and do. (ulture ser0es as a sense ma6in/ and 2ontrol me2hanisms that /uides
acd e!"d
24
and sha5es the attitude and the beha0ior o em5loyees.
(ulture by deinition is elusi0e4 intan/ible4 im5li2it4 and ta6en or /ranted. .ut
e0ery or/aniFation de0elo5s a 2ore set o assum5tions4 understandin/s4 and
im5li2it rules that /o0ern day to day beha0ior in the 3or65la2e until ne32omers
learn the rules4 they are not a22e5ted as ull9led/ed members o the
or/aniFation. "rans/ressions o the rules on the 5art o hi/h9le0el eIe2uti0e or
ront line em5loyees result in uni0ersal disa55ro0al and 5o3erul 5enalties.
(onormity to the rules be2omes the 5rimary basis or re3ard and u53ard
mobility.
"he role o 2ulture in inluen2in/ em5loyee beha0ior a55ears to be in2reasin/ly
im5ortant in the 1900Gs. !r/aniFations ha0e 3idened s5ans o 2ontrol4 lattened
stru2tures4 introdu2ed teams4 redu2ed ormaliFation4 and em5o3ered
em5loyees4 the shared meanin/s 5ro0ided by a stron/ 2ulture ensures that
e0eryone is 5ointed in the same dire2tion.
7eters and >aterman *19D2+ 5oint out that the stron/er the 2ulture and the
more it 3as dire2ted to3ard the mar6et5la2e4 the less need there 3as or 5oli2y
manuals4 or/aniFation 2harts4 or detailed 5ro2edures and rules. In these
2om5anies4 5eo5le 3ay do3n the line 6no3 3hat they are su55osed to do in
most situations be2ause 9 handul o /uidin/ 0alues is 2rystal 2lear.
(ulture matters be2ause it is a 5o3erul4 latent4 and oten un2ons2ious set o
or2es that determine both indi0idual and 2olle2ti0e beha0ior.4 3ays o
5er2ei0in/4 thou/ht 5atterns4 and 0alues. !r/aniFational 2ulture in 5arti2ular
matters be2ause 2ultural elements determine strate/y4 /oals4 and modes o
o5eratin/. "he 0alues and thou/ht 5atterns o leaders and senior mana/ers are
5artially determined by their o3n 2ultural ba26/rounds and their shared
eI5erien2e.
:.; Elements of an Organizations Culture
%22ordin/ to )a/ne *19D6+ there are some elements o 2ulture
Shared @alues9 (ulture in0ol0es shared 0alues4 or so2ial ideas or normati0e
acd e!"d
25
belies about 5ro5er beha0ior in 0arious situations. "he stren/th o a 2ulture
has to do 3ith the de/ree to 3hi2h these shared 0alues ha0e been internaliFed
by or/aniFational members belie systems 9 or/aniFational 2ultures are
inluen2ed by t3o ty5es o belies 9 /uidin/ belies and daily belies. "he /uidin/
belies /i0e dire2tion to 5ra2ti2al4 nitty9/ritty daily belies. % 2ommon 5roblem in
2om5anies is that daily belies are not 2on/ruent 3ith o0erar2hin/ /uidin/
belies.
Artifacts9 Symboli2 artia2ts o 2ulture 2om5rise o rituals4 rites4 myths4 norms4
symbols4 le/ends4 heroes4 and 2eremonies. In authorGs 0ie3 OIGS rituals4 myths4
stories and so on are the ee2ts o 2ulture4 not 2ulture itsel. "hese artia2ts
orm a system o su55ort and maintenan2e or the set o the 5re0ailin/ belies.
%s the 0isible eI5ression o the 2ulture4 they are the ee2t o the 2entral 2ause4
the shared or 2olle2ti0e 5aradi/m.
Cultural strength9 "here also seems to be an inherent bias in the literature
that a stron/ 2ulture4 one 2hara2teriFed by 3ides5read and stron/ normati0e
/uides to beha0ior4 is someho3 better than a 3ea6 2ulture 3hi2h has 0irtually
no 2ommon 0alues or belies held by a si/nii2ant number o or/aniFational
members.
%22ordin/ to the resear2her4 a stron/ 2ulture does not ha0e to be 5ositi0eH
ne/ati0e or destru2ti0e 0alues 2an be 3idely held in a stron/ 2ulture. $any o
the stron/ 2ulture 2om5anies that 7eters and >aterman *19D2+ de2lared
eI2ellent in their in sear2h o eI2ellen2e in 19D2 subse#uently stumbled in the
mar6et5la2e4 althou/h many ar/ued that4 their de2lines 3ere 2aused by
en0ironmental a2tors that 3ere unrelated to 2ultural stren/th.
%22ordin/ to <ones and Ao263ood *1992+ the main elements o the 2ulture are
its 0alues4 is heroes4 its rites4 rituals4 and its 2ultural net3or6.
=alues are the basis o or/aniFation 2ultureH they 5ro0ide a sense o 2ommon
dire2tion or all em5loyees and /uide their day9to9day beha0ior. =alue deines
the 2hara2ter o the or/aniFation and 2reates a sense o identity throu/hout the
acd e!"d
26
5eo5le o the or/aniFation.
*eroes are the 5eo5le 3ho ha0e been su22essul by sti26in/ to 2or5orate
0alues. "hey 5ro0ide a role model or other members o the or/aniFation and at
the same "ime illustrate that su22ess lies 3ithin the /ras5 o all em5loyees.
"hey set out standards o beha0ior4 they 2all attention to the 3ay 5ro2edures
the moti0ational or2e o or/aniFational 2ulture is reinor2ed throu/h rites and
rituals 3hi2h see6 to 2ommuni2ate to em5loyees 3hat they are eI5e2ted to do
it. "hey set out standards o beha0ior4 they 2all attention to the 3ay in 3hi2h
5ro2edures are to be 2arried out and they 5ro0ide o55ortunities or the
or/aniFation to let o stam throu/h or/aniFed e0ents.
"he cultural netEorH is the inormal or/aniFation throu/h 3hi2h mu2h o the
2ommuni2ation o the 2ulture ta6es 5la2e. It is the hidden hierar2hy that 3hi2h
ties to/ether all 5arts o the 2om5any.
+ayers Of Organizational Culture
acd e!"d
27
Artifacts
#isile y
$ften
%npredictale
#alues
Assumptions
Greater le&el
$f
A'areness
Ta"en for
Granted
Assumption
'igure :.8 +ayers of organizational culture
BSource 1ones and +ocHEood# 8CC2D
S2hein *1991+4 li6e other 2ommentators4 dierentiates number o le0els o
or/aniFational 2ultures. "he irst le0el is a 0isible artia2t4 3hi2h 2onsists o
te2hnolo/y4 art and 0isible and audible beha0ior. "he se2ond le0el90alues o2us
on 3hy 5eo5le beha0e as they do4 and the nature and role o 0alues in
determinin/ em5loyeeCs a2tions. 'nderlyin/ 0alues are basi2 assum5tions9the
third le0el. "hese assum5tions are ty5i2ally un2ons2ious but a2tually determine
ho3 /rou5 members 5er2ei0e4 thin6 and eel.
"he resear2her eels that 2ulture 2onsists o a 0ariety o elements4 3hi2h 2an
o22ur on dierent le0elsH symbols4 myths4 ideolo/ies4 and rituals. Symbols
5ro0ide meanin/ and e0o6e emotions. Aan/ua/es are a 2olle2tion o symbols.
(ultures also 2onsist o 6no3led/e and assum5tion92o/niti0e systems4 models
and rame3or6s that stru2ture 3hat members 6no3 and ho3 they thin64 reason4
ar/ue and de2ide.
(ulture is the un3ritten4 ta6en 9 or9 /ranted4 eelin/ 5art o the or/aniFation.
"he 5ur5ose o the or/aniFationGs 2ulture is to 5ro0ide members 3ith a sense o
identity and to /enerate memberGs 2ommitment to belies and 0alues that are
lar/er than them. (ulture also enhan2es the stability o the or/aniFation and
5ro0ides members 3ith understandin/ that 2an hel5 them ma6e sense out o
or/aniFational Is and a2ti0ities.
:.< Cultural !ypologies
PoEer Culture
%22ordin/ to &arrison *1992+ many small enter5rises and lar/e 2on/lomerates
su2h dis5lay the 2hara2teristi2s o a 2entraliFed 5o3er 2ulture. E0en $intFber/
re2o/niFes this in his a22ount o a di0isionalised stru2ture. "his model is 0ery
li6e >eberCs (harismati2 or/aniFation. It is li6e a 3eb 3ith a rulin/ s5ider.
"hose in the 3eb are de5endent on a 2entral 5o3er sour2e. Rays o 5o3er and
inluen2e s5read out rom a 2entral i/ure or /rou5. "here may be a s5e2ialist
or un2tional stru2ture but 2entral 2ontrol is eIer2ised lar/ely throu/h
acd e!"d
28
a55ointin/4 loyal 6ey indi0iduals and inter0entionist beha0ior rom 2enter.
Em5hasis is on 3him and 5ersonal inluen2e rather than on 5ro2edures or
5urely lo/i2al a2tors. Su2h or/aniFations 2an be stron/4 5roud and dynami24
rea2t #ui26ly to eIternal demands.
.ro3n *1992+ is o a 0ie3 that the 3or6 is assi/ned to the em5loyees on the
basis o the 5ersonal needs and resour2e 5o3er and to a lesser eItent
2harisma are the main bases o eIer2ise o authority. In 5o3er 2ulture due to
the de2isions ta6en by a e3 5eo5le at the 2enter the 5eo5le 3ith the hi/her
authority 2an 2ontrol otherGs a2ti0ities. "his ty5e o 2ulture is hi/hly de5endant
on trust4 em5athy4 and 5ersonal 2ommuni2ation or its ee2ti0eness. &e states
that in this ty5e o 2ulture the 5erson at the 2enter ta6es most o the de2isions.
%s the 5o3er or/aniFation /ro3s4 the 2entrist 2ulture brea6s do3n i it be2omes
im5ossible or the 2enter to 6ee5 u5 its inter0entionist4 2o92oordinatin/ role. "he
lar/e or/aniFation may need to di0isionalise *2reate other s5iders 3ebs lin6ed
to the 2entral 3eb+.
/ole culture
!ten reerred to as a bureau2ra2y4 it 3or6s by lo/i2 and rationality. Its 5illars
re5resent un2tions and s5e2ialists. De5artmental un2tions are delineated and
em5o3ered 3ith their role e./. the inan2e de5t.4 the desi/n de5t et2. >or6
3ithin and bet3een de5artments *5illars+ is 2ontrolled by 5ro2edures4 role
des2ri5tions and authority deinitions. "here are 3ell9deined 2ommuni2ation
stru2tures and 5rodu2ts *2ommittee 2onstitutions and re5orts4 5ro2edure
manuals4 oi2ial memoranda.
%22ordin/ to .ro3n *1992+ 5osition 5o3er and to a lesser eItent eI5ert 5o3er
are the main bases o eIer2ise o authority in this ty5e o 2ulture. "he
res5e2ti0e de5artments ta6e the de2isions but these ha0e to be a55ro0ed by
the to5 eIe2uti0es. !ne 5erson 2ontrols the otherGs a2ti0ities 3hen his role
5res2ribes him to do so. Rules 5ro2edures and 8ob des2ri5tions dominate the
internal en0ironment o a role 2ulture. In role4 2ulture the 8ob is 2arried out or
acd e!"d
29
the 5ersonal satisa2tion o the em5loyee. 7erorman2e re#uired is related to
role and un2tional 5osition.
!asH Bpro"ect teamD culture
It is 0ery mu2h a small team a55roa2h to or/aniFations. "he modern 8ar/on
also reers to or/aniFational arran/ements su2h as
Net3or6 or/aniFation 9 small or/aniFations 2o9o5eratin/ to/ether to
deli0er a 5ro8e2t. "hereore4 the lar/e or/aniFation 2onsists o lots o
little ones that ma6e their 2ontribution.
$atriI or/aniFations4 3hi2h are 5ro8e2t4 oriented 3ith e0er 2han/in/
5ro8e2t or 2ontra2t teams. "eam or 2ell te2hnolo/ies all into this
mode o or/aniFin/
%s a 2ulture4 5o3er and inluen2e are distributed to the intersti2es o the net.
"he tas64 results4 the main o2us and team 2om5osition4 and 3or6in/
relationshi5s are ounded on 2a5ability rather than status. "eam 2ulture is
leIible and ada5table. "eams are ormed or s5e2ii2 5ur5oses and then mo0e
on. "he team is leIible and sensiti0e to the en0ironment.
Person culture
"he indi0idual is the 2entral 5oint. I there is a stru2ture4 it eIists only to ser0e
the indi0iduals 3ithin it. I a /rou5 o indi0iduals de2ide to band to/ether to do
his or her o3n thin/ and an oi2e or se2retary 3ould hel5 9 it is a 5erson
2ulture. "he 2ulture only eIists or the 5eo5le 2on2ernedH it has no su5er9
ordinate ob8e2ti0e. Em5loyees tend to ha0e stron/ 0alues about ho3 they 3ill
3or6. Em5loyees 3ith a 5erson 2ulture 3ill oten be ound 3or6in/ in other
2ultures but usin/ their o3n 2ulture P the s5e2ialist 3ho 3ill do 3hat heKshe has
to retain hisKher 5osition in the or/aniFation but essentially sees the
or/aniFation as a base on 3hi2h heKshe 2an build hisKher o3n 2areer or 2arry
out hisKher o3n interests. %s su2h they are 0ery dii2ult or the or/aniFation to
mana/e.
"he resear2her iners that not all or/aniFations 2an or indeed de0elo5 the same
ty5e o 2ulture. "hey should de0elo5 the 2ulture4 3hi2h is a55ro5riate to the
business en0ironment 3ithin 3hi2h the 2om5any o5erates and 3hi2h mat2hes
acd e!"d
30
to its o0erall 0alues. In some or/aniFations there is a 2lear it bet3een the
model 2ulture and the a2tual or/aniFation.
:.> Strong =s. 6eaH Cultures
Robbins *1996+ is o a 0ie3 that stron/ 2ultures ha0e a /reater im5a2t on
em5loyee 9 and are more dire2tly related in redu2in/ the turno0er.
In a stron/ 2ulture4 the or/aniFationGs 2ore 0alues are both intensely held and
shared. "he more members 3ho a22e5t the 2ore 0alues and the /reater their
2ommitment to those 0alues4 the stron/er the 2ulture is. % stron/ 2ulture 3ill
ha0e a /reat inluen2e on the beha0ior o its members be2ause the hi/h de/ree
o shared ness and intensity 2reates an internal 2limate o hi/h beha0ioral
2ontrol. !ne s5e2ii2 result o a stron/ 2ulture is lo3er em5loyee turno0er. %
stron/ 2ulture demonstrates hi/h a/reement amon/ members about 3hat the
or/aniFation stands or.
Ni6e in2. has a stron/ s5orts oriented 2ulture instilled by its ounder 7hili5
6ni/ht.
Ni6eCs 2or5orate /oal is to Jenhan2e 5eo5leGs li0es throu/h s5orts and itnessGJ
Ni6e is run by ormer 5ro4 2olle/e4 and !lym5i2 athletes 3ho desi/n and mar6et
shoes and 2lothin/ or s5orts enthusiasts. Ni6e head#uarters in .ea0erton4
!re/on4 is a ,;92re 3orld 2am5us 3ith 3al6in/ and 8a//in/ trails and buildin/s
named ater Ni6e heroes su2h as <oan .enoit Samuelson 2enter. "he 2om5any
5ra2ti2es that 5romote health and itness in2lude 5ayin/ em5loyees eItra or
bi6in/ instead o dri0in/.
%22ordin/ to <ones and Ao263ood *19D9+ e0ery or/aniFation has some orm o
2ulture this may be more or less stron/ly eI5ressed. In some or/aniFations4 it
dii2ult to identiy a 2oherent 2ulture4 3hereas in others there is a 0ery stron/
sense o 2ulture 3ith all em5loyees 6no3in/ all the /oals o the or/aniFation
and 3or6in/ to3ard them.
%22ordin/ to Robert :reitner *1999+ or/aniFational 2ulture and itGs im5a2t on
acd e!"d
31
em5loyee 5erorman2e.
%22ordin/ to Robert :reitner *1999+ sym5toms o a 3ea6 or/aniFational 2ulture
in2lude the ollo3in/:
InEard focus9 "he internal 5oliti2s ha0e be2ome more im5ortant than
the real 3orld 5roblems in the mar6et 5la2e
(orale pro7lems9 "here is 2hroni2 unha55iness and hi/h turno0er
'ragmentation9 "here is a la26 o it in the 3ay 5eo5le beha0e4
2ommuni2ate4 and 5er2ei0e 5roblems and o55ortunities
IngroEn su7cultures9 "here is a la26 o 2ommuni2ation amon/ the sub
units
In 0ie3 o the resear2her4 e0iden2e o these sym5toms may en2oura/e a
5otential re2ruit to loo6 else3here. Ea2h o these sym5toms o a 3ea6
or/aniFational 2ulture 2an be a ormidable barrier to or/aniFational
ee2ti0eness. >hen the 2ulture is stron/4 5eo5le 6no3 3hat is eI5e2ted o
them.
:.4 %ature of Organizational Culture
%22ordin/ to :reitner *1999+ or/aniFational 2ulture is a 2olle2tion o shared
belies4 0alues4 rituals4 stories4 myths and s5e2ialiFed 6no3led/e that oster a
eelin/ o 2ommunity amon/ or/aniFation members.
(ulture4 althou/h based on ta6en or /ranted or Jin0isibleJ a2tors eIert a
5o3erul inluen2e on beha0ior. !r/aniFational 2ulture is the so2ial /lue that
binds an or/aniFationCs members to/ether. >ithout the a55re2iation or the
2ultural as5e2t4 an or/aniFation is 8ust a meanin/less 2olle2tion o 2harts4 tas6s
and 5eo5le. !r/aniFational 2ultures 2an 0ary 3idely rom one or/aniFation to
the neIt. % /ood or/aniFational 2ulture should 5ossess the ollo3in/
2hara2teristi2s:
Collecti@e9 !r/aniFational 2ulture is so2ial entities. >hile an indi0idual
may eIert a 2ultural inluen2e4 it ta6es 2olle2ti0e a/reement and a2tion
or an or/aniFationNs 2ulture to ta6e lie o itGs o3n.
acd e!"d
32
Emotionally charged9 "he em5loyees tend to ind their or/aniFationG
2ulture a 2omortin/ se2urity blan6et that enables them to deal 3ith their
inse2urities and un2ertainties. Em5loyees de0elo5 a stron/ emotional
atta2hment to their aIua1 se2urity blan6et.
*istorically 7ased9 Shared eI5erien2es4 o0er eItended 5eriods4 bind
/rou5s o 5eo5le to/ether. "3o 6ey 2om5onents o 2ulture are earned
by 2onsistently demonstratin/ 5redi2table 5atterns o 3ords and a2tions.
Inherently sym7olic9 %2tions may s5ea6 louder than 3ords. .ut some
3ords or slo/ans ha0e a /reat symboli2 meanin/ that sha5e an
or/aniFationGs entire 2ulture and entity.
In 0ie3 o S5enley *1992+ the or/aniFational 2ulture is the main reason 3hy
total #uality mana/ement is re#uired or 2om5anies to meet the 2om5etiti0e
2hallen/e by o2usin/ on em5loyeeGs re#uirements.
In his 0ie34 any 2om5any 2ould ha0e an internally or eIternally o2used
or/aniFational 2ulture. Internally o2used 2om5anies are:
'n2lear 3ho the 2ustomers are
No 5erorman2e measures rele2tin/ 2ustomer re#uirements
No /ood 5ersonal relationshi5 3ith 2ustomers
>hereas an eIternally based or/aniFational 2ulture 2om5anies are
7roa2ti0e attem5ts to deine 2ustomerGs re#uirements throu/h
understandin/ o the 2ustomerGs business
(lear mission statement and business dri0ers
7ositi0e a55roa2h to3ards 5roblem sol0in/
(learly deined 5erorman2e measures rele2tin/ em5loyees needs
%n or/aniFational 2ulture should hel5 to deine the ollo3in/ *)a/ne4 1995+
%orms9 Standards o beha0ior to 3hi2h 5eo5le in the 2ulture are
eI5e2ted to adhere. !r/aniFations ha0e an intri2ate set o norms
'olHEays9 "he 2ustomary and4 habitual 3ays in 3hi2h 5eo5le a2t in a
/i0en 2ulture. "hese are un2ons2ious ritual a2ts4 su2h as sha6in/ hands
3hen meetin/.
acd e!"d
33
Sym7ols9 "hey are thin/s or e0ents that ha0e s5e2ial meanin/s in a
/i0en 2ulture. (eremonies4 rites and stories are symbols o dee5ly held
0alues in the 2ulture.
Ceremonies and rites9 Elaborate 5lanned e0ents held to 2elebrate
or/aniFational 0alues. "hese are dramati2 in nature so that they
reinor2e s5e2ii2 2ultural 0alues4 2reatin/ a bond o shared
understandin/ and anointin/ 2ultural heroes and heroines.
(yth9 Fre#uently told stories about the or/aniFation4 based on true or
ima/inary e0ents. "hese narrati0es are oten shared amon/ em5loyees
and mid to ne3 2omers.
!r/aniFation 2ulture is 0isible rom the 3ay 5eo5le beha0e4 their intera2tions
internally and 3ith outsiders4 and the systems or rituals they establish.
7etti/re3 *19D6+ 5oints out that all members o an or/aniFation share 0alues in
#uestion. &e o2uses not on the or/aniFation but on the /rou5. &e notes that
3hen 5eo5le 3or6 to/ether they de0elo5 a sense o 3hat they are doin/ and
3hy4 o ho3 they should relate to ea2h: in short a system o meanin/s.
&o3e0er4 he does not assume that 2ultures are ne2essarily 5ositi0e4 or
inte/ratin/ or shared.
7etti/re3 sensibly ob8e2ts to the assum5tion that 2ultures are unitary4
2onsensual and 2onsistent. &e 5reers to ar/ue that 2ulture is a sour2e o a
amily o 2on2e5ts4 all o 3hi2h ha0e their use: symbol4 ideolo/y4 ritual4 belie.
%22ordin/ to him or/naiFationCs 2ulture be2omes 5er5etuated by its tenden2y to
attra2t and retain 5eo5le 3ho its its 0alues and belies. "his results in a /ood it
bet3een the em5loyer and the em5loyee.
In the 0ie3 5oint o "hom5son and $2&u/h *1990+ or/aniFational 2ulture
a55roa2hes 5resent themsel0es as 5arti2i5ati0e and an alternati0e to o0ertly
2ontrollin/ or/aniFational dis2i5line strate/ies.
In 0ie3 o the resear2her4 or/aniFational 2ulture is a system o 0alues4 attitudes
and symbols that /ro3s u5 3ithin or/aniFation be2ause o the a2ti0ities o its
acd e!"d
34
members and the intera2tion o an or/aniFation 3ith the eIternal en0ironment.
$odern dis2ussions on or/aniFational 2ulture ha0e tended to 2enter on the Gin
sear2h o eI2ellen2eC thesis4 3hi2h is 2on2erned 3ith the ee2t o the 2orre2t
or/aniFational 2ulture on or/aniFational su22ess.
!r/aniFational 2ultures are a symboli2 re5resentation o underlyin/ belies and
0alues. Ea2h or/aniFation has its o3n history4 5atterns o 2ommuni2ation4
systems and 5ro2edures4 mission statements and 0isions4 stories and myths
that4 in their totality4 2onstitute its distin2ti0e 2ulture. "here is no best 2ulture or
the irmH it 2learly de5ends on the or/aniFationCs /oals4 industry4 nature o
2om5etition4 and other a2tors in its en0ironment. (ultures are more re2o/niFed
3hen they are more 2onsistent 3ith ea2h other.
:.? *oE is Culture CreatedA
%22ordin/ to %s3atha55a *2000+ 3hen /rou5s or or/aniFations orm there are
usually dominant i/ures that hel5 establish the early 2ulture. "hey ha0e a
0ision or mission o 3hat the or/aniFation should be. "hey are un2onstrained
by 5re0ious 2ustoms or ideolo/ies. "he small siFe that ty5i2ally 2hara2teriFes
any ne3 or/aniFation urther a2ilitates the ounder in im5osin/ their 0ision on
all or/aniFational members.
"he resear2her iners that all ounders ha0e the ori/inal ideaH they also ty5i2ally
ha0e biases on ho3 to /et the idea ulilled. "he or/aniFationGs 2ulture results
rom the intera2tion bet3een the ounderGs biases and assum5tions and 3hat
the ori/inal members 3ho the ounders initially em5loy learn subse#uently rom
their o3n eI5erien2e. "he late <.R.D ty5iies this ty5e o 2ulture 2reation. &is
su55orti0e9 2onsulti0e role4 his belie on 5roessionalism and assum5tions that
only honesty and air dealin/ 3ill 5ay ha0e made the 0ast "ata em5ire 3hat it is
today.
acd e!"d
35
'ormation of Organizational Culture
'igure :.2 'ormation of org Organizational Culture
BSource /o77ins# 8CC>D
:.C Impact of Culture on Employee Performance
%22ordin/ to %s3atha55a *2000+ or/aniFational 2ulture ser0es as a 2ontrol
me2hanism in dire2tin/ the beha0ior o the em5loyees. (losely lin6ed to
ee2ti0e 2ontrol is the use o the norms to /uide beha0iors. "hese eI5e2tations
re/ardin/ a55ro5riate and ina55ro5riate beha0iors are /reatly inluen2ed by
2ulture4 and stron/ 2ultures ha0e both 2onsensus and intensity re/ardin/ these
norms. In 3ea6 2ultures 2onsensus may be 5resent but at the initial sta/es is
not 5resent in 0ie3 o the resear2her or/aniFations that ha0e stron/ 2ulture
oten ha0e /reat dii2ulty in 2han/in/ their strate/ies and beha0ior. "he norms
that di2tate these a2tions are reinor2ed so stron/ly that the 5ersonnel are
relu2tant to abandon them in a0or o other beha0iors.
acd e!"d
36
#hilosophy of organi3ation
founders and $orporate
philosophy statements
ele$tion $riteria
Organi3ational
$ulture
Top
(anagement
o$iali3ation
!r/aniFational 2ulture has its im5a2t on the 5erorman2e and satisa2tion Go
the or/aniFational members. "here is a stron/ relationshi5 bet3een 2ulture and
satisa2tion4 but indi0idual needs and the 2ulture moderates this. Satisa2tion is
the hi/hest 3hen there is 2on/ruen2e bet3een the indi0idual needs and the
2ulture. <ob satisa2tion 0aries a22ordin/ to the em5loyeeGs 5er2e5tion o
or/aniFationGs 2ulture. I the 2ulture is inormal4 2reati0e and su55ort ris6 ta6in/
and 2onli2t4 5erorman2e 3ill be hi/her i the te2hnolo/y is non9routine. "he
ormally stru2tured or/aniFationGs that are ris6 a0ersi0e4 that seems to eliminate
2onli2t. In addition4 that are 5rone to more tas6 oriented leadershi5 3ill a2hie0e
hi/her 5erorman2e 3hen routine te2hnolo/y is utiliFed.
%22ordin/ to :otter and &es6ett o &ar0ard *2000+ 2onirms the 5ositi0e
2orrelation bet3een 2ulture and 5erorman2e. "his study deri0ed three
2on2lusions:
!r/aniFational 2ulture 2an ha0e a stron/ Im5a2t on an or/aniFationGs
lon/ term e2onomi2 5erorman2e
(ulture 3ould be 5robably be a more im5ortant a2tor in determinin/ the
su22ess or ailures o 2om5anies in the neIt de2ade
%lthou/h tou/h to 2han/e or/aniFationGs 2ulture 2an be made more
5erorman2e enhan2in/
Further I0an2e0ish and $atteson *1990+ state that the relationshi5 amon/
mana/ement4 or/aniFations4 and ee2ti0eness is strai/htor3ard. Ee2ti0e
indi0idual4 /rou54 and em5loyee 5erorman2e results rom a /ood 5lannin/4
or/aniFin/4 leadin/ and 2ontrollin/. &e urther states that the 3ay 5eo5le a2t in
an or/aniFation are a result o the 2ultural norms4 belies and 0alues.
Fi/ure 1.19 the resear2her iners that or/aniFational 2ulture en2om5asses both
the mana/erial un2tions and or/aniFational 2hara2teristi2s. $ana/ement is
both a 2ause o and 5art o or/aniFational 2ulture. "he eIistin/ 2ulture o an
or/aniFation rele2ts 5ast and 5resent mana/erial 5lannin/4 or/aniFin/4 leadin/
and 2ontrollin/ a2ti0ities. "hese man/ers e0aluate em5loyee 5erorman2e in
terms o a22ura2y. Em5loyees 3ho are not 3ell mat2hed 3ith the
acd e!"d
37
or/aniFational 2ulture 3ill eIit 0oluntarily or in0oluntarily. "he members o the
or/aniFation are in0ol0ed in ma6in/
u5 o the 2ulture o an or/aniFation. "his 2ulture is rele2ted in the mana/ement
5ro2esses and the beha0iors o the 5eo5le in theL or/aniFation. "he 2ulture o
the or/aniFation in turn leads to or/aniFational ee2ti0eness.
"he resear2her iners that in order to ha0e a 5ositi0e4 sustained im5a2t on
satisa2tion and 5erorman2e4 2ulture must be 0aluable4 rare4 and inimitable. I
a 2ulture 2an be imitated4 then ado5tion o the 2ulture by the 2om5etitors 3ill
slo3ly eliminate the 2om5etiti0e ad0anta/es o the 2ulture. (ulture has im5a2t
on 2ontrol4 normati0e beha0ior4 inno0ation and member 5erorman2e and
satisa2tion.
.o3man *19D,+ 5oints out that 2ulture is an im5ortant as5e2t o or/aniFations4
es5e2ially or the 5ersons 3or6in/ in them. %n em5loyee is unli6ely to be
unha55y i heKshe is undamentally at odds 3ith the or/aniFational 2ulture.
Further %s3atha55a *2000+ states that or/aniFational 2ulture ser0es as a
2ontrol me2hanism in dire2tin/ beha0ior. >hen indi0iduals are not in
a22ordan2e 3ith the belies and 0alues o the 2ulture4 man/ers and 2o93or6ers
3ill insist on a 2orre2ti0e a2tion.
%22ordin/ to Smiri2h *1992+4 the 2on2e5t o 2ulture has been lin6ed
in2reasin/ly 3ith the study o the or/aniFation. &e has ar/ued a dire2t and a
5ositi0e 2onne2tion bet3een the nature and stren/th o or/aniFational 2ultures
and le0el o or/aniFational 5erorman2e and ee2ti0eness.
Interest in or/aniFational 2ulture 2omes rom t3o dierent dire2tions. %22ordin/
to Frost *1991+ there are a2ademi2s and resear2hers 3ho 3el2omed the to5i2
o 2ulture as a lon/ o0erdue o Jresh airJ and antidote to sterile number
2run2hin/ o2used on easily measured 0ariables.
acd e!"d
38
In 0ie3 o the resear2her4 the a55eal o 2ulture in 2or5orate analysis stems
rom the hi/h le0el o 2on2ern amon/ man/ers and some s2holars 3ith the
im5ortan2e o em5loyee 2ommitment or 2or5orate 5erorman2e. . Interest in
the eI2ellent 5erorman2e o <a5anese 2or5orations has led to a 5re0alent
0ie34 in mana/erial 2ir2le is the result o <a5aneseGs 3or6ers Gdee5ly held
shared 0alues and belies.
%22ordin/ to Stablein and Nord *1990+ J5robably ne0er beore in or/aniFational
studies area4 no to5i2 has been /i0en so mu2h attention so ra5idlyJ. "he
ar/ument about or/aniFational 2ulture is that:
!r/aniFations ha0e 2ultures
"hey be2ome more ee2ti0e 3hen they de0elo5 the ri/ht Gstron/G
2ultures
"hese 2ultures 2reate 2onsensus and unity and moti0ate sta
(ultures ha0e an ee2t on or/aniFational 5erorman2e
%22ordin/ to $ee6 *19D2+ em5loyeeGs norms4 belies and 0alues 2an and
should be 2han/ed so that they 2ontribute the a55ro5riate beha0ior4 2ommit
themsel0es to the or/aniFation4 su55ort mana/ement and strate/y.
"he resear2her eels that the norms and 0alues shared by the members o the
or/aniFation 2reate 2onsensus indu2e unity and 3hen a55ro5riate /enerate
a55ro5riate beha0ior. (ultures hel5 inte/ratin/ the or/aniFation.
%22ordin/ to Denison *199;+ the ri/ht 2ulture hel5s in rea5in/ a return on
in0estment that a0era/es nearly t3i2e as hi/h as those irms 3ith less ei2ient
2ultures. "he author is o a 0ie3 that or/aniFational 2ulture is the ormula or
su22ess that determines an or/aniFationGs su22ess or ailure. $ana/ers are
5romised a 2ulture o 5rodu2ti0ity i they understand that the elements o all
2ultures o 5rodu2ti0ity ha0e in 2ommon.
%22ordin/ to <ones and Ao263ood *19D9+ the role o 2ulture in inluen2in/
em5loyee beha0ior a55ears to be in2reasin/ly im5ortant in the 1900Gs.
acd e!"d
39
!r/aniFations ha0e 3idened s5ans o 2ontrol4 lattened stru2tures4 introdu2ed
teams4 redu2ed ormaliFation4 and em5o3ered em5loyees4 the shared
meanin/s 5ro0ided by a stron/ 2ulture ensures that e0eryone is 5ointed in the
same dire2tion.
7eters and >aterman *19D2+ ar/ue that in eI2ellent 2om5anies em5loyees are
2ommitted to their or/aniFationGs and to itGs /oals4 and that it is a irmer basis
or a2hie0in/ 2om5etiti0e eI2ellen2e rather than the traditional determinants o
beha0ior9 stru2tures4 5ro2edures and rules.
:.83 Communicating Culture
In the 0ie3 o )a/ne *19D6+ or/aniFations should 2ons2iously 2reate and
mana/e their 2ultures. "hey must be able to 2ommuni2ate the 2ulture to their
em5loyees. Formal 2ommuni2ation 0ehi2les or transmittin/ the or/aniFational
2ulture in2lude 0ision o their irmGs uture4 2or5orate 5hiloso5hy statements4
and 2odes o ethi2al 2ondu2t. Inormal means in0ol0e 5ubli2ly re2o/niFin/
heroes and heroines4 retellin/ histori2al su22ess
"he resear2her iners that the 2ommuni2ation may ta6e 5la2e by ormal
methods as 3ell as inormal methods. %ll these methods hel5 in sha5in/ the
attitudes4 thou/hts and beha0ior o em5loyees. (ommuni2ation is an im5ortant
as5e2t o 2ulture. Em5loyees rom dierent 5arts o the business4 and at
dierent le0els in the hierar2hy 3ill eel 3illin/ and able to tal6 o5enly 3ith ea2h
other4 sharin/ 5roblems4 ideas and learnin/. (ulture has to be 2ommuni2ated
to all the le0els o the or/aniFation. It is hel5ul i em5loyees 6no3 ho3 3ell
2om5etitors are 5erormin/4 3here they are 5arti2ularly stron/4 so they 2an
2ommit themsel0es to hi/h le0els o a2hie0ement in order to out 5erorm their
ri0als.
(ulture is based on 2ommuni2ation and learnin/. "he leaderGs 0ision or the
or/aniFation must be 2ommuni2ated and understoodH e0ents and 2han/es
ae2tin/ the or/aniFation also need to be 2ommuni2ated 3idely.
acd e!"d
40
*oE culture leads to organizational effecti@eness
'igure :.: Culture and organizational effecti@eness
BSource 1ohnson F Schoels# 8CCCD
acd e!"d
() *election and hiring of
memers)
+) Remo&al of
de&iate memers
En&ironmental
factors
*ocial norms
Political eliefs
,ational e&ents and
history
$rganizational
effecti&eness
Production
Efficiency
*atisfaction
-) Managerial
functions
Planning
$rganizing
.eading
/ontrolling
0) $rganizational
characteristics
1eha&ior
*tructure
Processes
$rganizational culture
2eedac"
41
:.88 Analysis of Culture
%22ordin/ to )a/ne *19D6+ ore2astin/ is used or de2i5herin/ the
or/aniFational 2ulture. "his 5ro2ess eI5lains about a 2om5anyGs daily 2ulture4
3hether or not 5eo5le eI5e2tations are met. "he three9ste5 5ro2ess4 based on
3eather ore2astin/ analo/y is as ollo3s:
!rade Einds 7eo5le are brou/ht to/ether and a2tions 2o92oordinated
to a2hie0e some 5ur5ose :ob8e2ti0es are established4 5riorities
determined4 and resour2es allo2ated
!emperature It is the hotness or 2oldness o morale relati0e to ea2h
5ersonGs 5er2e5tion o 3or6.
Ceiling le@els "he le0el o desire 2ommitment4 and ener/y or
or/aniFational /oals. "his de5ends on the or/aniFationGs history4
traditions and norms.
"his measure indi2ates the it bet3een the 5re0ailin/ 2ulture and indi0idual
0alues and needs. I the em5loyees ado5t the 0alues o the 5re0ailin/ 2ultureH
the 2ulture is said to be /ood. I not the 2ulture is 5oor and morale4 moti0ation4
and 5rodu2ti0ity are eI5e2ted to dro5. Sur0eys su2h as this 3ill hel5 to identiy
a 2ulture or 5oint out the 3ay to ne3 5oli2ies4 5ro2edures and norms or a more
ee2ti0e 2ulture.
:ilmann and SaIon*1991+ ha0e de0elo5ed the 2ulture /a5 sur0ey to measure a
2om5anyGs eIistin/ 2ulture and identiy the dieren2e bet3een that and the
Jdesired 2ultureJ. *(ultural /a5+. "he /reater the /a54 the /reater is the
li6elihood that 2urrent norms 2reate an inee2ti0e 2ulture.
Ed/ar S2hein has de0elo5ed a 10 ste5 J2ultural auditJ:
1. Entry and focus on surprises "he 2onsultant enters the /rou5 and
be/ins to eel the eIistin/ 2ulture and 3at2hes o sur5rises.
2. Systematic o7ser@ation and checHing "he 2onsultant 2he26s to see
i sur5rises are really that
1. +ocating a moti@ated insider "he 2onsultant tries to ind an insider
that is4 someone amiliar 3ith the 2ulture4 3ho 2an e0aluate it.
acd e!"d
42
;. /e@ealing the surprises# 5uFFlements4 and hun2hes: in a 2andid 3ay4
the 2onsultant re0eals his or her data to the insider or 0alidation.
5. 1oint eIploration to find eIplanations "o/ether the 2onsultant and
the insider attem5ts to it obser0ations 3ith /uidin/ belies4 attitudes
and 0alues to eI5lain beha0ior.
6. 'ormalizing hypotheses "he t3o 2ollaborate to orm hy5otheses
about the 2ulture based on dataH these be2ome the model o the
2ulture.
,. Systematic checHing and consolidation 'sin/ the understandin/
/ained thus ar4 the 2onsultant /ets more data rom #uestionnaires4
inter0ie3s and so on.
D. Pushing the le@el of assumptions !n2e the hy5otheses are
0alidated4 the 2onsultant deri0es 2ultural assum5tions and sees ho3
they ae2t 3hat the members see and do and belie0e.
9. Perpetual recali7ration "he model o 2ulture is ine tuned throu/h
testin/ on other insiders to see i it a2tually re0eals the underlyin/
assum5tions o the 2ulture.
10. 'ormal Eritten description "he 2onsultant redu2es the model to
3ritin/ and sho3s it around. "he 3ritten orm is 6e5t 2urrent o0er time.
%22ordin/ to $abey and Solomon *1996+ inter0ie3s and o5en9ended
#uestionnaires 2an be used to measure the em5loyee 0alues and belies.
EIaminations o the 2or5orate 5hiloso5hy statements ha0e 5ro0ided insi/ht in
to the es5oused 2ulture. %nother a55roa2h is to sur0ey em5loyees dire2tly and
see6 their 5er2e5tion o the or/aniFationGs 2ulture. !ne o the methods is to
be2ome a member o the or/aniFation and emer/e in 5arti2i5ant obser0ation.
"his allo3s dire2t sensin/ rom the 5ers5e2ti0e o a member 3ho is
eI5erien2in/ the 2ulture.
"he resear2her iners that any attem5t to or/aniFational 2ulture 2an only be an
im5ere2t assessment. Su2h measurements 2a5ture only a sna5shot o the
2ulture at a sin/le 5oint in time. $any or/aniFational 2ultures are in the 5ro2ess
o 2han/in/ and need to be monitored re/ularly and by a 0ariety o methods to
/ain a truer 5i2ture.
acd e!"d
43
Chapter ;9 Employee Performance
;.8 6hat is Employee PerformanceA
%22ordin/ to 6anun/o *1990+ 5erorman2e reers to an em5loyeeGs maniest
beha0ior at 3or64 3hereas. the term 5rodu2ti0ity reers to the net out2ome o
em5loyee 5erorman2e. 7erorman2e or 5rodu2ti0ity is a 2onse#uen2e o a set
o three a2tors:
"he em5loyeeGs attributes su2h as hisKher a5titudes and abilities4
trainin/4 eI5erien2e4 and 5hysiolo/i2al ma6eu5.
&isKher in2lination or moti0ation to eI5end the ne2essary eort to
5erorm
"he or/aniFational su55ort system4 3hi2h in2ludes the 5hysi2al and
so2ial en0ironment in the 3or65la2e4 te2hnolo/y4 and the administrati0e
5oli2ies and 5ro2edure.
Em5loyee attributes relate to the dis5ositional 2a5a2ity to 5erorm4 em5loyee
in2lination to 5ut in 3or6 eorts relate to the dis5ositional 2a5a2ity to 5erorm4
em5loyee in2lination to 5ut in 3or6 eort relates to 3illin/ness or moti0ation to
5erorm4 and or/aniFational su55ort /i0en to em5loyees relates to the
o55ortunity to 5erorm. "hese three a2tors 3hen 2ombined multi5li2ati0ely4
determine 5erorman2e out2ome. "he indi0idual 5erorman2e e#uation may
thereore be stated as ollo3s:
7erorman2e out2omesQ indi0idual attributesRmoti0ation to 5ut in
eortRor/aniFational su55ort
<ones and Ao263ood *1996+ are o a 0ie3 that em5loyee 5erorman2e is to do
3ith the a55li2ation o ee2ti0e eort. Em5loyees must be 5uttin/ the ri/ht
amount o eort in to their 3or6. "his4 eort 3ill be inee2ti0e ho3e0er4 i the
em5loyees does not ha0e the s6ills and the abilities to 2arry out the tas6 to the
standard re#uired. I the 8ob has not been 5ro5erly desi/ned to be ei2ient or
the standards ha0e not been 2ommuni2ated4 i the or/aniFation is not arran/ed
to 5ro0ide su55ort to the indi0idual and a0oid 2onli2t4 i em5loyees are not
s2heduled to 2o5e u5 3ith 5ea6s and trou/h o demand. 7erorman2e4 then4 is
acd e!"d
44
the ri/ht eort to the ri/ht 8ob in the ri/ht atmos5here in the ri/ht 5la2e at the
ri/ht time.
"here are t3o main areas o 2on2ern 9the 5erorman2e o indi0idual members
o sta4 and the 2olle2ti0e 5erorman2e o the sta as members o a team.
%2hie0in/ the best rom an indi0idual 3ill im5ro0e the o5erationGs 5erorman2e.
%22ordin/ to Robbins *1996+ 5erorman2e is the indi0idualGs 5erorman2e
e0aluation. "o maIimiFe moti0ation4 5eo5le need to 5er2ei0e that the eort they
eIert leads to a a0orable 5erorman2e e0aluation and that the a0orable
e0aluation 3ill lead to the re3ards that they 0alue.
%22ordin/ to :anun/o *1990+ 5erorman2e out2omes 3ould be 5oor not only in
the 2ase o lo3 em5loyee moti0ation4 but also in the 2ase o lo3 em5loyee
2a5a2ity to 5erorm4 and la26 o or/aniFational su55ort. Aa26 o or/aniFational
su55ort and em5loyee 2a5ability to 5erorm in turn leads to lo3er em5loyee
moti0ation to 5erorm. "he relationshi5s amon/ the 0arious 2om5onents
ne2essary or understandin/ 3or6 moti0ation 2onstraints and 5erorman2e
dei2its are summariFed in i/ure 2.1.
acd e!"d
45
/elationships Among =aria7les Affecting Employee Producti@ity
'igure ;.8 /elationship among @aria7le affecting employee producti@ity
BSource 5anungo# 8CC3D
;.2 Performance E@aluation
Robbins *1996+ states that the 2riteria that mana/ement 2hooses to e0aluate4
3hen a55raisin/ em5loyee 5erorman2e 3ill ha0e a ma8or inluen2e on 3hat
em5loyees do.
(ethods of performance e@aluation
"he ma8or 5erorman2e 0aluation methods are
6ritten essays9 "he sim5lest method o e0aluation is to 3rite a
narrati0e des2ribin/ an em5loyeeCs stren/ths4 5ast 5erorman2e4
5otential and su//estions or im5ro0ement. "he 3ritten essay re#uires
acd e!"d
o$io
-ultural
0nd
&n4ironment
5aria6les
&mployee
(oti4ation
To
#erform
&mployee
#erforman$e
)eha4ior
#rodu$ti4
ity
or
performa
n$e
out$ome
for
organi3ati
on
&mployee
-apa6ility
To
#erform
Organi3ational
upport
ystem
46
no 2om5leI orms or eItensi0e trainin/ to 2om5lete. .ut the results oten
rele2t the ability o the 3riter:.
Critical incidents9 (riti2al in2idents o2us the e0aluatorGs attention on
those beha0iors that are 6ey in ma6in/ the dieren2e bet3een eIe2utin/
a 8ob ee2ti0ely and eIe2utin/ it inee2ti0ely. "hat is4 the a55raiser
3rites do3n ane2dotes that des2ribe 3hat the em5loyees did that 3as
es5e2ially ee2ti0e or inee2ti0e.
)raphic rating scales9 !ne o the oldest and most 5o5ular methods o
e0aluation is the use o /ra5hi2 ratin/ s2ales. In this method4 a set o
5erorman2e a2tors4 su2h as #uantity and the #uality o 3or64 de5th o
6no3led/e4 2o9o5eration4 loyalty4 attendan2e4 honesty and initiati0e is
listed. "he e0aluator then /oes do3n the list and rates ea2h on
in2remental s2ales. "he s2ales s5e2iy i0e 5oints.
.eha@iorally anchored rating scales *bars+ 2ombine ma8or elements
rom the 2riti2al in2ident and /ra5hin/ rate a55roa2hes. "he a55raiser
rates the em5loyee based on items alon/ a 2ontinuum4 but the 5oints
are eIam5les o a2tual beha0ior on the /i0en 8ob rather than /eneral
des2ri5tions or traits. .ars s5e2iy deinite4 obser0able4 and measurable
8ob beha0ior.
(ultiperson comparisons "hey e0aluate one indi0idualGs 5erorman2e
a/ainst the 5erorman2e o one or more others. It is a relati0e rather than
an absolute measurin/ de0i2e. "he three most 5o5ular 2om5arisons are
/rou5 order ran6in/4 indi0idual ran6in/ and 5aired 2om5arisons.
;.: Employee Performance As A 5ey /esult Area
<ones and Ao263ood *1996+ state that althou/h it is sim5le to identiy the
5roblems 2aused by 5oor 5erorman2e4 it is more dii2ult to ado5t the
alternati0e a55roa2h o 5ositi0e indi2ators. >hile it is relati0ely strai/htor3ard
to 2onsider the 2onse#uen2es or the or/aniFation4 it is less ob0ious 3hat the
results 3ill be or the indi0idual or the /rou5. Su22essul em5loyee 5erorman2e
must be a mutually benei2ial relationshi5H it should not only result in the
ulillment o the or/aniFationGs eI5e2tations but also 5ro0ide satisa2tion o the
indi0idualGs needs.
acd e!"d
47
"he t3o sets o eI5e2tation must it. &e has de0elo5ed an a55roa2h4 3hi2h
loo6s or results in i0e areas:
5noEledge9 "he or/aniFation re#uires its em5loyees to ha0e a 2ertain
le0el o s6ills and 6no3led/e to o5erate ee2ti0ely4 3hereas the
em5loyee 3ants the or/aniFation to use and de0elo5 the s6ills and
6no3led/e4 .3hi2h he brin/s to the 8ob.
Psychological eIpectations9 "he or/aniFation needs em5loyees 3ho
are moti0ated to loo6 ater the interests o the or/aniFation4 3hereas the
em5loyees loo6 to satisy his o3n 5ersonal needs. % it eIists 3hen
em5loyees satisy these 5ri0ate needs throu/h the satisa2tion o
2om5any interests.
Efficiency9 "he or/aniFation is loo6in/ or a re3ard system related to
out5ut and standards o 5erorman2e4 3hereas em5loyees are loo6in/
or a re3ard 3hi2h they eel is e#uitable or the amount o eort they 5ut
in. this area also relates to the amount and method o 2ontrol im5osed
on the em5loyee.
!asH structure9 "he or/aniFation needs em5loyees 3ho 3ill 2arry out
the tas6 as deined bearin/ in mind te2hni2al and other 2onstraints4
3hereas the em5loyees are loo6in/ or a 8ob 3hi2h 3ill /i0e the 0ariety4
interest4 tar/ets4 eedba264 tas6 identity and autonomy they re#uire.
=alues9 "he or/aniFation needs em5loyees 3ho 3ill a22e5t and ado5t
its o3n ethi2s and 0aluesH 3hereas em5loyees are loo6in/ or an
or/aniFation 3hose 0alues do not 2ontra0ene their o3n.
;.; Analyzing Employee Performance
"he amount o eort that an em5loyee 3ill a55ly to his 3or6 3ill de5end on the
moti0ational or2e i.e. eI5e2tation that the a55li2ation o eort 3ill result in
5erorman2e and that 5erorman2e 3ill result in some orm o re3ard. 3hi2h 3ill
be the 0alue to an em5loyee. "he ee2ti0eness o the eort 3ill in turn be
ae2ted by the intera2tion o the s6ills and the abilities o the indi0idual and his
3or6 /rou54 desi/n o the 3or6 itsel4 2limate and the 2ulture o the or/aniFation
as a 3hole and the s2hedulin/ o the 3or6or2e to meet eI5e2ted 2ustomer
demand. "he a2tual le0el o 5erorman2e 3ill /enerate re3ards both or the
acd e!"d
48
em5loyee and the or/aniFation9or the em5loyee in terms o 5ay4 bonuses4
re2o/nition4 and a2hie0ement and or the or/aniFation in terms o in2ome4
2ustomer satisa2tion or 5rodu2ti0ity. "he 0alue o the re3ard to the
or/aniFation 3ill be assessed a/ainst 2om5anyGs ob8e2ti0es and any mismat2h
3ill result in 2orre2ti0e a2tion and 3ill inluen2e uture de2isions about
re2ruitment4 5ay s2ales4 mana/ement style and so on. "he 0alue o the re3ard
to the em5loyee 3ill 2om5lete the loo5 to moti0ation and 2onse#uent eort on
the 8ob.
"3o 6ey eatures o this model should be noted. First4 the i0e a2tors dire2tly
ae2tin/ 5erorman2e are all 2losely interlin6ed and 2han/in/ one 3ill
automati2ally inluen2e the others. ! these i0e a2tors4 the mana/ement has
dire2t 2ontrol o0er our4 eort bein/ outside dire2t inluen2e but sub8e2t to
indire2t inluen2es throu/h the other a2tors. Se2ondly4 there should be a it
bet3een the indi0idualGs re3ards to the or/aniFationH re3ard to one 5arty
should not be at the 2ost o re3ard to the other.
!he moti@ation calculus
"he eI5e2tan2y theory o moti0ation4 based on =roomsGs eI5e2tan2y 9
instrumentally theory and de0elo5ed by 5orter and Aa3ler su//ests that the
eort an em5loyee a55lies to his 3or6 is a un2tion o the 5er2ei0ed 0alue o
the re3ard and the 5er2ei0ed eort9re3ard 5robability9the moti0ation 2al2ulus.
"he re3ards or an eort 2an be eItrinsi2 or intrinsi2 and should be seen as
e#uitable. EItrinsi2 re3ards are the 5hysi2al re3ards the or/aniFation 2an /i0e
su2h as 5ay4 5romotion4 status4 and se2urity4 ree 3ee6end brea6s. Intrinsi2
re3ards are internal to the indi0idual and in2lude eelin/s o a22om5lishin/
somethin/ 3orth3hile4 a sense o a2hie0ement4 eelin/s that s6ills and abilities
are bein/ ully used and de0elo5ed. "hese re3ards ha0e a more dire2t and
immediate relationshi5 to a2tual 5erorman2e be2ause they are the re3ards the
em5loyees /i0es him.
"he 0alue o the re3ards both intrinsi2 and eItrinsi2 3ill be ae2ted by the
acd e!"d
49
5er2ei0ed e#uity o those re3ards. (om5arisons o airness 3ill be made 3ith
3hat the em5loyee eI5e2ted the re3ard to be and 3hat the em5loyees sees
other 5eo5le /ettin/ in a similar situation or should be /ettin/ in a 5arti2ular
5osition.
It is also im5ortant to re2o/niFe that the 0alue o the re3ard is as 5er2ei0ed by
the indi0idual and thereore that 3hat is re3ardin/ or one em5loyee may not
be re3ardin/ or another. "he 0alue o the re3ard 3ill also be ae2ted by the
satisa2tion that those re3ards ha0e /i0en in the 5ast.
"he moti0ation 2al2ulus is de5endent on the indi0idual 5er2e5tion o the
em5loyee and thereore dii2ult to 5redi2t in any but the most /eneral terms but
3ill be related to that em5loyeeGs o0erall orientation to 3or6. "hree basi2
orientations to 3or6 ha0e been identiied:
EIpressi@e orientation9!o 3or6 in0ol0es a 5ositi0e attitude to 3or6 3ith
the main interest bein/ in the intrinsi2 re3ards o the 8ob deri0in/ rom
the nature o the 3or6 itsel. >ithin this orientation em5loyees 2an ha0e
an either 5ositi0e or a ne/ati0e rea2tion to3ards the mana/ement
Instrumental orientation9 %lso dis5lays a 5ositi0e attitude to 3or6 3ith
an interest in the eItrinsi2 re3ards4 mainly e2onomi2 returns and
se2urity. "his im5lies that a 5ositi0e de2ision has been ta6en to
maIimiFe earnin/s at the eI5ense o intrinsi2 8ob satisa2tion as the
money and se2urity 5ro0ide a de/ree o satisa2tion des5ite the
dissatisyin/ nature o the 3or6 itsel.
Alienati@e orientation9 It im5lies a ne/ati0e attitude to 3or64 3hi2h is
seen sim5ly as a means to and4 em5loyees dis5layin/ no interest in the
3or6 at all. "his ty5e o alienation has been seen to be due to the
ollo3in/ reasons:
7o3erlessness9 a la26 o 2ontrol o0er the 3or6 5ro2ess
$eanin/less9only seein/ a small 5art o the total 5ro2ess
Isolation9a la269o so2ially inte/rated 3or6 or/aniFation
Sel9estran/ement 9% 2ons2ious de2ision to 6ee5 outside the
or/aniFation
acd e!"d
50
"he im5li2ation o 3or6 orientation to the moti0ation to the em5loyees is that
em5loyees 3ill see6 3or6 in dierent 3ays4 and althou/h some te2hni#ues to
en2oura/e eort 3ill 3or6 on some em5loyees.
"he resear2her eels that the 5ro2ess o moti0ation is both 2om5li2ated and
hi/hly indi0idualisti2. &o3e0er4 althou/h an indi0idualGs needs and orientations
may be dierent4 the 5ro2ess o moti0ation 3ill remain 2onstant. "he hotel
mana/er must be a3are o the 5ro2ess o moti0ation 2al2ulus:
Effort Performance /eEard 'eed7acH
I attem5ts are to be made to inluen2e the amount o eort a member o sta
a55lies to the 8ob.
!he "o7
"he 2on0ersion o eort in to 5erorman2e 3ill be inluen2ed by the 3ay in
3hi2h the 8ob the em5loyee does is desi/ned4 and in turn the desi/n o the 8ob
3ill either en2oura/e or dis2oura/e eort. % 3ell9desi/ned 8ob 3ill it the needs
o the or/aniFation in terms o 5ro0idin/ the a55ro5riate #uality o 5erorman2e4
#uality o 5erorman2e4 leIibility and 2ost. "he 8ob should also it the needs o
the 8obholder in terms o 5ro0idin/ a55ro5riate intrinsi2 and eItrinsi2 re3ards.
Content
"he dimensions o the 8ob 2ontent relates to the nature o the tas6s the 8ob
in0ol0es. From the or/aniFationGs 5ers5e2ti0e the te2hni2al 2ontent o the 8ob
must be ei2ient.
Control
(ontrol systems are essential in any 3or6 or/aniFation. "he de/ree o 2ontrol
eIer2ised by the mana/er should be balan2ed a/ainst the moti0ational or2e o
/i0in/ em5loyees /reater autonomy in the 8ob4 allo3in/ them to use dis2retion4
ha0in/ less detailed 2ontrols o0er them and 2onerrin/ on them more
res5onsibility or the inal out5ut o their 3or6.
acd e!"d
51
Communication
(ommuni2ation in 8ob desi/n has t3o elements. First4 it is im5ortant to
establish eIa2tly 3hat a 5arti2ular 8ob entails and 3hat the eI5e2ted standards
o 5erorman2e are4 and to ensure that the em5loyee 6no3s and understands
both as5e2ts. Se2ondly4 it is im5ortant to /i0e eedba26 on ho3 3ell tas6s are
bein/ 2arried out as 5lanned4 but it 3ill also redu2e the em5loyeeGs role
ambi/uity.
Contact
$ost 8obs in0ol0e a de/ree o so2ial 2ontent either 3ith /uests or 3ith 3or6
2ollea/ues. Some element o so2ial 2onta2t is desirable and should be 5lanned
or.
ConteIt
"he 8ob 2onteIt relates to the 2onditions o 3or64 3hi2h 5ro0ide the eItrinsi2
re3ards. "he em5loyee 3ill be 2on2erned about the 5ay stru2ture4 in2enti0e or
bonus s2hemes4 uniorms4 hours o 3or64 8ob se2urity4 and 5romotion. "he
en0ironment in 3hi2h the 3or6 ta6es 5la2e is also im5ortant.
Organizational climateJculture
"he 2limate or a /eo/ra5hi2al re/ion is des2ribed as the 5re0ailin/
atmos5heri2 2onditions o tem5erature4 rainall4 humidity4 3ind et2. the 2limate
or an establishment 2an also be seen as the 5re0ailin/ atmos5here o the unit
in terms o 3armth4 5oli2ies and 5ro2edures4 mana/ement style and o0erall
orientation4 bein/ the eI5ression o the 2ulture o the or/aniFation as a 3hole.
"he or/aniFational 2ulture is dii2ult to 5in do3n but has a 0ery real ee2t on
en2oura/in/ hi/h 5erorman2e.
Scheduling
"he em5loyee 3ho has re#uisite s6ills and abilities to do a 3ell deined 8ob
3hi2h 2ontributed to the or/aniFational ob8e2ti0es4 and that. em5loyee4
o5eratin/ in a su55orti0e 2limate 3hi2h en2oura/es 5erorman2e4 3ill be 3illin/
to eI5end eort in 2arryin/ out his duties. .ut unless the em5loyeeJ is a0ailable
acd e!"d
52
to do those duties at the a55ro5riate time then 5erorman2e 3ill still not be
o5timiFed.
!eam effecti@eness
>or6 /rou5s usually result rom a deliberate or/aniFational de2ision to 5la2e
3or6ers to/ether to meet o5erational needs. "he hotel industry is 3idely
di0ided in to t3o sorts o /rou5s 9ront o the house sta 3ho 2omes in to
2onta2t 3ith the /uest and ba26 o the house sta 3ho are mainly res5onsible
or the 5rodu2tion side o o5eration.
"he resear2her iners that moti0ation arises out o a desire to ulill the
indi0idual needs but that these needs are dii2ult to identiy and thereore
dii2ult to mana/e. "he em5hasis has been on the 5ro2ess o moti0ation and
the /eneration o the eort throu/h the moti0ation 2al2ulus. &a0in/ established
eort the other barriers to ee2ti0e 5erorman2e9the nature o the 8ob4 s6ills and
abilities o the em5loyees4 the or/aniFational 2ultureK2limate4 the s2hedulin/ o
the 3or6 or2e4 the de0elo5ment o team ee2ti0eness and the a0oidan2e o
2onli2t ha0e been studied.
acd e!"d
53
Analyzing Employee Performance
'igure9;.2 Analyzing employee performance
BSource 1ones and +ocHEood# 8CC>D
Da0id *199,+ 5oints out measurement o em5loyee 5erorman2e as an
acd e!"d
Moti&ation
/ompany
Ailities
And
*"ills
The 3o
*cheduling
Performance
Re'ard
Indi&idual
$rganization
$rganizational culture
Effort
54
im5ortant as5e2t o strate/y e0aluation. It in2ludes 2om5arison o eI5e2ted
results to a2tual results4 in0esti/atin/ de0iation rom 5lans4 e0aluatin/ indi0idual
5erorman2e4 and eIamine 5ro2ess bein/ made to3ards meetin/ stated
ob8e2ti0es. &o3e0er4 2riteria or e0aluatin/ 5erorman2e should be measurable
and easily 0eriiable. E0aluation o the 5erorman2e o an em5loyee is based on
both #uantitati0e and #ualitati0e 2riteria. Sele2tin/ the eIa2t set o 2riteria or
e0aluatin/ 5erorman2e de5ends on a 5arti2ular or/aniFationGs siFe4 industry4
strate/ies and mana/ement 5hiloso5hy.
Suantitati0e 2riteria 2ommonly used to e0aluate 5erorman2e are inan2ial
ratios4 3hi2h e0aluators use to ma6e three 2riti2al 2om5arisons:
(om5arin/ the irmGs 5erorman2e o0er dierent 5eriods
(om5arin/ the irmGs 5erorman2e to 2om5etitors
.intli *1992+ has em5hasiFed on dieren2es in the 8ob and states that they all
2annot be measured in the same dire2tion. Follo3in/ are the e3 /uidelines
that may enable an or/aniFation to mat2h the measurement in 2onteIt to the
5osition a55raised.
Kuality9 it des2ribes ho3 3ell or ho3 thorou/hly the 3or6 is 5erormed.
It reers to a22ura2y4 a55earan2e4 useulness4 or ee2ti0eness. It may be
eI5ressed in terms o error rate4 su2h as a number or 5er2enta/e o
errors a0ailable 5er unit o 3or64 or as /eneral results4 ne2essary i
numeri2al rates areG not easible.
Kuantity9 it s5e2iies ho3 mu2h 3or6 must be 2om5leted 3ithin a
s5e2ii2 time. For measurements in0ol0in/ #uantity4 numbers or
5er2enta/es are used or tra26in/ systems.
!imelessness9 it s5e2iies ho3 #ui26ly 3or6 must be 5erormed. It
ans3ers #uestions su2h as 3hen4 ho3 soon4 or 3ithin 5eriod.
Cost effecti@eness9 it 3or6s 3hen 5erorman2e 2an be assessed in
terms o money sa0ed4 earned4 2olle2ted or eI5ended.
/esults desired it is used 3hen the standard 2an be best eI5ressed in
terms o the results obtained.
(anner of performance it is hel5ul in establishin/ standards o
5erorman2e or 5osition in 3hi2h 5ersonal 2onta2ts are an hindran2e
acd e!"d
55
;.< 'actors !hat Affect Employee Performance In An Organization
1. Impro@ing performance through participati@e management 9 in 0ie3
o Sash6in *19D;+ our areas o em5loyee 5arti2i5ation ha0e been
identiied. "hese areas are:
Settin/ /oals
$a6in/ de2isionGs relatin/ to oneGs 3or6
Sol0in/ oneGs 3or6 5roblems
$a6in/ 3or6 2han/es
.y allo3in/ and a2ilitatin/ the em5loyee to 5arti2i5ate in de2ision ma6in/ or
mana/in/ oneGs 3or6 5roblems4 and ma6in/ 3or6 2han/es4 the or/aniFation4 in
ee2t see6s to 2reate 2onditions or the em5loyees to un2tion in a manner
similar to that o the 2ratsmen in 5re9industrial so2ieties. It also means allo3in/
em5loyees to ta6e the initiati0e in sol0in/ 5roblems related to their 8ob su2h as
inade#uate or dee2ti0e materials and e#ui5mentH or/aniFational 5oli2ies and
5ro2edures that are obsta2les to /ood 5erorman2eH 5oor 5rodu2ts or 5rodu2t
desi/n or la26 o s6ills. For 0arious reasons4 3or6ers are /enerally in a better
5osition to identiy the sour2e o the 5roblems and initiate the a55ro5riate
remedial a2tion4 or alert the mana/ement to the need o s5e2ial measures.
"he resear2her eels that 5arti2i5ati0e mana/ement is an essential tool or the
5ur5ose o /ood em5loyee i5erorman2e at 3or6 5la2e. "he essential elements
that are 5art o it are oten elements li6e settin/ /oals4 o3n 3or6Gs related
de2isions4 initiatin/ 2han/es. "his hel5s em5loyee to sol0e the 5roblems that
they a2e4 themsel0es and ei2iently or maIimum 5rodu2ti0ity. Em5loyees
should be o5en to /i0e their de2isions to the to5 mana/ement. I the em5loyees
are not en2oura/ed to /i0e their o3n de2isions it may lead to a 5oor
5erorman2e o the em5loyee.
"he internal 3or6 2ulture in an or/aniFation 2ause immense im5a2t on
5arti2i5ati0e mana/ement. "he reason or this are the sel belies that the
5eo5le 2arry 3ith themsel0es and ha0e also made4 these 2om5ulsory or the
entire 2ommunity to ollo3 them. In addition to this4 the internal 3or6 2ulture
also im5a2ts on the use o the 5otential o 5eo5le or im5ro0in/ their
acd e!"d
56
5erorman2e. !nly i the or/aniFation to5 brass has the 2ommitment in the orm
o 5oli2y4 5ro/ramme and 5ra2ti2es 2an it ensure that there is a 2ultural it
3ithin the or/aniFation and the internal 3or6 2ulture ta6es 5la2e in a 5ositi0e
manner.
2. Personal respect I achie@ement and training and de@elopment
"o5 elements or /ood em5loyee 5erorman2e
50
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"his sur0ey 3as 2ondu2ted on a sam5le siFe o 100. For this /rou54 5ersonal
a2hie0ement4 res5e2t4 and 2hallen/e ta6in/ 3ere the 5rimary moti0ators. !ther
moti0ators in2lude 0ariety4 autonomy and /ood inter5ersonal relationshi5s 3ith
their team members. "he o55ortunity to use 5ersonal dri0e and res5e2t or the
indi0idualGs ri/ht seems to be an im5ortant element or /ood 5erorman2e or
many res5ondents. Enri2hed roles and o55ortunity or si/nii2ant 5ersonal
de0elo5ment a55ear to be im5ortant retention a2tors. From the abo0e /ra5h
the resear2her 2an iner that amon/ the se0en attributes identiied 5ersonal
a2hie0ement and res5e2t4 a 2hallen/in/ 8ob4 re2o/nition4 and su55ort by the
em5loyer are the to5 5riorities or a /ood 5erorman2e. "hese #ualities 2an be
in2ul2ated in an em5loyee throu/h better trainin/ and de0elo5ment.
7ersonal a2hie0ement means the res5e2t or the indi0idual4 5romotion and the
/ro3th 5ers5e2ti0e. o the em5loyee. (hallen/in/ 8ob means a demandin/ 8ob4
acd e!"d
57
3hi2h lets the em5loyee eI5eriment 3ith their tas6s4 and their 8obs. Re2o/nition
by the em5loyer means su55ort4 moti0ation and the need or a55raisals. >ith
better in5uts rom the trainin/4 the em5loyer and em5loyee relationshi5 2an
also be im5ro0ed 3hi2h 3ould not only add to better 3or6 en0ironment but also
better em5loyee 5erorman2e. "he resear2her eels that trainin/ and
de0elo5ment is not only a re#uirement but also a ne2essity or any business
today. It is a moti0ational inter0ention leadin/ to healthy atmos5here and
5erorman2e at 3or6.
.eneits o trainin/ to em5loyees *Rao 1999+
"rainin/ ma6es an em5loyee more useul to a irm. It hel5s in
in2reasin/ his 5erorman2e.
"rainin/ ma6es em5loyee more ee2ti0e and ei2ient.
"rainin/ enables em5loyees to mo0e orm one or/aniFation to
another easily. "hey 2an be more mobile and 5ursue /oals a2ti0ely.
"rainin/ 2an 2ontribute to hi/her 5rodu2ti0ity4 e3er mista6es4 /reater
8ob satisa2tion and lo3er labor turno0er. %lso4 it 2an enable
em5loyees to 2o5e 3ith the or/aniFational4 so2ial and te2hnolo/i2al
2han/e.
2. Intrinsic and eItrinsic moti@ation 9 %rmstron/ and murlis *199;+ state that
moti0ation at 3or6 2an ta6e 5la2e in t3o 3ays. "hese are intrinsi2 and eItrinsi2
moti0ation. Intrinsi2 moti0ation is des2ribed as the 5ro2ess o moti0ation by the
3or6 itsel. It is sel /enerated in that 5eo5le see6 the ty5e o 3or6 that satisies
them4 but mana/ement 2an enhan2e this 5ro2ess throu/h em5o3erment and
de0elo5ment 5ro/rams. !n the other hand4 eItrinsi2 moti0ation is 3hat is done
to and or 5eo5le to moti0ate them. "his in2ludes the eItensi0e o in2enti0es
5ro/rams as a tool to 5ro0ide eItrinsi2 moti0ation.
"he 3hole 2on2e5t o 5ro0idin/ an in2enti0e to an em5loyee is to satisy a need
and hen2e4 moti0ate him or her to in2rease their 5erorman2e. Someone
re2o/niFin/ an unsatisied need 2an initiate the 5ro2ess o moti0ation. % /oal is
then established 3hi2h4 it is thou/ht4 3ill satisy the need4 and a 2ourse o
acd e!"d
58
a2tion is determined 3hi2h is eI5e2ted to lead to3ards the attainment o the
/oal. %lternati0ely4 someone 2an be 5resented 3ith a /oal and i it is eI5e2ted
that a2hie0in/ this /oal 3ill meet an unsatisied need4 a2tion is ta6en to rea2h
the /oal and thus satisy the need. 7eo5le 2an be moti0ated by re3ards and
in2enti0es that 3ill enable them to satisy their needs and in2rease their
5erorman2e.
acd e!"d
59
Conclusion
%n or/aniFation 2an be 0ie3ed as a 2ulture in its o3n ri/ht4 as a set o sub
2ultures or as an artia2t throu/h 3hi2h an e0en lar/e 2ulture eI5resses itsel.
(ulture in0ol0es the members o an or/aniFation in a so2ially 2onstru2ted
reality. !r/aniFation members shade this reality in the dual senses o similarity
and dieren2e. (ulture is a 5rimarily set o 0alues and belies arti2ulated by
leaders to /uide the or/aniFation4 translated by mana/ers and em5loyees in to
a55ro5riate beha0ior. "he elements u5on 3hi2h 2ultural sharin/ is based
in2ludes artia2ts4 symbols4 norms4 0alues4 belies and assum5tions. %t a
dee5er le0el 2ulture may be 2onsistin/ o the belies4 0alues4 attitudes and
norms o beha0ior that 5redominate and 3hi2h may be in2or5orated in to
ethi2al 2odes.
It is im5ortant to /i0e an or/aniFational identity to em5loyees9 a deinin/ 0ision
o 3hat the or/aniFation re5resents. "hey are also an im5ortant sour2e o
stability and 2ontinuity to the or/aniFation.
"he 2ulture o the or/aniFation may be either stron/ or 3ea6. Stron/ 2ultures
ha0e a /reater im5a2t on em5loyee beha0ior and are dire2tly related to redu2e
turno0er. "he early ounders o the or/aniFation may 2reate these 2ultures in
the or/aniFation. From the se2ondary resear2h4 3e 2an 2on2lude that
or/aniFational 2ulture ser0es as a 2ontrol me2hanism dire2tin/ the beha0ior o
the em5loyees. "here is a stron/ relationshi5 bet3een 2ulture and satisa2tion4
but the indi0idual and the 2ulture moderates this. Satisa2tion is the hi/hest
3hen there is 2on/ruen2e bet3een the indi0idual needs and the 2ulture. "his
2ulture has to be 2ommuni2ated to the em5loyees 3ith the hel5 o 0arious
means li6e the 0ision statement and the 2or5orate 5hiloso5hy statements.
acd e!"d
60
Chapter <9 A 'rameEorH 'or E@aluation
<.8 Introduction
"he 5ur5ose o this dissertation is to study the im5a2t o or/aniFational 2ulture
on em5loyee 5erorman2e. "o /et a better understandin/ and 6no3led/e about
the to5i2 to be resear2hed4 the 3or6 o 0arious authors 3as reerred to:
"hom5son *199,+4 deal and :ennedy *19D2+4 .erry *19D1+4 S2hein *1991+4
Robbins *1996+4 bate *199;+. >ebsites and 8ournals too 3ere reerred to 3hi2h
3ere 333.rodanderson.2om4 333.or/aniFational92ulture.2om. "he dis2ussion
/enerated by these authors hel5ed to synthesiFe an a55ro5riate rame3or6
5ro5osal by the resear2h.
<.2 /ationales for Organizational Culture
!n /oin/ throu/h the 3or6 o 0arious authors4 many reasons and 5ossibilities
or an or/aniFational 2ulture to eIist 3ere identiied. .ased on 3hi2h the author
has 2om5ressed them in one sin/le ra/mentation. It 2an be di0ided in to t3o
/rou5s. It ae2ts the em5loyees and or/aniFations in a number o 3ays.
Resear2h indi2ates that 2ulture 5lays at least our im5ortant roles in an
or/aniFation. First 2ulture orms a 2olle2ti0e identity that hel5s its members
asso2iate themsel0es 3ith their or/aniFationGs 5oli2ies and mission4 and eel
themsel0es a 5art o it. Se2ond4 or/aniFational 2ulture 5res2ribes norms o
a22e5table and una22e5table beha0ior4 ma6in/ it 2lears or em5loyees 3hat
they should say or do in a /i0en situation. "hird these norms hel5 em5loyeeGs
3or6 to/ether to meet 2ustomerGs needs and res5ond to eIternal 5ressure.
Fourth4 2ulture 5ro0ides stru2ture and 2ontrol 3ithout relyin/ on an authoritati0e
mana/ement style that 2an lessen moti0ation and 2reati0ity
acd e!"d
61
/ationale for organizational culture
!o employees
7ro0ides a sense o se2urity to its members
:no3led/e o ones or/aniFational
(ulture hel5s em5loyees inter5ret 3hat )oes on inside it
&el5 stimulate em5loyee enthusiasm
!o organizations
"o /i0e or/aniFational identity
7ro0ides 3ith a sour2e o stability and 2ontinuity to the or/aniFation
It 5res2ribes norms o a22e5table and non9a22e5table beha0ior.
It hel5s in ormin/ a 2olle2ti0e identity that hel5s in member asso2iate
3ith their or/aniFational 5oli2ies and mission.
'igure :.89/ationale for organizational culture
Adapted from the EorH of authors9 *ofstede B8CC?D# Peters and 6aterman
B8C?2D# 5otter and *esHett B8CC2D# Schneider and .oEen B8CC<D# OL/eilly
and ChatmanB8CC>D
<.: Organizational Culture
!r/aniFational 2ulture has been des2ribed as an amal/amation o belies4
attitudes4 routines4 norms4 0alues4 tas6s4 stories4 symbols4 2ontrols4 5o3er4
assum5tions4 myths and beha0iors. E0ery or/aniFation has its o3n 2ulture.
E0en the 0arious de5artments and bran2hes o an or/aniFation may ha0e a
distin2t 2ulture 5re0ailin/. !r/aniFational 2ulture need not beH de0elo5ed it may
8ust e0ol0e on its o3n throu/h human intera2tion and 5ro2edures. >hen
or/aniFations 5romote a 2ertain set o 0alues4 li6e res5e2t or 5eo5le and hi/h
5ay or /ood 5erorman2e4 they 2reate a so2ial ener/y or moti0ation that
inluen2es em5loyeeGs attitudes and beha0ior.
acd e!"d
62
'igure <.8 Elements of organizational culture
Adapted from 5ind and Anderson B8CC<D# !iso# /ozzi# Carol B8CC?D# 1ohnson and Schoels B8CC?D
acd e!"d
$rganizational
/ulture
Attitudes
,orms
1eha&ior
*tories
Team
$rientation
People
$rientation
$rganizational
*tructure
/ontrol
systems
Inno&ation
Rituals
*ymols
Routine
63
<.; Impact Of Organizational Culture On Employee Performance
>hen or/aniFations 5romote a 2ertain set o 0alues they 2reate a moti0ation
that inluen2es em5loyees attitudes and beha0ior. EI2ellent or/aniFations 6ee5
0alues about4 #uality4 ser0i2e4 the im5ortan2e o 5eo5le as indi0idual and
inno0ation that moti0ates em5loyees to im5ro0e 5erorman2e and in2rease
their morale4 satisa2tion and 2ommitment. Em5loyees 3ho 5er2ei0e /reat
3armth4 su55orti0eness4 assi/ned res5onsibility and re3ards in their
or/aniFations are more 2ommitted to the or/aniFation. "he 2ulture o an
or/aniFation is rele2ted in its 5ast and 5resent mana/erial un2tions. $ana/ers
e0aluate em5loyee 5erorman2e in terms o a22ura2y. "he members o the
or/aniFation are res5onsible or ma6in/ u5 the 2ulture o an or/aniFation. "his
2ulture is rele2ted in the mana/ement 5ro2ess and beha0iors o the 5eo5le in
the or/aniFation. "he 2ulture o an or/aniFation in turn leads to or/aniFational
ee2ti0eness.
<.< EIplanation to the model
"he abo0e95ro5osed model 2an be des2ribed as ollo3s: the 2ulture o an
or/aniFation is dee5er le0el o basi2 assum5tions and belies that are shared
by the members o an or/aniFation. "he #uality o the to5 mana/ement 5eo5le
is a result o the sele2tion 2riteria o the or/aniFation. "he to5 mana/ement is
both a 2ause o and 5art o the or/aniFational 2ulture. "he eIistin/ 2ulture o an
or/aniFation rele2ts 5ast and 5resent mana/erial 5lannin/4 or/aniFin/4 leadin/
and 2ontrollin/ a2ti0ities. "he 2ulture also results rom the intera2tion bet3een
the ounderGs biases and assum5tions and 3hat the ori/inal members 3ho are
the ounders initially em5loy learns subse#uently rom their o3n eI5erien2e.
"hese are the t3o most im5ortant a2tors or the ormation o any 2ulture. "he
5rimary a2tors 5er2ei0ed or the ormation o a 2ulture as a 3hole 2an ran/e
rom team3or64 inno0ation4 result oriented4 attention to details4 symbols et2. the
resultin/ 2ulture 3ith the su55ort o all these elements 2an either result in a
stron/ or a 3ea6 2ulture. "his 2ulture in turn ae2ts the satisa2tion le0el and
the 5erorman2e o the em5loyees.
acd e!"d
64
Impact of organizational culture on employee performance
'igure <.2 Impact of organizational culture on employee performance
Adapted from /o77ins B8CC>D# !aylor B8CC2D# +uthans B8CC;D
acd e!"d
O67e$ti4e fa$tor per$ei4ed
as
Routines
Rituals
Group emphasis
Ris" tolerance
Re'ard criteria
/ontrol
Inno&ation
$rganization
at
/ulture
Performance
*atisfaction
Hi
.o'
Top
Management
*ocialization
*election
criteria
Philosophy of
$rganization
2ounders
65
Chapter >9 /esearch (ethodology
>.8 Introduction
"he ob8e2ti0e o this 2ha5ter is to outline the resear2h methodolo/y used to
establish the rame3or6 or e0aluation in order to 2arry out the 5rimary
resear2h. "he 2ha5ter also deals 3ith the 2on2e5ts and te2hni#ues used durin/
5rimary resear2h in order to arri0e at the indin/s o this eort and establish a
rame3or6 or lo/i2al dedu2tion to3ards the analyses and 2on2lusions rom a
2ase study o "a8 5ala2e4 Delhi.
>.2 6hat is /esearchA
%22ordin/ to Se6aran *2000+ resear2h 2an be 4des2ribed as a systemati2 and
or/aniFed eort to in0esti/ate a s5e2ii2 5roblem that needs a solution. It is a
series o ste5s desi/ned and ollo3ed4 3ith the /oal o inishin/ ans3ers to the
issues that are o 2on2erns to us in the 3or6 en0ironment.
>.: !he /esearch Process B*,PO!*E!ICO $E$&C!I=E (E!*O$D
"he se0en ste5s in0ol0ed in hy5otheti2o dedu2ti0e method o resear2h are:
!bser0ation
7reliminary inormation /atherin/
"heory ormulation
&y5othesiFin/9 or the 5ur5ose o this dissertation4 the hy5othesis
deri0ed is:
M!he culture of an organization is positi@ely related to the employee
performanceM
Further s2ientii2 data 2olle2tion data analysis
Dedu2tion
In this 5arti2ular 5ure resear2h4 the resear2her be/an 3ith indin/ material on
the sub8e2t. "o /et a better understandin/ and 6no3led/e about the to5i2 to be
resear2hed4 the 3or6 o 0arious authors 3as reerred to: "hom5son *199,+4
deal and :ennedy *19D2+4 .erry *19D1+4 S2hein *1991+4 Robbins *1996+4 .ate
acd e!"d
66
*199;+. >ebsites and 8ournals too 3ere reereed to 3hi2h 3ere
333.rodanderson.2om and 333.or/aniFational92ulture.2om. "he dis2ussion
/enerated by these authors hel5ed to synthesiFe an a55ro5riate rame3or6
5ro5osal by the resear2h. !n2e a throu/h 6no3led/e 3as /ained4 a theoreti2al
rame3or6 3as ormed. "he resear2her urther identiied the 0ariables and
2ate/oriFed them in to de5endent and inde5endent 0ariables. %ter 3hi2h a
hy5othesis 3as dra3n. !n2e the hy5othesis 3as ready4 it needed to be tested.
For this 2ase study a55roa2h 3as used. "his 2ase study 3as 2ondu2ted in "a8
7ala2e &otel4 Delhi4 India.
>.; Case Studies
J(ase study is a strate/y or doin/ resear2h4 3hi2h4 in0ol0es an em5iri2al
in0esti/ation o a 5arti2ular 2ontem5orary 5henomenon 3ithin its real lie
2onteIt usin/ multi5le sour2es o e0iden2eJ
"a8 5ala2e ser0ed as an ideal 2ase study sin2e the resear2her has already
3or6ed in that or/aniFation.
>.< Sur@ey Instrument
For the 5ur5ose o these dissertation #uestionnaires is used as a tool to
2ondu2t em5iri2al resear2h in0ol0in/ a 2ase study. %s stated by Robson
*1991+4 #uestionnaire is a reormulated 3ritten set o #uestions to 3hi2h
res5ondents re2ord their ans3ers usually 3ithin rather 2losely deined
alternati0es. % #uestionnaire is an ei2ient data 2olle2tion me2hanism 3hen the
resear2her 6no3s eIa2tly 3hat is re#uired and ho3 to measure the 0ariables o
interest. 'nstru2tured inter0ie3s are also 2arried out. Inter0ie3s 3ere
underta6en in order to substantiate the indin/s rom the #uestionnaire.
>.> Population# Sample and $ata Collection
"he 5o5ulation or this study 2onsists o ront and ba26 o the house
em5loyees9 3or6in/ in ront oi2e4 ood and be0era/e4 6it2hen and
house6ee5in/. %s stated abo0e the sam5le siFe is 50. "he sam5lin/
strate/y 3as to sur0ey a55roIimately 12 em5loyees rom ea2h
de5artment so as to /et a air sam5le rom all the de5artments.
acd e!"d
67
"he #uestionnaire 3as distributed to the em5loyees. It in2luded a 2o0er letter
that eI5lained them that this study 3as edu2ational based and the inormation
5ro0ided 3ould be 6e5t 2onidential. "o allo3 data 2olle2tion 3ith as little
intrusion as 5ossible4 resear2her had the o5tion to
1. &a0e a /rou5 o em5loyees ill out the #uestionnaires at the same
time *or eI. %ter or beore the shit+
2. &a0e em5loyees ill out the sur0ey in a brea6 at some 5oint durin/
their shit and return it 3hen it is 2om5leted.
In either 2ase the resear2her randomly sele2ted 25 ront o the house
em5loyees and 25 ba26 o the house em5loyees. %ter the sam5le siFe 3as
sele2ted4 the resear2her eI5lained the studyGs 5ur5ose and 5ro0ided
instru2tions or ilin/ out the #uestionnaire. Em5loyees 3ere assured that their
de2ision to 5arti2i5ate or not 5arti2i5ate had no im5a2t on their em5loyment.
"hen4 those 3ho 2hose to 5arti2i5ate 2om5leted the #uestionnaire and returned
it ba26 to the resear2her. "o /uarantee anonymity no 5ersonally identiyin/
inormation 3as re#uested.
"o in2rease 5arti2i5ation mana/ers 3ere also as6ed to 2om5lete the sur0ey.
"he resear2her ho5ed that this demonstrated su55ort rom the mana/ers 3ould
en2oura/e em5loyees to 5arti2i5ate as 3ell.
"he len/th o e0ery set o #uestionnaire eItended rom 59, minutes or dierent
de5artmental em5loyees.
>.4 Sampling And Administration
"he resear2her has ollo3ed strate/y o stratiied random sam5lin/. Robson
*1991+ states that stratiied sam5lin/ /i0es us a better 5i2ture o the 5o5ulation
mean. %s in the 2ase o this dissertation4 the resear2her 2olle2ted the data
based on #uestionnaire and inter0ie3s. "he resear2her 2arried out the
resear2h at "a8 7ala2e &otel4 Ne3 Delhi. "he resear2her has trained in this
or/aniFation durin/ her 5eriod o understudy rom De2ember 2002 to <anuary
2001. "his beneited the resear2her durin/ the em5iri2al study4 as the
resear2her 3as able to /et 0aluable inormation and o5inion o the res5ondents
acd e!"d
68
identiied or the resear2h.
"he #uestionnaires 3ere read re5eatedly or a22ura2y and s5eedy
2om5rehension. "his enables the resear2h to redu2e the mista6es and to
ensure that the matter o ea2h inter0ie3 and data rom ea2h #uestionnaire 3as
double92he26ed and the 5rT2is 3as obtained.
>.? *ypotheses
"he hy5otheses de0elo5ed at the end o an eItensi0e study o the sub8e2t and
on/oin/ resear2h 3ith the a2ademi2 nature o the authorGs 3or6 3as ormulated
as ollo3s:
!he culture of an organization has an impact on the
employee performance.
&ere the or/aniFational 2ulture is the de5endent 0ariable and em5loyee
5erorman2e is the inde5endent 0ariable. )ettin/ 9the #uestionnaires illed rom
the em5loyees and underta6in/ unstru2tured inter0ie3s at the su5er0isory and
the ront le0el4 hel5ed in testin/ the hy5otheses.
>.C Pilot !esting
Robson *1991+ states that the im5ortan2e o 5ilot tests o0er 5re tests in hel5in/
the resear2her to reine the data 2olle2tion. "hereore4 the 5ilot testin/ 3as
done on ; sam5les4 3hi2h 3ere the students o third year4 institute o hotel
mana/ement. "hird years 3ere 2hosen be2ause they 3ere already a3are o
the to5i2 o or/aniFational 2ulture4 3hi2h they had 2o0ered in strate/i2
hos5itality mana/ement. "he sam5le o the #uestionnaire 3as 5re5ared 0iF.
anneIure 1. "he res5ondents 3ere as6ed to ill u5 the #uestionnaires 2hosen
or the 5ur5ose. From the res5onse and eedba26 o the #uestionnaires4 a
re0ised #uestionnaire 3as ramed 0iF. anneIure 1 a.
acd e!"d
69
"he resear2her realiFed that the #uestions needed to ha0e urther de5th and be
5ersuasi0e. "hey 3ere 0ery mu2h theory based. "hereore the #uestionnaires
s2ri5ts 3ere redone. "he sam5le o the 5o5ulation testin/ 3as not orm the
sam5le 2hosen or inal testin/. "he 5ilot testin/ too6 2 days to be 2arried out
on the 5ilot sam5le mentioned 5re0iously.
AnneIure : B/easoning 7ehind the Nuestions asHedD
"he #uestionnaire 3as di0ided in to three 5arts.
Part num7er Kuestion asHed /eason
1. =arious statements as6ed
to 8ud/e the elements o
the or/aniFational 2ulture.
Intends to ind out the dierent
elements that ma6e u5 the
or/aniFational 2ulture. "he
elements are ta6en u5 rom the
3or6 o authors 3ho are Ed/ar
S2hein and <ohnson - S2hoels.
2. =arious #uestions as6ed
to determine the ty5e o
2ulture.
Intends to ind out the ty5e o
2ulture4 3hi2h is 5re0alent at "a8
7ala2e4 Ne3 Delhi. "he
statements are made on the
basis o the 3or6 o (harles
&andy. E0ery #uestion has our
o5tions to it. "he o5tions a+4 b+4 2+
- d+ denote 5o3er4 role tas6 and
5erson 2ulture.
about the em5loyee
5erorman2e.
It intends to establish the
relationshi5 bet3een em5loyee
5erorman2e and or/aniFational
2ulture. "he third 5art 3as made
ater analyFin/ the results rom
the irst and the se2ond 5art.
acd e!"d
70
AnneIure ; BChanges madeD
Part num7er Statement asHed Changed statement
1. Is a hi/h 5ay /i0en or
/ood 5erorman2e
EItra in2enti0es are /i0en to the
em5loyees or /ood 5erorman2e
2. %re there too many layers
o de2ision ma6in/ 3ithin
the or/aniFation.
"oo many 5eo5le ha0e to be
2onsidered beore ma6in/ a
de2ision.
1. 7ro5er 2are o em5loyees
is ta6en in the ood /i0en4
salary and 3or6
en0ironment.
7ro5er 2are o em5loyees is
ta6en in
a+ (aeteria
b+ Food /i0en
2+ Ao26er
a2ilities
d+ Salary
>.83 Conclusion
"he 5ur5ose o in2ludin/ this 2ha5ter o resear2h methodolo/y is to 5ro0ide the
reader an o0er0ie3 to the 3hole 5ro2edure that has been ollo3ed to 2arry out
this resear2h. In this4 the resear2her has des2ribed 3hat resear2h is all about
and 3hat are the dierent ty5es o resear2h and 3hi2h s5e2ii2 mode has been
sele2ted or this dissertation. >ithout the introdu2tion to the abo0e4 the lin6a/e
bet3een 5rimary is not 5ossible be2ause the reader 3ould not 6no3 the reason
or the 5arti2ular resear2h 2hosen by the author.
acd e!"d
71
Chapter 49 Primary Analysis and Conclusion
4.8 Part 89 Elements of the Organizational Culture
)raph 8. !he routines that are folloEed in the organization
;0
5 5
1D
12
0
;;
6
0
0
5
10
15
20
25
10
15
;0
;5
Is there a res5e2t Bour su5er0isor is
riendly
$embers o your
3or6 /rou5
%/ree
Disa/ree
Neither a/ree nor disa/ree
%nalysis:
!5tions %/ree Disa/ree Nei/hed a/ree nor
Disa/ree
Is there a res5e2t or the
indi0iduals ri/ht in the
or/aniFation@
;0 5 5
Bour su5er0isor is riendly and
easy to a55roa2h.
1D 12 0
$embers o your 3or6 /rou5
trust ea2h other.
;; 0 0
Ineren2e: %t "a8 7ala2e4 Delhi ;0 em5loyees elt that they 3ere res5e2ted at
their 3or6 5la2e. "hey 3ere not treated badly in the or/aniFation. "hey 3ere
also o the 0ie3 that the su5er0isor 3as riendly and did not ha0e real stri2t
rules and 5ro2edures. "he em5loyees 2ould a55roa2h their su5er0isor 3ith
their 5roblems 3hene0er they elt li6e. "he em5loyees 3or6in/ in "a8 7ala2e
acd e!"d
72
had trust amon/ the members o their 3or6 /rou5. .y trust meanin/ that they
2ould rely on their em5loyees or any ty5e o 3or6 or any hel5.
"his is in 2onormation 3ith <ohnson and S2hoels *1999+ 3ho eI5lains that
routines reer to the 3ay the thin/s are done in the or/aniFation. $embers o
the or/aniFation beha0e to3ards ea2h other4 and to3ards those outside the
or/aniFation4 ma6e u5 the 3ay the thin/s are done in the or/aniFation. "he
lubri2ates the 3or6in/ o the or/aniFation4 and may 5ro0ide a distin2ti0e and
benei2ial or/aniFational 2om5eten2y. "he resear2her eels that these routine
3ays o doin/ the 8ob in the or/aniFation 2ould a2t as a 2om5etiti0e tool or the
or/aniFation.
acd e!"d
73
)raph 2 Organizational structures
19
;
,
2
;1
5
11
1,
2
0
5
10
15
20
25
10
15
;0
;5
"oo many 5eo5le &i/h le0el o
em5o3erment
7ro5er line o
authority
%/ree
Disa/ree
Neither a/ree nor disa/ree
%nalysis:
Disa/ree
de2ision.
5 ;1 ;
&i/h le0el o em5o3erment is
/i0en to the em5loyees in
ma6in/ de2isions.
2 ;1 5
"here is a 5ro5er line o
authority ollo3ed to 2onsult
your su5eriors.
;, 2 1
Ineren2e: ;1 res5ondents 3ere o a 0ie3 that em5loyees in the or/aniFation
3ere not em5o3ered to ma6e their o3n de2isions and ;1 res5ondents 3ere o
a 0ie3 that too many 5eo5le had to be 2onsidered beore ma6in/ an de2ision in
the or/aniFation. Durin/ the Resear2herCs 2ourse o understudy4 she ound out
that in the ood and be0era/e de5artment the em5loyees 3ere not allo3ed to
3a0e o the bill o the em5loyees4 i he did a mista6e. &e 3as not em5o3ered
to ma6e de2isions. &e had to ta6e the 5ermission o the restaurant mana/er
beore ma6in/ a de2ision. "he em5loyees 3ere only em5o3ered to ma6e small
de2isions li6e /i0in/ a 2om5lementary tea to the /uest or /i0in/ him a dis2ount
acd e!"d
74
o 5M on his bill. "hey had to rely on their immediate su5er0isor or e0ery
de2ision they had to ta6e. In the 2ase o a55roa2hin/ their to5 mana/ement
le0el4 ;, res5ondents belie0ed that they had no 5roblems. "hey 3ere allo3ed
to /o to the /eneral mana/er and s5ea6 to him 3ith any 5roblem anytime they
elt li6e. %ll the to5 mana/ement sta too6 the em5loyees 5roblems seriously
and 3or6ed on it.
"his is in a/reement 3ith the se2ondary in 3hi2h <ohnson - S2hoels *1999+
state that or/aniFational stru2ture is li6ely to rele2t 5o3er stru2ture and a/ain
delineate im5ortant relationshi5s and em5hasiFe 3hat is im5ortant in an
or/aniFation. "hey rele2t the ty5e o de2ision9ma6in/ stru2tures in the
or/aniFation. "hereore the resear2her 2an 2on2lude that de2ision ma6in/
stru2tures in the or/aniFation 3ere #uiet ri/id be2ause the em5loyees 3ere
allo3ed to ma6e their o3n de2isions but the 5ro2ess o /ettin/ the de2ision 3as
#uite elon/ated and they 3ere allo3ed to a55roa2h their to5 mana/ement sta
3hene0er they elt li6e.
acd e!"d
75
)raph : People orientation
;1
12
11
;2
9
12
22
6
0
6
15
2
3O
83O
23O
:3O
;3O
<3O
>3O
43O
?3O
C3O
833O
'ood gi@en +ocHer facilities Salary Cafetaria
%/ree Disa/ree Neither a/ree nor disa/ree
%nalysis:
Disa/ree
%re you satisied 3ith the ollo3in/:
Food /i0en
;1 9 0
Ao26er a2ulties 12 12 6
Salary 11 22 15
(aeteria ;2 5 1
Ineren2e: In 2ase o the a2ilities that 3ere 5ro0ided to the em5loyees4 ;2
res5ondents 3ere satisied 3ith the lo26er a2ilities and the 2aeteria a2ilities.
;1 res5ondents 3ere satisied 3ith the ood that 3as 5ro0ided to them. Sin2e
the resear2her had 3or6ed in the or/aniFation and be2ause o the inormal
2on0ersations 3ith the em5loyees4 the resear2her 2ould iner that the
em5loyees 3ere ha55y 3ith the a2t that e0eryday 2aeteria 5re5ared /ood
meals or them. "hey 3ere ha55y 3ith the a2t that the menu on any day 3as
not re5eated in the 2aeteria and stale ood 3as not /i0en on any time o the
day. %lso maIimum numbers o em5loyees 3ere ha55y 3ith the 2aeteria
ser0i2es. &a0in/ 2 2aeterias or smo6in/ and non9smo6in/ 5eo5le 3as
acd e!"d
76
a55re2iated by most o the lady res5ondents. Fa2ility o a tele0ision in ea2h o
the 2aeterias 3as also one o the im5ortant 5oints or their le0el o satisa2tion.
12 res5ondents 3ere not satisied 3ith the lo26er a2ilities. %mon/st the
unsatisied most o them 3ere men. "hey 3ere o a 0ie3 that there 3ere not
enou/h seatin/ a2ilities in the lo26er room and no beds or them to slee5.
"here 3as no se5arate area that 3as demar2ated or the smo6in/ and the
nonsmo6in/ area. "he le0el o satisa2tion in relation to the salary 3as 0ery
lo3. >ith an inormal 2on0ersation 3ith the reser0ation mana/er o "a8 7ala2e
it 3as ound out that most *22+ o the res5ondents 3ere dissatisied 3ith the
salary be2ause there has al3ays been a /eneraliFed 0ie3 that lh2l 5ay roll has
al3ays been 0ery lo3 as 2om5ared to the other hotels. "hey belie0ed that most
o the em5loyees let the or/aniFation be2ause o lo3 salary4 3hi2h 3as
5ro0ided4 to them.
"his is in relation to the se2ondary. Ed/ar S2hein *1991+ state that 5eo5le
orientation is a 0ery im5ortant as5e2t o an or/aniFationCs 2ulture. "he
em5loyees in the or/aniFation should be satisied 3ith the a2ilities 5ro0ided to
them4 in order to satisy the moti0ate them. "hus4 the resear2her 2an 2on2lude
that the em5loyees 3ere satisied 3ith the 2aeteria4 ood and the lo26er
a2ilities. .ut an amount o dissatisa2tion 3as seen in res5e2t to the salary
5ro0ided to them.
acd e!"d
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acd e!"d
$rganizational
/ulture
$rganizational structure
#roper line of authority
Too many layers of
de$ision8ma"ing
Rituals
Training is gi4en
importan$e
&mployees are gi4en
in$enti4es in relation to
Routines
Indi4iduals are
respe$ted
uper4isor is friendly
/ontrol systems
9otel stri4es to do 6etter 7o6
than others
9otel emphasi3es on
$ustomer and ser4i$e :uality
Team orientation
&mployees !or" in
teams
pirit of $o8
operation e;ists<
Inno&ation
&mployees are not allo!ed to
e;periment !ith their 7o6s<
*ymols
=ormal systems
=ormal means of
$ommuni$ation e;ists<
People orientation
&mployees satisfied
!ith the $afeteria
and food ser4i$es
,nsatisfied !ith the
lo$"er and salary
stru$ture<
78
4.2 Part 2BaD9 !ype of Culture
)raph ; 6orH is performed out of
1
1;
19
6
0
5
10
15
20
25
10
15
&o5e o
re3ard
Res5e2t or
2ontra2tual
obli/ations
Satisa2tion En8oyment o
the a2ti0ity
%nalysis
!5tions Number
>or6 is 5erormed out o:
&o5e o re3ard
1
Res5e2t or 2ontra2tual
obli/ations
2;
Satisa2tion 19
En8oyment o the a2ti0ity 6
Ineren2e: 26 res5ondents 3ere o a 0ie3 that the 3or6 3as 5erormed due to
the res5e2t or 2ontra2tual obli/ations and or their satisa2tion in eI2ellen2e o
3or6 and a2hie0ement. "he result 3as almost ne/li/ible or em5loyees 3or6in/
in the ear o re3ard or 5unishment. "hey did not 3or6 be2ause they li6ed to
3or6 or a 5arti2ular indi0idual but mainly be2ause they /ot eelin/ o
satisa2tion4 they had res5e2t or the 2ontra2tual obli/ation and loyalty to3ards
the 8ob.
acd e!"d
79
%s stated in the se2ondary resear2h by &arrison *19D2+ in tas6 2ulture the 8ob
is 2arried out due to 2ontra2tual obli/ations and the re#uired 8ob des2ri5tion
3hereas in role 2ulture the 8ob is 2arried out or the 5ersonal satisa2tion o the
em5loyee. "hereore in 2on2lusion it 2an be said that or/aniFation has both
as5e2ts o tas6 and role 2ulture.
acd e!"d
80
)raph < $ecisions are made 7y
11
29
5
1
0
5
10
15
20
25
10
&i/her
authority
Re#uired
5erson 3ith the
8ob des2ri5tion
7erson 3ith
eI5ertise
7ersons most
5eronally
in0ol0ed
%nalysis
!5tions Number
De2isions are made by:
&i/her authority
11
Re#uired 5erson 3ith the 8ob
des2ri5tion
29
7erson 3ith eI5ertise 1
7ersons most 5ersonally
in0ol0ed
6
Ineren2e: 29 res5ondents belie0ed that the re#uired 5erson 3ith the 8ob
des2ri5tion made de2isions in the or/aniFation. "hey held the 0ie3 that there
3ere number o de5artments in the or/aniFation 3hi2h 3ere di0ided on the
basis o their un2tions. Ea2h de5artment made their o3n de2isions relatin/ to
their 5roblem area and relatin/ to their o3n un2tions. "he ood and be0era/e
mana/er made de2isions relatin/ to ood esti0als4 2han/e o menu and
reno0ation o restaurants. Reser0ation mana/er de2ided 3hether he 3anted to
ta6e u5 a /rou5 reser0ation or not. "hereore4 the 5erson 3ith the re#uired 8ob
acd e!"d
81
des2ri5tion made de2isions. 11 res5ondents stated that hi/her authority also
3as an im5ortant 5art in ma6in/ de2isions in the or/aniFation. Some de2isions
re#uired the a55ro0al o the 2or5orate oi2e in $umbai. "hey de2ided 3hether
some de2isions 3ere to be a55ro0ed or re8e2ted.
"his is in a22ordan2e 3ith the se2ondary resear2h in 3hi2h .ro3n *1992+ state
that 5o3er 2ulture is hi/hly de5endent on trust4 em5athy4 and 5ersonal
2ommuni2ation or its ee2ti0eness. It states that in this ty5e o 2ulture the
5erson at the 2enter 3ho has the maIimum 2ontrol ta6es most o the de2isions.
>hereas in role 2ulture the re#uired de5artments to 3hi2h the de2ision is
related4 rules underta6e the de2isions4 5ro2edures and 8ob des2ri5tions
dominate the internal en0ironment o a role 2ulture. "he resear2her iners that
both traits o 5o3er and role 3ere there in the or/aniFation. "hereore4 it 2an be
2on2luded that not all de2isions ta6en in the or/aniFation de5ended on one
5erson but strate/i2ally im5ortant de2isions needed the a55ro0al o the to5
mana/ement.
acd e!"d
82
)raph > One person controls the other acti@ities Ehen
12
11
2
1
0
5
10
15
20
25
10
15
has more
authority
role 5res2ribes
or dire2tin/ the
other
more 6no3eld/e
about the tas6
other a22e5ts
that his hel5 2an
hel5 him learn
%nalysis
!5tions Number
!ne 5erson 2ontrolCs the others
a2ti0ities 3hen
Role 5res2ribes him or
dire2tin/ the other
12
$ore 6no3led/e about the tas6 11
!ther a22e5ts that his hel5 2an
hel5 him
1
Ineren2e: /reatest number o res5ondents 3as o a 0ie3 that one 5erson 2ould
2ontrol the otherCs a2ti0ities 3hen the role 5res2ribed him in doin/ so. "he
restaurant mana/er had the ri/ht to /i0e 3or6 or dele/ate 3or6 to ste3ard. "he
restaurant mana/er 2ould do this be2ause his role allo3ed him to dele/ate
3or6 to a ste3ard. In addition4 the 5erson 3ith the hi/her authority in the
or/aniFation 2ould 2ontrol the em5loyeeCs a2ti0ities. "hey belie0ed that most o
the time the 3or6 3as assi/ned to them by their immediate su5er0isors and
mana/ers.
acd e!"d
83
"his is in a22ordan2e 3ith the se2ondary 3herein bro3n *1992+ states that in a
role ty5e o 2ulture one 5erson 2ontrols the otherCs a2ti0ities 3hen his role
5res2ribes him to do so. !n the 2ontrary in 5o3er 2ulture due to the de2isions
ta6en by a e3 5eo5le at the 2enter the 5eo5le 3ith the hi/her authority 2an
2ontrol otherCs a2ti0ities. From the abo0e /ra5h the resear2her 2an 2on2lude
that ma8ority o the res5ondents 3ere in a0or o the a2t that they 2ould 2ontrol
other em5loyeeCs a2ti0ities 3hen their role 5res2ribed them in doin/ so. .ut
sometimes they 2ontrol the others a2ti0ities due to the hi/her authority
5ossessed by them. "his hi/her authority 2ould be used to 2ontrol some 3ron/
a2ti0ities ta6in/ 5la2e in the or/aniFation.
acd e!"d
84
4.: Part 2B7D9 Communication of the culture
>hat are the means throu/h 3hi2h the 2ulture in the or/aniFation is
2ommuni2ated to the em5loyees@
%nalysis: 12 res5ondents belie0ed that the 2ulture 3as 2ommuni2ated to them
throu/h the mission statement 3hereas 1; res5ondents belie0ed that they 3ere
introdu2ed to the 2ulture o the or/aniFation durin/ the indu2tion and the
trainin/ 5ro/rammes that 3ere underta6en at the hotel. ; res5ondents did not
res5ond to the #uestion.
Ineren2e: 12 res5ondents 3ere o a 0ie3 that the 2ulture in the or/aniFation
3as 2ommuni2ated to them throu/h the mission statement o the or/aniFation.
"hey belie0ed that the mission statement in the or/aniFation eI5lained the
em5loyees about the /oals and ob8e2ti0es4 the 2om5anyGs 2ulture4 its lon/9term
inan2ial /oals and its res5onsibilities to3ards the em5loyees and to3ards the
shareholders.1; res5ondents 3ere o a 0ie3 that the 2ulture 3as also
2ommuni2ated to them durin/ the 0arious indu2tion and trainin/ 5ro/rams
3hi2h are underta6en by the or/aniFation. %ll these methods hel5 in sha5in/
the attitudes4 thou/hts and beha0ior o em5loyees.
"his is in 2on2urren2e 3ith )a/ne *19D6+ 3ho is o an o5inion that
2ommuni2ation is an im5ortant as5e2t o 2ulture. Em5loyees rom dierent
5arts o the business4 and at dierent le0els in the hierar2hy 3ill eel 3illin/ and
able to tal6 o5enly 3ith ea2h other4 sharin/ 5roblems4 ideas and learnin/.
(ulture has to be 2ommuni2ated to all the le0els o the or/aniFation. It is hel5ul
i em5loyees 6no3 ho3 3ell 2om5etitors are 5erormin/4 3here they are
5arti2ularly stron/4 so they 2an 2ommit themsel0es to hi/h le0els o
a2hie0ement in order to out 5erorm their ri0als.
acd e!"d
85
4.: Part 2BcD9 Creation of Culture
>ho a22ordin/ to you are the main 5eo5le that hel5 in sha5in/ the 2ulture o
the or/aniFation@
%nalysis: 15 res5ondents 3ere o a 0ie3 that main 5eo5le in0ol0ed in sha5in/
the or/aniFational 2ulture are the early leaders and ounders o the
or/aniFation. 10 res5ondents 3ere o a 0ie3 that the to5 mana/ement 5eo5le
in the or/aniFation are the 5eo5le 3ho sha5e the or/aniFations 2ulture.
Ineren2e: $a8ority o the res5ondents re5lied that to5 mana/ement 3as
res5onsible or sha5in/ the 2ulture o the or/aniFation. "hey belie0ed that
Em5ire 3as the main 5erson in sha5in/ u5 the 2ulture o the 3hole "ata
Em5ire. In their 0ie34 early leaders and ounders lay do3n the oundation or
the 0alues and the 2ode o 2ondu2t or the or/aniFation. "o5 mana/ement 3as
also 2redited or the ormation o the or/aniFationGs 2ulture. "hey 3ere o a 0ie3
that the to5 mana/ement sele2ts the em5loyees in the or/aniFation 3ho
ultimately sha5e the 2ulture. "hese em5loyees ha0e to be in a22ordan2e 3ith
the 2ulture 5re0alent in the or/aniFation other3ise it leads to lo3 em5loyee
5erorman2e.
"his is in a/reement 3ith %s3atha55a *2000+ 3ho states that all ounders ha0e
the ori/inal ideaH, they also ty5i2ally ha0e biases on ho3 to /et the idea
ulilled. "he or/aniFationGs 2ulture results rom the intera2tion bet3een the
ounderGs biases and assum5tions and 3hat the ori/inal members 3ho the
ounders initially em5loy learn subse#uently rom their.. o3n eI5erien2e. "he
main 5eo5le 3ho are 2redited to the ormation o the 2ulture are the early
leaders and the to5 mana/ement.
acd e!"d
86
4.: Part : Organizational Culture And Employee Performance
)raph 4 Proper training classes affect your performance
,DM
16M
6M
Bes No (anGt say
%nalysis:
!5tions Bes No (anCt say
7ro5er trainin/ 2lasses ae2t your
5erorman2e
19 D 1
Inference ,DM o the res5ondents 3ere o a 0ie3 that trainin/ ae2ted their
5erorman2e in a 5ositi0e manner. "he em5loyees assumed that i 5ro5er
trainin/ 3as /i0en to them they 5erormed mu2h better be2ause trainin/
im5arted 6no3led/e not only relatin/ to their 8ob areas but also to many other
areas li6e ood and be0era/e and ront oi2e. Em5loyees 2onsidered that
trainin/ 5ro0ided them 3ith a sense o se2urity at the 8ob. "hey elt as i the
or/aniFation 3anted them to learn and in2rease their 5rodu2ti0ity.
"his is in a22ord 3ith Rao *1996+ 3ho is o a o5inion that trainin/ and
de0elo5ment is not only a re#uirement but also a ne2essity or any business
today. It is a moti0ational inter0ention leadin/ to healthy atmos5here and
5erorman2e at 3or6. "rainin/ ma6es an em5loyee more useul to a irm and it
hel5s in in2reasin/ his 5erorman2e. "rainin/ 2an 2ontribute to hi/her
5rodu2ti0ity4 e3er mista6es4 /reater 8ob satisa2tion and lo3er labor turno0er.
acd e!"d
87
%lso4 it 2an enable em5loyees to 2o5e 3ith the or/aniFational4 so2ial and
te2hnolo/i2al 2han/e.
)raph ? If (essages are communicated then it affects your performance
22M
50M
2DM
Bes No (anGt say
%nalysis:
I messa/es are 2ommuni2ated to you then
it ae2ts your 5erorman2e
11 25 1;
Ineren2e: 50M o the res5ondents belie0ed that i they 3ere not 2ommuni2ated
3ell about some ma8or issues ha55enin/ in the hotel4 it did not ae2t their
5erorman2e. "hey 3ere o a 0ie3 that all the messa/es 3ere 5ro5erly
2ommuni2ated to them and i at some times it did not ha55en4 it did not ae2t
their to their 5erorman2e. &en2e4 a 2on2lusion 2an be dra3n that i the
messa/es 3ere not 2ommuni2ated to them it did not ae2t their 5erorman2e in
any 3ay.
acd e!"d
88
)raph C Co9operation Eith your co9EorHers affects your performance
0
10
20
30
40
50
3-D Column 1 46 1 3
Yes No Can't say
Ineren2e: %lmost all the res5ondents 3ere o a 0ie3 that 2o9o5eration amon/
the 2o93or6ers inluen2ed their 5erorman2e to a lar/e eItent. "hey belie0ed
that i their 2o93or6ers are su55orti0e and 2o9o5erati0e4 it /i0es the em5loyee a
eelin/ o sel9se2urity. "his in turn hel5s them in in2reasin/ their 5erorman2e
in the or/aniFation. Em5loyees 3ere o a 0ie35oint that the 3or6 en0ironment
in 3hi2h they 3or6 should be 2o9o5erati0e and ree rom 5ersonal tensions and
i/hts.
"his is in 2on/ruen2e 3ith <ones - Ao263ood *1996+ 3ho state that there are
t3o main areas o 2on2ern 3hen dealin/ 3ith em5loyees P the 5erorman2e o
indi0idual members o sta4 and the 2olle2ti0e 5erorman2e o the sta as
members o a team. >or6in/ in teams in an or/aniFation hel5s in im5ro0in/ the
5erorman2e o the em5loyees.
acd e!"d
89
)raph 83 If there is a respect for the indi@iduals right in the organization#
it helps in increasing their performance
1;
;
12
0
5
10
15
20
25
10
15
;0
Bes No (anGt say
%nalysis:
I there is a res5e2t or the indi0idualCs ri/ht
in the or/aniFation
1, ; 12
Ineren2e: 1; o the res5ondents 3ere in the a0or o the statement that i there
is a res5e2t or the indi0idualCs ri/ht in the or/aniFation4 it hel5ed them in
in2reasin/ their 5erorman2e. "hey 2ommented that they 3ould only li6e to
3or6 or a 5la2e 3here there de2isions and their ideas are res5e2ted. "hey
should be res5e2ted and not treated as 8ust mere human bein/s 3ho are 5aid
or 3hat they are doin/.
"his is in a22ordan2e 3ith Rao *1999+ 3ho states that the o55ortunity to use
5ersonal dri0e and res5e2t or the indi0idualCs ri/ht seemed to be an im5ortant
element or /ood 5erorman2e or many em5loyees. Enri2hed roles and
o55ortunity or si/nii2ant 5ersonal de0elo5ment a55ear to be im5ortant
retention a2tors or them.
acd e!"d
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)raph 88 If eItra incenti@es and 7onuses are gi@en to you# does it lead to
increase in your performanceA
15
2
11
0
10
20
10
;0
Bes No (anGt say
%nalysis:
I eItra in2enti0es and bonuses are /i0en
to you4 does it lead to an in2rease in your
5erorman2e@
15 2 11
Ineren2e: 15 res5ondents 3ere o a 0ie3 that 5ay 3as not related to their
5erorman2e. "hey ar/ued that the ih2l 5ay roll that 3as /i0en 3as lo3 as
2om5ared to the other hotels but it did not a2t as a barrier in their 5erorman2e.
"hey belie0ed that eItra in2enti0es and bonuses hel5ed in im5ro0in/ their
5erorman2e but not the 5ay. In addition4 the em5loyees elt that i they 3ere
5ro0ided 3ith in2enti0es e0ery time or their /ood 5erorman2e4 they stri0ed to
do a better 8ob. .y this they meant that i they are 5ro0ided 3ith in2enti0es they
are moti0ated to 3or6 3hi2h leads to a better 5erorman2e.
"his is in relation 3ith the se2ondary in 3hi2h %rmstron/ and $urlis *199;+
state that the 3hole 2on2e5t o 5ro0idin/ an in2enti0e to an em5loyee is to
satisy a need and hen2e4 moti0ate him or her to in2rease their 5erorman2e.
Someone re2o/niFin/ an unsatisied need 2an initiate the 5ro2ess o
moti0ation. 7eo5le 2an be moti0ated by re3ards and in2enti0es that 3ill enable
them to satisy their needs and in2rease their 5erorman2e.
Summary
acd e!"d
91
"he main 5ur5ose o /ettin/ this #uestionnaire illed 3as to 6no3 3hat 3as the
im5a2t o or/aniFation 2ulture on the em5loyee 5erorman2e o "a8 7ala2e4
Delhi. !n 2olle2tin/ the data throu/h the #uestionnaires and 3ith the hel5 o
unstru2tured inter0ie3s4 and urther analyFin/ the res5onses4 the resear2her
has rea2hed a 2on2lusion.
From the abo0e res5onses o the res5ondents4 it 2an be 2om5rehended that
or/aniFational 2ulture has an im5a2t on the em5loyee 5erorman2e. I the 0ie3s
and the beha0ior o the em5loyee does not mat2h 3ith the or/aniFational
2ulture then it may ae2t the 5erorman2e o the em5loyee in a ne/ati0e 3ay.
In addition4 there has to be a stron/ 2ulture in the or/aniFation in order to ha0e
a 5ositi0e im5a2t on the 5erorman2e o the em5loyees.
acd e!"d
92
Chapter ?9 Conclusion and recommendation
?.8 Conclusion
!r/aniFation 2ulture is the emer/ent result o the 2ontinuin/ ne/otiations about
0alues4 meanin/s and 5ro5rieties bet3een the members o that or/aniFation
and 3ith its en0ironment. It is the abri2 o meanin/ in terms o 3hi2h human
bein/s inter5ret their eI5erien2e and /uide their a2tion. %n or/aniFationGs
assum5tions about the 3ay the 3orld 3or6s4 itGs memberGs indi0idual 0alues4
and the de2lared and o5erational 0alues o the or/aniFation as a 3hole and its
5hiloso5hy o o5erations all 2ome to/ether to 5rodu2e the or/aniFationGs
2ulture. "he or/aniFationGs 2ulture is 3hat /i0es meanin/ and 5ur5ose to the
3or6 li0es o its members. "he s2o5e o this 5arti2ular dissertation is to study
the or/aniFational 2ulture and itGs relationshi5 to em5loyee 5erorman2e.
"he resear2her be/an 3ith the sele2tion o the to5i2 ollo3ed by settin/ u5 its
aims and ob8e2ti0es. !n2e this 3as done4 the resear2her 3ent about 2olle2tin/
0arious literatures on the sub8e2t4 5ublished by 0arious authors. "his lead to
ormin/ a 5latorm or the resear2h to ollo3. From the literature re0ie34 a
theoreti2al rame3or6 3as dra3n4 in 3hi2h the author has 2ustomiFed the 3or6
o 0arious authors and 5ro0ided a lin6 bet3een the t3o 0ariablesH em5loyee
5erorman2e and or/aniFational 2ulture. "hereater4 the hy5othesis 3as deri0ed
and a 2ase study a55roa2h 3as 2hosen to test the hy5otheses. "his 2ase study
3as 2ondu2ted in "a8 7ala2e4 Delhi4 India. "he data 2olle2ted durin/ the
resear2h 2ondu2ted in the hotel 3as analyFed 3hi2h led to the ormulation o
the 2on2lusions and re2ommendations.
"he literature re0ie3 2om5rised o 2om5ilation o the 3or6 o 0arious authors on
the to5i2 o or/aniFational 2ulture4 em5loyee 5erorman2e and the t3o
0ariables. "his 2om5rised o 3hat 2ulture is4 the nature and elements o 2ulture4
ho3 2ulture is analyFed and 2ommuni2ated. "he literature re0ie3 also
2om5rised o 3hat is em5loyee 5erorman2e4 0arious 3ays o analyFin/
em5loyee 5erorman2e and the relationshi5 bet3een or/aniFational 2ulture and
em5loyee 5erorman2e. !r/aniFational 2ulture 2om5rises o the belies4 rituals4
acd e!"d
93
norms4 assum5tions et2.
E0ery or/aniFation has its o3n 2ulture. It need not be 2reated but it may in0ol0e
on its o3n throu/h human intera2tion. Em5loyee 5erorman2e is to do 3ith the
a55li2ation o ee2ti0e eort. Em5loyees must be 5uttin/ the ri/ht amount o
eort in to their 3or6. "his4 eort 3ill be inee2ti0e ho3e0er4 i the em5loyees
does not ha0e the s6ills and the abilities to 2arry out the tas6 to the standard
re#uired.
"he literature re0ie3 also tal6s about the im5a2t o 2ulture on em5loyee
5erorman2e. In this it 3as 2om5rehended that or/aniFational 2ulture ser0es as
a 2ontrol me2hanism in dire2tin/ the beha0ior o the em5loyees. (losely lin6ed
to ee2ti0e 2ontrol is the use o the norms to /uide beha0iors. "here is a stron/
relationshi5 bet3een 2ulture and satisa2tion4 but indi0idual needs and the
2ulture moderates this. Satisa2tion is the hi/hest 3hen there is 2on/ruen2e
bet3een the indi0idual needs and the 2ulture. <ob satisa2tion 0aries a22ordin/
to the em5loyeeGs 5er2e5tion o or/aniFationGs 2ulture. (ulture is an im5ortant
as5e2t o or/aniFations4 es5e2ially or the 5ersons 3or6in/ in them. %n
em5loyee is unli6ely to be unha55y i heKshe is undamentally at odds 3ith the
or/aniFational 2ulture.
"o 2arry out the a55lied resear2h4 the tool used in data 2olle2tion 3as
#uestionnaires. .eore 2ondu2tin/ the #uestionnaire4 the resear2her had
already done an understudy in "a8 7ala2e4 Delhi4 India. Durin/ the resear2hers
understudy she had inormal dis2ussions 3ith the em5loyees o the
or/aniFation. !n the bases o these inormal dis2ussions and the 3or6 o
0arious authors4 #uestionnaire 3as ramed. Suestionnaires 3ere illed by both
the ront and ba26 o the house em5loyees. "he #uestionnaire 3as di0ided in to
three 5arts. "he irst 5art aimed at indin/ the elements o 2ulture at the hotel4
the se2ond 5art aimed at indin/ the ty5e o 2ulture in the or/aniFation and the
third 5art aimed at indin/ 3hether or/aniFational 2ulture had a2 ae2t on the
5erorman2e o the em5loyee. .eore establishin/ a relationshi5 bet3een
2ulture and 5erorman2e it 3as im5ortant to 6no3 3hat elements and ty5e o
acd e!"d
94
2ulture 3as 5resent in the or/aniFation. "he indi0iduals in the or/aniFation are
res5e2ted. "he su5er0isor is al3ays ready to hear their 0ie35oints and their
o5inions. "heir su5er0isor is riendly in nature. &e a22e5ts 2riti2ism and at the
same time res5e2ts their de2isions. "he em5loyees 2an a55roa2h them any
time they eel li6e. %t "a8 5ala2e trainin/ is /i0en a lot o im5ortan2e. "hey
under/o 5ro5er trainin/ 2lasses so as to im5ro0e their 6no3led/e about the
5rodu2t they are sellin/.
"here are 5ro5er systems4 3hi2h are set in the or/aniFation or a55raisin/ the
em5loyees. "here are no biases in e0aluatin/ the em5loyees. "he inormation
in the hotel is 2ommuni2ated throu/h im5ortant means li6e interde5artmental
memos and mails and not throu/h the /ra5e0ine. "here are too may 5eo5le an
em5loyee has to 2onsider beore ma6in/ an im5ortant de2ision .he 2annot ta6e
de2isions on his o3n. "he le0el o em5o3erment4 3hi2h is /i0en to the
em5loyees4 is not too hi/h. "hey ha0e to reer to their immediate su5er0isor
beore ta6in/ a de2ision. !n the 2ontrary they ha0e the reedom to meet the to5
most mana/ement and /i0en their su//estions or 2om5laints. "he em5loyees
in the or/aniFation are 0ery 2oo5erati0e to3ards ea2h other and are al3ays
6een on hel5in/ their em5loyees.
"here is a role ty5e o 2ulture4 3hi2h is ollo3ed in the hotel. "he or/aniFation
ollo3s a role ty5e o 2ulture be2ause the stren/th o the hotel lies in its
un2tions or s5e2ialties4 3hi2h 2an be thou/ht o as a series o 5illars4 3hi2h are
2oordinated and 2ontrolled4 by a small /rou5 o senior eIe2uti0es.
De5artmental un2tions are delineated and em5o3ered 3ith their role e./. the
inan2e de5t.4 the desi/n de5t et2. >or6 3ithin and bet3een de5artments
*5illars+ is 2ontrolled by 5ro2edures4 role des2ri5tions and authority deinitions.
"here are 3ell9deined 2ommuni2ation stru2tures and 5rodu2ts. %lso 2ertain
traits o 5o3er 2ulture are also 5resent in the or/aniFation.
.ased on the irst 5art and the se2ond 5art the resear2her had ramed the third
5art4 3hi2h aimed at indin/ 3hether the 5aradi/m o the 2ulture ae2ted the
5erorman2e o the em5loyees. From the abo0e analysis the resear2her 2an
acd e!"d
95
2on2lude that or/aniFational 2ulture ae2ts the 5erorman2e o the em5loyees.
=arious a2tors that 2om5rise the or/aniFational 2ulture ae2t the 5erorman2e
o the em5loyeesH Em5loyees 3ere o the 0ie3 that trainin/4 moti0ation by the
su5er0isor4 not lettin/ the em5loyees ma6e de2isions on their o3n4 in2enti0es4
and there res5e2t in the or/aniFation ae2ted their 5erorman2e.
"his lead to a 2on2lusion that i the 2ulture is not in 2on/ruen2e 3ith there
needs it mi/ht ae2t their 5erorman2e in a ne/ati0e 3ay. I the 2ulture is in
2on/ruen2e 3ith the needs o the em5loyees4 the or/aniFation is said to ha0e a
stron/ 2ulture. % stron/ 2ulture 3ill ha0e a /reat inluen2e on the beha0ior o its
members be2ause the hi/h de/ree o shared ness and intensity 2reates an
internal 2limate o hi/h beha0ioral 2ontrol one s5e2ii2 result o a stron/ 2ulture
is lo3er em5loyee turno0er. % stron/ 2ulture demonstrates hi/h a/reement
amon/ members about 3hat the or/aniFation stands or.
?.2 Scope for further research
"he resear2her o this dissertation has s5o6en about the relationshi5 o
or/aniFational 2ulture 3ith em5loyee 5erorman2e 3herein he has dealt 3ith
both ne/ati0e as 3ell as 5ositi0e relationshi5 bet3een the t3o. "hereore4 it
lea0es behind a 3ide o5tion or other resear2her to 3or6 on either one o them
i.e. 5ositi0e or ne/ati0e relationshi5s. Further resear2h on or/aniFational
2ulture 2an be 2arried in the ollo3in/ areas:
!r/aniFational 2ulture and itGs relationshi5 to re05ar
% study o stron/ or 3ea6 2ultures and its im5a2t on em5loyee
5erorman2e.
Further a study 2an be 2arried out in res5e2t to the 2ulture and the aims o a
5arti2ular or/aniFation.
acd e!"d
96
.i7liography
.ooHs
%S>%"&%77%4 :. *2000+ or/aniFational .eha0iour4 $umbai4 &imalaya
7ublishin/ &ouse.
.%RRB4 ". <. *1996+ EI2ellen2e is a habit4 Ne3 Delhi4 .en <ohnston
7ublishin/ (om5any4 7/. 1,9194 1D4 2;.
.IN"AIFF4 R.A *1992+ "he (om5lete $anual o (or5orate and Industrial
Se2urity4 Ne3 <ersey4 7renti2e &all4 7/. 199;1.
(R%I)4 R.4 &I(:$%N4 R. %ND SIA=%4 $. *19,9+4 (reatin/ EI2ellen2e4
'.S.%.4 7lume 7ublishin/ (om5any.
D%=ID4 F.R. *199,+ Strate/i2 $ana/ement4 SiIth Edition4 Ne3 <ersey4
7renti2e &all4 7/. 211921;.
)%)NE4 ". *1995+ Desi/nin/ Ee2ti0e !r/aniFations4 Aondon4 Sa/e
7ubli2ations4 7/. 12591264 914 16991D1.
&%R=EB4 <. *19DD+ Strate/i2 $ana/ement and .usiness 7oli2y4 Aondon4
$errill 7ublishin/ (om5any4 7/. D54 1104 12D.
I=%N(E=I(&4 <.$. %ND $%""ES!N4 $.". *1990+ !r/aniFational
beha0ior and $ana/ement4 Se2ond Edition4 .oston4 .7I Ir3in4 7/.
114 124 15.
<!&NS!N4 ). and S(&!AES4 :. *199,+4 EI5lorin/ (or5orate Strate/y4
Fourth Edition4 Aondon4 7renti2e &all4 7/.
acd e!"d
97
<!NES4 7. and A!(:>!!D4 %. *19D9+ "he $ana/ement o &otel
!5erations4 Aondon4 7renti2e &all4 7/. ;14 12291;,4 ;D961.
:%N'N)!4 R. and $END!N(%4 $. *199;+ >or6 $oti0ation4 Ne3 Delhi4
Sa/e 7ubli2ations India 70t. Atd.4 7/. 2D5.
:!""ER4 <. and &ES:E""4 <. *1992+ Rethin6in/ "he Future4 Ne3 Bor64
Free 7ress4 7/. 16,91,0.
$%.EB4 (. and S!A!$%N. %. *199D+ Strate/i2 &uman Resour2e
$ana/ement4 Ne3 Delhi4 .ea2on .oo6s4 7/. 2,1929;.
NE>S"R!$4 <.>. and D%=IS4 :. *1991+ !r/aniFational .eha0ior4 Ne3
Bor6. $2. )ra39&ill.
7E"ERS and >%"ER$%N *19D2+ In Sear2h o EI2ellen2e4 '.S.%.4
>arner 7ublishers4 7/. 219.
7E""I)RE>4 %.$. *19D9+ !n Studyin/ (ultures9%dministrati0e S2ien2e
Suarterly4 7/. 5,995D1.
R%!4 =.S.7. *2001+ &uman Resour2e $ana/ement4 Ne3 Delhi4 EI2el
.oo6s.
R!..INS S.7. *1996+ !r/aniFational .ea0ior4 Se0enth Edition4 Ne3
<ersey4 7renti2e &all4 7/.
S(&EIN4 E. *19D5+ !r/aniFational (ulture and Aeadershi54 San
Fran2is2o4 <ossey .ass 7ublishin/ Atd.4 7/. 9.
acd e!"d
98
SE:%R%N4 '. *1992+ Resear2h $ethods or .usiness: % S6ill .uildin/
%55roa2h4 (anada4 <ohn >iley and Sons In2.
S7ENAEB4 7. *1992+ >orld (lass 7erorman2e "hrou/h "otal Suality
$ana/ement4 Aondon4 (ha5man &all4 7/. D54 1004 12D.
"%BA!R4 A. 91992+ Suality: "otal (ustomer Ser0i2e4 Aondon4 and
(entury .usiness.
"!SI4 &.A.4 RI??!4 <.R. and (%R!A4 S.<. *199D+ !r/aniFational
beha0ior: % (om5rehensi0e $anual4 .ea2on .oo6s.
.i7liography of 6e7sites
ht55:KK333.ronanderson.2omKauK0ie3sK3hy.htm 12K10K024 1,10 &rs.
htt5:KK333.or/aniFational92ulture.2om 11K11K024 1D00 &rs.
acd e!"d
99

AnneIure 89Sample Kuestionnaire
Kuestionnaire
"he 5ur5ose o this study is to eI5lore 2ultural 0alues o a hotel or/aniFation
and em5loyees 3or6in/ in the hotel industry. 7lease read all #uestions 2areully
and res5ond rom your o3n 0ie35oint and eI5erien2e. Demo/ra5hi2 #uestions
used are only or statisti2al 5ur5ose. "his resear2h is 5urely an edu2ational
based a55roa2h. %ll the ans3ers 3ill be 6e5t stri2tly 2onidential
$ale Female
&o3 lon/ ha0e you 3or6ed or this or/aniFation 999999999999999999999999999999999999999
1. "his 5art o the #uestionnaire as6s you to e0aluate your 2urrent or/aniFation.
Some attributes 3ill des2ribe your or/aniFation and some 3ill not. 7lease 2ir2le
the number that des2ribes ho3 2hara2teristi2 that item is o your or/aniFation.
1 %/ree 2 Neither
a/ree nor
disa/ree
; Disa/ree
Is there a res5e2t or the indi0iduals ri/ht in the or/aniFation 1 2 1
Bour su5er0isor is riendly and easy to a55roa2h 1 2 1
$embers o your 3or6 /rou5 trust ea2h other 1 2 1
"rainin/ is /i0en a lot o im5ortan2e in the or/aniFation 1 2 1
.ein/ li6ed is im5ortant in /ettin/ a hotel 5romotion 1 2 1
%re in2enti0es /i0en or /ood 5erorman2e 1 2 1
In this hotel the only sour2e o inormation on im5ortant matters is
throu/h the /ra5e0ine 1 2 1

(ommuni2ation ta6es 5la2e throu/h 5ro5er ormal means li6e
3ritten do2uments and interde5artmental memos 1 2 1
"he hotel stri0es to do a better 8ob than other hotels 1 2 1
"here is a lot o em5hasis on 2ustomer and ser0i2e #uality 1 2 1
"here are too many layers o de2ision ma6in/ 3ithin the
!r/aniFation 1 2 1
For sol0in/ your 5roblems and /i0in/ su//estions you ha0e to
ollo3 a 5ro5er line o authority 1 2 1
"he or/aniFation lets the em5loyee eI5eriment 3ith their tas6s 1 2 1
Ris6 ta6in/ is an im5ortant 5art o the or/aniFation 1 2 1
Bou 3or6 in 2ollaboration 3ith others 1 2 1
"here is a s5irit o 2o9o5eration 3ith 2o93or6ers 1 2 1
7ro5er 2are o em5loyees is ta6en in the ood /i0en4 salary and
3or6 en0ironment 1 2 1

2*a+. From the ollo3in/4 our #uestions in 2*a+ ti26 any one o the o5tions
1. >or6 is 5erormed out o:
&o5e o re3ard
Res5e2t or 2ontra2tual obli/ations
Satisa2tion
En8oyment o the a2ti0ity
2. .asis o tas6 assi/nment is:
7ersonal needs
Formal di0isions o un2tions
Resour2e and eI5ertise
7ersonal 3ishes and need or learnin/
1. De2isions are made by:
&i/her authority
Re#uired 5erson 3ith the 8ob des2ri5tion
7erson 3ith eI5ertise
7ersons most 5ersonally in0ol0ed
;. !ne 5ersonCs 2ontrols the others a2ti0ities 3hen:
&as more authority
Role 5res2ribes or dire2tin/ other
$ore 6no3led/e about the tas6
!ther a22e5ts that his hel5 2an ma6e him learn

2*b+. >hat are the means throu/h 3hi2h the 2ulture in the or/aniFation is
2ommuni2ated to the em5loyees@
2*2+. >ho a22ordin/ to you are the main 5eo5le that hel5 in sha5in/ the 2ulture
o the or/aniFation@
1. %ns3er 3hether the ollo3in/ statements ae2t your 5erorman2e in the
or/aniFation
1. Bes 2. No. 1. (anCt Say
Bour su5er0isor is riendly and moti0ated you to 3or6 harder 1 2 1
"rainin/ is 0ery im5ortant and ae2ts your 5erorman2e 1 2 1
%ll messa/es are 2ommuni2ated to you 1 2 1
I a hi/h 5ay is /i0en or /ood 5erorman2e 1 2 1
"oo many layers in the de2ision ma6in/ 5ro2ess ham5ers your 1 2 1
7erorman2e
Em5loyees are /i0en a ri/ht to eI5eriment 3ith their 8obs 1 2 1
(o9o5eration 3ith your 2o93or6ers 1 2 1
"here is a res5e2t or indi0idualCs ri/ht in the or/aniFation 1 2 1

AnneIure 2 B&nstructured inter@ieE scriptD
'nstru2tured inter0ie3 #uestions
1+ Does your bein/ res5e2ted in the or/aniFation ae2t your 5erorman2e@
2+ I the su5erior is not riendly then do you eel inse2ure at your 3or6
5la2e@
1+ Do mana/ers assi/n you more 3or6 in teams or at indi0idual basis@
;+ >hat a22ordin/ to you are the beneits o 3or6in/ as a team@
5+ &o3 many hours o trainin/ are underta6en@
6+ %re 5ro5er tests ta6en ater the trainin/ session@
,+ Do trainin/ sessions tea2h you about the 2ulture@
D+ >hat ty5es o in2enti0es and beneits /i0en to you@
9+ Do you dis2uss inormal matters and /ossi5 durin/ your brea6s@
10+ Do you /et to 6no3 about im5ortant matters durtin/ brea6@
11+ (an you /o strai/ht to your ).$. re/ardin/ any 5roblem@ Does he 3ant
to attend you as son as you a55roa2h him@
12+ I you ha0e to 2onsult lot o 5eo5le do you loose interest in a 5arti2ular
thin/@
11+ Site some eIam5les o em5o3erment /i0en to you
1;+ I you are not allo3ed to eI5eriment 3ith your 8ob does it ae2t your
5erorman2e@

AnneIure : B/easoning 7ehind the Nuestions asHedD
"he #uestionnaire 3as di0ided in to three 5arts.
Part num7er Kuestion asHed /eason
to 8ud/e the elements o
the or/aniFational 2ulture.
Intends to ind out the dierent
elements that ma6e u5 the
or/aniFational 2ulture. "he
elements are ta6en u5 rom the
3or6 o authors 3ho are Ed/ar
S2hein and <ohnson - S2hoels.
2. =arious #uestions as6ed
to determine the ty5e o
2ulture.
Intends to ind out the ty5e o
2ulture4 3hi2h is 5re0alent at "a8
7ala2e4 Ne3 Delhi. "he
statements are made on the
basis o the 3or6 o (harles
&andy. E0ery #uestion has our
o5tions to it. "he o5tions a+4 b+4 2+
- d+ denote 5o3er4 role tas6 and
5erson 2ulture.
about the em5loyee
5erorman2e.
It intends to establish the
relationshi5 bet3een em5loyee
5erorman2e and or/aniFational
2ulture. "he third 5art 3as made
ater analyFin/ the results rom
the irst and the se2ond 5art.

AnneIure ; Bchanges madeD
Part num7er Statement asHed Changed statement
1. Is a hi/h 5ay /i0en or
/ood 5erorman2e
EItra in2enti0es are /i0en to the
em5loyees or /ood 5erorman2e
2. %re there too many layers
o de2ision ma6in/ 3ithin
the or/aniFation.
de2ision.
1. 7ro5er 2are o em5loyees
is ta6en in the ood /i0en4
salary and 3or6
en0ironment.
7ro5er 2are o em5loyees is
ta6en in
a+ (aeteria
b+ Food /i0en
2+ Ao26er
a2ilities
d+ Salary
AnneIure < BProfile of !a" Palace# $elhiD
"he "a8 7ala2e &otel is lo2ated on siI a2res o lands2a5ed /ardens. It boasts
an atta2hed (on0ention (enter oerin/ more than 124000 s#uare eet o
2on0ention area. It has in all ;21 /uest rooms and luIury suites. % se2ond loo6
at the hotel re0eals that ea2h DeluIe .usiness Floor room is a modern
business 2enter. So too are the eI2lusi0e (lub Floor Rooms. >ith 6
Restaurants - .ars and bars4 "a8 7ala2e oers the inest 2uisines not only in
Ne3 Delhi but also in India. the hotel 1 meetin/ rooms or 2oneren2e 5ur5oses
and D ban#uet halls.
"he hotel is hi/hly 2ommitted to3ards 2ustomer ser0i2es as it a2es a lot o
2om5etition rom numerous other business 5ro5erties lo2ated in the 2ity. "he
hotel has its o3n mission and 0ision statement.

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