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Chapter V ORGANISATIONAL CULTURE AND ORGANISATIONAL COMMITMENT IN PUBLIC SECTOR UNDERTAKINGS IN PLANTATION SECTOR: AN ANALYSIS Analysis of Organisational Culture and Organisational Commitment of Employees Relationship between Organisational Culture and Organisational Commitment

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Page 1: ORGANISATIONAL CULTURE AND ORGANISATIONAL …shodhganga.inflibnet.ac.in/bitstream/10603/50721/14/14_chapter5.pdf · Table 5.1 reveals that there is significant difference between

Chapter V

ORGANISATIONAL CULTURE AND ORGANISATIONAL COMMITMENT IN PUBLIC SECTOR UNDERTAKINGS

IN PLANTATION SECTOR: AN ANALYSIS

• Analysis of Organisational Culture and Organisational Commitment of

Employees

• Relationship between Organisational Culture and Organisational

Commitment

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CHAPTER V

ORGANISATIONAL CULTURE AND ORGANISATIONAL

COMMITMENT IN PUBLIC SECTOR UNDERTAKINGS

IN PLANTATION SECTOR: AN ANALYSIS

The present chapter deals with the analysis of data collected through the scales

to assess the organisational culture and organisational commitment administered to

the managers in Plantation Corporation of Kerala, State Farming Corporation of

Kerala and Oil Palm India. The differential effect of present organisational culture

and desired organisational culture in the above said three organisations are subjected

to a thorough study. Moreover, the organisational commitment of the employees in

these organisations is investigated. The relationship between organisational culture

and organisational commitment was analysed in order to find out whether there exists

any significant relationship between these two variables. The details drawing largely

on emperical evidence related to the analysis are given below:

5.1 ANALYSIS OF ORGANISATIONAL CULTURE AND ORGANISATIONAL

COMMITMENT OF EMPLOYEES

The investigator administered two Scales – A Scale to assess the present

organisational culture and desired organisational culture and an Organisational

commitment Scale – in order to get an insight of the organisational commitment of

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172 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

the employees of Plantation Corporation of Kerala, State Farming Corporation of

Kerala and Oil Palm India, the details of which are given below:

Comparison of Present Organisational Culture and Desired Organisational

Culture of PSUs in Plantation Sector

The investigator administered the Scale to assess the present organisational

culture and to find out the significant difference, if any, between the present

organisational culture and desirable organisational culture in PSUs in Plantation

Sector.

The present organisational culture and desired organisational culture in public

sector undertakings in plantation sector was compared. Test of significance of

difference between means was done for this purpose. The details of the analysis are

given in Table 5.1.

Table 5.1

Test of Significance of Difference between Means of Present and

Desired Organisational Culture of PSUs in Plantation Sector

Group No. of Respondents Mean Standard

Deviation Value

Present 37 69.46 18.25 t = 12.06*

p = 0.000 Desired 37 115.24 14.15

* Significant at 0.05 level

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173 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Table 5.1 reveals that there is significant difference between the present

organisational culture and desired organisational culture in public sector undertakings

in plantation sector (t = 12.06; p < 0.05). The obtained mean values show a wide

disparity between the present and desirable organisational culture in public sector

undertakings in plantation sector which throws light to the very poor organisational

culture prevailing in these institutions when compared to the desired organisational

culture.

Comparison of Present Organisational Culture and Desired Organisational

Culture of Plantation Corporation of Kerala

The present organisational culture and desired organisational culture of PCK

was compared. For this purpose, test of significance of difference between means

was done and t-value was found out. The details of the analysis are given in Table 5.2

Table 5.2

Test of Significance of Difference between Means of Present and

Desired Organisational Culture of PCK

Group No. of Respondents Mean Standard

Deviation Value

Present 17 67.65 24.09 t = 6.98*

p = 0.000 Desired 17 115.35 14.62

*Significant at 0.05 level

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174 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Table 5.2 reveals that there is significant difference between the present

organisational culture and desired organisational culture in Plantation Corporation of

Kerala (t = 6.98; p < 0.05). The obtained mean values show that a very poor

organisational culture is prevailing in Plantation Corporation of Kerala when

compared to the desired organisational culture.

Comparison of Present Organisational Culture and Desired Organisational

Culture of State Farming Corporation of Kerala

Comparison was made between the present organisational culture and desired

organisational culture of SFCK. Test of significance of difference between means was

done and t-value was found out and the details of the analysis are given in Table 5.3.

Table 5.3

Test of Significance of Difference between Means of Present and

Desired Organisational Culture of SFCK

Group No. of Respondents Mean Standard

Deviation Value

Present 9 76.44 14.74 t= 4.42*

p = 0.001 Desired 9 103.11 10.51

*Significant at 0.05 level

Table 5.3 reveals that there is significant difference between the present

organisational culture and desired organisational culture in State Farming Corporation

of Kerala (t = 4.42; p < 0.05) and the obtained mean values show that a very poor

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175 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

organisational culture is prevailing in State Farming Corporation of Kerala when

compared to the desired organisational culture.

Comparison of Present Organisational Culture and Desired Organisational

Culture of Oil Palm India

The present organisational culture and desired organisational culture in Oil

Palm India was compared. For this purpose, test of significance of difference

between means was done and t-value was found out. The details of the analysis are

given in Table 5.4.

Table 5.4

Test of Significance of Difference between Means of Present and

Desired Organisational Culture of Oil Palm India

Group No. of Respondents Mean Standard

Deviation Value

Present 11 66.55 6.06 t = 20.43*

p = 0.000 Desired 11 125.00 7.31

*Significant at 0.05 level

Table 5.4 reveals that there is significant difference between the present

organisational culture and desired organisational culture of Oil Palm India (t = 20.43;

p < 0.05). The obtained mean values shows that the organisational culture prevailing

in Oil Palm India is very poor when compared to the desired organisational culture.

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176 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Comparison of Present Organisational Culture of PCK with SFCK and PCK

with Oil Palm India

The organisational culture prevailing in PCK, SFCK and Oil Palm India was

found to be very poor when compared to the desired organisational culture. It is

therefore imperative to find out whether there exists any significant difference

between these organisations with regard to the present organisational culture. The

details of the analysis done in this respect are given below.

Comparison of Present Organisational Culture of PCK and SFCK

The present organisational culture of PCK and SFCK was compared in order

to find out whether there is any significant difference between these organisations in

their present organisational culture. The details are given in Table 5.5.

Table 5.5

Test of Significance of Difference between Means of Present Organisational

Culture of PCK and SFCK

Group No. of Respondents Mean Standard

Deviation Value

PCK 17 67.65 24.10 t = 1.15

p = 0.261 SFCK 9 76.44 14.74

*Significant at 0.05 level

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177 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Table 5.5 shows that there is no significant difference between PCK and

SFCK in the present organisational culture (t = 1.15; p > 0.05). This indicates that the

organisational culture prevailing in PCK and SFCK are more or less similar.

Comparison of Present Organisational Culture in PCK and Oil Palm India

The present organisational culture in PCK and Oil Palm India was compared

in order to find out whether there is any significant difference between these

organisations in their present organisational culture. The details are given in Table 5.6.

Table 5.6

Test of Significance of Difference between Means of Present Organisational

Culture in PCK and Oil Palm India

Group No. of Respondents Mean Standard

Deviation Value

PCK 17 67.65 24.10 t = 0.18

p = 0.859 Oil Palm 11 66.55 6.06

*Significant at 0.05 level

Table 5.6 shows that there is no significant difference between PCK and Oil

Palm India in their present organisational culture (t = 0.18; p > 0.05). This indicates

that the organisational culture prevailing in PCK and Oil Palm is more or less similar.

In this context, it should be noted that the organisational culture prevailing in PCK,

SFCK and Oil Palm India is very poor when compared to the desired organisational

culture.

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178 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Comparison of Desired Organisational Culture of PCK, SFCK and Oil Palm

India

The desired organisational culture in PCK, SFCK and Oil Palm India was

found to be very higher when compared to the present organisational culture in these

institutions. Do the employees in these organisations have a more or less similar

viewpoint about the desired organisational culture? In order to find out the answer for

this, the scores obtained through the Scale for the desired organisational culture from

these organisations were compared. The details of the analysis done in this respect

are given below.

Comparison of Desired Organisational Culture of PCK and SFCK

The desired organisational culture of PCK and SFCK was compared in order

to find out whether there is any significant difference between these organisations in

their desired organisational culture. The details are given in Table 5.7

Table 5.7

Test of Significance of Difference between Means of Desired Organisational

Culture in PCK and SFCK

Group No. of Respondents Mean Standard

Deviation Value

PCK 17 115.35 14.62 t = 2.46*

p = 0.023 SFCK 9 103.11 10.51

*Significant at 0.05 level

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179 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Table 5.7 shows that there is significant difference between PCK and SFCK in

the desired organisational culture as the obtained t-value is significant

(t = 2.46; p < 0.05) . The higher mean score for desired organisational culture for

PCK indicate that the employees of PCK have higher desire for better organisational

culture compared to their SFCK counterparts.

Comparison of the Desired Organisational Culture of PCK and Oil Palm India

The desired organisational culture in PCK and Oil Palm India was compared

in order to find out whether there exists any significant difference between these

organisations in their desired organisational culture. The details are given in Table 5.8.

Table 5.8

Test of Significance of Difference between Means of Desired Organisational

Culture in PCK and Oil Palm India

Group No. of Respondents Mean Standard

Deviation Value

PCK 17 115.35 14.62 t = 2.31*

p = 0.029 Oil Palm 11 125.00 7.31

*Significant at 0.05 level

Table 5.8 shows that there is significant difference between PCK and Oil Palm

India in the desired organisational culture (t = 2.31; p < 0.05). This indicates that the

employees of Oil Palm have a higher desire for better organisational culture compared

to their counterparts in PCK.

The graphical representation of the present and desired organisational culture

of PCK, SFCK and Oil Palm India is given in Fig. 5.1.

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180 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

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181 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Level of Organisational Commitment of Employees in Public Sector

Undertakings in Plantation Sector

The level of organisational commitment of employees in public sector

undertakings in plantation sector was identified through the Organisational

Commitment Scale administered by the investigator to the officers of PCK, SFCK and

Oil Palm India. In order to find out the level of organisational commitment of

employees in public sector undertakings in plantation sector, the employees were

classified into three groups, namely, those having high organisational commitment,

those having moderate organisational commitment and those having low

organisational commitment. For this purpose, the mean (m) and standard deviation

(σ) were calculated. Those getting scores above (m+σ) were taken as employees

having high organisational commitment, those getting score below (m-σ) were taken

as employees having low organisational commitment and those in between these

groups were considered as employees having moderate organisational commitment.

The details are given in Table 5.9.

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182 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Table 5.9

Level of Organisational Commitment of Employees in Public Sector

Undertakings in Plantation Sector

Level of Commitment % of Employees

High 18.92

Moderate 59.46

Low 21.62

Total 100 Mean = 65.92, Standard Deviation = 4.81

Table 5.9 shows that 18.92% of employees have high organisational

commitment, 59.46% have moderate organisational commitment and 21.62% have

low organisational commitment. It clearly shows that the organisational commitment

of majority of the employees in public sector undertakings in plantation sector is not

adequate.

The graphical representation of the level of organisational commitment of

employees in public sector undertakings in plantation sector is given in Fig. 5.2.

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183 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

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184 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Level of Organisational Commitment of Employees in Plantation Corporation of

Kerala

The level of organisational commitment of employees in PCK was found out

through the Organisational Commitment Scale administered by the investigator to the

employees of PCK. The details are given in Table 5.10.

Table 5.10

Level of Organisational commitment of Employees in PCK

Level of Commitment % of Employees

High 17.65

Moderate 58.82

Low 23.53

Total 100 Mean = 67.76, Standard Deviation = 5.72

Table 5.10 shows that 17.65% of employees have high organisational

commitment, 58.82% have moderate organisational commitment and 23.53% of them

have low organisational commitment. It can, therefore, be concluded that the

organisational commitment of majority of the employees in Plantation Corporation of

Kerala is not satisfactory.

The graphical representation of the level of organisational commitment of

employees in PCK is given in Fig. 5.3.

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185 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Fig.5.3

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186 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Comparison of the Organisational Commitment of Employees of PCK, SFCK

and Oil Palm India

The level of organisational commitment of employees in PCK, SFCK and Oil

Palm India was found to be inadequate. An attempt has been made here to compare

the organisational commitment of employees in these institutions to find out whether

there is any significant difference between the employees in these institutions in terms

organisational commitment. The details of the analysis are given below:

Comparison of Organisational commitment of Employees in PCK with SFCK

The organisational commitment scores obtained by PCK and SFCK were

compared in order to find out whether there exists any significant difference between

PCK and SFCK in their organisational commitment. The data and results of the

analysis are given in Table 5.11

Table 5.11

Test of Significance of Difference between Means of Organisational

Commitment of Employees of PCK and SFCK

Group No. of Respondents Mean Standard

Deviation Value

PCK 17 67.76 5.27 t = 1.33

p =0.197 SFCK 9 65.33 3.91

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187 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

It is evident from the above Table that there is no significant difference

between PCK and SFCK with regard to their organisational commitment as the

obtained t-value is not significant even at 0.05 level (t = 1.33; p > 0.05). This

indicates that the organisational commitment of employees in PCK and SFCK are

more or less identical.

Comparison of Organisational commitment of Employees in PCK with Oil Palm

India

The organisational commitment scores obtained by PCK and Oil Palm India

were compared in order to find out whether there is any significant difference

between these organisations in their organisational commitment. The data and results

of the analysis are given in Table 5.12.

Table 5.12

Test of Significance of Difference between Means of

Organisational Commitment of Employees in PCK and Oil Palm India

Group No. of Respondents Mean Standard

Deviation t-value

PCK 17 67.76 5.27 t = 2.46*

p = 0.021 Oil Palm 11 63.55 3.78

*Significant at 0.05 level

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188 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

It is evident from Table 5.12 that there is significant difference between PCK

and Oil Palm India with regard to their organisational commitment as the obtained

t-value is significant (t = 2.46; p < 0.05). The higher mean organisational

commitment of employees in PCK shows that PCK employees have a better

organisational commitment compared to the employees in Oil Palm India.

The graphical representation of the mean organisational commitment of

employees in PCK, SFCK and Oil Palm India is given in Fig. 5.4.

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189 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

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190 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

5.2 RELATIONSHIP BETWEEN ORGANISATIONAL CULTURE AND

ORGANISATIONAL COMMITMENT

The relationship between Organisational Culture and Organisational

commitment of Public Sector Undertakings in Plantation Sector in general and

Plantation Corporation of Kerala in particular, was found out using Pearson’s Product

Moment Coefficient of Correlation.

The obtained correlation coefficients have been interpreted using significance

of ‘r’, tested against the hypothesis (viz., r =0). The coefficients have also been

verbally interpreted by the following conventions (Garrett, 1981).

i. ‘r’ from 0.00 to ± 0.20 denotes indifferent or negligible relationship.

ii. ‘r’ from ± 0.20 to ± 0.40 denotes low but slight correlation.

i. ‘r’ from ± 0.40 to ± 0.70 denotes substantial or marked relationship.

iv. ‘r’ from ± 0.70 to ± 1.00 denotes high to very high relationships.

The values of ‘r’ have been interpreted using yet another procedure, viz.,

estimating the 0.05 confidence interval so that the possible range of the population

value of ‘r’ could be specified. The details are given below:

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191 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Relationship between Present Organisational Culture and Organisational

Commitment of Public Sector Undertakings in Plantation Sector

The relationship between present organisational culture and organisational

commitment of employees in public sector undertakings in plantation sector was

found out and the obtained Pearson’s product moment coefficient of correlation was

tested for significance. The details are given in Table 5.13.

Table 5.13

Relationship between Present Organisational Culture and Organisational

Commitment in Public Sector Undertakings in Plantation Sector

N r SEr Confidence Interval at 0.05 level

p-value

37 0.373* 0.142 0.650 to 0.096 0.023

*Significant at 0.05 level

Table 5.13 shows that the obtained correlation coefficient is significant at 0.05

level (r = 0.373; p < 0.05). This shows that there is significant positive relationship

between present organisational culture and organisational commitment in public

sector undertakings in plantation sector, which indicates that higher the organisational

culture, higher will be the organisational commitment.

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192 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

Relationship between Present Organisational Culture and Organisational

Commitment in Plantation Corporation of Kerala

The relationship between present organisational culture and organisational

commitment of employees in Plantation Corporation of Kerala was established and

the obtained r-value was tested for significance. The details are given in Table 5.14.

Table 5.14

Relationship between Present Organisational Culture and

Organisational Commitment in Plantation Corporation of Kerala

N r SEr Confidence Interval at 0.05 level p - value

17 0.625* 0.148 1.006 to 0.244 0.007

*Significant at 0.05 level

Table 5.14 shows that the obtained correlation coefficient is significant at

0.05 level (r = 0.625; p < 0.05). This shows that there is significant positive

relationship between present organisational culture and organisational commitment in

Plantation Corporation of Kerala. This indicates that, higher the present

organisational culture, higher will be the organisational commitment. The verbal

interpretation of the obtained r-value also shows a marked relationship.

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193 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

DISCUSSION

The present and desired organisational culture of PCK, SFCK and Oil Palm

India was found to be showing statistically significant difference whereas the present

organisational culture is very poor compared to the desired organisational culture in

these three organisations. When compared, the present organisational culture showed

no significant difference between PCK & SFCK and PCK & Oil Palm. But the

comparison of desired organisational culture of PCK showed significant difference

with SFCK and Oil Palm. PCK was found to possess a superior desire for better

organisational culture compared to SFCK whereas Oil Palm India showed a superior

desire for better organisational culture compared to PCK.

The organisational commitment of employees in public sector undertakings in

plantation sector was found to be too inadequate. Plantation Corporation of Kerala is

also no exception to this, where only a small proportion of employees were found to

have high organisational commitment and majority of them showed insufficient

organisational commitment.

While no significant difference was observed between employees in PCK and

SFCK in their organisational commitment, significant difference was observed

between PCK and Oil Palm India, where employees of PCK showed a better

organisational commitment compared to employees of Oil Palm India.

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194 Organisational Culture and Organisational Commitment in Public Sector Undertakings In

Plantation Sector: An Analysis

The relationship between present organisational culture and organisational

commitment was found to be significant and positive in the case of public sector

undertakings in plantation sector as a whole. A high, significant and positive

correlation was found also in the case of Plantation Corporation of Kerala between

present organisational culture and organisational commitment. This indicates that a

healthier organisational culture is inevitable for inculcating a higher degree of

organisational commitment in employees.