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

8/12/2019 A Study of Organizational Culture and It's Impact on Employe

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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 Ful ilment ! "he Re#uirement For "he

$%S"ER IN &'$%N RES!'R(E $%N%)E$EN"

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'ni ersity ! &udders ield

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A study of organizational culture and its impact on employee performance

$EC+A/A!IO%

I de lare that this dissertation is the result o my o3n industrial e orts and that

it on irms to uni ersity4 de artmental and ourse re/ulations re/ardin/

heatin/ and la/iarism. No material ontained 3ithin this dissertation has

been used in any other submission4 by the author4 or an a ademi a3ard.

A0dfafs"

1anuary 2334

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AC5%O6+E$)E(E%!

I 3ould li e to than the rin i al o the I&$4 $r. 7ra een Roy or /i in/ me

this o ortunity or 3or in/ on this dissertation.

$y than s are due to $s. %mbi a ablani4 "rainin/ $ana/er at "a8 7ala e or

her o o eration and su ort to ondu t this resear h in the hotel. S e ial

than s to all the sta members or their aluable time and sharin/ their ie3s4

to ma e this resear h a su ess.

I /rate ully a no3led/e the e orts o $r. a il %//ar3al 3ho has /uided me

throu/h this dissertation and or ro idin/ me 3ith the ri/ht in uts4 ee in/ in

mind and needs o the 'ni ersity o &udders ield.

Rashi Dua1


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!a7le of Contents

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!a7le of 'igures

Fi/ure 2.1 "he role o aradi/m in strate/y ormulation .....................................

Fi/ure 2.2 "he ultural 3eb ................................................................................Fi/ure .1 Aayers o or/ani ational ulture..........................................................

Fi/ure .2 Formation o or/ani ational ulture....................................................

Fi/ure . ulture and or/ani ational e e ti eness............................................

Fi/ure ;.1 Relationshi s amon/ ariables a e tin/ em loyee rodu ti ity........

Fi/ure ;.2 %naly in/ em loyee er orman e .....................................................

Fi/ure 5.1 Rationale or or/ani ational ulture....................................................

Fi/ure 5.2 Elements o or/ani ational ulture.....................................................Fi/ure 5. Im a t o or/ani ational ulture on em loyee er orman e..............

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Chapter 89 !he Pro7lem and Its Settings

8.8 Introduction

"he ore issue in this dissertation is or/ani ational ulture and ho3 it a e ts

the em loyee er orman e. E en be ore the terms G ultureG and Gor/ani ationG

3ere used in ombination4 the term ulture had been de ined in literally do ens

o di erent 3ays. %nthro olo/ists su h as roeber and lu hohn*1990+

isolated 16; de initions o ulture in 1952. In todayGs 3orld ulture lays a ery

im ortant issue in the or/ani ation. It a e ts the strate/y ormulation4

e aluation and im lementation and the er orman e o the or/ani ation and o

the em loyees. % #uestion li e 3hat is or/ani ational ulture4 ho3 it a e ts thestrate/ies that are made in the or/ani ation@ "he nature and elements o

or/ani ational ulture@ &o3 the ulture is e aluated@ Di erent 3ays o

ommuni atin/ ulture@ In addition4 ho3 ulture a e ts the . er orman e o the

em loyees in an or/ani ation ha e been ans3ered in the dissertation.

"3enty years a/o or/ani ations 3ere sim ly thou/ht o as rational means by

3hi h to o ordinate and o ordinate a /rou o eo le. "hey had erti alle els4 de artments4 authority relationshi s and so orth. ut in todayGs entury

or/ani ations are more. "hey too ha e ersonalitiesH they an be ri/id or

le ible4 un riendly or su orti e4 inno ati e or onser ati e. "hey ha e a

ulture o their o3n 3ithin 3hi h they o erate. % ordin/ to Robbins *1996+4

Organization Culture re ers to a system o shared meanin/ held by members

that distin/uishes the or/ani ation rom other or/ani ations. (ulture has its

ori/in in the or/ani ational intera tion.

E ery or/ani ation has a ulture and4 de endin/ on its stren/th4 ulture an

ha e a si/ni i ant in luen e on the attitudes and the beha iors o or/ani ation

members. !r/ani ational ultures are im ortant to a irmGs su ess or se eral

reasons. "hey /i e an or/ani ational identity to em loyees a de inin/ ision o

3hat the or/ani ation re resents. "hey are also an im ortant sour e o stability

and ontinuity to the or/ani ation4 3hi h ro ides a sense o se urity to its

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members.

In order to ha e a ositi e4 sustained im a t on satis a tion and er orman e4

ulture must be aluable4 rare4 and inimitable. I a ulture an be imitated4 then

ado tion o the ulture by the om etitors 3ill slo3ly eliminate the om etiti e

ad anta/es o the ulture. (ulture has im a t on ontrol4 normati e beha ior4

inno ation and member er orman e and satis a tion. Relationshi bet3een

ulture and er orman e is stron/ and not so bet3een ulture and satis a tion.

8.2 !he Approach

1. "he dissertation be/ins by de inin/ the resear h issue in the ha ter 1. It

also states the aims and ob8e ti es and the limitations o the dissertation

2. "he in de th study o the ariables that are or/ani ational ulture and

em loyee er orman e. %lso aims at introdu in/ the on e t

or/ani ational ulture and its ey elements in detail.

. %ims at studyin/ em loyee er orman e and its relation to

or/ani ational ulture.

;. "he establishment o the theoreti al rame3or 4 3hi h states the

relationshi bet3een the t3o ariables Jor/ani ational ulture and

em loyee er orman eJ.

5. "he resear h methodolo/y4 3herein the resear her 3ill identi y the

ariables.

6. Fo uses on the analysis o the data olle ted by the resear her as a art

o the rimary resear h o the dissertation.

,. In this ha ter the resear her aims to summari e the study and the

3or s done durin/ the ourse o the dissertation by statin/ the

on lusion o the 3hole resear h arried out or the issue. .

8.: !he $issertation Structure

"he dissertation be/ins 3ith the sele tion o the to i 4 ollo3ed by the

identi i ation o the aims and ob8e ti es. !n e this is done4 olle tin/ material

rom the 3or done on the sub8e t by the arious authors 3ill reate a lat orm.

"herea ter4 a theoreti al rame3or 3ill be made based on the literature re ie3.

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"he literature re ie3 3ill be a om ilation o the 3or o arious authors on the

sub8e ts 3hat is or/ani ational ulture4 its rationale and 3hat it om rise o .

"his 3ill be ollo3ed by a brie on 3hat is em loyee er orman e a ordin/ to

arious authors. It 3ill be ollo3ed by the resear h methodolo/y4 3hi h 3ill lead

in to urther resear h. It ro ides a ully detailed a ount o the resear h

methodolo/y4 the reasons that the arious resear h strate/ies are sele ted4

and the rational or the sam le sele tion ro ess. It also deals 3ith the issue o

3hy the arti ular sur ey instrument 3as sele ted as bein/ a ro riate or the

urrent study.

8.; Statement Of Aims And O7"ecti@es

"he aim o this dissertation is to study the or/ani ational ulture and its im a t

on the em loyee er orman e. "his dissertation 3ould rimarily re ie3 and

riti#ue the e istin/ literature on or/ani ational ulture by authors 3ho ha e

3ritten on the sub8e t. "he literature re ie3 3ould a t as a lat orm in studyin/

the im a t o or/ani ational ulture on em loyee er orman e. !n e this

lat orm has been set then the ase study on "a8 7ala e4 Delhi an be arried

out.

"he ob8e ti e is to study as to 3hat is or/ani ational ulture and 3hat im a t

does the ulture o an or/ani ation ha e on its em loyees. %t the end o this

dissertation the resear her 3ould be able to re ommend measures.

"he ob8e ti es set or the se ondary resear h 3ere as ollo3s: "he resear h aims at studyin/ the or/ani ational ulture and its

im a t on em loyee er orman e in the or/ani ation. It aims also at studyin/ 3hat *ole does ulture lay in the strate/y

ormulation and im le!1entation. It deals 3ith ho3 it leads to the

ormulation o the aradi/m and ho3 does strate/y ormulation and

or/ani ational ulture lead to better er orman e in an or/ani ation. "o study 3hat im a t does or/ani ational ulture ha e on em loyee

er orman e@

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"he ob8e ti es outlined or arryin/ out the rimary resear h by the author

3ere: "o study the elements 3hi h onstitute the ulture o an

or/ani ation@ "o identi y the ty e o ulture resent in the or/ani ation.

"o study the im a t o or/ani ational ulture on em loyee

er orman e.

8.< Scope

% om lete study o a ariable li e ulture is not realisti . "o ee the resear h

on tra de inite s o e has been laid do3n. Ne ertheless as the resear h

ro/resses this s o e ould be narro3ed or broaden.

"he resear h 3ould be o erin/ arious as e ts o or/ani ational ulture and

itGs relationshi to em loyee er orman e. E en thou/h not all as e ts o

or/ani ational ulture 3ould be loo ed in to due to time and 3ord limit dearth.

"he resear h 3ould not be o erin/ ertain areas li e: !r/ani ational ulture han/e

=arious sub ultures 3ithin an or/ani ation !r/ani ational limate

Summary

"hus4 the intent o this dissertation is to e amine in detail e ery eature o

or/ani ational ulture and its im ortan e in the hos itality industry. It also aims

to analy e the im a t o or/ani ational ulture on the em loyees o the

or/ani ation 3ith the in rease in their le el o satis a tionKdissatis a tion.

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Chapter 29 !he Study Of Culture And Its /elationship to

Strategy (anagement

2.8 6hat Is An Organization

% ordin/ to "aylor and Farrell *199;+4 or/ani ations an be sim le or om le

thin/s. %n or/ani ation is ormed 3hen t3o or more eo le ha e a roblem to

sol e4 or a la e to /et to4 or ha e a de ision to ma e. It is a so ial entity 3here

eo le stri e to sol e the on li t bet3een their o3n and others ob8e ti es and

needs.

2.2 Organizational Culture

% ordin/ to "hom son *199,+ 3hen /rou o eo le 3or to/ether or any

len/th o time4 they orm and share ertain belie s about 3hat is ri/ht and

ro er. "hey establish beha ior atterns based on their belie s4G and their

a tions o ten be ome matters or habit4 3hi h they ollo3 routinely. "hese

belie s and 3ays o beha in/ onstitute the or/ani ationGs ulture.

"he resear her eels that ulture is re le ted in the 3ay eo le in an

or/ani ation er orm tas s4 set ob8e ti es and administer them. It a e ts the

3ay that they ma e de isions4 thin 4 eel and a t in res onse to the

o ortunities and threats. (ulture is so undamental that it a e ts beha ior

un ons iously

"he ulture o an or/ani ation is related to the eo le4 their beha ior and the

o eration o the stru ture. It is en a sulated in the belie s4 ustoms and alues

and mani ested in a number o symboli 3ays.

2.: Strategy And Culture

% ordin/ to "hom son *199,+ or/ani ational ulture di tates the 3ay

de isions are made4 the ob8e ti es o the or/ani ation4 the ty e o om etiti e

ad anta/e sou/ht4 the or/ani ation stru ture and systems o mana/ement4

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un tional strate/ies and oli ies4 attitudes to3ard mana/in/ eo le4 and

in ormation systems.

For these reason styles o or orate de ision ma in/4 leadershi and alues is

a entral dri in/ or e. "hey are al3ays im ortant4 and they are not easily

han/ed 3ithout the a ointment o a ne3 e e uti e. e ause they a t as a

dri in/ or e and a e t all as e ts o strate/i 4 mana/ement ulture is ully

e lored in the or/ani ation.

>ool3orthG *the hi/hest street retailers and are no3 a art o the in/ isher

/rou + identi ied their ustomer ser i e as bein/ a 3ea ness4 arti ularly

om ared 3ith their main ri als. 7eo le they ar/ued are a ma8or strate/i

resour e4 and they re le t the alues o the or/ani ation. >ool3orth introdu ed

a ustomer are trainin/ ro/ram entitled GE ellen eG4 and lin ed it to sta

re3ards. "here ha e been t3o a hie ements. First4 ustomer er e tion o

sta hel ulness and se ond mere ha e been inan ial /ains.

Strate/i mana/ement has been built around three im ortant elements: Strategic analysis 9 I an or/ani ation understands the nature o its

mar et and is /enerally a3are of, and res onsi e to4 han/es in the

en ironment as a 3hole4 it an be a su ess ul om etitor and a hie e

ro it and /ro3th. "he le els o su ess that it is a hie in/ 3ith urrent

strate/ies should be assessed4 and uture tar/ets or a ti ities4 3hi h are

di erent4 determined.

"his re#uires an analysis o urrent results4 an e aluation o urrent resour es

and an assessment o o ortunities and threats resent and de elo in/ in the

en ironment. "he alues and ulture held by the or/ani ation are a ru ial

a tor to in lude in this.


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be ause the en ironmental and resour e in luen es on the or/ani ation are

li ely to be inter reted in terms o the assum tions inherent in that ulture.

"o/ether4 a onsideration o the en ironment4 strate/i a ability4 the

e e tations and the ur oses 3ithin the ultural and oliti al rame3or o the

or/ani ation ro ides a basis or the strate/i analysis o an or/ani ation.

Strategic choice9 "his is on erned 3ith establishin/ 8ust 3hat ourses

o strate/i a tion are a ailable to an or/ani ation and ho3 these may

be e aluated and one or more sele ted. Strate/i hoi e de isions are

im ortant or determinin/ uture ourses o a tionH other strate/i

han/es may emer/e rom a more /radual ro ess o trial and error.

Strategic implementation9 % strate/y is only use ul 3hen it has been

im lemented4 and hen e the or/ani ation must ha e an a ro riate

stru ture4 lear and ontributory un tional strate/ies and systems that

ensure that the or/ani ation beha es in a ohesi e rather than a

ra/mented 3ay.

In order to im lement the strate/y the man/ers should /i e a lot o im ortan e

to the ulture o the or/ani ation. Im lementation in ol es de elo in/ an

or/ani ational ulture that is onsistent and ali/ned 3ith the ormulated

strate/y. rod3in and our/eios *1991+ state that an or/ani ationGs ulture an

be a ma8or stren/th 3hen it is onsistent 3ith strate/y and thus is a o3er ul

dri in/ or e in strate/y im lementation.

erry *19 + belie es that a ter 20 years o em hasis on analyti al te hni#ues

in strate/i mana/ement4 the on entration has s3it hed to the so ter as e t o

ulture. "he em hasis is no lon/er on the mar et la e4 but on 3hat man/ers

ould do to resol e internal roblemsH by usin/ ulture4 om anies ould

be ome more strate/i ally e e ti e.

Stron/ ultures4 then4 are an im ortant strate/i asset. Internali ed belie s an

moti ate eo le to e e tional le els o er orman e. %n e e ti e strate/iRashi Dua12


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leader understands and moulds the ulture in order that a ision an be

ursued and intended strate/ies im lemented.

Deal and ennedy *19 2+ ar/ue that em loyees .must be re3arded or

om lian e 3ith the essential ultural as e ts i these alues are to be

de elo ed and maintains o er timeH and they on lude that eo le 3ho build4

de elo and run su ess ul om anies in ariably 3or hard to reate stron/

ultures 3ithin their or/ani ations.

From their resear h4 deal and ennedy isolated i e ey elements or

determinants o ulture. "he en ironment and ey su ess a tors 3hat the or/ani ation must

do 3ell i it is to be an e e ti e om etitor. E am les are inno ation and

ast deli ery. "he alues that the strate/i leader onsiders im ortant and 3ishes to

see ado ted and ollo3ed in the or/ani ation. "hese should be relate to

the ey su ess a tors4 and to em loyees re3ard systems. &eroes "hey are the isionaries 3ho reate the ulture. "hey an ome

rom any ba /round. Rites and rituals: "he beha ior atterns in 3hi h

the ulture is mani est. "he ultural net3or : the ommuni ation system

around 3hi h the ulture re ol es.

*Further e lained in ha ter +

7eters *19 + oints out that essential ultural hara teristi s 3ill di tate the

re erred mode o strate/y reation in an or/ani ation. "he ulture 3ill

in luen e the ability o a strate/y isionary to sell his or her ideas to other

members o the or/ani ation to /ain their su ort and ommitment to han/e.

%n or/ani ation in 3hi h en ironmental o ortunities and threats arises

ontinuously in a situation o om etiti e haos an or/ani ation must be able to

deal 3ith them i it has to sur i e. It is the ulture4 3ith its amal/am o attitudes4

alues4 er e tions and e erien es4 3hi h determines the out omes and

relati e su ess.

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erry *19 + ar/ues that i a strate/i leader really understands the om any

ulture he or she must4 by de inition be e#ui ed to ma e 3ise de isions. !ne

an a om lish ultural han/e in order to shi t the irm to3ards a ne3

strate/y.

% ordin/ to the resear her i the business strate/ies and ulture are

intert3ined4 the ability to analy e and onstru t strate/ies and the ability to

man/e and ins ire eo le is also intert3ined. % /ood strate/y a no3led/es

3here the or/ani ation is and 3hat the or/ani ation has to do. De elo in/ and

im lementin/ strate/y is a human and oliti al ro ess that starts as mu h 3ith

the ision4 ho es and as irations o a om anyGs leaders as it does 3ith mar et

analysis.

Further rod3in and our/eois *1991+ state that or/ani ational ulture is a

rodu t o the mission statement and strate/ies and is a rimary o us in

sha in/ uture missions and strate/ies it is 3idely a no3led/ed in determinin/

the su ess or ailures o business.

Further &i man and Sil a *19 6+ state that i the strate/y thin in/ and ulture

are not ombined in the mana/ement o an enter rise than the oundation and

the stru ture o e ellen e 3ea ens. "he #uality o rodu ts and ser i es

de lines4 morale sa/s and sales and ro it lummet. >ithout the uni i ation o

strate/y and ulture4 e e uti es annot reate ne3 a/e e ellen e or their

or/ani ations. I a brilliant strate/y annot rely on healthy ultures to arry it

out4 little ho e e ists or a hie in/ /reatness.

$iles and Sno3 *19, + ha e su//ested di erent ty es o ty olo/ies or

or/ani ations 3hi h an be loo ed on to relation to ulture and strate/y

ormulation:

$efenders9 De enders are or/ani ations4 3hi h ha e narro3 rodu t

domain. In these ty es o or/ani ation4 to mana/ers are e erts in the

limited area o o eration. e ause o this narro3 o us4 these

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or/ani ations seldom need to ma e ma8or ad8ustments in their

te hnolo/y and methods o o eration. "hey de ote their attention in

im ro in/ the e i ien y o their e istin/ o erations. Prospectors9 "hey are or/ani ations that ontinually sear h or mar et

o ortunities and they re/ularly e eriment 3ith otential res onses to

emer/in/ en ironment trends. "hese or/ani ations are the reator o

han/e and un ertainty to 3hi h their om etitors must res ond. Analyzers9 "hey are or/ani ations that o erate in t3o ty es o rodu t

mar et domain4 one relati ely stable and the other han/in/. In their

stable areas4 these or/ani ations o erate e i iently 3ith ormali ed

stru tures and ro esses.

In ie3 o the resear her these ty olo/ies distin/uishes or/ani ations in term o

alues and ob8e ti es4 and di erent ty es 3ill ty i ally re er arti ular

a roa hes to strate/i reation. "hey ollo3 these strate/ies be ause o the

ulture that e ists in the or/ani ation. De enders4 ros e tors and analy ers

are all re/arded by $iles and Sno3 as ositi e or/ani ationsH rea tors must

ultimately ado t one o the three a roa hes or than su er lon/ term de line.

(ulture buildin/ attra ts4 de elo s4 moti ates and uni ies the ri/ht ind o

em loyees. Ea h ie e o an internally onsistent strate/y must it snu/ly 3ith

ea h ie e o an internally onsistent ulture in order to a hie e a /ood

em loyee er orman e.

2.; !he /ole Of Paradigm In Strategy 'ormulation


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It is im ortant to understand these 3ider as e ts be ause not only they /i e

lues about the aradi/m4 but also they are also li ely to rein or e the

assum tions 3ithin that aradi/m. "hey are the re resentation in

or/ani ational a tion o 3hat is ta en or /ranted. "hese di erent as e ts o

or/ani ational ulture4 to/ether 3ith the aradi/m itsel om rise the ultural

3eb.

'igure 2.8 !he role of paradigm in strategy formulation

BSource 1ohnson and Schoels# 8 D

"he elements o the ultural 3eb in lude: "he routine 3ays that members o the or/ani ation beha e to3ards

ea h other4 and to3ards those outside the or/ani ation4 ma e u the

3ay the thin/s are done in the or/ani ation. "his lubri ates the 3or in/

o the or/ani ation4 and may ro ide a distin ti e and bene i ial

or/ani ational om eten y "he rituals o the or/ani ational li e are the s e ial e ents throu/h

3hi h the or/ani ation em hasi es 3hat it is arti ularly im ortant and

rein or es the 3ay the thin/s are done in the or/ani ation. E am les are

ormal trainin/ ro esses li e trainin/ and inter ie3.Rashi Dua16

The role of paradigm in strategy formulation

Paradigm

Opportunitiesand threats

trengths and!ea"nesses

Opportunitiesand threats

trengths and!ea"nesses

trategy

#erforman$e


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"he stories told by members o the or/ani ation to ea h other4 to

outsiders4 to ne3 re ruits embed the resent in its or/ani ational history

and also la/ u im ortant e ents and ersonalities. "hey ty i ally ha e

to do 3ith su esses4 ma eri s and illains 3ho de iate rom the norm. Sym7ols su h as lo/os4 o i es4 ars and titles or the ty e o lan/ua/e

and terminolo/y ommonly used4 be ome a short hand re resentation o

the nature o the or/ani ation. In a lon/ established or/ani ation there

3ould be many symbols o hierar hy or de ense to do 3ith ormal o i e

layout4 the 3ay in 3hi h eo le address ea h other and so on.

E am les may be mobile hones and dinin/ rooms. Po er structures are asso iated 3ith the ey onstru ts o the

or/ani ation. "he aradi/m is4 in some res e ts4 the ormula or

su ess4 3hi h is ta en or /ranted and li ely to ha e /ro3n u o er

years. . "he a ountan y irms may o er a 3hole ran/e o ser i es4 but

ty i ally4 the most o3er ul indi iduals or /rou s are #uali ied

a ountants 3ith a set o assum tions about the business and its mar et

rooted in the audit ra ti e. 7o3er is not based on seniority. In some

or/ani ations4 o3er an be lod/e 3ithin other le els o un tions. "he control systems 4 measurements and re3ard systems4 em hasi e

3hat it is im ortant to monitor in the or/ani ation4 and to o us attention. Organizational structure is li ely to re le t o3er stru tures and a/ain

delineate im ortant relationshi s and em hasi e 3hat is im ortant in an

or/ani ation. %n or/ani ation 3ith indi idually based bonus s hemes

related to olume ould ind it di i ult to romote strate/ies re#uirin/

team3or and em hasi e on #uality rather than olume.

Rashi Dua17


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!he Cultural 6e7

'igure 2.2 !he cultural e7

BSource 1ohnson F Schoels# 8 D

In ie3 o the resear her4 ultural 3eb is a on e tual tool or understandin/

the underlyin/ assum tions4 lin ed to oliti al4 symboli and stru tural as e ts4

o an or/ani ation. "he aradi/m in ludes the set o assum tions4 3hi h are

rarely tal ed about4 3hi h are not roblemati 4 and about 3hi h man/ers are

unli ely to be e li it.

% ordin/ to


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"he relationshi bet3een the aradi/m and or/ani ational strate/y needs to be

lear. En ironmental or es and or/ani ational a abilities do not in

themsel es reate or/ani ational strate/yH eo le reate strate/y. "he or es

at 3or in the en ironment and the or/ani ationGs a abilities in o in/ 3ith

these are made sense o in terms o the indi idual e erien e o man/ers and

the olle ti e assum tions 3ithin the aradi/m.

En ironmental or es and or/ani ational a abilities 3hile ha in/ this indire t

in luen e on the strate/y ormulation4 nonetheless im a t on or/ani ational

er orman e more dire tly. "he ta en or /ranted ness in or/ani ations or

industries may4 then4 ha e ery onser ati e in luen e on the strate/y. %t the

or/ani ational le el the aradi/m is li ely to be lin ed to other as e ts o

or/ani ational ulture4 su h as or/ani ational rituals4 stories and the e eryday

routines o or/ani ational li e.

a cd e!"d19


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Chapter G : Organizational culture

%utomati data ro essin/ a om uter ser i e om any that ro esses ayroll

he s4 ta statements4 and other orms o 004000 om anies has a ro itre ord any mana/ement team 3ould en y. "he om any has in reased

earnin/s er share by 10M or more e ery #uarter or the ast 1 2 years.

% ordin/ to %D7Gs hairman and hie e e uti e4 eston 3as as ed

ho3 om any his om any does it4 he summed it u in one 3ord J ultureJ.

:.8 Introduction

"his ha ter ro ides an o er ie3 on or/ani ational ulture4 the im ortan eand nature o or/ani ational ulture. It also /i es a brie on ho3 ulture an be

ommuni ated and analy ed in an or/ani ation. It /i es detail insi/ht in to the

elements4 3hi h hel in sha in/ the ulture o an or/ani ation. "he abo e

/enerated dis ussion 3ould in turn hel in understandin/ the im a t o

or/ani ational ulture on em loyeeGs er orman e. "he abo e /enerated

dis ussion 3ould e lain 3hat im ortan e does or/ani ational ulture lay and

3hat re er ussions it has on the or/ani ation and in turn on the eo le

3or in/ in the or/ani ation. "his 3ould hel in identi yin/ 3hether the ulture

3ill a e t the er orman e o the em loyee.

:.2 $efining Organizational Culture

In ie3 o 4 Robbins *1996+ or/ani ational ulture is on erned 3ith ho3

em loyees er ei e the hara teristi s o an or/ani ationGs ulture4 not 3ith

3hether or not they li e them.

% stron/ or/ani ational ulture li e that 3as ound at %D7 ro ides em loyees

3ith a lear understandin/ o the 3ay the thin/s are su osed to be done.

E ery or/ani ation has a ulture and4 de endin/ on its stren/th4 ulture an

ha e a si/ni i ant in luen e on the attitudes and the beha iors o or/ani ation

members.

)eneraI ele tri o i es and eo le are di erent rom the o i es and eo le at

)eneral. &ar ard and $it are in the same business edu ation and se arated

a cd e!"d20


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only by the 3idth o the (harles Ri er4 but ea h has a uni#ue eelin/ and

hara ter beyond is stru tural hara teristi s

"hus4 the role layed by or/ani ational ulture on the em loyeeGs li es ould be

understood by the abo e e am le.

% ordin/ to S hein4 *1991+ there are se en rimary hara teristi s that in4

a//re/ate the essen e o an or/ani ationGs ulture.

8. Inno@ation and risH taHing9 "he de/ree to 3hi h em loyees are

en oura/ed to be inno ati e and ta e ris s. Inno ation means that

em loyees are allo3ed to e eriment 3ith their 8obs and allo3ed to ta e

ris s in the de isions that ta e la e.

2. Attention to details9 "he de/ree to 3hi h em loyees are e e ted

to e hibit re ision4 analysis and attention to detail.

:. Outcome orientation9 "he de/ree to 3hi h mana/ement de isions

ta e into onsideration the e e t o out omes on eo le 3ithin the

or/ani ation.

;. People orientation9 "he de/ree to 3hi h mana/ement de isions

ta e in to onsideration the e e t o out omes on eo le 3ithin the

or/ani ation. 7eo le orientation is a ery im ortant as e t o an

or/ani ationGs ulture. "he em loyees in the or/ani ation should be

satis ied 3ith the a ilities ro ided to them4 in order to satis y and moti ate

them.


24/109


om osite i ture o or/ani ationGs ulture. "his i ture be omes the basis or

eelin/s o shared understandin/ that members ha e about the or/ani ation4

ho3 thin/s are done in it4 and the 3ay members are su osed to beha e.

S hein *1991+ ar/ues that ulture should be reser ed or the basi assum tion

and belie s that are shared by members o an or/ani ation4 that o erate

un ons iously4 and that de ine in a basi ta en or /ranted ashion an

or/ani ationGs ie3 o itsel and its en ironment.

(ulture sho3s itsel in a olle tion o rules4 o ert and o ert4 in rin i les and

alues4 all stron/ly rooted in tradition4 3hi h in luen e beha ior 3ithin the

or/ani ation. It is the ommitment to ommon ob8e ti es and alues4 3hi h run

throu/h an or/ani ation. Further !GReilly - (hatman *1996+ state that

or/ani ational ulture an be de ined as Ja system o shared alues de inin/

3hat is im ortant4 and norms4 de inin/ a ro riate attitudes and beha iors that

/uide membersC altitudes and beha iorsJ.

For 3riters and resear hers 3ho ta e an Ganthro olo/i alG stan e4 or/ani ations

are ultures * ate 199;+ des ribin/ somethin/ that an or/ani ation is *Smir i h

19 + thus4 li e national ultures4 an or/ani ation om rises o :

1. % attern o shared basi assum tions4

2. In ented4 dis o ered4 or de elo ed by a /i en /rou 4

. %s it learns to o e 3ith its roblems o e ternal ada tation and internal

inte/ration4

;. "hat has 3or ed 3ell enou/h to be onsidered alid4 and4 there ore4

5. Is to be tau/ht to ne3 members o the /rou as the4

6. (orre t 3ay to er ei e4 thin 4 and eel in relation to those roblems

In this aradi/m4 or/ani ational ulture is both de ined and ir ums ribed by

/rou arameters *e./. lan/ua/e4 on e ts4 boundaries4 ideolo/y+ and by

normati e riteria that ro ides the basis or allo atin/ status4 o3er4 authority4

re3ards4 unishment4 riendshi and res e t *S hein 1991+. (ulture determines

3hat a /rou ays attention to and monitors in the e ternal en ironment and

ho3 it res onds to this en ironment.

a cd e!"d22


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(ulture4 in this aradi/m4 is not a se arable a et o an or/ani ation4 it is not

readily mani ulated or han/ed4 and it is not reated or maintained rimarily by

leaders. ! er time4 early leadersG belie s and beha iors are li ely to be

translated into assum tions that subse#uently /uide the or/ani ation. e ause

these assum tions o erate o ten at a sub ons ious le el and ome to be

shared by all or/ani ation members4 they are not easily dis la ed by ne3

or/ani ational alues and belie s arti ulated by later leaders. %lthou/h the use

o re3ards or san tions may rom t han/es in an em loyeeGs beha ior to

brin/ it into line 3ith ne3 stated alues4 it is usually a lon/ time be ore these

han/es in luen e the dee assum tions held by members entren hed in the

ulture.

Further ate *199;+ states that or/ani ational ulture is but one as e t o the

om onent arts o an or/ani ation4 a a et that an be measured4 mani ulated

and han/ed as an or/ani ational ariables su h as s ills4 strate/y4 stru ture4

systems4 style and sta .

In this aradi/m4 or/ani ational ulture is rimarily a set o alues and belie s

arti ulated by leaders to /uide the or/ani ation4 translated by mana/ers and

em loyees into a ro riate beha iors and rein or ed throu/h re3ards and

san tions. S ienti i rationalistC 3riters thus tend to tal about ulture as i it is a

de inable thin/ the ulture o the or/ani ationH the or/ani ation has a ser i e

ulture and their strate/ies or han/e o us on Gmodular4 desi/n and build

a ti ityC o ten related to stru tures4 ro edures and re3ards. * ate 199;4+

"hey dis uss or/ani ational ulture rom the ers e ti e o mana/ers4 rather

than 3or ers4 and o ten em hasi e the leaderGs role in reatin/4 maintainin/ or

trans ormin/ ulture: leaders hel to sha e the ulture. "he ulture hel s to

sha e its members ulture4 then4 stands at the a e o the leaderGs

res onsibility hierar hyC *&am den "urner 1990+.

"he resear her in ers that !r/ani ational ultures e ol e rom the so ial

ra ti es o member o the or/ani ations and are4 there ore4 so ially reated

a cd e!"d23


26/109


realities that e ist in the heads and minds o or/ani ational members as 3ell as

in the ormal rules4 I 8es4 and ro edures o or/ani ational stru tures. (ulture

is an on/oin/ ro ess o reality onstru tion4 ro idin/ a attern o

understandin/ that hel s members o or/ani ations to inter ret e ents and to

/i e meanin/ to their 3or in/ 3orlds.

"he on e t o or/ani ational ulture is de ined in many 3ays. $u h o the

on usion bet3een 3ritin/s on or/ani ational ulture stem rom the

undamental di eren es in ho3 ulture is de ined. !r/ani ational ulture

resear hers do not a/ree about 3hat ulture is or 3hy i should be studied.

"hey do not study the sane henomena. "hey do not a roa h the henomena

they do study rom the sane theoreti al or methodolo/i al oints o ie3.

:.: Importance of Culture

!r/ani ational ultures are im ortant to a irmGs su ess or se eral reasons.

"hey /i e an or/ani ational identity to em loyees a de inin/ ision o 3hat the

or/ani ation re resents. "hey are also an im ortant sour e o stability and

ontinuity to the or/ani ation4 3hi h ro ides a sense o se urity to its

members. %t the same time4 no3led/e o oneGs or/ani ational ulture hel s

ne3er em loyees inter ret 3hat /oes on inside it4 by ro idin/ an im ortant

onte t o e ents that 3ould other3ise seem on usin/. $ore than anythin/

else4 erha s4 ultures hel stimulate em loyee enthusiasm or their tas s.

(ultures attra t attention4 on ey ision4 and ty i ally honor hi/h rodu in/ and

reati e indi iduals.

Robbins *1996+ oints out that ulture er orms a number o un tions 3ithin an

or/ani ation. First4 it has a boundary de inin/ role4 that is4 it reates distin tion

bet3een one or/ani ation and others. Se ond4 it on eys a sense o identity or

or/ani ation members. "hird4 ulture a ilitates the /eneration o ommitment

to somethin/ lar/er than oneGs indi idual sel interest. Forth4 it enhan es so ial

system stability. (ulture is the so ial /lue that hel s hold the or/ani ation

to/ether by ro idin/ a ro riate standards or 3hat em loyees should say

and do. (ulture ser es as a sense ma in/ and ontrol me hanisms that /uides

a cd e!"d24


27/109


and sha es the attitude and the beha ior o em loyees.

(ulture by de inition is elusi e4 intan/ible4 im li it4 and ta en or /ranted. ut

e ery or/ani ation de elo s a ore set o assum tions4 understandin/s4 and

im li it rules that /o ern day to day beha ior in the 3or la e until ne3 omers

learn the rules4 they are not a e ted as ull led/ed members o the

or/ani ation. "rans/ressions o the rules on the art o hi/h le el e e uti e or

ront line em loyees result in uni ersal disa ro al and o3er ul enalties.

(on ormity to the rules be omes the rimary basis or re3ard and u 3ard

mobility.

"he role o ulture in in luen in/ em loyee beha ior a ears to be in reasin/ly

im ortant in the 1900Gs. !r/ani ations ha e 3idened s ans o ontrol4 lattened

stru tures4 introdu ed teams4 redu ed ormali ation4 and em o3ered

em loyees4 the shared meanin/s ro ided by a stron/ ulture ensures that

e eryone is ointed in the same dire tion.

7eters and >aterman *19 2+ oint out that the stron/er the ulture and the

more it 3as dire ted to3ard the mar et la e4 the less need there 3as or oli y

manuals4 or/ani ation harts4 or detailed ro edures and rules. In these

om anies4 eo le 3ay do3n the line no3 3hat they are su osed to do in

most situations be ause hand ul o /uidin/ alues is rystal lear.

(ulture matters be ause it is a o3er ul4 latent4 and o ten un ons ious set o

or es that determine both indi idual and olle ti e beha ior.4 3ays o

er ei in/4 thou/ht atterns4 and alues. !r/ani ational ulture in arti ular

matters be ause ultural elements determine strate/y4 /oals4 and modes o

o eratin/. "he alues and thou/ht atterns o leaders and senior mana/ers are

artially determined by their o3n ultural ba /rounds and their shared

e erien e.

:.; Elements of an Organizations Culture

% ordin/ to )a/ne *19 6+ there are some elements o ulture

Shared @alues9 (ulture in ol es shared alues4 or so ial ideas or normati e

a cd e!"d25


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belie s about ro er beha ior in arious situations. "he stren/th o a ulture

has to do 3ith the de/ree to 3hi h these shared alues ha e been internali ed

by or/ani ational members belie systems or/ani ational ultures are

in luen ed by t3o ty es o belie s /uidin/ belie s and daily belie s. "he /uidin/

belie s /i e dire tion to ra ti al4 nitty /ritty daily belie s. % ommon roblem in

om anies is that daily belie s are not on/ruent 3ith o erar hin/ /uidin/

belie s.

Artifacts9 Symboli arti a ts o ulture om rise o rituals4 rites4 myths4 norms4

symbols4 le/ends4 heroes4 and eremonies. In authorGs ie3 OIGS rituals4 myths4

stories and so on are the e e ts o ulture4 not ulture itsel . "hese arti a ts

orm a system o su ort and maintenan e or the set o the re ailin/ belie s.

%s the isible e ression o the ulture4 they are the e e t o the entral ause4

the shared or olle ti e aradi/m.

Cultural strength9 "here also seems to be an inherent bias in the literature

that a stron/ ulture4 one hara teri ed by 3ides read and stron/ normati e

/uides to beha ior4 is someho3 better than a 3ea ulture 3hi h has irtually

no ommon alues or belie s held by a si/ni i ant number o or/ani ational

members.

% ordin/ to the resear her4 a stron/ ulture does not ha e to be ositi eH

ne/ati e or destru ti e alues an be 3idely held in a stron/ ulture. $any o

the stron/ ulture om anies that 7eters and >aterman *19 2+ de lared

e ellent in their in sear h o e ellen e in 19 2 subse#uently stumbled in the

mar et la e4 althou/h many ar/ued that4 their de lines 3ere aused by

en ironmental a tors that 3ere unrelated to ultural stren/th.

% ordin/ to


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eo le o the or/ani ation.

*eroes are the eo le 3ho ha e been su ess ul by sti in/ to or orate

alues. "hey ro ide a role model or other members o the or/ani ation and at

the same "ime illustrate that su ess lies 3ithin the /ras o all em loyees.

"hey set out standards o beha ior4 they all attention to the 3ay ro edures

the moti ational or e o or/ani ational ulture is rein or ed throu/h rites and

rituals 3hi h see to ommuni ate to em loyees 3hat they are e e ted to do

it. "hey set out standards o beha ior4 they all attention to the 3ay in 3hi h

ro edures are to be arried out and they ro ide o ortunities or the

or/ani ation to let o stam throu/h or/ani ed e ents.

"he cultural net orH is the in ormal or/ani ation throu/h 3hi h mu h o the

ommuni ation o the ulture ta es la e. It is the hidden hierar hy that 3hi h

ties to/ether all arts o the om any.

+ayers Of Organizational Culture

a cd e!"d27

Artifacts #isi le y$ften

%npredicta le

#alues

Assumptions

Greater le&el

$f A'areness

Ta"en for

Granted

Assumption


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'igure :.8 +ayers of organizational culture

BSource 1ones and +ocH ood# 8 2D

S hein *1991+4 li e other ommentators4 di erentiates number o le els o

or/ani ational ultures. "he irst le el is a isible arti a t4 3hi h onsists o

te hnolo/y4 art and isible and audible beha ior. "he se ond le el alues o us

on 3hy eo le beha e as they do4 and the nature and role o alues in

determinin/ em loyeeCs a tions. 'nderlyin/ alues are basi assum tions the

third le el. "hese assum tions are ty i ally un ons ious but a tually determine

ho3 /rou members er ei e4 thin and eel.

"he resear her eels that ulture onsists o a ariety o elements4 3hi h an

o ur on di erent le elsH symbols4 myths4 ideolo/ies4 and rituals. Symbols

ro ide meanin/ and e o e emotions. Aan/ua/es are a olle tion o symbols.

(ultures also onsist o no3led/e and assum tion o/niti e systems4 models

and rame3or s that stru ture 3hat members no3 and ho3 they thin 4 reason4

ar/ue and de ide.

(ulture is the un3ritten4 ta en or /ranted4 eelin/ art o the or/ani ation.

"he ur ose o the or/ani ationGs ulture is to ro ide members 3ith a sense o

identity and to /enerate memberGs ommitment to belie s and alues that are

lar/er than them. (ulture also enhan es the stability o the or/ani ation and

ro ides members 3ith understandin/ that an hel them ma e sense out o

or/ani ational Is and a ti ities.

:.< Cultural !ypologies

Po er Culture

% ordin/ to &arrison *1992+ many small enter rises and lar/e on/lomerates

su h dis lay the hara teristi s o a entrali ed o3er ulture. E en $int ber/

re o/ni es this in his a ount o a di isionalised stru ture. "his model is ery

li e >eberCs (harismati or/ani ation. It is li e a 3eb 3ith a rulin/ s ider.

"hose in the 3eb are de endent on a entral o3er sour e. Rays o o3er and

in luen e s read out rom a entral i/ure or /rou . "here may be a s e ialist

or un tional stru ture but entral ontrol is e er ised lar/ely throu/h

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a ointin/4 loyal ey indi iduals and inter entionist beha ior rom enter.

Em hasis is on 3him and ersonal in luen e rather than on ro edures or

urely lo/i al a tors. Su h or/ani ations an be stron/4 roud and dynami 4

rea t #ui ly to e ternal demands.

ro3n *1992+ is o a ie3 that the 3or is assi/ned to the em loyees on the

basis o the ersonal needs and resour e o3er and to a lesser e tent

harisma are the main bases o e er ise o authority. In o3er ulture due to

the de isions ta en by a e3 eo le at the enter the eo le 3ith the hi/her

authority an ontrol otherGs a ti ities. "his ty e o ulture is hi/hly de endant

on trust4 em athy4 and ersonal ommuni ation or its e e ti eness. &e states

that in this ty e o ulture the erson at the enter ta es most o the de isions.

%s the o3er or/ani ation /ro3s4 the entrist ulture brea s do3n i it be omes

im ossible or the enter to ee u its inter entionist4 o oordinatin/ role. "he

lar/e or/ani ation may need to di isionalise * reate other s iders 3ebs lin ed

to the entral 3eb+.

/ole culture

! ten re erred to as a bureau ra y4 it 3or s by lo/i and rationality. Its illars

re resent un tions and s e ialists. De artmental un tions are delineated and

em o3ered 3ith their role e./. the inan e de t.4 the desi/n de t et . >or

3ithin and bet3een de artments * illars+ is ontrolled by ro edures4 role

des ri tions and authority de initions. "here are 3ell de ined ommuni ation

stru tures and rodu ts * ommittee onstitutions and re orts4 ro edure

manuals4 o i ial memoranda.

% ordin/ to ro3n *1992+ osition o3er and to a lesser e tent e ert o3er

are the main bases o e er ise o authority in this ty e o ulture. "he

res e ti e de artments ta e the de isions but these ha e to be a ro ed by

the to e e uti es. !ne erson ontrols the otherGs a ti ities 3hen his role

res ribes him to do so. Rules ro edures and 8ob des ri tions dominate the

internal en ironment o a role ulture. In role4 ulture the 8ob is arried out or

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33/109


to its o erall alues. In some or/ani ations there is a lear it bet3een the

model ulture and the a tual or/ani ation.

:.> Strong =s. 6eaH CulturesRobbins *1996+ is o a ie3 that stron/ ultures ha e a /reater im a t on

em loyee and are more dire tly related in redu in/ the turno er.

In a stron/ ulture4 the or/ani ationGs ore alues are both intensely held and

shared. "he more members 3ho a e t the ore alues and the /reater their

ommitment to those alues4 the stron/er the ulture is. % stron/ ulture 3ill

ha e a /reat in luen e on the beha ior o its members be ause the hi/h de/ree

o shared ness and intensity reates an internal limate o hi/h beha ioral

ontrol. !ne s e i i result o a stron/ ulture is lo3er em loyee turno er. %

stron/ ulture demonstrates hi/h a/reement amon/ members about 3hat the

or/ani ation stands or.

Ni e in . has a stron/ s orts oriented ulture instilled by its ounder 7hili

ni/ht.

Ni eCs or orate /oal is to Jenhan e eo leGs li es throu/h s orts and itnessGJ

Ni e is run by ormer ro4 olle/e4 and !lym i athletes 3ho desi/n and mar et

shoes and lothin/ or s orts enthusiasts. Ni e head#uarters in ea erton4

!re/on4 is a ,; re 3orld am us 3ith 3al in/ and 8a//in/ trails and buildin/s

named a ter Ni e heroes su h as


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em loyee er orman e.

% ordin/ to Robert reitner *1999+ sym toms o a 3ea or/ani ational ulture

in lude the ollo3in/: In ard focus9 "he internal oliti s ha e be ome more im ortant than

the real 3orld roblems in the mar et la e (orale pro7lems9 "here is hroni unha iness and hi/h turno er

'ragmentation9 "here is a la o it in the 3ay eo le beha e4

ommuni ate4 and er ei e roblems and o ortunities Ingro n su7cultures9 "here is a la o ommuni ation amon/ the sub

units

In ie3 o the resear her4 e iden e o these sym toms may en oura/e a

otential re ruit to loo else3here. Ea h o these sym toms o a 3ea

or/ani ational ulture an be a ormidable barrier to or/ani ational

e e ti eness. >hen the ulture is stron/4 eo le no3 3hat is e e ted o

them.

:.4 %ature of Organizational Culture

% ordin/ to reitner *1999+ or/ani ational ulture is a olle tion o shared

belie s4 alues4 rituals4 stories4 myths and s e iali ed no3led/e that oster a

eelin/ o ommunity amon/ or/ani ation members.

(ulture4 althou/h based on ta en or /ranted or Jin isibleJ a tors e ert a

o3er ul in luen e on beha ior. !r/ani ational ulture is the so ial /lue that

binds an or/ani ationCs members to/ether. >ithout the a re iation or the

ultural as e t4 an or/ani ation is 8ust a meanin/less olle tion o harts4 tas s

and eo le. !r/ani ational ultures an ary 3idely rom one or/ani ation to

the ne t. % /ood or/ani ational ulture should ossess the ollo3in/

hara teristi s: Collecti@e9 !r/ani ational ulture is so ial entities. >hile an indi idual

may e ert a ultural in luen e4 it ta es olle ti e a/reement and a tion

or an or/ani ation s ulture to ta e li e o itGs o3n.

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Emotionally charged9 "he em loyees tend to ind their or/ani ationG

ulture a om ortin/ se urity blan et that enables them to deal 3ith their

inse urities and un ertainties. Em loyees de elo a stron/ emotional

atta hment to their aIua1 se urity blan et. *istorically 7ased9 Shared e erien es4 o er e tended eriods4 bind

/rou s o eo le to/ether. "3o ey om onents o ulture are earned

by onsistently demonstratin/ redi table atterns o 3ords and a tions. Inherently sym7olic9 % tions may s ea louder than 3ords. ut some

3ords or slo/ans ha e a /reat symboli meanin/ that sha e an

or/ani ationGs entire ulture and entity.

In ie3 o S enley *1992+ the or/ani ational ulture is the main reason 3hy

total #uality mana/ement is re#uired or om anies to meet the om etiti e

hallen/e by o usin/ on em loyeeGs re#uirements.

In his ie34 any om any ould ha e an internally or e ternally o used

or/ani ational ulture. Internally o used om anies are: 'n lear 3ho the ustomers are

No er orman e measures re le tin/ ustomer re#uirements

No /ood ersonal relationshi 3ith ustomers

>hereas an e ternally based or/ani ational ulture om anies are 7roa ti e attem ts to de ine ustomerGs re#uirements throu/h

understandin/ o the ustomerGs business (lear mission statement and business dri ers

7ositi e a roa h to3ards roblem sol in/

(learly de ined er orman e measures re le tin/ em loyees needs

%n or/ani ational ulture should hel to de ine the ollo3in/ *)a/ne4 1995+ %orms9 Standards o beha ior to 3hi h eo le in the ulture are

e e ted to adhere. !r/ani ations ha e an intri ate set o norms 'olH ays9 "he ustomary and4 habitual 3ays in 3hi h eo le a t in a

/i en ulture. "hese are un ons ious ritual a ts4 su h as sha in/ hands

3hen meetin/.

a cd e!"d33


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Sym7ols9 "hey are thin/s or e ents that ha e s e ial meanin/s in a

/i en ulture. (eremonies4 rites and stories are symbols o dee ly held

alues in the ulture. Ceremonies and rites9 Elaborate lanned e ents held to elebrate

or/ani ational alues. "hese are dramati in nature so that they

rein or e s e i i ultural alues4 reatin/ a bond o shared

understandin/ and anointin/ ultural heroes and heroines. (yth9 Fre#uently told stories about the or/ani ation4 based on true or

ima/inary e ents. "hese narrati es are o ten shared amon/ em loyees

and mid to ne3 omers.

!r/ani ation ulture is isible rom the 3ay eo le beha e4 their intera tions

internally and 3ith outsiders4 and the systems or rituals they establish.

7etti/re3 *19 6+ oints out that all members o an or/ani ation share alues in

#uestion. &e o uses not on the or/ani ation but on the /rou . &e notes that

3hen eo le 3or to/ether they de elo a sense o 3hat they are doin/ and

3hy4 o ho3 they should relate to ea h: in short a system o meanin/s.

&o3e er4 he does not assume that ultures are ne essarily ositi e4 or

inte/ratin/ or shared.

7etti/re3 sensibly ob8e ts to the assum tion that ultures are unitary4

onsensual and onsistent. &e re ers to ar/ue that ulture is a sour e o a

amily o on e ts4 all o 3hi h ha e their use: symbol4 ideolo/y4 ritual4 belie .

% ordin/ to him or/nai ationCs ulture be omes er etuated by its tenden y to

attra t and retain eo le 3ho its its alues and belie s. "his results in a /ood it

bet3een the em loyer and the em loyee.

In the ie3 oint o "hom son and $ &u/h *1990+ or/ani ational ulture

a roa hes resent themsel es as arti i ati e and an alternati e to o ertly

ontrollin/ or/ani ational dis i line strate/ies.

In ie3 o the resear her4 or/ani ational ulture is a system o alues4 attitudes

and symbols that /ro3s u 3ithin or/ani ation be ause o the a ti ities o its

a cd e!"d34


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'ormation of Organizational Culture

'igure :.2 'ormation of org Organizational Culture

BSource /o77ins# 8 >D

:. Impact of Culture on Employee Performance

% ordin/ to %s3atha a *2000+ or/ani ational ulture ser es as a ontrol

me hanism in dire tin/ the beha ior o the em loyees. (losely lin ed to

e e ti e ontrol is the use o the norms to /uide beha iors. "hese e e tations

re/ardin/ a ro riate and ina ro riate beha iors are /reatly in luen ed by

ulture4 and stron/ ultures ha e both onsensus and intensity re/ardin/ these

norms. In 3ea ultures onsensus may be resent but at the initial sta/es is

not resent in ie3 o the resear her or/ani ations that ha e stron/ ulture

o ten ha e /reat di i ulty in han/in/ their strate/ies and beha ior. "he norms

that di tate these a tions are rein or ed so stron/ly that the ersonnel are

relu tant to abandon them in a or o other beha iors.

a cd e!"d36

#hilosophy of organi ation

founders and $orporate philosophy statements

ele$tion $riteria

Organi ational$ulture

Top(anagement

o$iali ation


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!r/ani ational ulture has its im a t on the er orman e and satis a tion Go

the or/ani ational members. "here is a stron/ relationshi bet3een ulture and

satis a tion4 but indi idual needs and the ulture moderates this. Satis a tion is

the hi/hest 3hen there is on/ruen e bet3een the indi idual needs and the

ulture.


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or/ani ational ulture 3ill e it oluntarily or in oluntarily. "he members o the

or/ani ation are in ol ed in ma in/

u o the ulture o an or/ani ation. "his ulture is re le ted in the mana/ement

ro esses and the beha iors o the eo le in theL or/ani ation. "he ulture o

the or/ani ation in turn leads to or/ani ational e e ti eness.

"he resear her in ers that in order to ha e a ositi e4 sustained im a t on

satis a tion and er orman e4 ulture must be aluable4 rare4 and inimitable. I

a ulture an be imitated4 then ado tion o the ulture by the om etitors 3ill

slo3ly eliminate the om etiti e ad anta/es o the ulture. (ulture has im a t

on ontrol4 normati e beha ior4 inno ation and member er orman e and

satis a tion.

o3man *19 ,+ oints out that ulture is an im ortant as e t o or/ani ations4

es e ially or the ersons 3or in/ in them. %n em loyee is unli ely to be

unha y i heKshe is undamentally at odds 3ith the or/ani ational ulture.

Further %s3atha a *2000+ states that or/ani ational ulture ser es as a

ontrol me hanism in dire tin/ beha ior. >hen indi iduals are not in

a ordan e 3ith the belie s and alues o the ulture4 man/ers and o 3or ers

3ill insist on a orre ti e a tion.

% ordin/ to Smiri h *1992+4 the on e t o ulture has been lin ed

in reasin/ly 3ith the study o the or/ani ation. &e has ar/ued a dire t and a

ositi e onne tion bet3een the nature and stren/th o or/ani ational ultures

and le el o or/ani ational er orman e and e e ti eness.

Interest in or/ani ational ulture omes rom t3o di erent dire tions. % ordin/

to Frost *1991+ there are a ademi s and resear hers 3ho 3el omed the to i

o ulture as a lon/ o erdue o J resh airJ and antidote to sterile number

run hin/ o used on easily measured ariables.

a cd e!"d38


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In ie3 o the resear her4 the a eal o ulture in or orate analysis stems

rom the hi/h le el o on ern amon/ man/ers and some s holars 3ith the

im ortan e o em loyee ommitment or or orate er orman e. . Interest in

the e ellent er orman e o


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!r/ani ations ha e 3idened s ans o ontrol4 lattened stru tures4 introdu ed

teams4 redu ed ormali ation4 and em o3ered em loyees4 the shared

meanin/s ro ided by a stron/ ulture ensures that e eryone is ointed in the

same dire tion.

7eters and >aterman *19 2+ ar/ue that in e ellent om anies em loyees are

ommitted to their or/ani ationGs and to itGs /oals4 and that it is a irmer basis

or a hie in/ om etiti e e ellen e rather than the traditional determinants o

beha ior stru tures4 ro edures and rules.

:.83 Communicating Culture

In the ie3 o )a/ne *19 6+ or/ani ations should ons iously reate and

mana/e their ultures. "hey must be able to ommuni ate the ulture to their

em loyees. Formal ommuni ation ehi les or transmittin/ the or/ani ational

ulture in lude ision o their irmGs uture4 or orate hiloso hy statements4

and odes o ethi al ondu t. In ormal means in ol e ubli ly re o/ni in/

heroes and heroines4 retellin/ histori al su ess

"he resear her in ers that the ommuni ation may ta e la e by ormal

methods as 3ell as in ormal methods. %ll these methods hel in sha in/ the

attitudes4 thou/hts and beha ior o em loyees. (ommuni ation is an im ortant

as e t o ulture. Em loyees rom di erent arts o the business4 and at

di erent le els in the hierar hy 3ill eel 3illin/ and able to tal o enly 3ith ea h

other4 sharin/ roblems4 ideas and learnin/. (ulture has to be ommuni ated

to all the le els o the or/ani ation. It is hel ul i em loyees no3 ho3 3ell

om etitors are er ormin/4 3here they are arti ularly stron/4 so they an

ommit themsel es to hi/h le els o a hie ement in order to out er orm their

ri als.

(ulture is based on ommuni ation and learnin/. "he leaderGs ision or the

or/ani ation must be ommuni ated and understoodH e ents and han/es

a e tin/ the or/ani ation also need to be ommuni ated 3idely.

a cd e!"d40


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*o culture leads to organizational effecti@eness

'igure :.: Culture and organizational effecti@eness

BSource 1ohnson F Schoels# 8 D

a cd e!"d

() *election and hiring ofmem ers)

+) Remo&al ofde&iate mem ers

En&ironmentalfactors*ocial normsPolitical eliefs,ational e&ents andhistory

$rganizationaleffecti&enessProductionEfficiency*atisfaction

-) ManagerialfunctionsPlanning$rganizing.eading/ontrolling

0) $rganizationalcharacteristics1eha&ior*tructureProcesses

$rganizational culture

2eed ac"

41


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:.88 Analysis of Culture

% ordin/ to )a/ne *19 6+ ore astin/ is used or de i herin/ the

or/ani ational ulture. "his ro ess e lains about a om anyGs daily ulture4

3hether or not eo le e e tations are met. "he three ste ro ess4 based on3eather ore astin/ analo/y is as ollo3s:

!rade inds 7eo le are brou/ht to/ether and a tions o oordinated

to a hie e some ur ose :ob8e ti es are established4 riorities

determined4 and resour es allo ated !emperature It is the hotness or oldness o morale relati e to ea h

ersonGs er e tion o 3or . Ceiling le@els "he le el o desire ommitment4 and ener/y or

or/ani ational /oals. "his de ends on the or/ani ationGs history4

traditions and norms.

"his measure indi ates the it bet3een the re ailin/ ulture and indi idual

alues and needs. I the em loyees ado t the alues o the re ailin/ ultureH

the ulture is said to be /ood. I not the ulture is oor and morale4 moti ation4

and rodu ti ity are e e ted to dro . Sur eys su h as this 3ill hel to identi y

a ulture or oint out the 3ay to ne3 oli ies4 ro edures and norms or a more

e e ti e ulture.

ilmann and Sa on*1991+ ha e de elo ed the ulture /a sur ey to measure a

om anyGs e istin/ ulture and identi y the di eren e bet3een that and the

Jdesired ultureJ. *(ultural /a +. "he /reater the /a 4 the /reater is the

li elihood that urrent norms reate an ine e ti e ulture.

Ed/ar S hein has de elo ed a 10 ste J ultural auditJ:

1. Entry and focus on surprises "he onsultant enters the /rou and

be/ins to eel the e istin/ ulture and 3at hes o sur rises.

2. Systematic o7ser@ation and checHing "he onsultant he s to see

i sur rises are really that

. +ocating a moti@ated insider "he onsultant tries to ind an insider

that is4 someone amiliar 3ith the ulture4 3ho an e aluate it.

a cd e!"d42


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;. /e@ealing the surprises# u lements4 and hun hes: in a andid 3ay4

the onsultant re eals his or her data to the insider or alidation.

5. 1oint e ploration to find e planations "o/ether the onsultant and

the insider attem ts to it obser ations 3ith /uidin/ belie s4 attitudes

and alues to e lain beha ior.

6. 'ormalizing hypotheses "he t3o ollaborate to orm hy otheses

about the ulture based on dataH these be ome the model o the

ulture.

,. Systematic checHing and consolidation 'sin/ the understandin/

/ained thus ar4 the onsultant /ets more data rom #uestionnaires4

inter ie3s and so on.

. Pushing the le@el of assumptions !n e the hy otheses are

alidated4 the onsultant deri es ultural assum tions and sees ho3

they a e t 3hat the members see and do and belie e.

9. Perpetual recali7ration "he model o ulture is ine tuned throu/h

testin/ on other insiders to see i it a tually re eals the underlyin/

assum tions o the ulture.

10. 'ormal ritten description "he onsultant redu es the model to

3ritin/ and sho3s it around. "he 3ritten orm is e t urrent o er time.

% ordin/ to $abey and Solomon *1996+ inter ie3s and o en ended

#uestionnaires an be used to measure the em loyee alues and belie s.

E aminations o the or orate hiloso hy statements ha e ro ided insi/ht in

to the es oused ulture. %nother a roa h is to sur ey em loyees dire tly and

see their er e tion o the or/ani ationGs ulture. !ne o the methods is to

be ome a member o the or/ani ation and emer/e in arti i ant obser ation.

"his allo3s dire t sensin/ rom the ers e ti e o a member 3ho is

e erien in/ the ulture.

"he resear her in ers that any attem t to or/ani ational ulture an only be an

im er e t assessment. Su h measurements a ture only a sna shot o the

ulture at a sin/le oint in time. $any or/ani ational ultures are in the ro ess

o han/in/ and need to be monitored re/ularly and by a ariety o methods to

/ain a truer i ture.a cd e!"d43


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Chapter ;9 Employee Performance

;.8 6hat is Employee Performance

% ordin/ to anun/o *1990+ er orman e re ers to an em loyeeGs mani estbeha ior at 3or 4 3hereas. the term rodu ti ity re ers to the net out ome o

em loyee er orman e. 7er orman e or rodu ti ity is a onse#uen e o a set

o three a tors: "he em loyeeGs attributes su h as hisKher a titudes and abilities4

trainin/4 e erien e4 and hysiolo/i al ma eu . &isKher in lination or moti ation to e end the ne essary e ort to

er orm "he or/ani ational su ort system4 3hi h in ludes the hysi al and

so ial en ironment in the 3or la e4 te hnolo/y4 and the administrati e

oli ies and ro edure.

Em loyee attributes relate to the dis ositional a a ity to er orm4 em loyee

in lination to ut in 3or e orts relate to the dis ositional a a ity to er orm4

em loyee in lination to ut in 3or e ort relates to 3illin/ness or moti ation to

er orm4 and or/ani ational su ort /i en to em loyees relates to the

o ortunity to er orm. "hese three a tors 3hen ombined multi li ati ely4

determine er orman e out ome. "he indi idual er orman e e#uation may

there ore be stated as ollo3s:

7er orman e out omesQ indi idual attributes moti ation to ut in

e ort or/ani ational su ort


47/109


the ri/ht e ort to the ri/ht 8ob in the ri/ht atmos here in the ri/ht la e at the

ri/ht time.

"here are t3o main areas o on ern the er orman e o indi idual members

o sta 4 and the olle ti e er orman e o the sta as members o a team.

% hie in/ the best rom an indi idual 3ill im ro e the o erationGs er orman e.

% ordin/ to Robbins *1996+ er orman e is the indi idualGs er orman e

e aluation. "o ma imi e moti ation4 eo le need to er ei e that the e ort they

e ert leads to a a orable er orman e e aluation and that the a orable

e aluation 3ill lead to the re3ards that they alue.

% ordin/ to anun/o *1990+ er orman e out omes 3ould be oor not only in

the ase o lo3 em loyee moti ation4 but also in the ase o lo3 em loyee

a a ity to er orm4 and la o or/ani ational su ort. Aa o or/ani ational

su ort and em loyee a ability to er orm in turn leads to lo3er em loyee

moti ation to er orm. "he relationshi s amon/ the arious om onents

ne essary or understandin/ 3or moti ation onstraints and er orman e

de i its are summari ed in i/ure 2.1.

a cd e!"d45


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/elationships Among =aria7les Affecting Employee Producti@ity

'igure ;.8 /elationship among @aria7le affecting employee producti@ity

BSource 5anungo# 8 3D

;.2 Performance E@aluation

Robbins *1996+ states that the riteria that mana/ement hooses to e aluate4

3hen a raisin/ em loyee er orman e 3ill ha e a ma8or in luen e on 3hatem loyees do.

(ethods of performance e@aluation

"he ma8or er orman e aluation methods are 6ritten essays9 "he sim lest method o e aluation is to 3rite a

narrati e des ribin/ an em loyeeCs stren/ths4 ast er orman e4

otential and su//estions or im ro ement. "he 3ritten essay re#uires

a cd e!"d

o$io-ultural

nd&n ironment

aria les

&mployee(oti ation

To#erform

&mployee#erforman$e

)eha ior

#rodu$tiityor

performan$e

out$omefor

organi ation

&mployee-apa ility

To#erform

Organi ationalupportystem

46


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no om le orms or e tensi e trainin/ to om lete. ut the results o ten

re le t the ability o the 3riter:. Critical incidents9 (riti al in idents o us the e aluatorGs attention on

those beha iors that are ey in ma in/ the di eren e bet3een e e utin/

a 8ob e e ti ely and e e utin/ it ine e ti ely. "hat is4 the a raiser

3rites do3n ane dotes that des ribe 3hat the em loyees did that 3as

es e ially e e ti e or ine e ti e. )raphic rating scales9 !ne o the oldest and most o ular methods o

e aluation is the use o /ra hi ratin/ s ales. In this method4 a set o

er orman e a tors4 su h as #uantity and the #uality o 3or 4 de th o

no3led/e4 o o eration4 loyalty4 attendan e4 honesty and initiati e is

listed. "he e aluator then /oes do3n the list and rates ea h on

in remental s ales. "he s ales s e i y i e oints. eha@iorally anchored rating scales *bars+ ombine ma8or elements

rom the riti al in ident and /ra hin/ rate a roa hes. "he a raiser

rates the em loyee based on items alon/ a ontinuum4 but the oints

are e am les o a tual beha ior on the /i en 8ob rather than /eneral

des ri tions or traits. ars s e i y de inite4 obser able4 and measurable

8ob beha ior. (ultiperson comparisons "hey e aluate one indi idualGs er orman e

a/ainst the er orman e o one or more others. It is a relati e rather than

an absolute measurin/ de i e. "he three most o ular om arisons are

/rou order ran in/4 indi idual ran in/ and aired om arisons.

;.: Employee Performance As A 5ey /esult Area

hile it is relati ely strai/ht or3ard

to onsider the onse#uen es or the or/ani ation4 it is less ob ious 3hat the

results 3ill be or the indi idual or the /rou . Su ess ul em loyee er orman e

must be a mutually bene i ial relationshi H it should not only result in the

ul illment o the or/ani ationGs e e tations but also ro ide satis a tion o the

indi idualGs needs.

a cd e!"d47


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em loyee and the or/ani ation or the em loyee in terms o ay4 bonuses4

re o/nition4 and a hie ement and or the or/ani ation in terms o in ome4

ustomer satis a tion or rodu ti ity. "he alue o the re3ard to the

or/ani ation 3ill be assessed a/ainst om anyGs ob8e ti es and any mismat h

3ill result in orre ti e a tion and 3ill in luen e uture de isions about

re ruitment4 ay s ales4 mana/ement style and so on. "he alue o the re3ard

to the em loyee 3ill om lete the loo to moti ation and onse#uent e ort on

the 8ob.

"3o ey eatures o this model should be noted. First4 the i e a tors dire tly

a e tin/ er orman e are all losely interlin ed and han/in/ one 3ill

automati ally in luen e the others. ! these i e a tors4 the mana/ement has

dire t ontrol o er our4 e ort bein/ outside dire t in luen e but sub8e t to

indire t in luen es throu/h the other a tors. Se ondly4 there should be a it

bet3een the indi idualGs re3ards to the or/ani ationH re3ard to one arty

should not be at the ost o re3ard to the other.

!he moti@ation calculus

"he e e tan y theory o moti ation4 based on =roomsGs e e tan y

instrumentally theory and de elo ed by orter and Aa3ler su//ests that the

e ort an em loyee a lies to his 3or is a un tion o the er ei ed alue o

the re3ard and the er ei ed e ort re3ard robability the moti ation al ulus.

"he re3ards or an e ort an be e trinsi or intrinsi and should be seen as

e#uitable. E trinsi re3ards are the hysi al re3ards the or/ani ation an /i e

su h as ay4 romotion4 status4 and se urity4 ree 3ee end brea s. Intrinsi

re3ards are internal to the indi idual and in lude eelin/s o a om lishin/

somethin/ 3orth3hile4 a sense o a hie ement4 eelin/s that s ills and abilities

are bein/ ully used and de elo ed. "hese re3ards ha e a more dire t and

immediate relationshi to a tual er orman e be ause they are the re3ards the

em loyees /i es him.

"he alue o the re3ards both intrinsi and e trinsi 3ill be a e ted by the

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er ei ed e#uity o those re3ards. (om arisons o airness 3ill be made 3ith

3hat the em loyee e e ted the re3ard to be and 3hat the em loyees sees

other eo le /ettin/ in a similar situation or should be /ettin/ in a arti ular

osition.

It is also im ortant to re o/ni e that the alue o the re3ard is as er ei ed by

the indi idual and there ore that 3hat is re3ardin/ or one em loyee may not

be re3ardin/ or another. "he alue o the re3ard 3ill also be a e ted by the

satis a tion that those re3ards ha e /i en in the ast.

"he moti ation al ulus is de endent on the indi idual er e tion o the

em loyee and there ore di i ult to redi t in any but the most /eneral terms but

3ill be related to that em loyeeGs o erall orientation to 3or . "hree basi

orientations to 3or ha e been identi ied: E pressi@e orientation9!o 3or in ol es a ositi e attitude to 3or 3ith

the main interest bein/ in the intrinsi re3ards o the 8ob deri in/ rom

the nature o the 3or itsel . >ithin this orientation em loyees an ha e

an either ositi e or a ne/ati e rea tion to3ards the mana/ement Instrumental orientation9 %lso dis lays a ositi e attitude to 3or 3ith

an interest in the e trinsi re3ards4 mainly e onomi returns and

se urity. "his im lies that a ositi e de ision has been ta en to

ma imi e earnin/s at the e ense o intrinsi 8ob satis a tion as the

money and se urity ro ide a de/ree o satis a tion des ite the

dissatis yin/ nature o the 3or itsel . Alienati@e orientation9 It im lies a ne/ati e attitude to 3or 4 3hi h is

seen sim ly as a means to and4 em loyees dis layin/ no interest in the

3or at all. "his ty e o alienation has been seen to be due to the

ollo3in/ reasons: 7o3erlessness a la o ontrol o er the 3or ro ess

$eanin/less only seein/ a small art o the total ro ess

Isolation a la o so ially inte/rated 3or or/ani ation

Sel estran/ement % ons ious de ision to ee outside the

or/ani ation

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"he im li ation o 3or orientation to the moti ation to the em loyees is that

em loyees 3ill see 3or in di erent 3ays4 and althou/h some te hni#ues to

en oura/e e ort 3ill 3or on some em loyees.

"he resear her eels that the ro ess o moti ation is both om li ated and

hi/hly indi idualisti . &o3e er4 althou/h an indi idualGs needs and orientations

may be di erent4 the ro ess o moti ation 3ill remain onstant. "he hotel

mana/er must be a3are o the ro ess o moti ation al ulus:

Effort Performance /e ard 'eed7acH

I attem ts are to be made to in luen e the amount o e ort a member o sta

a lies to the 8ob.

!he "o7

"he on ersion o e ort in to er orman e 3ill be in luen ed by the 3ay in

3hi h the 8ob the em loyee does is desi/ned4 and in turn the desi/n o the 8ob

3ill either en oura/e or dis oura/e e ort. % 3ell desi/ned 8ob 3ill it the needs

o the or/ani ation in terms o ro idin/ the a ro riate #uality o er orman e4

#uality o er orman e4 le ibility and ost. "he 8ob should also it the needs o

the 8obholder in terms o ro idin/ a ro riate intrinsi and e trinsi re3ards.

Content

"he dimensions o the 8ob ontent relates to the nature o the tas s the 8ob

in ol es. From the or/ani ationGs ers e ti e the te hni al ontent o the 8ob

must be e i ient.

Control

(ontrol systems are essential in any 3or or/ani ation. "he de/ree o ontrol

e er ised by the mana/er should be balan ed a/ainst the moti ational or e o

/i in/ em loyees /reater autonomy in the 8ob4 allo3in/ them to use dis retion4

ha in/ less detailed ontrols o er them and on errin/ on them more

res onsibility or the inal out ut o their 3or .

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Communication

(ommuni ation in 8ob desi/n has t3o elements. First4 it is im ortant to

establish e a tly 3hat a arti ular 8ob entails and 3hat the e e ted standards

o er orman e are4 and to ensure that the em loyee no3s and understands

both as e ts. Se ondly4 it is im ortant to /i e eedba on ho3 3ell tas s are

bein/ arried out as lanned4 but it 3ill also redu e the em loyeeGs role

ambi/uity.

Contact

$ost 8obs in ol e a de/ree o so ial ontent either 3ith /uests or 3ith 3or

ollea/ues. Some element o so ial onta t is desirable and should be lanned

or.

Conte t

"he 8ob onte t relates to the onditions o 3or 4 3hi h ro ide the e trinsi

re3ards. "he em loyee 3ill be on erned about the ay stru ture4 in enti e or

bonus s hemes

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