Beruflich Dokumente
Kultur Dokumente
By: Mohitha C .M
IV Semester, MBA
Reg No.13MB0089
Guide:
Prof. Aisha M Sheriff
Project Report Submitted to the University of Mysore in Partial Fulfillment of the Requirements
of IV Semester.
MBA Degree Examination 2015
CERTIFICATE
This is to certify that Mohitha C M student of IV Semester MBA course has prepared this project
entitled
IMPACT
OF
ORGANISATIONAL
CULTURE
ON
EMPLOYEE
PRODUCTIVITY AT BEML LIMITED in partial fulfillment of the requirements of MBA
degree examinations of 2015.
Place: Mysore
Date:
GUIDANCE CERTIFICATE
Place: Mysore
Date:
DECLARATION
Place: Mysore
Date:
MOHITHA C.M
Reg no. 13MB0089
ACKNOWLEGEMENT
The completion of any task depends upon the co-operation, coordination and
consolidated efforts of several resources of knowledge, energy, time and above all the proper
guidance of the experienced. Therefore I approached this matter of acknowledgement through
these lines trying my best to give full credit where it deserves.
I express my deep sense of gratitude and indebtedness to our institute B.N. Bahadur
Institute of Management Sciences, University Of Mysore which provided me the opportunity
of fulfilling my cherished goal.
I express my sincere gratitude to our respected chairman and project guide Prof. Aisha
M.sheriff for her kind hearted co-operation and for providing me with all possible help
necessary for the successful completion of the project.
I sincerely thank Mr B Jagadish Bahadur, placement officer, B.N Bahadur Institute of
Management sciences, Mysore, for extending his permission to work on my project at BEML,
Mysore.
I wish to express my gratitude to those who generously helped me to compile this project
with their knowledge and expertise. Firstly, I owe a great debt to Mr. K. S. Shankar Narayan
Asst. Officer (HR) and Ms Shivapriya, Project guide (HR) who were responsible for making
this project possible.
TABLE OF CONTENTS
CHAPTER
TITLE
INTRODUCTION
Introduction
Problem statement
Objectives of the study
Scope of the study
Research methodology
Limitations of the study
PAGE NO.
1-7
LITERATURE REVIEW
1
1.1 Definition of organisational culture
1.2 The concept of organisational culture
1.3 Theoretical overview
8-26
27-50
51-73
SUMMARY OF FINDINGS
74-76
77-81
BIBLIOGRAPHY
ANNEXURE
82
83-89
INTRODUCTION
INTRODUCTION
leads to new belief systems. This new and adaptive behavior instilled through organizational
values and beliefs are associated with rituals, myths and symbols to reinforce the core
assumptions of organizational culture. This study examines the interaction between
organizational culture and the agenda for change in the public sector.
Understanding
and
manipulating
organizational
culture
to
engender
greater
beliefs and ethical values. When these beliefs and ethical values align with business objectives,
they can prove to be effective in building teams because rapport and trust quickly ensues. The
bonds that the teams build help them avoid conflicts and focus on task completion. Strong
corporate cultures ease communication of roles and responsibilities to all individuals. Employees
know what is expected of them, how management assesses their performance and what forms of
rewards are available.
Organizational cultures can have varying impacts on employee performance and
motivation levels. Oftentimes, employees work harder to achieve organizational goals if they
consider themselves to be part of the corporate culture. Different cultures operating in one
company can also impact employee performance. Culture is a behavior that results in when a
group comes together generally unspoken and unwritten rules for working together. It can be
best understood as the way we do things around here. There are many practices within the
organization that tend to keep a culture alive between itself and its employees.
Using the approach of performance appraisal, training, and career development
organization could reinforce the culture. Organizational beliefs can influence the work
communication practices, and philosophical stances of employees. Organizational process
called Socialization can help adapt new employees to the organizations culture. If employees
do not adapt well, it could increase pressure from supervisors and from co-workers who are
better acculturated. They might stay and fight, stay and become isolated, or leave the
organization, voluntarily or involuntarily, and look for a different organization whose culture
may fit better for them. It is therefore true that an organizations culture can unquestionably
influence human behavior and consequently the employee performance at work
PROBLEM STATEMENT:
This study is done to find out the impact of organisational cultural in employee
productivity. The organisational culture is a very useful tool for managers, in managing a
diversified workforce within the organization. When culture is defined as a system of shared
meaning, it can be expected that individuals with different backgrounds or at different levels in
the organization will tend to describe the organizations culture in different terms. Therefore the
10
main research question for this study is whether organisational culture influences the employee
productivity.
OBJECTIVES:
RESEARCH METHODOLOGY
Research is an original contribution to the existing stock of knowledge making for its
advancement. It is the pursuit of truth with the help of study, observation, comparison and
experiment. In short, the search for knowledge through objective and systematic method of
finding solution to a problem is research. The systematic approach concerning generalization and
11
formulation of a theory is also research. As such the term research refers to the systematic
method consisting of enunciating the problem, formulating a hypothesis, collecting the facts or
data, analyzing the facts and reaching certain conclusions either in the form of solutions towards
the concerned problem or in certain generalizations for some theoretical formulation.
RESEARCH DESIGN
A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. In
fact the research design is a conceptual structure within which the research is conducted. It
constitutes the blue print for collection, measurement and analysis of data. Decisions regarding
what, when, where, how much, by what means concerning an inquiry or research study constitute
a research design. Research design is needed because it facilitates the smooth sailing of various
research operations thereby making research as efficient as possible yielding maximal
information with minimal expenditure of effort, time and money.
Questionnaire
12
13
CHAPTER 1
LITERATURE REVIEW
LITERATURE REVIEW
14
15
Early organization behavior researchers (Peters and Waterman, 1982; Deal and Kennedy,
1982; and Pascale and Athos, 1981) find the unambiguous links between culture and
organizational performance. These cultural values are consistent with organizational chosen
strategies that led to successful organizations. Although the relationships between organizational
culture and employee performance have been widely accepted, some researchers (Willmott,
1993; Legge, 1994; and Ogbonna, 1993) raise concerns about the relations. Thus Gordon and
DiTomaso (1992) and Denison (1990) argue that culture characteristics might affect performance
but restricted or conditioned to the specific context. They further argue that culture may lead to
higher performance if it fits with changes of environmental factors within the context. Recently,
researchers argue that cultural traits cannot be copied and therefore it could be source of
organizational sustainability. Resource-based view (Barney, 1986 and 1991) suggests that
sustainability depends on the values, rarity and sustainability of the culture concerned. Overall,
the aim of the literature review is to examine the existing research to explore the links between
culture and performance.
Due to the subjective nature of culture, it could be challenging to precisely define the
specifications of organizational culture. Despite no single theory is uniformly accepted, there is a
general consent about organizational culture on being traditionally determined and socially
structured that involves beliefs, behaviors, values and morals allied with different levels of the
organization and incorporates to all aspects of organizational life (Pettigrew, 1990 and Hofstede,
Neuijen, Ohauv and Sanders, 1990). The organizational culture is outlined by Schein (1990) as
overall phenomenon of the organization such as natural settings, the rite and rituals, climate and
values of the company.
Martins and Terblanche (2003), culture is deeply associated with values and beliefs
shared by personnel in an organization. Organizational culture relates the employees to
organizations values, norms, stories, beliefs and principles and incorporates these assumptions
into them as activity and behavioral set of standards. Klein et al. (1995) positioned organizational
culture as the core of organizations activities which has aggregate impact on its overall
effectiveness and the quality of its products and services.
16
Schein (2004) defined organizational culture as a dynamic force within the organization
which is revolving, engaging and interactive and it shaped up by the employees and
managements gestures, behaviors and attitudes.
Earlier scholars (Rossman, Corbett and Firestone, 1988; Schwartz and Davis, 1981;
Cooke and Rousseau, 1988; Gordon and Di Tomaso, 1992; Schall, 1983; Schein, 1992;
Rousseau, 1990) have explained culture as mutual experience which depends on the behavioral
and societal activities. Performance on the other hand refers to be the ability (both physical &
psychological) to execute a specific task in a specific manner that can be measured as high,
medium or low in scale. The word performance can be used to describe different aspects such
as societal performance, organizational performance, employee performance, and individual
performance etc. Researchers (Roe, 1999; Campbell, McCloy, Oppler, & Sager, 1993; Campbell,
1990; Kanfer, 1990) tend to identify two dimensions of performance: an action dimension (i.e.
behavioral aspect) and an outcome dimension (i.e. performance aspect). Here, the behavioral
aspect of performance is assumed to be matched with work situation and job specifications. Then
this selective behavioral aspect turns into a means of achieving organizational goals and
objectives that is the outcome dimension or performance aspect. Although there is a range of
behaviors that could be used for measuring performance, Motowidlo, Borman, & Schmit
(1997) emphasize judgmental and evaluative processes that take a great deal along with action
itself while defining performance.
Magee (2002) in this very point argued that organizational culture is inherently
connected to organizational practices; therefore organizational performance is conditional on
organizational culture. According to Hellriegel & Slocum (2009), organizational culture can
enhance performance in a large scale if it can be understood that what sustains a culture.
According to these authors the culture of an organization allows the employees to be
acquainted with both the firms history as well as current methods of operation and this specific
detection endows the employees with guidance about expected and acceptable future
organizational behaviors and norms.
17
Some theoretical models assert that the effective human resource system of an
organization is based on supporting values and then these systems, in turn, create a positive
impact on employee attitudes and behavior, which facilitate organizations performance (Ferris et
al., 1998).
Mercer and Bilson (1985) also point out the correlation between organizational culture
and employees performance; and this employees performance then translated into
organizational outcomes such as customer satisfaction (Schmidt, Shull, and Schmitt, 2001).
Findings of research conducted by Renn and Vandenberd (1995) demonstrate a conceptual
linkage between organizational culture and employee performanceMost organizations assert its
performance as a dependent variable which seeks to recognize other independent variables that
produce variations in its performance (March and Sutton, 1997). Martin and Siehl (1990) argue
that organizational culture is theoretically related to performance and do have positive influence
on it. Explaining the variation in performance of effectiveness, Bowen et al. (1989) in his
relevant work highlighted that the role of culture is very vital in nurturing, sustaining and
enhancing the performance of organizations. In addition to this, Kopelmal et al. (1990) clarified
that cultural system of any organizations adds to the coordination of assignments and minimizes
inefficiency employee efforts and firms resources.
In order to meet the organizational objectives and achieve competitive advantages, all
organizations are thriving to recruit highly performing individuals. On the other hand,
individuals need supportive organizational culture to help them reach individual objectives.
Therefore, an organization is a consciously coordinated system where characteristics of
individuals, groups and organization interact with each other and effective interaction among
them highly depends on organizational culture that shapes the individual performance
(Kozlowski & Klein, 2000) and in most of cases high performers are more appreciated and
promoted than low performers (Cross et al., 2000). As a result evaluation of employee
performance basically depends on the factors like performance appraisals, compensation,
employee recognition, employee motivation, training and development, job security, flexible
time system, organizational structure, employee satisfaction etc. But, this paper will concentrate
on the basic factor or the roots of all above traits and that is the organizational culture.
18
There are numerous researchers who consider the importance of individual factors (i.e.
ability and effort) to make a link between organizational culture and employee performance
(Gardner & Schermerhorn, 2004; Schermerthorn et al, 1990), it requires further investigation for
better understanding and prediction of the relation between organizational culture and employee
performance.
According to Furnham and Gunter (1993), organizational culture functions as the
internal integration and coordination between firms operations and its employees. Internal
integration can be described as the societal interaction of new members with the existing ones,
creating boundaries of the organization feelings of identity among personals and commitment to
the organization. Shared system which forms the basis of communication and mutual
understanding in organization is due to its culture and if the organizational culture fails to fulfill
these functions at satisfactory level, the culture may have significant negative influence on the
efficiency of the employees (Furnhum and Gunter, 1993).
A strong organizational culture supports adaptation and develops organizations employee
performance by motivating employees toward a shared goal and objective; and finally shaping
and channeling employees behavior to that specific direction should be at the top of operational
and functional strategies (Daft, 2010). A firms mission reflects its ultimate long term objective
which is accomplished by conducting integrated operational and behavioral activities. A firms
performance improves if it has a clear sense of purpose and commitment towards its mission.
Successful and well performed organization defines its organizational goals as the report card of
forthcoming (long term) future (Ohmae, 1982; Mintzberg, 1987; Hamel and Prahalad, 1994).
Along with others, shared value of employees is one of the basic components of
organizational culture (Smit and Cronje, 1992; Hellreigel et al., 1998). Schein (1994) clarifies
that value which is a set of social norms that define the rules or framework for social interaction
and communication behaviors of societys members, is a reflection of causal cultural
assumptions. Individuals who hold similar values may feel and interpret situations and events
similarly (Meglino, Ravlin, & Adkins, 1989) which can reduce uncertainty (Schein, 1985), role
ambiguity, and conflict (Fisher and Gitelson, 1983), allow for the accurate prediction of others
19
behavior (Kluckhohn, 1951), and make successful interpersonal interactions more likely
(Meglino et al. 1989). Academics and practitioners argue that the performance of an organization
is dependent on the degree to which the values of the culture are widely shared (Peters and
Waterman, 1982; Deal and Kennedy, 1982; Denison, 1990; Ouchi, 1981; Pascale and Athos,
1981 and Kotter and Heskett, 1992). Similarly, it is widely argued that shared and strongly held
values enable management to predict employee reactions to certain strategic options and by
reducing these values, the consequences maybe undesirable (Ogbonna, 1993).
Deal (1999) defines organizational culture as values, beliefs and behaviors that
differentiate one organization from another. Performance of any organization sets it apart from
other organizations. The term performance is often used to describe everything from efficiency
and effectiveness to improvement (Stannack, 1996) and previous literature studies obviously
show evidence of positive relationship between organization culture and its performance.
According to Hitt et al (2001), intangible resources are more likely than tangible
resources to produce a competitive advantage. This theory was supported by Tecce (2000) that a
firms superior performance depends on its ability to defend and use the intangible assets it
creates. Satisfaction and positive attitude can be achieved through maintaining a positive
organizational environment, such as by providing good communication, autonomy, participation,
and mutual trust resulting superior employee performance (Argyris, 1964). The satisfaction and
attitudes of the employees are important factors in determining their behaviors and responses at
work and through these behaviors and responses, organizational effectiveness can be achieved.
Thus the satisfaction and well being of employees can result in organizational effectiveness
through silent productivity related behaviors of employs (McGregor, 1960).
Loyalty and commitment both interpret an emotional bonding between the individual and his or
her cultural group and, as such, imply a willingness to put forth exertion and make sacrifices on
behalf of that group (Druckman, 1994). However, whether loyalty and commitment are
positively correlated with performance craved by the organization or not may depend on what
values and norms the target cultural group holds regarding performance.
OReilly (1989) suggests that employees commitment to an organization will be more
dedicated because they care about their organizations fate, and their caring heightens the power
20
of organizational norms to control their behavior. From a different perspective culture shows its
affect on performance by programming people to behave in such manners that more or less
effective in terms of performance (Druckman, Singer and Cott, 1997). Creativity and innovation
also trigger the performance of employees and facilitated by organizational culture.
Tushman and OReilly (1997) in this context stated that organizational culture lies at the
heart of organizational norms that reflects the influence of organizational culture on creativity
and innovation. Organizations Culture can play an important role in creating such an
environment that enables learning and innovative response to challenges, competitive threats, or
new opportunities. Thus, creating and influencing an adaptive culture is one of a managers most
important jobs (Daft, 2010).
According to socio-technical school (Emery & Trist, 1960), organizational effectiveness depends
on both the technical and social structure of the organization. Some social physiological structure
may be superior to others for both employee satisfaction and productivity. Organizational
effectiveness results when there is congruence between social and technical organizational
dimension. Organizational productivity is achieved through employee satisfaction and attention
to workers physical and emotional needs (Likert 1961). Akin and Hopelain have (1986)
discussed about the crucial relationship between organizational culture, employee performance
and productivity in their research on organizational culture and productivity; and introduced
culture of productivity where they illustrate the components of a productive culture such as
efficient people, job identification, teamwork, trust and support etc are determined by knowledge
of job and the performance. Akin and Hopelain (1986) also argue that a culture of productivity is
based on three basic structures and they are: legibility (clarity), coherence (integration of the
elements of work) and open-endedness (adaptability to change).
Organizational culture is one of the most popular concepts in the field of management and
organizational theory.
This can be backed up by the abundance of theoretical concepts and perspective provided
at current time (Martin, 1992) and organizational disciplines which utilize the concept (Harris
and Ogbonna, 1999). Highly collective organizations emphasize group harmony, cooperation and
21
reward for enhancing employee performance (Javidan & Dastmalchian 2009). At the more
operational level, the higher performing organizations have a management style that includes
giving more freedom to their managers to take independent actions rather than simply following
orders, to take reasonable risks and to openly discuss conflicts and constructive criticisms. High
humane oriented organizations reward people who are fair, altruistic, friendly, generous, kind
(Javidan & Dastmalchian 2009). Managers get adequate information and support for decision
making (decision-making structure) and they are given rewards and benefits based on
performance that compare favorably to similar organizations (compensation). Finally, members
of the higher performing organizations are well matched to their jobs and have sample
opportunities for growth, development and career advancement within their organizations.
Organizational culture is one of the very basic components of companys competitive advantage
as well as to sustain performance. Northouse (2004) asserts that all the leaders have an agenda, a
set of beliefs, proposals, 67 issues, ideas and values which they wish to put in the table. These set
of organizational culture are promoted by the leader and it has significant impact on the values
exhibited by the organization (Carlson and Perewe, 1995; Schminke, Ambrose and Noel, 1997;
Trevino, 1986). Competitive advantage which is the unique selling point of companies
performance is also supported and built up by the leaders and their inputs in organizational
culture.
Kotler and Keller (2006) define competitive advantage as companys ability to perform
in one or more ways that competitors cannot and these cultural leaders achieve it by creating
organizational culture to make employees believe that the substance of the performance is the
most crucial (Schein, 2004).
Precise information and applicable knowledge always assist performance, whereas erroneous
information and irrational knowledge are likely to do the opposite (Feldman and March, 1981;
and Daft and Weick, 1984).
Cultures also provide cognitive frameworks through which people interpret what they observe
and experience and provide language and referents to use in communicating with others (Wilkins
and Ouchi, 1983). Research on strategic decision making has shown that different managers may
interpret identical events as opportunities or threats and that these interpretations, in turn, are
related to the actions taken (Dutton and Jackson, 1987).
22
Cultures also contribute schemas and scripts that can affect performance by providing
preexisting ways of understanding what is occurring, how to evaluate it, and what sequences of
actions are appropriate to the situation (Lord and Foti, 1986; Wilkins and Ouchi, 1983). Siegal
and sussman (2003) asserted that social interaction which surrounds knowledge adoption and
helps to integrate social construction and social presence can actually explain information
sharing process. Their studies interpreted information as a factor which is embedded in a social
context that establishes both information interpretation and its sharing process.
Organizational culture is a complex notion to study, develop and scrutinize. In todays
research field of organizational behavior and management, there exists extremely inadequate
quantity of empirical researches that discovered exclusively the affiliation between
organizational culture and employee productivity which results from effective employee
performance. Researches stroked the link between some phases of organizational culture and
their consequences that affect employee performance and as a result affect productivity (Mathew,
2007, Trice and Beyer, 1984; Hofstede, Neuijen, Ohayv and Sanders, 1990). After a long era of
research on organizational culture, scholars have established abundant links between
organizational culture and organizational employee performance and productivity. Unlike
previously, today researchers believe that organizational culture can be used for competitive
advantage, effective employee performance and productivity (Tharp, 2009). Researchers like
Peters & Waterman (1982); Sadri & Lees (2001) and Deal & Kennedy (1982) and Thompson
(2002) stated that strong organizational culture is a primary determinant in creating better
organizational performance and sustained competitive advantage.
As culture differs from country to country and organization to organization, proposed
theories often become problematic when they attempt to model the actual detail and richness of
real organizations because of the complexity of interrelationships between organizational
processes (Hofstede, 1990). Researchers often fail to isolate and measure many important
organizational variables that are needed for theoretical background checking. Clearly, concerns
should be raised on quantifying and measuring the conceptualization of organization cultures
characteristics but it also leads to research possibility as well (Hofstede 1990, Mackenzie 1986,
Schein 1990).
23
24
arise from that culture, then companies can develop a credibility problem by promising one thing
to the market, but delivering something else.
Impact of Organizational Culture on Employee Productivity:
High productivity when the organizational culture is effective and can be accepted by the
employees. This can lead to motivation to the employees to increase their productivity. For
example if the organization culture is innovative and the employees likes to improve and to do
new things, then these can lead to high productivity of the employees.
Low productivity when the culture of the organization is not proper and transparent and is not
accepted by the employees. For example if the organizational culture is team oriented and the
employees is individualistic who likes to do work in individual, then this can lead to low
productivity.
Organisational culture on Employee Productivity is a system of shared meaning and common
beliefs held by organizational members that determines, in a large degree, how they act towards
each other.
Implications are:
Culture is a perception
Culture is shared
Culture is descriptive
25
Uncertainty avoidance: The uncertainty and ambiguity based upon tolerance helps in
mitigating willingness of people.
Masculinity: It comes in avoidance of caring and promotion rather than level of success
based upon challenges, insolence and ambition.
In 1998 Hofstede and Bond identified fifth dimension in which 23 countries long and
short term orientation have perfectly been analyzed. The organizational behavior relates to
practitioners values and beliefs based upon culture factors and norms that effects upon
personality and performance of organization. (Sondergaard, 1994) The cultural factors and
personality impacts upon behavior and sustainability of organization (Schwartz,1994) The
models developed by Hofstede in 1980 presents 38 countries studies in which strong
relationships of culture have been identified. From these classifications two different kinds of
dimensions have been identified such as: Affective & intellectual while secondly self
enhancement and self transcendence. The standards based upon cultures and societies present
contractual relationship between life and work. The standards based upon cultural association
leads to perfect association between performance and management. More than 30 companies
from 50 different countries have been identified (Trompanaars 1993) . Seven different
dimensions of cultures have also been identified such as universalism versus particularize,
specific versus diffuse, emotional versus neutral, communication versus individualism,
achievement versus ascription, attitude to environment and attitude to time. The Hofstedes
model has seven dimensions that help in presenting effective relationship between different sets
of norms and values.
26
According to this study the organisational culture matters a lot in upgrading the employees
productivity. If the environment is easy and comfortable to work, then the employees are
encouraged to work effectively and efficiently. The good and competitive culture enhances the
performance of work force. The members of the organisation are encouraged to work effectively
if the culture of the organisation is strong and motivating. Organisation culture is the reflection
of Employee Productivity.
BENEFITS
Because the company culture influences everything and everyone, a well-developed company
culture creates positive changes across the organization. Managers who have developed their
companys culture report improvements in every area, including:
Financial Benefits
At the economic level, a well-developed culture brings dramatic, sustained increases in
productivity and performance. This is no surprise given that psychologists estimate that the
average employee contributes only 20% of their potential. A culture that deeply engages people
is understandably much more productive. A 10% increase in productivity is minimal. Unit
productivity often doubles in 2 years, though this depends on the units size, the industry type,
and the level of senior management commitment. Continuous improvement is the norm. There is
no limit to improved productivity - so long as leaders keep working on the culture.
Recruiting
A well-developed company culture, clearly stated in promotional materials, is a powerful
recruiting point. Companies with an open, participative workplace, where people enjoy working,
and have broad opportunities for growth and creativity, attract top candidates. One of the
measures of an excellent work culture is that existing employees urge their friends to join. When
employees do this, they are typically highly selective, inviting only people they know will excel.
Morale
High morale is a key to success. It is closely connected to trust, purpose, team loyalty, pride, and
faith in the leadership- all qualities that improve as the culture develops Morale.
Supply Chain
27
Supply chain efficiencies depend very much on internal cooperation between multiple functions
and levels and with external suppliers and customers. As the culture develops, relationships,
cooperation and communications improve. The supply chain becomes more efficient,
streamlined and responsive to rapidly changing markets, technology, and customer needs.
Customer Service
As the culture builds, managers learn to better manage the quality of everyones experience,
inside the company and with outsiders such as customers, clients, suppliers, and other corporate
entities. Most customers are highly attuned to their suppliers cultures. They can easily tell when
things are working well and when they are not.
Employee Motivation
Motivation blossoms in a well-developed culture that recognizes the employees personal work
needs and desires and allows people to fulfill these needs through the business tasks. When
people are recognized and appreciated for who they are and what they can contribute, the twoway benefits are large and unending.
Responsiveness to Change
A well-developed culture brings a strikingly increased openness to change and the desire of
employees to make changes work. As trust and responsibility increases, employees dont just
initiate significant improvements in ongoing operations, they actively reach out to their
environment, bringing improvement ideas and initiatives that make the company more market
competitive. For example, customer service representatives, through casual conversations, learn
a great deal about the clients needs and plans. In a well-developed culture this information is
smoothly connected to marketing and product development. In a more conventional workplace,
silos separate functions, limiting communications - in this case the potential valuable inflow of
information from customers.
Involvement
28
People naturally want to be involved and go home knowing they were appreciated and seen as an
important contributing member of the team. When the leaders show that they want everyone
involved, people step forward energetically in creative and productive ways.
Leadership
Developing the culture trains managers in people leadership skills and gives them a clearer sense
of their role. Many managers say that the culture development process was the most important
experience in their career, though often they add that it was also the most difficult.
Meetings
With
improved
openness
and
trust,
people
speak
up
and
participate
more
in
meetings. Meetings are more focused, creative, and productive. The right people attend, keep the
meeting on track, and stop when the task is done.
Mergers and Acquisitions
Well-developed cultures bring smoother mergers and acquisitions, with higher success rates.
People get more involved and make them work. When a well-developed culture acquires a lessdeveloped culture acquiring managers know how to lead the culture merging process so that
anxiety is minimized, productivity is maintained, and highly valued employees in the acquired
company stay. Conversely, when a company with a well-developed culture is acquired by a
company with a less-developed culture, the managers in the acquired company may reach out
and help the managers in the acquiring company more successfully manage the merge process.
This can be quite surprising to the acquiring company and may awaken them to the benefits of
developing their own culture.
Cooperation
By
definition
developed
culture
increases
cooperation,
collaboration,
and
motivation. Improving cooperation between divisions and between levels profoundly improves
communications, decisions, and problem-solving.
Teamwork
29
A well-developed culture involves the people who are affected by a decision in the decision. This
is fundamental to developing teamwork, cooperation, involvement, and trust, between people,
divisions, and levels.
Relationships
The culture change process improves relationships between people, levels, and departments.
Improve relationships brings improve communications, decisions and overall performance.
Responsibility
As the culture develops and people take full responsibility for what happens in their work areas,
problems are solved where they happen and by those affected. This frees management from the
old policing and monitoring style of leadership.
Safety
The keys to safety are trusting, open relationships. In a safe work culture, people speak up about
unsafe situations, they dont stand silent when someone violates safe practices, they constantly
look for ways to improve safety, and they take personal responsibility for creating and
maintaining a safe workplace. Because major accidents can be staggeringly expensive, a safe
workplace can be a big contributor to net incomes.
Retention
When you have a great place to work -where people can satisfy their needs -they just dont want
to leave.
Absenteeism
It is common sense that there will be less absenteeism when people like their jobs. They also
develop a new attitude towards their fellow workers and to the problems that their absenteeism
creates for them.
Union-Management Relations
30
A well-developed culture moves away from adversarial relationships and towards cooperation.
Cooperative relationships have few grievances and low workers compensation costs. As highly
adversarial labor-management situations change, grievances drop to zero and potential strike
preparation costs are eliminated.
Injuries and Claims
This is a complex area, closely related to attitudes and relationships. As people see each other in
new ways, lost-time injuries and workers compensation claims drop. Sometimes this is quite
sudden and dramatic.
Insurance Rates
Along with a safer workplace, with fewer injuries and claims, come lower insurance rates.
Satisfaction and Happiness
Last but perhaps most important, there are few things more satisfying than being part of a welldeveloped company culture. It is a real pleasure working in an organization where people enjoy
each other, where they enthusiastically cooperate around the work tasks and around problemsolving, and where people sincerely recognize each other for their special contributions to the
groups success. Satisfaction and happiness go hand-in-hand with improved performance.
Individual working with the organisation: The first and the foremost factor affecting
culture is the individual working with the organization. The employees in their own way
contribute to the culture of the workplace. The attitudes, mentalities, interests, perception
and even the thought process of the employees affect the organization culture.
The Gender of the employee: The gender of the employee also affects the organization
culture. Organizations where male employees dominate the female counterparts follow a
31
culture where late sitting is a normal feature. The male employees are more aggressive
than the females who instead would be caring and softhearted.
The nature of the business: It also affects the culture of the organization. Stock broking
industries, financial services, banking industry are all dependent on external factors like
demand and supply, market cap, earning per share and so on. When the market crashes,
these industries have no other option than to terminate the employees and eventually
affect the culture of the place. Market fluctuations lead to unrest, tensions and severely
de-motivate the individuals.
The goals and objectives: The strategies and procedures designed to achieve the targets
of the organization also contribute to its culture. Individuals working with government
organizations adhere to the set guidelines but do not follow a procedure of feedback thus
forming its culture. Fast paced industries like advertising, event management companies
expect the employees to be attentive, aggressive and hyper active.
The clients and the external parties: The clients and other parties to some extent also
affect the work culture of the place. Organizations catering to UK and US Clients have no
other option but to work in shifts to match their timings, thus forming the culture.
The management and its style of handling the employees: It also affect the culture of
the workplace. There are certain organizations where the management allows the
employees to take their own decisions and let them participate in strategy making. In
such a culture, employees get attached to their management and look forward to a long
term association with the organization. The management must respect the employees to
avoid a culture where the employees just work for money and nothing else. They treat the
organization as a mere source of earning money and look for a change in a short span of
time.
32
CHAPTER 2
BEML LIMITED
33
markets.
Attract and build people in rewarding and inspiring environment by fostering creativity
and innovation.
Objectives:
Company history:
BEML limited was Company was incorporated by Government of India as a public sector
undertaking under the Administrative control of Ministry of Defence, Department of Defence
Production and Supplies. Initially the company was incorporated as a private limited company
vide certificate of incorporation bearing number 1530 dated May 11, 1964 under The companies
Act by the name Bharat Earth Movers Limited. On the formation of our company, the rail
coach of Hindustan Aeronautics Limited was transferred to us with land, building, plant and
35
machinery, manpower and other infrastructure facilities as a going concern for a total
consideration of approximately Rs. 6 crores, which was met by issue of shares for considerations
other than cash.
In the year 1992, the Gold decided to dis-investor our Equity Shares and accordingly by a
resolution passed at the EGM held on February 21, 1992.
There are 3 manufacturing units which are situated at Kolar Golds Fields Complex,
Bangalore Complex and Mysore Complex. At our KGF unit we are manufacturing heavy earth
moving equipments like bulldozers, hydraulic excavators, mining shovels, backhoe loaders,
walking draglines, loaders etc. At our Bangalore unit, we are manufacturing railway rolling
stock, metro coaches, defence equipment and aggregates. At our Mysore unit, we are
manufacturing dumpers, motor grades, engines of different sizes and capabilities and also
defence equipments.
BEML Subsidiary
BEML limited one subsidiary, namely Vignyan Industries Limited, which is engaged in supply of
different types of castings to diverse clientele.
Major event
YEAR EVENT
1964 - Incorporation of our company as a private limited company with the registrated
office at Bangalore. Simultaneously, we took over as a going concern the rail coach
division of Hindustan Aeronautics Limited in Bangalore.
1968 -Establishment of the heavy earthmoving equipment division at Kolar Gold Fields.
1979-Collaboration agreement entered into by us with Komatsu Limited, Japan for
technical know-how in the manufacture of a wide range of earthmoving equipment such
as bulldozers
1985-Dump truck division established at Mysore.
1986-Received National Import Substitution Award from Ministry of Science
Technology.
1987-An exclusive hydraulics and power line division and a fully fledged research and
development centre set up at Kolar Gold Field
1990-Received corporate Excellence Award for outstanding performance from
department of public enterprises, Gol
36
-Asias largest 170 ton electric dump truck assembled and launched.
1991-Engine division set up at Mysore for manufacturing heavy-duty diesel engines.
1992-Conversion of our company into a public limited company
-Recognition as an Export House with Star Exporter status
1994-Public Issue of 60,00,000 12.50% secured redeemable partly convertible debentures
of Rs. 195/- each for cash at par aggregating to Rs. 117 crores offered to public
-Listing of the Equity Shares at the Stock Exchanges at Bangalore, Mumbai, Kolkata,
Delhi and Chennai.
-Mammoth equipment walking dragline launched.
1995-Rights issue of 10,00,000 12.50% secured redeemable partly convertible
debentures of Rs. 180/- each.
-crosses Rs. 1, 00,000 Lakh mark in sales turnover
-Received ISO 9000 certification
1996-Major counter trade agreement with Syria executed against import of rock
phosphate
1997-Recipient of award for Best Employer of the physically handicapped from Ministry
of Welfare.
1998-Bags orders against World Bank tenders valued at Rs. 70,000 lakh for equipment
supply to CIL projects.
1999-Integrated hi-tech applications program implemented in divisions covering
manufacturing, operations and communications.
2001-Awarded the Best Exporter by the Department of Industry & Commerce, Gok
2002-Awarded the Best Exporter by the Department of Industry & Commerce, Gok
-Regional award for highest exports awarded by Engineering Export Promotion
Council, Southern Region
2003-Manufacture and supply of hi-tech stainless steel metro coaches to DMRC
37
-The Equipment division of Mysore unit was awarded the National Safety Award
under the scheme I and II
-Awarded the Best Exporter by the Department of Industry & Commerce.
2004-7T
Class
Excavator
BE71
and
Backhoe
loader
BL 9H
were
formally launched.
-Four cylinder indigenous engine B4D105 has been introduced as an earth
moving equipment
-Awarded the Best Exporter by the department of Industry & Commerce, Gok
-Our Companys Equity Share got voluntary delisted from DSE and MSE, and
application made for voluntary delisting of our Equity Shares to CSE
2005-BEML Thrives with Rs 3680 mn orders
-BEML signs MoU with Rotem for Aerobridges
-BEML joins hand with Korean co Rotem to build aerobridges
-BEML inks MoU with Delhi Metro
-BEML inks MoU with HMT for metro rail coach project
2006 -BEML- Secretary (Defence Production)inaugurates BEML Technology Division
-BEML joins hand with US firm Terex Corp
2007 -The credit rating of our Company has been done by ICRA Limited and it
has assigned IrAAA (pronounced as Issuer Rating Triple A)to our Company. This rating
indicates the highest credit quality rating assigned by ICRA Limited, which means our
Company carries the lowest credit risk.
-Formation of Joint Venture Company in the name and style of BEML Midwest
Limited on April 18, 2007 under the registration no. U13204AP2007PLC053653/20072008 with Midwest Limited.
-A consortium of BEML Ltd, Mitsubishi and Rotem has formally got the Delhi
Metro Rail Corporations order worth Rs 1,144 crore for metro coaches.
38
-BEML Ltd has set up a subsidiary in Brazil for sourcing and assembling of mining
and construction equipment to cater to the growing Latin American markets.
-Company name has been changed from Bharat Earth Movers Ltd to BEML Ltd.
-BEML joins hand with NPTC for mining tools.
2008 -BEML Ltd has appointed Shri. P Dwarakanth as the Director of the Company
effective March 01, 2008
-BEML Ltd has informed that the Government of India has appointed Shri. M Pitchlah
as Director (Finance) on the Board of the Company. He took charge on July 14, 2008
-BEML Ltd has informed that Sri. S Ramesh, DGM (CS) holding charge of the post of
company Secretary from September 01, 2008 consequent upon superannuation Sri. K C
Medapa has been appointed as company Secretary of the company by the Board of
Directors at their meeting held on September 18, 2008.
2009 -BEML Limited has informed that the Government vide letter No 8(5)/2008D(BEML), dt.07.07.2009 have appointed the following Non-official Part-time Directors
on the Board of BEML Limited:
39
The manufacturing divisions are augmented with test facilities available at its R&D /
Technology Division. Laboratories at R&D. KGF and Mysore complex are accredited to
National Accreditation Board for Laboratories (NABL) covering Calibration of Flow, Pressure,
Torque and Mechanical Measuring Instruments. The facilities include custom made test tracks to
evaluate the performance of equipment.
Well established vendor base is a key strength of BEML. Vendor assessment and
development is a key component of the companys strategy for achieving Total Quality.
Quality improvement initiatives required for both evolutionary improvements are in
place. Concept of 5s, kaizen and Quality Circles are practices at grass root level. BEML is
actively pursuing six sigma methodologies to achieve breakthrough in process/ product
improvements. In 2006, it has launched company-wide six sigma movement ant the initiative
has gain momentum with many on-going projects progressing well and completed projects are
being implemented successfully.
Quality Function Deployment is actively pursued in the organization. Cross functional
teams routinely visit customer sites to capture Voice of Customer. Such actions have resulted in
incorporating a number of products improvements to the fine tune products features on both in
house developed as well as collaborated products to suit specific customer requirements and
operating conditions.
BEML actively promotes small group activities to encourage Quality Culture at all
levels. The small group activity teams regularly participate in regional/ national/ international
level competition end have achieved recognition as meritorious performers. It is our proud
privilege to mention that our QC teams have raised the BEML flag high in the international arena
by winning Gold Medal in the ICQCC-2008 and silver Medal in the ICQCC-2009
competition. Quality Circle Team WHEEL from EM Division, KGF Complex have been
conferred with the Life Time Award as the LONGEST & ACTIVE QUALITY CIRCLE by M/s.
QCFI during 2010.
41
Aerospace Business
BEML Limited, in its drive towards continuing diversity, from its current product
configurations of Mining & Constructions, Rail & Metro and Defence Sectors, has forayed into
Aerospace business. Taking advantage of the global and domestic opportunities available in the
fast expanding aerospace market in India, and the Off-Set policy laid down for defence
procurement by Government of India, BEML launched its aerospace vertical in its technology
division during the year 2007 to exploit the potential of the e-engineering services in the
aerospace domain. Subsequently, a new aerospace manufacturing division was launched during
Aero India 2009.
The Aerospace Vertical of the Technology Division provides offer high- quality
customized engineering services & solutions, extensive and inherent strength in product design
& development. Technology Division has certifications of CEMILAC, ISO 9001:2008 & NABL.
BEML is already supporting the aerospace operations by supplying Ground Support
Equipment such as Aircraft Towing Tractor(ATT), Multi Purpose Weapon Loader(MPWLBheema) and Crash Fire Tender (CFT). The manufacturing division has scaled up its activities
through manufacture and supply of wide variety of jigs, fixtures, Ground Support and Test
Equipment. The other areas of concentration will be manufacture of gears and hydraulic
aggregates to aeronautical standards as BEML has core strength in these areas. To progress
further, the activities are planned in a phased manner with additional infrastructure to
manufacture sheet mental and CNC components leading to fabrication of subassemblies and
major assemblies, Landing Gears of aircraft, manufacture of composites with the ultimate
objective of building and testing fixed wing and rotary wing aircraft, assembly of UAV from kits
and upgrades of aircraft and helicopters.
Leader in India and Going Global
BEML Limited has an expanding international presence in more than 52 countries spread
Syria, Tunisia, UAE, Jordan, Suriname, South Africa, UK, Sri Lanka, Bangladesh, Philippines,
Indonesia, Oman, Nepal etc. An Export House with Star Exporter status, BEML has proven
strengths in handling large-scale trading and counter-trade and has pushed the export of
engineering goods as well as other equipment. Plans are in the offering to set up assembly
operations at Morocco, Suriname and Indonesia in partnership with local players. Besides,
43
44
Human resources
HR vision:
HR will be a dynamic, Pro-active & strategic business partner to enable BEML to
maintain its leadership position in all its business domains.
HR mission:
45
HR strategies:
Align all HR activities with organizations business strategies
Employee empowerment
Build ownership
Recognition of ideas
Enabling managers to take decisions within the policy framework.
Provide feedback and resolve issue.
R&D Focus
47
To design and develop State-of the-Art products to meet the demands of core sectors
viz. Defence, Mining, Railways and Infrastructure.
Build total self-reliance in earthmoving and related technology
Update current products for higher performance, reliability and be a leader in the field
Create test facilities for evaluating equipment and aggregates performance and
reliability.
R&D Activities
Electronics Group
Todays increased safety, operator comfort; less burden on environment and reduced
operating expenditure are the driving forces of increasing use of electronics on mining &
construction equipment. In order to promote use of electronics on BEML equipment to gain
competitive edge a specialized electronics group has been established
The main objectives include:
To develop new basic technologies in vehicle sub-systems and integrate to achieve total
power train control for optimum performance and to automate work function.
To induct state-of-the art microelectronics based technology to develop customized,
compact, intelligence and sophisticated latest generation mechatronic modules
Indigenization of defence/ mining equipment electrical/ electronic items
To develop Telemetry & Radio Control technology for vehicle application
Automation of test rigs of R&D labs for precision control and data acquisition to improve
test technology.
48
To provide calibration and services support of instrumentation and control system of test
rigs Development activities.
Awards for R&D Excellence
CMD received the SCOPE Award for Excellence and Outstanding Contribution to the
Industries (CII)
Received Golden Peacock Award for Innovation Management from Institute of directors
magazine.
Conferred Mini Ratna Category -1 Status by ministry of defence, Government of India
49
50
51
52
Defence
Tatra 6x6 (Euro II)
Air Craft Weapon Loader
Others
Air Craft Towing Tractor
Air Craft Towing Tractor with Ground Power Unit
Manufacturing facilities
Dumper Assembly
Welding Robot
5 Major Hangers
Plate/ Fabrication Shop
Machine Shop
Light Assembly
Major Assembly
Final Testing & Paint Shop
Equipment Test Track
53
Facility
includes
Mechanical
Tests,
Chemical Analysis,
Metallographic,
Radiography, Ultrasonic Testing, Magnetic Particle Inspection and Dye Penetrate Testing.
Engine Division (Mysore Complex)
BEML Limited, the trusted name for 40 years in mining and construction industry,
channels its expertise into the priority sector of energy with manufacture of fuel-efficient diesel
engines. Established in the year 1991 in Mysore, with technical know-how from Komatsu Japan,
BEML diesel engines are built for maximum reliability, high performance and lasting value.
Engine division manufactures heavy duty Diesel Engines for application on a wide
variety of Earth Moving, Mining and Construction Machinery. Apart from these, the engines are
also offered for other industrial applications as well as diesel generator sets. BEML Engines are
used on Bull Dozers, Dump Trucks, Motor Grades, Wheel Loaders, Pipe Layers, Hydraulic
Excavators, Loading Shovels, C Crane, Aircraft Towing Tractors, Backhoe Loaders, Water
Sprinklers, Water Well Rigs and DG sets. These Engines are capable of operations over a wide
terrain right from sea level conditions to high altitude (20,000ft) as well as under zero conditions.
Engine series
High Quality
Proven Reliability
Longer Life
Standard Fitment
Heavy Duty
Economical Operation
Wide Application
Optional Fitment
Manufacturing Facilities
54
55
international offices in China and warehouse at Malaysia. BEML has already established
marketing base in Brazil, which will be followed by an assembly plant.
Application Engineering
BEML offers application engineering to its customers, which includes preparation of prefeasibility reports, equipment selection studies, total fleet optimization solutions and
customization of equipment, Recommendation-for-user-Profit (RUP) studies enable customers to
improve machine productivity and reduce operating costs.
56
CHAPTER 3
ANALYSIS AND INTERPRETATION
57
The analysis of data is a process of inspecting, cleaning, transforming, and modeling data with
the goal of highlighting useful information, suggesting conclusions, and supporting decision
making. 21 Questions in each Questionnaire was distributed to 50 respondents of the various
departments of the company. The analysis and interpretation is done on the following basis:
The questionnaire distributed as open ended and objective type. A question followed with four
options as mentioned below:
1. Objective type:
2. Close ended type:
The respondent had to tick on whichever answer he/she found relevant.
Percentage
Percentage is a special kind of ratio and is used to make companies between two or more data.
NUMBER OF RESPONDENTS
PERCENTAGE = _________________________________
100
Options
No. of employees
Percentage (%)
1-5 years
18
5- 10 years
16
32
23
46
Total
50
100
2% 9%
50%
16%
23%
Interpretation:
From the above table, it is cleared that, 4% have less than 1 year experience in BEML , 18%
have experience from 1-5 years, 32% have experience from 5-10 years, around 46% have more
than 10 years.
No of employees
Percentage (%)
59
Agree
22
44
Strongly Agree
18
36
Disagree
Strongly Disagree
Neutral
10
20
Total
50
100
22%
50%
18%
10%
Agree
Strongly Agree
Disagree
Strongly Disagree
Neutral
Total
Interpretation:
From the above table, it is clear that, 44% of employees have agreed with comfortable working
environment in the organization, 36% of the employees have strongly agreed with comfortable
working condition of the organization and rest 20% of employees have neutral response towards
comfortable working environment of the organization.
60
Opinions
No of employees
Percentage(%)
Agree
25
50
Strongly Agree
Disagree
Strongly Agree
8
0
16
0
Neutral
17
34
Total
50
100
25%
Agree
Strongly Agree
50%
8%
17%
Disagree
Strongly Agree
Neutral
Total
Interpretation:
From the above table it is clear that, management solves 50% of employee grievances, 16% of
employees have disagreed with the management solving their grievances and 34% of employees
have neutral opinion on this.
61
Opinions
No of employees
Percentage (%)
Agree
12
24
Strongly Agree
16
Disagree
14
Strongly Disagree
Neutral
24
48
Total
50
100
12% 8%
49%
23%
Agree
7%
Strongly Agree
2%
Disagree
Strongly Disagree
Neutral
Total
Interpretation:
From the above table it is clear that 24% of employees have agreed with the differences in
opinion, values and beliefs are respected by each other, 16% of employees have strongly agreed
that the opinions, values and beliefs are respected by each other, 4% have strongly disagree that
their difference in opinion values and beliefs are not respected by each other. 48% of employees
have neutral opinion on it.
Q5. There have been some improvements in the working environment of the organization
62
Opinion
No of employees
Percentage (%)
Agree
25
50
Strongly Agree
15
30
Disagree
Strongly Disagree
Neutral
16
Total
50
100
25%
50%
15%
2%
8%
Agree
Strongly Agree
Disagree
Strongly Disagree
Neutral
Total
Interpretation:
From the above table it is clear that 50% of employees have agreed that there have been some
improvements in working environment of the organization. 30% of employees have strongly
agreed with some improvements in working condition of the organization, 4% employees have
disagreed with it and rest 16% have neutral opinion on the improvement in working environment
of the organization.
63
No of employees
Percentage (%)
Agree
38
76
Strongly Agree
10
20
Disagree
Strongly Disagree
Neutral
Total
50
100
Agree
38%
50%
Strongly Agree
Disagree
2% 10%
Strongly Disagree
Neutral
Total
Interpretation:
From the above table it is clear that, 76% of employees have agreed that the management
provide health insurance and accidents benefits, 20% of employees have strongly agreed with it,
and rest 4% of employees have disagreed with the management providing health insurance and
accidents benefits in the organization.
64
No of employees
Percentage (%)
Agree
27
54
Strongly agree
16
Disagree
Strongly disagree
Neutral
11
22
Total
50
100
27%
50%
8%
4%
11%
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total
Interpretation:
65
From the above table it is clear that 54% of employees agreed that the training programme are
conducted effectively and it help them in performing job better, 16% employees strongly agreed
with this, 8% employees disagreed with this, and 22 % employees have neutral opinion on it.
Q8. The organization has provided guidance and assistance to move further in the set of
career
Opinions
No of employees
Percentage (%)
Agree
28
56
Strongly agree
Disagree
10
Strongly disagree
Neutral
17
34
Total
50
100
Agree
34%
56%
10%
Strongly agree
Disagree
Strongly disagree
Neutral
Interpretation:
66
From the above table it is clear that, 56% of employees has agreed that management provides
guidance and assistance to move further in the set of career path, 10% of employees has
disagreed with it, and 34% employees have neutral opinion on this.
No of employees
Percentage (%)
Agree
32
64
Strongly agree
Disagree
10
20
Strongly disagree
Neutral
16
Total
50
100
32%
50%
8%
10%
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total
Interpretation:
67
From the above table it is clear that, 32% of employees say that there is follow up action and
feedback given on the employees performance, 10% of employees disagreed with it, 8%
employees has neutral opinion on this.
Q10. There is reward system for the effective performance by the employees performance
Opinions
No of employees
Percentage (%)
Agree
24
48
Strongly agree
Disagree
18
Strongly disagree
Neutral
17
34
Total
50
100
24%
50%
9%
17%
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total
68
Interpretation:
From the above table it is clear that, 24% employees agreed that there is reward system for
effective performance by the employees, 9% employees have disagreed with it, 17% of
employees have neutral opinion on it.
No of employees
Percentage (%)
Agree
31
62
Strongly agree
10
Disagree
Strongly disagree
Neutral
14
28
Total
50
100
31%
50%
14%
5%
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total
Interpretation:
69
From the above table it is clear that, 31% of employees have agreed that organization culture is
contributing towards the organisational success, 5% of employees have strongly agreed with it,
14% employees have neutral opinion on it.
No of employees
Percentage (%)
Agree
20
40
Strongly agree
14
Disagree
10
Strongly disagree
Neutral
18
36
Total
50
100
Agree
20%
7%
5%
50%
18%
Strongly agree
Disagree
Strongly disagree
Neutral
Total
70
Interpretation:
From the above table it is clear that, 20% of employees has agreed that the leaders and managers
are role models of openness and inclusion of different professionals, 7% of employees have
strongly agreed with this, 5% of employees disagreed with this, and 18% of employees have
neutral opinion on this.
Q13. The safety measures followed in handling hazardous machines is appropriate
Opinions
No of employees
Percentage (%)
Agree
25
50
Strongly agree
Disagree
Strongly disagree
Neutral
21
42
Total
50
100
25%
50%
4%
21%
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total
Interpretation:
71
From the above table it is clear that, 25% of employees have agreed that there is safety measures
followed in handling hazardous machines in appropriate, 4% of employees disagreed with it and
rest 21% has neutral opinion on it.
No of employees
Percentage (%)
Agree
20
40
Strongly agree
12
24
Disagree
Strongly disagree
Neutral
18
36
Total
50
100
Agree
20%
50%
12%
18%
Strongly agree
Disagree
Strongly disagree
Neutral
Total
72
Interpretation:
From the above table it is clear that, 20% of employees tell that leadership helps them in
maximizing the organization results, 12% of employees have strongly agreed on it, and rest 18%
of employees has neutral opinion on this.
No of employees
Percentage (%)
Agree
23
46
Strongly agree
15
30
Disagree
Strongly disagree
Neutral
12
24
Total
50
100
23%
Agree
Strongly agree
50%
15%
12%
Disagree
Strongly disagree
Neutral
Total
73
Interpretation:
From the above table it is clear that, 23% of employees agrees that interpersonal communication
and relationships contributes to a organization productivity, 15% of employees has strongly
agreed on it, rest 12% of employees has neutral opinion on this.
No of employees
Percentage (%)
Agree
20
40
Strongly agree
Disagree
Strongly disagree
15
30
Neutral
13
26
Total
50
100
Agree
20%
2%
15%
50%
13%
Strongly agree
Disagree
Strongly disagree
Neutral
Total
74
Interpretation:
From the above table it is clear that, 20% of employees has agreed that the top level
management treats employees fairly, 2% of employees strongly agreed with it, 15% of
employees has feels that the senior management doesnt treat fairly and rest 13% has neutral
opinion on it.
Q17. Clearness of goals and objectives
Opinions
No of employees
Percentage (%)
Agree
12
24
Strongly agree
Disagree
28
56
Strongly disagree
Neutral
10
20
Total
50
100
12%
50%
Agree
28%
10%
Strongly agree
Disagree
Strongly disagree
Neutral
Total
Interpretation:
75
From the above table it is clear that, 12% of employees agreed that the organization goals and
objectives are clear to them , 28% of employees say that the organization goals and objectives
are not clear to them and rest 10% of employees has neutral opinion on this.
Q18. Employees are free to express their views and suggestions in decision making process
and the management will consider their views and suggestions
Opinions
No of employees
Percentage (%)
Agree
12
24
Strongly agree
Disagree
25
50
Strongly disagree
Neutral
13
26
Total
50
100
12%
Agree
25%
50%
13%
Strongly agree
Disagree
Strongly disagree
Neutral
Total
Interpretation:
76
From the above table it is clear that, 12% of employees have agreed that employees are free to
express their views and suggestions in decision making process and the management will
consider their views and suggestions, 25% of employees has disagreed with this, and rest 13%
has neutral opinion on it.
No of employees
Percentage (%)
Agree
28
56
Strongly agree
12
24
Disagree
Strongly disagree
Neutral
10
20
Total
50
100
28%
50%
12%
10%
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total
Interpretation:
77
From the above table it is clear that, 28% of employees say that the organization helps them to
enhance their career growth, 12% employees strongly agree with this, remaining 10% of
employees are with neutral opinion.
Q20. This organization is right for anyone who wants to feel a sense of equal opportunity to
grow and develop professionally and personally
Opinions
No of employees
Percentage (%)
Agree
20
40
Strongly agree
Disagree
12
Strongly disagree
Neutral
24
48
Total
50
100
Agree
20%
50%
6%
24%
Strongly agree
Disagree
Strongly disagree
Neutral
Total
78
Interpretation:
From the above table it is clear that, 20% employees says that this organization is right for
anyone who wants to feel a sense of equal opportunity to grow and develop professionally and
personally, 6% of employees has disagreed with it, rest 24% of employees has neutral opinion on
this.
Q21. Newcomers are welcomed and integrated quickly
Opinions
No of employees
Percentage (%)
Agree
28
56
Strongly agree
12
24
Disagree
Strongly disagree
Neutral
16
Total
50
100
28%
50%
12%
8% 2%
Agree
Strongly agree
Disagree
Strongly disagree
Neutral
Total
79
Interpretation:
From the above table it is clear that, 28% of employees agree that the new comers are welcomed
and integrated quickly, 12% of employees strongly agree with this, 2% of employees dont agree
with it, and the remaining 8% of employees has neutral opinion on this.
CHAPTER 4
SUMMARY OF FINDINGS
80
SUMMARY OF FINDINGS:
o Maximum number of employees says that the leadership helps in maximizing the
organization results.
o Almost all the employees have strongly agreed that interpersonal communication and
relationships contributes to a organization productivity
o Maximum employees have the opinion that the senior management treats them fairly
o Majority of the employees have agreed that as an employee the organisation goals and
objectives are clear to them
o Most of the employees have agreed that they are free to express their views and
suggestions in decision making process and the management will consider their views
and suggestions.
o Maximum number of employees has said that the organization helps me to enhance their
career growth
o Majority of the employees agrees that the organization is right for anyone who wants to
feel a sense of equal opportunity to grow and develop professionally and personally.
o All the employees have agreed that the newcomers are welcomed and integrated quickly.
82
CHAPTER 5
83
CONCLUSION:
In this project I have analyzed employee perception towards organization culture of BEML. The
study was conducted among 50 employees and collected information through structured
questionnaire.
In this project I have analyzed that numerous attributes of organizational culture have significant
positive influence over the performance of organization. The surveys has mapped out different
cultural aspects of organizations as well as showed the vital relationship between culture and
performance. The qualitative research facilitated the survey with its robust and in-depth
observations. Through robust and in-depth observations, the paper explained how employees
beliefs, norms, gestures and all relevant aspects of organizational culture impacted on firms
performance. The findings of the project significantly demonstrate both positive and negative
mannerism of culture which has significant consequences on employees as well as firms
performance. This project has covered an extensive range of cultural traits which include from
behavioral aspects to gestural attributes. The topic also asserts that organizational culture is an
open system approach which has interdependent and interactive association with organizations
performance. The sophisticated and extensive nature of this study would add value to
organization studies discipline by providing an important qualitative perception towards
organizational culture and performance and would initiate further discussions to create an
effective framework between organizational culture and its impact on performance. However, the
paper might have some limitations. For instance, outcomes of the survey are drawn by
observation, the thoughts and perceptions of the different managerial level of the organization.
Therefore, this process might be affected by some perceptual errors of top level personnel of the
organization.
84
SUGGESTIONS
For the betterment of organization culture in the organization based on the findings of the present
study, the following practical suggestions may be considered:
Company should update the latest news to the employees. So it is better to make some
changes in the organization.
The company should compile a specific report on employee satisfaction as well as dissatisfaction.
The company should resolve the complaint and conflict among the employees.
Company should provide better opportunity for career growth of the employees
Co-operation level among different departments may be improved for better efficiency.
Reward and recognize individuals who display exemplary performance during team
meetings, quarterly meets, town halls etc.
Conduct widespread communication to chart out the growth path for each individual
5. Offer variety.
Give your employees the choice of working on different assignment or schedule to enhance
productivity. While it is generally believed that working on a task you are more familiar with
breeds productivity, the monotony will soon wear him out. Some companies do so by trusting
their employees to work on schedules they are most productive.
6. Get everyone involved.
While the need for upper management is necessary to direct the company in achieving common
goals, it is also necessary to inform and involve the employees in critical decisions.
7. Be transparent.
Transparency eliminates the need to question the intention of the leaders in the organization, thus
builds trust and loyalty. If you let employees see how you spend the company money on a
business trip, they will likely trust you more.
8. Be supportive of employees goals.
Get to know your employees a little at a more intimate level and encourage them in their dreams.
Giving them support through small talks, advices and sharing experiences can significantly
increase employee loyalty and productivity.
9. Be diplomatic.
Diplomacy in the workplace is an important concept. Listen to what your employees got to say
without checking your computer or mobile phone in the middle of the conversation, investigate
negative claims before making decisions and practicing fair treatment among old and new
employees all entail diplomacy. Show your employees that you are listening with sincerity, does
not practice bias, and they will trust you are arriving at the soundest decision possible.
87
BIBLIOGRAPHY
Books
Magazines
Business today
Human Capital - Cultural Inheritance
Websites
www.bemlindia.com
www.google.co.in
www.hr.strategy.com
www.citehr.com
ANNEXURE
QUESTIONNAIRE
Respected Sir/Madam
I am Mohitha C.M of final year MBA, student of BIMS As partial
fulfillment of the requirements for the completion of the degree; I am
undertaking a project titled, Impact of Organizational Culture on Employee
89
Yours Sincerely,
Mohitha C.M
Personal Details
1 Gender
Male
Female
2 Age
2030
31-40
41-50
Above 50
90
Marital Status
Married
Single
4 Designation or Grade
5 Department
:
:
6 Experience
6-10 yrs
16-20 yrs
11-15 yrs
20-25 yrs
Above 25 yrs
6 Salary
10000-20000
30000-40000
Above 50000
20000-30000
40000-50000
b) 1-5 years
c) 5-10 years
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
3
b) Disagree
91
c) Strongly agree
d) Strongly disagree
e) Neutral
4
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
5
In the recent past, there have been some improvements in working condition of the
organization
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
6
The management provides health insurance and accidents benefits to the employees
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
7
Training programme are conducted effectively and it help you in performing your
job better
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
92
The organization has provided guidance and assistance to move further in the set of
career path
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
9
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
11 The organization culture is contributing towards the organizational success
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
12 The leaders and managers are role models of openness and inclusion of different
professionals.
93
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
13 The safety measures followed in handling hazardous machines is appropriate
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
14 Leadership helps in maximizing the organization results
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
15 Interpersonal communication and relationships contributes to a organization
productivity
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
16 Senior management treats the employees fairly
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
17 As an employee the organization goals and objectives are clear to me
94
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
18 Employees are free to express their views and suggestions in decision making
process and the management will consider their views and suggestions
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
20 This organization is right for anyone who wants to feel a sense of equal opportunity
to grow and develop professionally and personally
a) Agree
b) Disagree
c) Strongly agree
d) Strongly disagree
e) Neutral
21 Newcomers are welcomed and integrated quickly
a) Agree
b) Disagree
95
c) Strongly agree
d) Strongly disagree
e) Neutral
96