Profiling the OCTAPACE Culture: An Empirical Study of Banking and IT Sectors in India

Feza Tabassum Azmi* and Richa Sharma**

Organizational culture is hypothesized to play a decisive role in the development of a unique corporate identity. This unique identity provides organizations with the opportunity to attain strategic leadership. Keeping in view the vital role that culture plays in the success of any organization, the present study was undertaken with the objective of comparing the organizational culture of companies in the IT and Banking sectors in India. The study is based on the concept of OCTAPACE culturean acronym for Openness, Confrontation, Trust, Authenticity, Proaction, Autonomy, Collaboration, and Experimentation. The results suggest that although culturally the two sectors do not significantly differ, significant differences may exist within firms in the IT sector, though firms within the Banking sector do not significantly differ.

Introduction
From the last quarter of the previous century, a host of indomitable factors have been constantly threatening the survival of business organizations. Rising customer expectations, escalating environmental pressures and daunting competitive onslaughts are some of the challenges that business organizations are facing today. In such intimidating contexts, organizational culture assumes immense significance as a central theme for attaining competitive advantage. Organizational culture is hypothesized to play a decisive role in the development of a unique corporate identity which in turn provides organizations with the opportunity to leverage their corporate identity to achieve strategic leadership. Cultural influences have a strong bearing on the character and persona of an organization. Peters and Waterman (1982) have opined that excellent companies focus on building an enabling corporate culture. Organizational culture is defined as shared managerial beliefs and assumptions about employee nature and behavior. Deal and Kennedy (1982) define organizational culture as the way things get done around here. Schein (1990) describes it as a set of shared assumptions, values, beliefs and norms about expected behavior. Schwartz and Davis (1981) view culture as a pattern of beliefs and expectations shared by organization members. Ouchi (1981) puts it as a set of symbols, ceremonies, and myths that communicate the underlying values and beliefs of an organization.
* Lecturer, Department of Business Administration, Aligarh Muslim University, Aligarh, India. E-mail: fezaazmi@rediffmail.com ** Student, Management Studies and Research, Aligarh Muslim University, Aligarh, India. E-mail: richasharma8@gmail.com
2007 The Icfai University Press. All Rights Reserved. Profiling the OCTAPACE Culture: An Empirical Study of Banking and IT Sectors in India

Robbins (1988) indicates that it takes a long time for culture to form and once established it becomes entrenched. Therefore, the culture of an organization should be treated as an important influence on employees behavior. Culture conveys important assumptions and norms governing activities and goals. It tells employees how things are to be done and what is important. By providing a complex social system of laws, values, and customs it conveys a message regarding the desirable and non-desirable behaviors in an organization.

OCTAPACE Culture
The various terms used in the context of organizational culture are: values, beliefs, ethos, climate, environment, and atmosphere. According to Pareek (2002), the culture-related concepts can also be seen as multilevel concepts. The core (first level) is values, which give a distinct identity to a group. This is the basic ethos of the group. The Random House Dictionary defines ethos as the fundamental character or spirit of a culture. The second level concept is climate, which can be defined as the perceived attributes of an organization and its subsystem as reflected in the way it deals with its members, groups, and issues. The third level concept relates to atmosphere. It is defined as a distinct quality or environment that affects the existence or development of someone or something. The concept of atmosphere can be proposed as one related to the effect of climate. Exhibit 1: OCTAPACE Culture
Confrontation Facing problems and challenges boldly and not carpeting them Trust Building a sense of assurance and confidence in each other

Openness Freedom to communicate, share and interact without hesitation

Authenticity Congruence between what one feels, says, and does

Eight Steps to Creating Functional Ethos

Experimentation Taking a fresh look at things and fostering creativity

Collaboration Giving help to and accepting help from others as in a team

Autonomy Using and giving freedom to plan and act in ones own sphere

Proaction Taking initiative, preplanning and taking preventive action

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Pareek (2002) defines the concept of ethos as the underlying spirit of character or group and is the root of culture. He defines organizational ethos as eight dimensions relevant to institution-building. These eight cultural dimensions are also called as OCTAPACE. In addition to being an acronym for the eight dimensions, OCTAPACE symbolizes octa or eight and pace or steps to create functional ethos. The eight OCTAPACE dimensions are illustrated in Exhibit 1. The eight dimensions of OCTAPACE culture, viz., Openness, Confrontation, Trust, Authenticity, Proaction, Autonomy, Collaboration, and Experimentation are emerging as the pillars of a strong and successful organization. Building a culture that is ingrained in the OCTAPACE values will help in creating an organization that is nimble, responsive, and alive to changes.

Literature Review
Empirical evidences of studies using the concept of OCTAPACE are few and far between. A study was conducted by Srivastav (1995) in a government-owned company in India before and after implementation of ISO 9000 to determine the effect of its implementation on teamwork. Since many facets of TQM and ISO 9000 are building blocks of teamwork, its implementation was supposed to promote better teamwork. The OCTAPACE instrument was given to the executives before and after ISO 9000 implementation. Comparing the scores demonstrated growth in teamwork related areas such as collaborative problem-solving and extension. Erakovich et al. (2002) tried to explore the relationship between ethical work climate and organizational culture in public organizations. The question examined by them was to identify the critical organizational cultural factors in public organizations that account for differences in ethical climates. They developed a typology of ethical climates in organizations. The survey items for this study were taken from the OCTAPACE profile. The organizational culture survey contained ten items that were edited to fit the organizations to be surveyed. Srivastava S K and Srivastava P (2004) described the initiative of a successful Total Productive Maintenance (TPM) implementation in a continuous process firm in India and its effects on the firms performance. An expected natural outcome of the initiative was the emergence of the OCTAPACE culture and raising the companys bottom-line. Niranjana and Pattanayak (2005) tried to explore the dynamics of organizational citizenship behavior, learned optimism, and organizational ethos represented by OCTAPACE in service and manufacturing organizations in India. The manufacturing sector was found to have a better organizational culture whereas service sector had high organizational citizenship behavior and learned optimism.

Objectives
The objectives of the study are to: Map the dimensions of organizational culture in the Banking sector in India;

Profiling the OCTAPACE Culture: An Empirical Study of Banking and IT Sectors in India

Map the dimensions of organizational culture in the IT sector in India; and Make a comparison between organizations in the Banking and IT sectors vis--vis their organizational culture.

In service industry, customers total experience with the organization is instrumental in customer satisfaction. This necessitates establishing a culture that facilitates effective service delivery. For organizations in the service industry, such as IT and banking sectors, it is crucial to investigate the nature of organizational culture since it has a direct bearing on their performance. Thus, it was felt that an examination of the organizational cultures prevailing in the two sectors is necessary to grasp the subtleties of their respective corporate lifestyles. Moreover, no study in the two sectors has been conducted so far using the OCTAPACE profile as is evident from the extant literature.

Research Methodology
The study is descriptive and conclusive in nature. It is based on single crosssectional design. Primary data for the study was collected from the employees of top-ranking organizations in the IT and Banking sectors in India 1 . Top five organizations from each sector were identified from these rankings andan attempt was made to obtain consent from these organizations for the present study. Eight organizations agreed to participatefive IT and three Banking2. Respondents were employees from executive and managerial cadres of the organizations considered forthe study. Stratified sampling was adopted and researchers took pains to ensure that the samples were suitably random and as representative as possible by selecting the respondents from different departments and divisions within each strata. The number of usable questionnaires was eventually 165.

The Instrument
For the purpose of collecting data on the OCTAPACE profile, a two-part questionnaire developed by Pareek (2002) was used. Part 1 contains 24 items representing three statements for each of the eight values of OCTAPACE and the respondent was required to check, on a four-point scale, how much each item is valued in his organization. Part 2 contains 16 items, two each for the eight OCTAPACE values and the respondent checks, on a four-point scale, how widely each of them is shared in the organization. For each of the eight OCTAPACE values there were five statements. For both parts of the questionnaire, scores from 1-4 were allotted to the four-point scale. In order to avoid biases in responses, certain statements were negatively worded and their scores were reversed so that all items became unidirectional.

Data Analysis
Gordon (1991) has argued that companies can share cultural values and practices, and that this commonality is not random, but arises from similar industry demands.
1

For reasons of organizational secrecy and undertaking on the part of researchers, the actual names of organizations have been withheld and are denoted as IT1, IT2, IT3, IT4, and IT5 (IT Sector) and BK1, BK2, and BK3 (Banking Sector) in the text. As per the rankings of top 500 companies published in the Business World for 2006.

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Organizational cultures evolve from the adaptation of companies to the requirements of their environments. Since companies in an industry share a set of common influences, there should be similarities in their cultures. Organizations within an industry share similar cultural values. Keeping the above in view, the following null and alternate hypotheses were considered for the study: H01 : There is no significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension openness. Ha1 : There is significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension openness. H02 : There is no significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension confrontation. Ha2 : There is significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension confrontation. H03 : There is no significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension trust. Ha3 : There is significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension trust. H04 : There is no significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension authenticity. Ha4 : There is significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension authenticity. H05 : There is no significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension proaction. Ha5 : There is significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension proaction. H06 : There is no significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension autonomy. Ha6 : There is significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension autonomy. H07 : There is no significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension collaboration. Ha7 : There is significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension collaboration. H08 : There is no significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension experimentation. Ha8 : There is significant difference in the mean scores of the employees from the Banking and IT sectors on the dimension experimentation. The analysis was conducted using Statistical Package for the Social Sciences (SPSS). The results were evaluated on each dimension of OCTAPACE to test the hypotheses of the study. An independent sample t-test was used to examine differences between respondents from the IT and the banking sector.

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Subsequently, one-way ANOVA was deployed to test for differences within the sectors. Multiple comparisons were done using Scheff test. A confidence level of 0.05 was assumed for the study. The results generated from the t-test are presented in Exhibits 2 and 3. Exhibit 2: t-test Group Statistics
Group Statistics Sector Openness Confrontation Trust Authenticity Proaction Autonomy Collaboration Experimentation Banks IT Banks IT Banks IT Banks IT Banks IT Banks IT Banks IT Banks IT N 33 132 33 132 33 132 33 132 33 132 33 132 33 132 33 132 Mean 2.8606 2.9333 2.9636 2.8409 2.8303 2.8045 2.5697 2.4894 3.0364 3.1409 2.5758 2.4455 2.9030 2.8152 2.6182 2.7727 Std. Deviation 0.53732 0.42850 0.40760 0.40056 0.35398 0.45194 0.40657 0.36513 0.43144 0.48661 0.32695 0.34737 0.46936 0.39510 0.42533 0.42572 Std. Error Mean 0.9354 0.03730 0.07095 0.03486 0.06162 0.03934 0.07078 0.03178 0.07510 0.04235 0.05691 0.3023 0.08171 0.03439 0.07404 0.03705

Exhibit 3: Independent Sample t-test

Independent Samples t Openness Confrontation Trust Authenticity Proaction Autonomy Collaboration Experimentation Equal variances assumed Equal variances assumed Equal variances assumed Equal vaiances assumed Equal variances assumed Equal variances assumed Equal variances assumed Equal variances assumed Test t-test for Equality of Means df Sig. (2-tailed) 163 163 163 163 163 163 163 163 0.410 0.119 0.761 0.271 0.261 0.053 0.273 0.064

0.827 1.569 0.305 1.104 1.128 1.949 1.099 1.866

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Results of Independent Sample t-test (Sector-wise Comparisons)

Openness: No significant differences were observed on the dimension openness (t[163]= 0.827, p>.05) between banking sector (Mean=2.86, SD=0.53) and IT sector (Mean=2.93, SD=0.42). Thus, the null hypothesis H01 was not rejected. Confrontation: No significant differences were observed on the dimension confrontation (t[163]= 1.569, p>.05) between banking sector (Mean=2.96, SD=0.40) and IT sector (Mean=2.84, SD=0.40). Thus, the null hypothesis H02 was not rejected. Trust: No significant differences were observed on the dimension trust (t[163]= 0.305, p>.05) between banking sector (Mean=2.83, SD=0.35) and IT sector (Mean=2.80, SD=0.45). Thus, the null hypothesis H03 was not rejected. Authenticity: No significant differences were observed on the dimension authenticity (t[163]= 1.104, p>.05) between banking sector (Mean=2.56, SD=0.40) and IT sector (Mean=2.48, SD=0.36). Thus, the null hypothesis H04 was not rejected. Proaction: No significant differences were observed on the dimension proaction (t[163]= 1.128, p>.05) between banking sector (Mean=3.03, SD=0.43) and IT sector (Mean=3.14, SD=0.48). Thus, the null hypothesis H05 was not rejected. Autonomy: No significant differences were observed on the dimension autonomy (t[163]= 1.949, p>.05) between banking sector (Mean=2.57, SD=0.32) and IT sector (Mean=2.44, SD=0.34). Thus, the null hypothesis H06 was not rejected. Collaboration: No significant differences were observed on the dimension collaboration (t[163]= 1.099, p>.05) between banking sector (Mean=2.90, SD=0.46) and IT sector (Mean=2.81, SD=0.39). Thus, the null hypothesis H07 was not rejected. Experimentation: No significant differences were observed on the dimension experimentation (t[163]= 1.866, p>.05) between banking sector (Mean=2.61, SD=0.42) and IT sector (Mean=2.77, SD=0.42). Thus, the null hypothesis H08 was not rejected. Exhibit 4 presents a summary of results for the t-test. No significant differences were observed on the mean scores of Exhibit 4: Summary of Results the two sectors on all the dimensions of Dimensions Null Hypothesis OCTAPACE. Hence, the null hypotheses Openness Not Rejected* in all the cases were not rejected.
Confrontation Trust Authenticity Proaction Autonomy Collaboration Experimentation Not Not Not Not Not Not Not Rejected* Rejected* Rejected* Rejected* Rejected* Rejected* Rejected*

Note: * Significant at p<0.05.

On the basis of above analysis, it can be inferred that no significant differences exist vis--vis the mean scores of the two sectors on all the dimensions of OCTAPACE, thus implying similarities in the prevalent organizational culture in the two sectors.

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Results of One-Way ANOVA (Comparison Among Companies)

The results of One-way ANOVA are presented in Exhibit 5. Exhibit 5: One-Way ANOVA
ANOVA Sum of df Squares Openness Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total Between Groups Within Groups Total 8.558 24.874 33.432 9.741 16.992 26.733 7.718 23.066 30.784 3.093 19.832 22.925 2.973 16.703 19.676 7.829 19.875 27.703 8.163 21.998 30.161 7 157 164 7 157 164 7 157 164 7 157 164 7 157 164 7 157 164 7 157 164 Mean Square 1.223 0.158 1.392 0.108 1.103 0.147 0.442 0.126 0.425 0.106 1.118 0.127 1.166 0.140 F 7.717 Sig. 0

Confrontation

12.858

Trust

7.505

Authenticity

3.498

0.002

Autonomy

3.992

Collaboration

8.835

Experimentation Between Groups Within Groups Total

8.323

The results of One-way ANOVA suggest that when the sample organizations are compared with one another, significant differences were observed on all the dimensions of OCTAPACE (p<.05 in all the cases). Although significant differences were not found when the aggregate mean scores of the two sectors were compared (as per the results of t-test), the results of one-way ANOVA reveal that significant differences exist on all the dimensions of OCTAPACE across organizations, meaning that one or more of these firms differ from the others. The results of Scheff Test will further help in highlighting and identifying these differences.

Results of Scheff Test (Multiple Comparisons)

The significance level of the Scheff test is designed to allow all possible linear combinations of group means to be tested. The result is that the Scheff test is often more conservative than other tests, which means that a larger difference between means is required for significance (Malhotra, 2004).

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The results of the Scheff test are presented in Exhibit 6. It presents a comparison of each organization with the other sample organizations on each of the eight OCTAPACE dimensions. As is evident, very few instances of significant differences can be found. Exhibit 6: Multiple Comparisons by Scheff Test
Dependent Openness Variable (I) Company IT1 (J) Company IT2 IT4 BK3 IT2 IT4 BK3 IT4 BK1 BK2 IT4 IT4 IT4 IT5 BK1 IT2 IT2 IT3 IT4 BK3 IT2 IT4 IT5 BK3 BK2 IT2 BK3 IT4 IT5 BK3 Mean Difference (IJ) 0.57 0.47 0.75 0.40 0.65 0.51 0.55 0.66 0.64 0.62 0.31 0.61 0.51 0.58 0.43 0.60 0.31 0.72 0.63 0.47 0.40 0.62 0.53 0.60 0.56 0.67 0.42 0.53 0.64 Sig. 0 0.01 0 0 0 0.01 0 0 0 0 0.30 0 0.01 0.01 0.01 0 0.45 0.00 0.03 0 0.01 0 0.02 0.01 0 0 0.03 0 0.01

Confrontation

IT1

IT3 IT4

Trust

IT1 IT2 IT3 IT4

Authenticity Proaction

IT1 IT1 IT2 IT4

Autonomy Collaboration

IT1

IT5 Experimentation IT1 IT2 IT5

Note: Cases where significant differences were found are shown above.

Openness: Significant differences were found when the mean scores of IT1 were compared with IT2, IT4, and BK3. Among all the other companies, there were no significant differences on this dimension.

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Confrontation: Significant differences were found when the mean scores of IT1 were compared with IT2, IT4, and BK3. Also significant differences were found when IT2 was compared with IT4 and IT5. The company IT5 had a significant difference with BK3. There were no significant differences on this dimension among the other companies,. Trust: Significant differences were found when the mean scores of IT4 were compared with all the other IT companies and also with BK1. There were no significant differences on this dimension among the other companies. Authenticity: Significant differences were found between the mean scores of IT1 and IT2. There were no significant differences on this dimension among the other companies. Proaction: Significant differences were found when the mean scores of IT2 were compared with IT1, IT3, and IT4. Significant differences were also found between IT4 and BK3. Among the other companies, there were no significant differences on this dimension. Autonomy: There were no significant differences among any of the companies on autonomy. Collaboration: Significant differences were found when the mean scores of IT1 were compared with IT2, IT4, IT5, and BK3. Also significant differences were found when IT5 was compared with IT2. There were no significant differences among the other companies. Experimentation: Significant differences were found when the mean scores of IT1 were compared with IT2 and BK3. Significant differences were also found when IT2 was compared with IT4 and IT5 as well as between IT5 and BK3. Among the other companies, there were no significant differences on this dimension. The results of the Scheff test reveal that in most cases, significant differences were observed among several companies in the IT sector on most dimensions of OCTAPACE. Among the banks, no significant difference was observed on any dimension. The results of Scheff test may be summarized as under: Between IT companies: Significant differences exist in several cases; Between IT companies and banks: Significant differences in a few cases; and Between banks: No significant differences were found to exist.

Thus, the results of Scheff test suggest that companies within the IT sector differ on several dimensions of OCTAPACE, while the sample banks do not exhibit statistically significant difference among their cultures. Finally, the calculated means of banking and IT sectors have been compared with low and high norms for OCTAPACE suggested by Pareek (2002) and they are presented in Exhibit 7. Exhibit 7 shows that the mean scores of the two sectors fall roughly in between the suggested norms. The mean score of banks on confrontation, trust,

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Exhibit 7: Comparison of Mean Scores and Suggested Norms

Dimensions Openness Confrontation Trust Authenticity Proaction Autonomy Collaboration Experimentation Norms Low 2.6 2.6 2.6 2.0 2.6 2.2 2.6 2.2 Banks 2.86 2.96 2.83 2.56 3.03 2.57 2.90 2.61 IT 2.93 2.84 2.80 2.48 3.14 2.44 2.81 2.77 Norms High 3.4 3.4 3.4 2.8 3.4 3.2 3.4 3.2

Note: Bold: Score higher than other organization.

Figure 1: Comparison of Mean Scores and Suggested Norms

4 3.5 3 Scores 2.5 2 1.5 1 0.5 0 Collaboration Authenticity Autonomy Openness Proaction Experimentation Confrontation Trust Norms Low Banks IT Norms High

Mean

OCTAPACE Values

authenticity, autonomy and collaboration is towards the higher end of the norms. On the other hand, the mean score of IT companies on openness, proaction and experimentation is found to be towards the higher end of the norms.

Conclusion
On the basis of t-test, it can be inferred that no significant differences exist between the IT and the banking sectors on all the dimensions of OCTAPACE, thus implying similarities in the prevalent organizational culture in the two sectors.

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Further, the results of one-way ANOVA suggest that when the sample organizations are compared with one another individually, significant differences were observed on all the dimensions of OCTAPACE. The results of the Scheff test reveal that in most cases, significant differences were observed among several companies in the IT sector. Among the banks, no significant difference was observed on any dimension. Finally, the calculated means of the banking and IT sectors, when compared with low and high norms for OCTAPACE suggested by Pareek (2002), were found to be falling within the norms. The mean score of banks on confrontation, trust, authenticity, autonomy and collaboration is towards the higher end of the norms. On the other hand, the mean score of IT companies on openness, proaction and experimentation is found to be towards the higher end of the norms. Thus, it can be inferred that: When compared sector-wise, no major differences were found in the two sectors; When compared individually, differences were found within and between companies; Within the IT sector, differences in culture were observed to be statistically significant; and Within the Banking sector no statistically significant difference in the cultures was observed.

The results, therefore, partially support the thesis of Gordon (1991) that organizations within an industry share similar cultural values. The study examines the existing organizational culture in the banking and IT sectors in India. Future studies may focus on a greater sample size and may include more sample organizations across several sectors. Also, since OCTAPACE culture is a relatively new concept, studies may be undertaken to compare Indian organizations with their foreign counterparts to reflect on the present scenario of culture.

Limitations of the Study

Since a limited sample was taken, the results may not be truly generalizable. However, the study does throw some light on the prevailing culture among the leaders in each sector.

References
1. 2. Deal T E and Kennedy A A (1982), Corporate Cultures: The Rites and Rituals of Corporate Life. Harmondsworth: Penguin Books. Erakovich R, Bruce R and Wyman S (2002), A Study of the Relationship of Ethical Work Climate and Organizational Culture in Public Organizations, paper presented at the American Society for Public Administration National Conference, Phoenix, Arizona, March 23-26. www.aspaonline.org/ ethicscommunity/documents/.

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3. Gordon G G (1991), Industry Determinants of Organizational Culture, Academy of Management Review, Vol. 16, pp. 396-415. 4. Malhotra N K (2004), Marketing Research, Pearson Education, New Delhi. 5. Niranjana P and Pattanayak B (2005), Influence of Learned Optimism and Organizational Ethos on Organizational Citizenship Behavior: A Study on Indian Corporations, International Journal of Human Resources Development and Management, Vol. 5, No. 1, pp. 85-98. 6. Ouchi W G (1981), Theory Z: How American Business Can Meet the Japanese Challenge, Addison Wessley: Reading, Mass. 7. Pareek U (2002), Training Instruments in HRD and OD, Tata McGraw-Hill, New Delhi. 8. Peters T J and Waterman R H (1982), In Search of Excellence: Lessons from Americas Best Run Companies, Harper and Row, New York. 9. Robbins S P (1988), Essentials of Organizational Behavior, Englewood, Prentice Hall, New Jersey. 10. Schein E H (1990), Organizational Culture, American Psychologist, Vol. 43, No. 2, pp. 109-119. 11. Schwartz H and Davis S M (1981), Matching Corporate Culture and Business Strategy, Organizational Dynamics, Summer, pp. 15-41. 12. Srivastav A K (1995), Teamworking Through ISO 9000A Reality, Proceedings-Annual Quality Congress, Cincinnati OH. 49, pp. 762-769. 13. Srivastava S K and Srivastava P (2004), Performance Enhancement Through Continuous Improvement, paper presented at the Second World Conference on POM and 15th Annual POM Conference, Cancun, Mexico, April 30-May 3.

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