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International Journal of Civil Engineering and Technology (IJCIET)
Volume 9, Issue 4, April 2018, pp. 110–125, Article ID: IJCIET_09_04_014
Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=9&IType=4
ISSN Print: 0976-6308 and ISSN Online: 0976-6316
© IAEME Publication Scopus Indexed
ORGANIZATIONAL CULTURE AND ITS
IMPACT IN INDIAN CONSTRUCTION
INDUSTRY- A CASE STUDY
Amartya Maiti
P.G Student, M.Tech CEM, Civil Engineering Department,
SRM Institute of Science and Technology, KTR Campus, India
B. Indhu
Assistant Professor, Civil Engineering Department,
SRM Institute of Science and Technology, Kattankulathur, Chennai, India
ABSTRACT
Delay in construction projects being a very common problem that affects the
construction industry and economical growth of the country. Small scale construction
companies in India have been blamed for poor execution and low feasibility regarding
quality and benefit in the characteristics of difficulties and vulnerabilities coming
about because of the quick changing financial condition. This study hopes to research
the association between the organizational culture and the impact of organizational
culture on construction in small scale construction companies. A questionnaire survey
was regulated in small scale construction companies situated in two different regions
in India for collecting information on their organizational culture and the measure of
deferral and cost invade that they involvement in their task. In the course of recent
decades, organizational culture has been developed as an essential issue in
construction companies. Construction organizations should try and follow a "healthy
and sound" organizational culture with a specific end goal to expand profitability,
development, effectiveness. An examination of the different elements influencing the
effective finishing of task in small scale construction companies is done, and
comparison of the organizational culture between the two regions (Chennai and
Kolkata) inside immense socially broadened and culturally diversified India have been
performed. It was found from this research that both the study areas follows the
“market” type of organizational culture where the focus lingers around getting the
project done by any means, with a high competition to reach the end goal. This
prominence on winning keeps the organization together. This relationship could be
helpful to develop and perpetuate an authoritative organizational culture that can be
relied upon to diminish venture postponement and increase efficiency.
Keywords: organizational culture, construction delay, organizational culture
assessment.
Amartya Maiti and B. Indhu
http://www.iaeme.com/IJCIET/index.asp 111 editor@iaeme.com
Cite this Article: Amartya Maiti and B. Indhu, Organizational Culture and its Impact
in Indian Construction Industry- A Case Study, International Journal of Civil
Engineering and Technology, 9(4), 2018, pp. 110–125.
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=9&IType=4
1. INTRODUCTION
The Construction Industry of India gives a share of around 19% of the national GDP
(contributing an approximate amount of US$ 308 billion in 2011-12). This can be a indicator
that construction companies in India plays a very vital role in the gross development of the
nation. [[31]]. In the present very focused financial condition, the requirement for finishing
the construction projects within the estimated cost and time with a high level of performance
in execution is becoming vital criteria from the owners and clients [[2]]. Postponement of the
undertaking projects has dependably been one of the critical issues in the construction
industry. Postponement of projects in a development venture has serious outcomes on the
greater part of the undertaking objectives [[10];[18]]. Despite the issues explored; magnitude
of postponement of projects, causes, and remedies varies in different countries [[23]; [12]].
There are causes, like unfavorable weather conditions or shrinking economy that are outside
the capacity to be controlled by the project participants; problems like payment postponement,
changes in design which cannot be restrained by the proprietors; contractor related problems
like unspecialized labours with limited experience, poor scheduling, poor site management
skills, financial difficulties etc; which effects the progress of any construction. There are
many other factors like late delivery of materials, inaccurate inventory management,
equipment breakdown, contract related issues, natural disaster, etc. which effects the progress
of the project [[5];[14];[27]]. Studies uncover diverse reasons for postponement, which can
occur in the ventures within different nations or in the ventures inside a same nation. This
finding may be an indication that alongside the influences of national culture of the country,
which the construction company is a part of, the culture of the organization itself plays a
massive role in influencing the postponement or the cost overrun incurred in the construction
ventures. [[8]]. A healthy culture in an organizational influences the best approach to manage
the administration, leadership quality and decision making capacity of managers; and the
quality of communication and association in between the co-workers [[19]]. So it can be
assumed that there might be a relationship between the postponement of the construction
ventures by a company, and the organizational culture followed by that company, which
might vary from one country to the other.
Variety of cultures in an organization impacts the general development of the company, if
the culture isn't legitimately controlled by the best administrations of the association. Among
numerous issues, postponement and cost overwhelm are the significant two issues looked in a
development industry. Postponement in development ventures has extreme outcomes on a
large portion of the objectives that will be accomplished from the task.
Organizational culture includes qualities and practices that add to the remarkable social
and psychological environment of an organization. Organizational culture represents the
shared values, beliefs and principles of an organization. The organization's vision, values,
systems, assumptions, norms, actions, artifacts, environment, location, beliefs, and habit can
be the measuring standards for a culture inside an organization [[32]].
People spend much of their time working within organizations. The particular type of
organization doesn‟t make a difference. It must be perceived that all associations exist to
fulfill particular objectives. The qualities and the standards that are evolved within the
organization constitute a major element of the organizational culture followed by that
Organizational Culture and its Impact in Indian Construction Industry- A Case Study
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company [[28]]. Qualities and Standards established by a particular organization are very
important for an organization since they provide a unifying force to tie the individuals of the
organization. [[9]]
None of the examinations talks about the relation between organizational culture and the
effects experienced in the projects due to variation of culture by the small scale construction
organizations inside different regions of India. It could be hypothetically assumed that the
organizational culture might impact delays and cost glut in the endeavours by the construction
organizations. Reducing delay in construction projects will successfully build development
profitability and will influence the economy emphatically. Understanding the interdependency
between the culture in construction organizations and its impacts in terms of delays, cost
overrun, productivity, etc; could be valuable in developing the proper organizational culture
that can lessen the postponement in development ventures. In India where the construction
industry has the national GDP offer of around 19%, it is imperative to investigate the
interdependency between organizational culture and its impacts that is experienced in the
development ventures by the construction companies. The principle goal of the investigation
is to fill this hole and to discover what sort of organizational culture is favoured in India's
focused and competitive market, what type of organizational culture small scale development
companies are following, and which culture is the best for increasing the productivity and
profitability of the development organizations.
Studies [[8]] uncover diverse reasons for postponement, which can occur in the ventures
within different nations or in the ventures inside a same nation. This finding may be an
indication that besides the influences of national culture, which the construction company is a
part of, the culture of the organization also plays a huge role in influencing the postponement
or the cost overrun incurred in the construction ventures. It additionally uncovers that the
organizational cultures in India have been expressed to take after a specific sort of
organizational culture (i.e. market culture). However, in a huge social broadened nation like
India, where different districts and states have distinctive ethnic decent varieties; the small
scale construction companies may have diverse sorts of organizational cultures.
With a specific end goal to explore the interdependency between the organizational
culture and the impacts in terms of postponement and cost overrun in the construction projects
between the two separate regions of India (Kolkata and Chennai), are researched in this
examination by surveying personnel involved in a particular construction company in the
individual areas. The two locales i.e. Kolkata and Chennai, that are drastically different from
each other regarding ethnic diversity, cultural diversity, and culture in construction; are the
best contender to be chosen for this investigation.
2. OBJECTIVE
To identify the factors affecting successful completion of project.
To compare the organizational culture between two regions inside India.
To recommend for modifications of organizational culture so as to enhance the overall
productivity of the organization
3. SCOPE
Construction Sites from two different regions in India (Chennai and Kolkata) are chosen.
Field survey of organizational cultures of small scale construction organizations will be done
in residential projects of the chosen study area.
Comparing the results, the best type of Organizational culture for Indian condition is inferred.
Amartya Maiti and B. Indhu
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4. NEED FOR RESEARCH
There has been no such research performed to analyze the organizational culture between two
unique districts, in such a socially enhanced nation like India; been done before. Past
discoveries of the study performed so far was done regardless various geographical cultures
prevailing in India, and classifying India to follow a particular organizational culture as a
whole, leaving behind the organizational culture of various regions in India. So an exploration
is being done to break down whether diverse districts in India have distinctive Organizational
Culture.
5. LITERATURE REVIEW
The artifacts, norms and espoused values and beliefs are mainly affecting the organizational
culture. The subculture of different individual acts as subsets of organizational overall culture
and reflects the occupational identities of groups. The different elements of organizational
culture influencing the transfer of knowledge in between management levels of a project
based organization can be studied. As per studies, project managers stated clearly that, when
knowledge and information was reused viably, numerous venture related issues and problems
could be avoided, and this might led to decreasing reworks, expanses, and waste [[30]].
Objective setting and achievement, and team orientation are the two most profoundly
organizational culture factors in construction. The artifacts of any construction company have
been arranged into a seven-factored organizational culture framework likely, objective setting
and achievement, team orientation, correlation and incorporation, performance emphasis,
innovation, participation of members and reward orientation which can be the regulating
criteria for assessing the organizational culture [[22]]. Knowledge management is also found
crucial and beneficial for maintaining a organizational culture of any organization; which
does not work without the trust in between the members of an organization [[20]].
Behaviour is also shown as the main reason or the core element in understanding the
culture of the organization. B-P-O cycle or Behaviour performance outcome cycle is
elaborately describes how performance is always linked with behaviour which is directly
linked with the outcome of the organization [[21]]. Tools and criteria for assessing the cultural
diversity within a organization and its effects in multinational companies are also found and
its effect on organizational culture and the impact of multicultural employees in a
organization is assessed. Researchers have concluded the impact of linguistic diversity on the
effectiveness of task coordination for multinational construction companies [[26]]. Competing
values for understanding the organizational culture has a strong conceptual validity and a
framework for understanding organizational culture that has been presented. Managers can
use the framework to guide them in creating a strong culture in their organization [[29]].
From the studies, it was found that postponement in construction ventures occurs mainly
during the building phase or the construction phase of a project, with the involvement of one
or more parties involving in the postponement of the project [[15]]. Postponement of the
project also occurs due to flaws in planning and designing in the initial phases of
development, which impacts the overall progress of the project [[17]].
6. THEORETICAL BACKGROUND
Researchers and professional consider the culture of an organization to be a important factor
governing the company's' productivity which prompted a few examinations throughout the
years [[6]; [9]; [25]]. “The culture of a group is a pattern of shared basic assumptions that was
learned by a group as it solved its problems of external adaptation and internal integration,
that has worked well enough to be considered valid and, therefore, to be taught to new
Organizational Culture and its Impact in Indian Construction Industry- A Case Study
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individuals as the right method to see, think and feel in connection to those issues", as defined
by Schein [[25]].
There are a few investigations that propose hypothetical models and estimation
apparatuses for organizational culture, such as Organizational Profile Questionnaire (OPQ),
Cultural Assets Profiles (CAPS), Organizational Culture Profile (OCP); Personal, Customer
Orientation and Cultural Issues (PCOC); Organizational Culture Inventory (OCI); and
Organizational Culture Assessment Instrument (OCAI) [[8]]. Various examinations have been
endeavoured and some of these speculative estimation models have been applied to, finance,
health, construction and different other kinds of associations.
Analysts and experts of various fields have recognized the significance to realize the type
of organizational culture practiced in the execution and measuring the performance of
organizations [[4]; [9]]. Most of the previous explorations have been concentrated on the
culture of the construction-related organizations in different nations and the consequences due
to it. The past research discloses that this type of research has never been discussed and
surveyed in Indian conditions. This investigation was attempted somewhat in light of the
nonattendance of such research.
Despite the fact that there are many theoretical and estimation models for determining the
culture followed by an organization, analysts utilizes "Organizational Culture Assessment
Instrument" (OCAI), a measurement tool, approved, and all round appreciated tool for
measuring the culture followed by any organization, and can be utilized widely over a wide
range of settings.
OCAI, developed by Cameron and Quinn's (1999), characterizes four noteworthy
organizational cultures. Every organization has its own mix of these four types of
organizational culture, which can be identified by completing a concise questionnaire survey.
The distinctive four type of organizational culture are “clan” culture, “adhocracy” culture,
“hierarchy” culture, and “market” culture.
Clan Culture:
This workplace is a well disposed one. Individuals have a lot of similarities, and it‟s like a
huge family. The pioneers or the official are viewed as coaches or mentors. The organization
is held together by allegiance. There is a great participation among the individuals of the
organization. Success is defined by satisfying needs of the clients and caring for the people.
The organization promotes teamwork, cooperation between participants, and harmony.
Importance to teamwork, participation, morale and loyalty
Adhocracy Culture:
This is a dynamic and innovative workplace. Employees take chances and risks. The pioneers
or the official are viewed as innovators and risk takers. People like to perform experiments.
The long term goal is to grow and develop new assets for the organization. The organization
promotes individual initiation and freedom.
Importance to Creativity, Innovation, Individual Initiation
Market Culture:
This is an outcome based association that stresses completing works and getting things done.
Pioneers are hard drivers, makers, and opponents at same time. Individuals are aggressive and
focused around objectives. They are tough and have high expectations. The prominence on
winning keeps the organization together. Market infiltration and stock are meanings of
Amartya Maiti and B. Indhu
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achievement. Competitive prices and market leadership are important. The organization style
depends on rivalry.
Focus on getting job done, with goal oriented competition
Hierarchy Culture:
This is a formalized and organized workplace. Pioneers are pleased with their effectiveness
based coordination and association. Keeping the association working easily is generally
critical. Formal guidelines and arrangements keep the association together. The long term
objectives are steadiness and results, paired with efficiency and smooth execution of
assignments.
Importance to follow and maintain the formally introduced Rules and Policies at any cost.
7. METHODOLOGY
Figure 1 Methodology Flowchart
The methodology (see Fig. 1) is described in the following steps for the procedures of
case study. Keeping in mind the end goal to continue, it is estimated that correlation exists
Study Area: Organizational Culture
Literature Review
Organizational Culture types and
characteristics Analysis of factors affecting
performance of project
Formulation of Questionnaires for:
1) OCAI tool
2) Problems faced in projects
Collection of Data from the selected regions
Analysis of Data for the regions respectively
Comparison between organizational culture of the regions
Effect of Organizational culture on the project performance and output
Recommendations
Organizational Culture and its Impact in Indian Construction Industry- A Case Study
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between the organizational cultures and its effects in terms of postponement and cost overruns
in the construction endeavours of any organization. Firstly, for testing this esteemed
hypothesis, a questionnaire was created to collect data about the culture followed by the
organizations and the effects in terms of rate of postponement and cost overrun that the small
scale construction companies experiences in their endeavours. The questionnaire was
fabricated with the assist from the literature reviews and was split into two sections.
The first part of the questionnaire is utilized in documentation of the information about the
culture of the organizations, given by the individual respondents of a particular organization.
The OCAI tool is used for assessing the culture of these organizations.
The relative significance of the culture types in each region of the study area (i.e., the
Kolkata and the Chennai regions of India) are estimated by gathering the evaluation forms
from each respondents, who are asked to mark the six attributes or dimensions of
organizational culture, as described in Cameron and Quinn (1999). Respondents filled the
questionnaire by rating four proclamations which assesses each attribute. The respondents
have to fill and split 100 points among the four proclamations for all the six dimensions of
organizational culture. For a better perception of OCAI, the assertions used for evaluating the
qualities and attributes for organization culture, and the computation of the scores,
proofreaders are directed to Cameron and Quinn (1999) [[6]].
In the second part of the questionnaire, interviewees rated the problems are facing in their
construction sites, in a 5 point liker scale. They were also asked to state the probable
magnitude of postponement and cost overrun in the last venture in which they were involved
expressed as a percentage of the planned project duration, and cost estimation till that day.
The polls are to be flowed to development organizations of the selected study area, i.e.
companies in Chennai and Kolkata region.
The questionnaires are circulated to construction companies of the selected study area, i.e.
companies in Chennai and Kolkata region. Each company should have a minimum of 4
respondents, each from all organizational levels (owners, contractors and engineers) of that
organization. Questionnaires were transmitted to 20 construction companies of Kolkata and
17 construction companies of Chennai. Response from 8 companies from Kolkata were
returned yielding reaction rate of 40% and 7 companies from Chennai at a reaction rate of
41.2%, are gathered. Respondents have to fill up how they feel about their association now as
'Now' and how they will see their association in future as „Preferred‟. An excel sheet has been
planned according to OCAI to break down the obtained information manually.
Finally, statistical analysis (T-test) is computed on the gathered information, to discover
the correlation in-between the organizational culture and its effects in terms of postponement
and cost overrun of the projects. Firstly, the gathered information were dissected by
calculating the arithmetic mean scores of the four measurements of organizational culture,
(i.e., clan, hierarchy, market, and adhocracy), obtained from the respondents of the Kolkata
and Chennai organizations separately. Then the T- test was performed to look at the contrast
in the measurements of organizational culture in construction companies situated in the
Kolkata and Chennai regions. A T-test is a parametric type of statistical examination that
analyses two populations‟ means through the use of statistical examination. A t-test with two
independent samples (the Kolkata and the Chennai data) is used with small sample size,
testing the difference between the samples when there are two independent random samples
from these populations (i.e. the Kolkata and the Chennai sample population). The null
hypothesis is that there is no contrast between the organizational culture of the Kolkata and
Amartya Maiti and B. Indhu
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Chennai populations. In order to test this null hypothesis, the “t” value is calculated by the
following formulas [[33]]:
[
√
] t-distribution with (n1+n2-2) degree of freedom
Where,
x1=
, x2=
S2=
S12=
(
2
S22=
(
2
Where, x1, x2 = sample means of Kolkata and Chennai region, S2 = sample variance, n1 ,n2
= sample sizes of Kolkata and Chennai region respectively. From the ''t'' value obtained, it can
be chosen whether to dismiss or acknowledge the null hypothesis. Level of significance
chosen is 0.05 (i.e. α = 0.05).
8. RESULT AND DISCUSSION
8.1. Comparison of organizational culture between Kolkata and Chennai region
of India
Figure 2 Difference of cultural profiles between Kolkata and Chennai regions
It was concluded from this examination that "market" type of organizational culture
dominates in the small scale development companies located in both the selected study area,
0
10
20
30
40
Flexibility &discretion
Adhocracy
Externalfocus
Market
Stability &control
Hierarchy
Internal focus
Clan
Overall Culture Profiles
KOLKATA CHENNAI
Organizational Culture and its Impact in Indian Construction Industry- A Case Study
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i.e. Kolkata and Chennai region (see Fig. 2). The characteristic features of “market” culture
following companies are that their focus lingers around getting the work done by any means,
with a high competition to reach the end goal. This prominence on winning keeps these
organizations together. This finding is steady with Hofstede (2010) [[16]] dispute that Indian
culture has both socialistic and unorthodox or individualistic attributes because of their
inclination for a bigger social system.
Form the results of the T- test, performed to examine the contrast in the dimensions of
organizational culture of construction companies located in the Kolkata and Chennai regions
of India; it was observed that we should accept the null hypothesis. It was found that there is
no such difference observed statistically at α = 0.05 in the dimensions of organizational
culture. The highest values of the mean scores are found at the "market" type of
organizational culture for both the selected regions inside India marked with '*' as given in
Table1.
Table 1 Mean Scores of Elements of Organizational Culture
Finding no statistical difference between the Kolkata and Chennai region of Indian
construction companies, it can be reasoned that there is no huge distinction of the
organizational cultures honed in this two regions of India. The mean score of the “market”
culture in both the regions are comparatively higher than the other types of organizational
culture, concluding that both the regions follow dominantly “market” type of organizational
culture. It can also be stated that India, being a developing a nation, follows “market” culture.
With a specific end goal to look at the organizational culture of the interviewees‟
construction companies more thoroughly, the scores of each of the individual atributes of
organizational culture were plotted (see Fig 3). The differences of dominant characteristics
graph is given in Fig 3a; organizational leadership in Fig 3b; management of employees in
Fig 3c; organizational glue in Fig 3d; strategic emphasis in Fig 3e; and criteria for success in
Fig 3f, in between the Kolkata and Chennai regions. The plots for each of the individual
attributes of organizational culture demonstrate the degree to which attributes reflect the
controlling culture between the regions; and the overall cultural profile (Fig 2) gives the idea
about the type of organizational culture practiced in the selected study areas.
KOLKATA CHENNAI KOLKATA CHENNAI KOLKATA CHENNAI KOLKATA CHENNAI
Dominant Charectaristics 26.625 19 24.5 15.28 29.62 37.42 22.25 14.72
Organizational Leadership 23.37 16.85 24.125 12.28 32.75 25.28 20.25 31.85
Management of Employees 27 28.42 18.75 19.14 33 24.57 21.625 14.28
Organizational Glue 25.75 22.85 19.125 17.85 34.5 29.28 21.125 16.43
Strategic Emphasis 22.375 19 20.75 21.43 31.75 30.42 26 18.57
Criteria for Success 26 20.14 18.375 11.85 35.75 21.43 20.25 32.14
CULTURAL TYPES
Clan Adhocracy Market Hierarchy
20.75 16.2 32.75* 28.28* 21.625 21.28Overall organizational culture Profile 24.62 21
Dimensions of Organizational culture
Amartya Maiti and B. Indhu
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Figure 3a The difference of the dominant characteristic feature of the organizational culture
Figure 3b The difference of the organizational leadership feature of the organizational culture
0
5
10
15
20
25
30
35Flexibility & discretion
Adhocracy
External focus
Market
Stability & control
Hierarchy
Internal focus
Clan
1. Dominant Characteristics
KOLKATA CHENNAI
05
1015202530354045
Flexibility &discretion
Adhocracy
External focus
Market
Stability & control
Hierarchy
Internal focus
Clan
2. Organizational Leadership
KOLKATA CHENNAI
Organizational Culture and its Impact in Indian Construction Industry- A Case Study
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Figure 3c The difference of the employee management feature of the organizational culture
Figure 3d The difference of the organizational glue feature of the organizational culture
0
10
20
30
40
50
Flexibility &discretion
Adhocracy
External focus
Market
Stability & control
Hierarchy
Internal focus
Clan
3. Management of Employees
KOLKATA CHENNAI
0
10
20
30
40
50
Flexibility &discretion
Adhocracy
External focus
Market
Stability & control
Hierarchy
Internal focus
Clan
4. Organization Glue
KOLKATA CHENNAI
Amartya Maiti and B. Indhu
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Figure 3e The difference of the strategic emphasis characteristics of the organizational culture
Figure 3f The difference of the the criteria of success feature of the organizational culture
8.2. Connection between the culture of organizations in the construction
organizations and its impacts on development
As indicated by the outcomes (see Table1), organizations of Kolkata and Chennai regions of
Indian have the similar dominant organizational culture. This might be the reason why all the
reviewed development companies encounter relatively same level of delay in their projects. It
is worth investigating the connection between organizational culture and postponement in
construction. The discoveries displayed in Table 2a demonstrate that the construction
organizations of both the locales encounter 10-15% postponement for finishing their
0
10
20
30
40
Flexibility &discretion
Adhocracy
External focus
Market
Stability & control
Hierarchy
Internal focus
Clan
5. Strategic Emphases
KOLKATA CHENNAI
0
10
20
30
40
Flexibility &discretion
Adhocracy
External focus
Market
Stability & control
Hierarchy
Internal focus
Clan
6. Criteria of Success
KOLKATA CHENNAI
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endeavours in time, with 5-10% cost overrun, as in Table 2b. This finding shows that Indian
construction companies are outperformed and less efficient in completing projects on
scheduled budget and time.
Table 2a Percentage of Delay
Delay percentage in the Ongoing projects by respondents
Percentage delay Kolkata Chennai
in contract
duration Number of Percentage Number of Percentage
Respondents Respondents
0-5% 1 12.5 1 14.5
5-10% 1 12.5 0 0
10-15% 4 50 4 57
15-20% 2 25 2 28.5
>20% 0 0 0 0
Total 8 100 7 100
Table 2b Percentage of Cost Overrun
Cost Overrun percentage in the Ongoing projects by respondents Cost overrun in Kolkata Chennai
percentage of Number of Percentage
Number of Percentage
contract cost Respondents Respondents
0-5% 2 25 2 28.5
5-10% 3 37.5 3 43
10-15% 2 25 2 28.5
15-20% 1 12.5 0 0
>20% 0 0 0 0
Total 8 100 7 100
According to the survey conducted, the main problems faced by the construction
companies of both Kolkata and Chennai regions are given (see Table 3). According to the
owner, contractor and engineers of the organizations, their perspective of reason for the
postponements in their development organizations were asked and assembled. Assuming that
the occurrence and intensity of delays caused by uncontrollable events such as adverse
weather conditions, the maximum responses for causes of delay, as per the experience, from
all the respondents are given in Table 3. These findings were similar to that as discussed in
Saraf D. D. 2013 [[24]]
As per the previous study between the U.S. and the Indian construction companies, it was
concluded that U.S. companies follow “clan” type of organizational culture, and their
productivity is much higher than Indian construction companies. The low percentage of
postponement is encountered by the “clan” culture dominated construction companies in the
U.S. This recommends that a development organization seeking after a “clan” culture possibly
can help prevent delays in their projects. According to the study, construction companies may
want to rekon practicing a “clan” culture to complete their assignments and endeavours as
planned. [[8]].
The disclosure of this examination allows a prevalent understanding of the association
between the culture of the organizations and postponement in construction ventures. The
findings from this study showed that “market” culture commanded development organizations
encounter generally more postponement in their undertakings. Cameron and Quinn (1999)
[[6]] gave recommendations for performing “clan” culture by “encouraging cooperation and
Amartya Maiti and B. Indhu
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agreement in decisions”, “management of environment through teamwork”, “providing a
supportive work environment” and “discouraging a competitive work environment”.
9. CONCLUSIONS
With an aim to explore the interconnection between the culture followed by the organizations
and its impacts in Indian construction companies, the case study from the selected study area,
i.e. companies in Kolkata and Chennai region reveals that a connection exists between
organizational culture followed by the construction organizations and the impacts due to it,
mostly in terms of postponement and cost overrun, in their development endeavours. By the
information gathered by questionnaire survey from the respondents of the enterprises of the
selected study area (40% response rate from Chennai and 41.2% response rate from Kolkata),
and analysing the values by “T-test”, it was revealed that statistically the sample mean scores
do not differ much in between the two selected regions.
The survey results also propose that the type of culture followed by an organizational is
related with the postponement and cost overrun of the construction companies. The results
indicate that there is a 10-15% of postponement of the ventures with 5-10% cost overrun in
both the selected study area regions. This would be arguable that solely the organizational
culture affects the progress and productivity of the construction ventures; as there are many
other factors like late delivery of the materials, inaccurate inventory management, equipment
breakdowns, complex project issues, natural disasters, contracted related issues, etc.
The case study also reveals that our study area locations, i.e., North Indian city Kolkata
and South Indian city Chennai, both have the “market” type of Organizational Culture. From
the previous studies, it was concluded that the U.S. follows the “clan” culture, and the overall
productivity of the construction companies is much better than that of the Indian companies.
Hence it can be concluded that the “clan” culture is better for construction companies than
“market” culture. But for Indian companies, how would they perform with “clan” culture, will
there be any change in the productivity of the outcome, can be a future scope of research area.
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AUTHOR PROFILE
Amartya Maiti
M. Tech Student, Department of Civil Engineering, SRM Institute of Science and
Technology-Chennai, 603203, India, E-mail: maitiamartya0@gmail.com
B. Indhu
Assistant Professor, Department of Civil Engineering, SRM Institute of Science and
Technology- Chennai, 603203, India, E-mail: indh.b@ktr.srmuniv.ac.in
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