A

PROJECT REPORT
ON
“ A STUDY ON ORGANIZATIONAL CULTURE
AND ITS IMPACT ON EMPLOYE BEHAVIOUR.”

3SD SOLUTIONS
BHUBANESWAR

INTERNAL GUIDE
EXTERNAL GUIDE
 Declaration
I hereby declare that the report of the project work
entitled , “A STUDY ON ORGANIZATIONAL CULTURE
AND ITS IMPACT ON EMPLOYE BEHAVIOUR” is
based my own work carried out during the course of my
study under the supervision of I assert that the statements
made and conclusions drawn are an outcome of the
project work. I further declare that to the best of my
knowledge and belief that the project report does not
contain any part of any work which has been submitted for
the award of any other degree/diploma/certificate in this
University or any other University.

Date- JAGANNATH NAYAK

Place- Roll no-

 Acknowledgement

i am also thankful to my family for their kind co-operation which made

me take easy.
INTRODUCTION
The topic of the project is ‘A Study on ‘Organizational Culture’ and
its Impact on employees’ behaviour.

The main objective of the study is to find the overall performance

of the employees.

The purpose of the survey process is to provide a more accurate

assessment of the existing culture from the employees’ point-of-
view and also to assess their behaviours with respect to that of
the existing culture.

: Organisational culture involves various beliefs and norms within

an organisation. These have a definite impact on employee
performance. Furthermore, it has also been seen that
organizational culture affects the productivity as well as profitability
of the employees.

This overall influences their performance level that augments the

productivity. Furthermore, it has also been seen that organisational
culture affects the employee's behaviour. Furthermore, these
employees were selected randomly from various organizations like
retail as well as telecommunication industry in order to understand
the impact of this organisational culture. Furthermore, the
researcher has used 5% significance level in order to understand

this organisational culture The researcher accepts the alternative

hypothesis in this research study.

Therefore, it can be said that organisational culture has a definite

impact on employee behaviour and their rate of performance.

OBJECTIVES:

This research study has a primary objective that has been

discussed as follows-

● To study organisational culture and understand its impact on

employee behaviour The secondary objectives that this concerned
research study has undertaken are as follows-

● To identify the organisational culture and its importance in

employee performance.

● To critically assess factors affecting employee behaviour.

 ● To critically evaluate impact of organisational culture and
environment on the behaviour of employees.

● To recommend ways by which organisational culture can be

flexible to improve employee relationship.

LITERATURE REVIEW
Organizational culture has assumed importance since the 21st
century, because of its impact on employee performance and job
satisfaction. It is imperative on every organization to understand its

own dynamic culture so that mangers can capitalize on the

insights generated by the cultural perspective to wield greater
control over their organizations.

The culture of an organization has an important on its

performance. Organizational culture can be described as a thought
or scheme in the field of management and organizational studies
which depicts and describes the psychology, behaviours,
experiences, beliefs and values of an organization. Organizational
culture has the potential to affect a range of organizationally and
individually desired outcomes. According to Ritchie (2000),
organizational culture affects such outcomes as productivity,
performance, commitment, self confidence, satisfaction and ethical
behavior. Similarly, more recent writers have stated that
organizational culture impacts on any organization, its employee
performance and job satisfaction and ultimately its financial
performance. Furthermore, it has also been noted that
organizational culture helps management to find out the suitable
strategies and policies which can drive employees to contribute
themselves and lead to organizational performance. With the ever
changing technology and fast paced business arena, organizations
today are grappling to find new and innovative ways of improving
performance with the minimal addition of cost. Many organizations
have now turned to explore the sociological aspect of the business

in order to improve profitability. Culture is one aspect that is not

tangible, yet it plays a very important role to the success of any
organization.

Organizational Culture
Collins and Porras (2000, p.338) state that organizational culture
refers to a system of shared meaning held by members that
distinguish one organization from other organizations. They believe
that these shared meanings are a set of key characteristics, and
that the organization values and the essence of an organization’s
culture can be captured in seven primary characteristics. These
characteristics are:

• Innovation and risk – taking: This has to do with the degree to

which employees are encouraged to be innovative and take risks;
• Attention to detail: The degree to which employees are expected
to exhibit precision analysis and attention to detail;

• Outcome orientation: The degree to which management focuses

on results or outcomes rather than on the techniques and
processes used to achieve those outcomes;

• People orientation: The degree to which management decisions

takes into consideration the effect of outcomes on people within
the organization;

• Team orientation: The degree to which work activities are

organized around teams rather than individuals;

• Aggressiveness: The degree to which people are aggressive

and competitive rather than easygoing;

• Stability: The degree to which organizational activities emphasize

maintaining the status quo in contrast to growth.

Levels of Organizational Culture..

Organizational culture exists on several levels, which differ in
terms of visibility and resistance to change. When it comes to
changing the culture of the organization, it becomes difficult to
determine which the more are, and which are the less important
elements that help shape an organizations culture. Hofstede (1990)
developed a four-layered hierarchical model of culture which helps
to identify and categories the constituent elements of culture.

 Shared assumptions: This is the least visible or deepest level

is that of basic, which represents beliefs about reliability and
human nature that are taken for granted.

• cultural values: This is the next level of culture is that of,

which represent collective beliefs, assumptions, and feelings about
what things are good, normal, rational, and valuable. Cultural
values might be very different in different organizations; in some,
employees may care deeply about money, but, in others, they
may care more about technological innovation or employee well-
being.

• Shared behaviours: These are more are more visible and

somewhat easier to change than values. The reason is that
people may be unaware of the values that bind them together.
• Cultural symbols: The most superficial level of organizational
culture consists of symbols; these are words (jargon or slang),
gestures, and pictures or other physical objects that carry a
particular meaning within a culture.

Employee Performance

Employee performance is a term typical to the Human Resource

field where employee performance can refer to the ability of
employees to achieve organizational goals more effectively and
efficiently. It involves all aspects which directly or indirectly affect
and relate to the work of the employees. It is one measurement
of work results in determining individual attributes such as ability
and experience, organizational supports such as resources and
technology and work effort, the point at which individual level of
motivation comes directly to be involved. Employee performance
can also be seen as an aggregate value to an organization’s set
of behaviours that an employee contributes both directly and
indirectly to organization goals. Grinzberg et al. (1951) has used
the term employee performance to refer to an employee’s
response to demands that are made on him by the employer or
organization which he is part of. According to Koontz (1988) ways
in which employee performance can be increased include; proper
incentive systems which may be financial or nonfinancial. Financial
incentives include; salaries, allowances, overtime payment, bonus
and wages, while non-financial incentives include; promotion,
medical allowance, training, transport, subsidized housing and
meals. This should be after identifying the needs and desires of
employees that can be satisfied hence increased performance.

Furthermore, the type of organizational culture created in an

organization determines the impact it can have on employee
performance. It can have either a negative or a positive impact.
For instance, an organizational culture was employees are
considered an integral part of the growth process of the
organization fosters employee performance. This is so because the
employees align their goals and objectives with those of the
organization and feel responsible for the overall well being of the
organization.

In such organizational culture, the employees are committed to

achieving their goals and thus it has a positive effect on the
overall performance of the organization. Organizational culture to a
large extent determines the performance of employees. Therefore,
it is in the interest of organizations to eliminate negative factors
that slow down employee performance in order to foster a positive
work place environment or a positive organizational culture.

Job Satisfaction
Throughout the history of organizational and behavioral research,
the subject of job satisfaction has always attracted widespread
empirical examination, leading to a number of interesting
definitions; Locke (1976) defines job satisfaction as a pleasurable
or positive emotional state resulting from the appraisal of one’s job
or job experiences. Prince (2001) defines job satisfaction as the
effective orientation that an employee has towards his or her work.
Schiender and Snyder (1975) define job satisfaction as a personal
evaluation of conditions present in the job, or outcomes that arise
as a result of having a job.

Job satisfaction thus, has to do with an individual’s perception and

evaluation of his job, and this perception is influenced by the
person’s unique circumstances like needs, values and
expectations.

According to him, these dimensions are complex and interrelated

in nature. These common dimensions include: pay, promotion,
recognition, working condition, benefits, appreciation, supervisory
support and coworkers. The employees scrutinize diverse features
of their jobs and their inspection and satisfaction varies from each
other as it revolves around the subjectivity of the employees. This
is so because job satisfaction to an extent is a reflection of how
well an employee’s expectations of a job are aligned with the
reality of their work. Employees assess job satisfaction based on
intrinsic job elements, such as feelings of purpose of work, and
extrinsic job elements such as compensation.

The level of employees’ job satisfaction reflects the cumulative

level of fulfilled job expectations. That is, employees expect their
job to provide a mix of these elements, for which each employee
has distinct preferential values (Egan et al., 2004). Job satisfaction
is one of the most frequent investigated variables in organizational
culture, behavior and other occupational phenomena, ranging from
job design to supervision. In general, job satisfaction encapsulates
an employee’s feeling about his/ her job. Research, however, has
revealed that job satisfaction is a multidimensional phenomenon,
influenced by several internal and external factors, like the
individual’s values, principles, personality and expectations and the
job’s nature, the opportunities provided etc..
In particular, motivators are able to create satisfaction by fulfilling
the individual’s needs for meaning and personal growth.

They include physical working conditions, job security, supervision,

salary, institution policy and administration, interpersonal relations
and benefits.

The Impact of Organizational Culture on Job Satisfaction

A culture is a set of basic tacit assumptions about how the world
is and ought to be that a group of people share and that
determines their perceptions, thoughts, feelings, and to some
degree, their overt behavior. Scholars of organizational behavior
have studied and identified some relationship between
organizational culture and employee performance.

It is easy to imagine that an organization with culture of harmony,

respect, trust and productivity, lends itself to an environment
hospitable to job satisfaction. Furthermore, other researchers on
the relationship between organizational culture and job satisfaction
suggests that a productive working environment promotes the
construction of a specific organizational culture and the experience
of employees’ job satisfaction studies have also shown that
employees’ feeling of job satisfaction has also been studied in
parallel with a specific dimension of organizational culture. Studies
have shown that organizations which are flexible and adopt the
participative management type, with emphasis on communication
and employees’ reward,the employee is more likely to be satisfied
(McKinnon et al., 2003). Chang and Lee (2007) investigated the
connection between organizational culture and job satisfaction.
According to their results, organizational culture influences job
satisfaction positively specially when the employee shares in the
vision of the organization. As a result, employees corporate not
only for the organization’s well being but also for their personal
completion.