Project Work RM Oct 09 Sec A Group 3

Assessing the impact of
Organization Culture and

Structure on Employee
Motivation
Research Methodology
Term IV (PT-PGPM)
Oct’09, Section A
(in alphabetical order)

Arvind Kaushik (15)
Ashish Ranjan (17)
Ashwin Sahai (18)
Atul Abrol (19)
Atul Sanghal (20)
Biju Sebastian (22)
Acknowledgement
We owe many thanks to all who helped in developing this project report. First and the foremost is
Prof. (Dr.) Ajay Kumar Jain who provided continuous guidance in channeling the thoughts into
action.
Our sincere gratitude goes to all who participated in this research by providing their views on
questionnaire and taking time out from their very busy schedules.
Last but not the least we extend our heartfelt thanks to all co-students who are superb.
2
Project Work: Research Methodology; October 2009
Abstract
Organizational culture is even more important today than it has previously been before.
Globalization, increased competition and technological change have created a greater need for
innovation, coordination and integration across organizations in order to improve efficiency and
meet the expectations of increasingly more sophisticated clients. And central to achieving this
objective is the motivated people that any organization would have.
This report examines the organizational culture and its impact on employee motivation. The
common definition of organizational culture is adjusted with the aid of the core-task concept.
Organisational culture is defined as a solution created by an organisation for the demands set by the
core task. The development of an organisation’s operations requires an understanding of the overall
dynamics (culture) of the organisation’s activities, but also an assessment of the impact of culture on
employee’s drive.
3
Table of Contents
Acknowledgement ......................................................................................................................................................................... 2
Abstract............................................................................................................................................................................................. 3
Table of contents ........................................................................................................................................................................... 4
Introduction .................................................................................................................................................................................... 5
Methods............................................................................................................................................................................................ 6
Results ............................................................................................................................................................................................... 9
Discussion ...................................................................................................................................................................................... 18
Appendix........................................................................................................................................................................................ 20
4
Chapter 1: Introduction
Organizational culture is a system of common assumptions, values or norms among the members of
an organization which is the basis of their behavior. Organizational culture helps the organization
achieve the abilities needed for adapting itself whit environment requirements, create uniformity and
internal integrity.
These cultural norms and values finally determine the behavior and reactions of each member of the
organization in different conditions and situations. Organizational culture has direct effects on all
parts of the organization such as managerial and functional systems, organization strategies and
technologies, and eventually its outputs. Evaluating the organizational culture we can follow
different approaches such as, analyzing the fundamental assumptions, investigating the cultural gaps
and managerial behavior in the organization. Each of these approaches has their own weak and
strong points. In a comprehensive survey we should apply a mixture of these different approaches
regarding the current situation. Managers and leaders use different tools and mechanisms to make
the organizational culture and the other organization variables converged. But Culture Management
means knowing and applying the current culture in the best way possible, making the desirable
norms and beliefs stronger and the undesirable ones weaker or changed, and eventually stabilizing
the proper organizational culture. Also culture management is a process that continuously
recognizes the current and ideal culture and change the current one in order to develop the proper
values and norms.
A culture is an expression of a group of people. Every culture reflects the current beliefs and
behaviors of its people, as well as the history that shaped them. History is an essential attribute of
culture because one of culture’s defining characteristics is that it persists over time; it gets
transmitted from the present to the future with notable continuity. Hence, when we reflect on our
own situation today, we can see that the past interacts with new forces from our own times, and the
aggregate picture is exactly what constitutes our culture right now.
5
Chapter 2: Methods
There are different models provided for investigating and analyzing the organizational culture, the
method we chose is Research method. The major research method used questionnaire based in-
depth interviews.
As a group, we prepared several questions, which are used to tailor a questionnaire form and are
used to survey respondents attitudes and opinions about Organisational Culture. The results of
questionnaire forms are always in themselves artifacts and as such they require interpretation and
empirical verification. Questionnaire studies measure the central level of organisational culture i.e.
attitudes, beliefs and values. Used correctly, questionnaires can provide sufficiently valid descriptive
information about an organisation and particularly about the views and attitudes of its staff.
Questionnaires can also be used to clarify the various connections between variables and to explain
statistically the differences found. Understanding the significance of the reasons for the differences
requires research that is more detailed than questionnaire methods, such as interviews, observation
and the analysis of documents. An advantage of questionnaire studies, however, is that one can have
a greater number of participants in a study than in interview studies, for example. With a
questionnaire it is possible to reach all of the members of an organisation. Making different kinds of
comparisons is also more objective, and anonymity is easier to guarantee, than in interview studies,
for example. Without quantitative research, we cannot obtain data that is statistically comparable
with other groups (and organisations) and usable in repeat studies.
Sample details:
More than 100 participants from different Business Sectors like Manufacturing, IT, Consulting etc
were requested to participate in the Survey which were designed specially to understand the
assessing the impact of Cultures and Structures on Employees’ drive.
Informants within individual Sectors came from different levels within the structure: Senior, Junior,
Middle and even Outsourced were involved in the study. In total, 120 responses were received.
6
Data Collection
Questionnaire based data collection was used. A total of 120 responses were received. There was a
good mix of people from all levels from different industries. The respondents comprised of people
from different industries and different levels of experience in the industry. Following gives a glimpse
of respondents’ profile.
Management level No of responses

Entry level 5
Middle 80
Senior 35
Top 0
Total 120
Industry type No of responses

Manufacturing 30
Consulting 10
IT 35
Other 45
Total 120
Years in
No of responses
industry
0 to 1 35
2 to 5 60
6 to 9 15
10 or above 10
Total 120
Data analysis
There were total 25 items in the questionnaire. Out of these, 3 items were related to respondents’
profile. Out of the 22 remaining, 20 items belonged to examining the organization culture and
structure with 2 others for examining the drive of respondents in their respective companies. 3 items
on organization structure and culture were reverse coded.
7
The items were scaled on a five point scale. The details of items and scale are provided in Annexure
1 of this report. All the data was loaded on an excel sheet and items requiring reverse coding were
done so.
Further, mean analysis was carried out on the responses with regard to respondents’ motivation. The
respondents were divided into two groups, with mean score 4 or more and others with less than 4
mean score. For the analysis purpose, respondents with 4 or more as mean score are considered as
Motivated and other Not Motivated. Distribution of respondents among the above two categories
are tabulated below.
Respondents No of responses
With score more than 4 74
With score less than 4 56
Total 120
Further, scores of respondents were studied for the above two separately. The mean scores of
respondents were estimated for all items and these scores were then sorted in order. The reason for
this procedure was to understand the importance of various items for respondents.
8
Chapter 3: Results
These results were also studied based on other categories i.e. managerial level and experience in the
industry of the respondents. The results are tabulated below for all classes -
Motivated Employees:
Scores of Motivated respondents were tabulated on two categories; management level and
experience in industry.
Management Level:
Scores of top 5 items of motivated employees in middle level are as under –

Avg.
Middle Level Top 5 motivation indicators
Score
My organization communicates effectively (written and verbal) and in
Average of A 8 4.7
a timely manner to their employees.
Average of A 4 4.4 My organization has a current mission plan for everyone to view.
Average of A 10 4.4 My organization shares information with others who should know.
My organization recognizes and celebrates successes of team
Average of A 11 4.3
members.
Average of A 17 4.2 My organization's management team is diverse in nature.
Scores of top 5 items of motivated employees in Senior level are as under –

Avg.
Senior Level Top 5 motivation indicators
Score
Average of A 11 4.6
members.
My organization communicates effectively (written and verbal) and
Average of A 8 4.4
in a timely manner to their employees.
My organization shows respect for a diverse range of opinions, ideas,
Average of A 12 4.4
and people.
9
There was no respondent in Entry level found to have mean scores to be classified as
Driven.
Similarly, 3 bottom items are also identified for above groups –

Avg.
Middle Level Bottom 3 indicators
Score
My organization is diplomatic in how it handles all aspects of
Average of A 6 2.9
operations.
"We've always done it that way" is a philosophy that describes my
Average of A 22 2.7
company's response to new ideas.
Average of A 15 1.8 My organization's structure is hierarchal in nature.
Avg.
Senior Level Bottom 3 indicators
Score
Average of A 6 2.5
operations.
People at all levels of the organisation are continuously trying to
Average of A 25 2.3
build or rebuild a 'better mouse-trap'.
Experience in Industry:
Scores of top 5 items of motivated employees with different experience bracket are as under –
Avg.
0-1 year Top 5 motivation indicators
Score
Average of A 8 4.5
Average of A 11 4.4
members.
My organization will promote from within before looking for
Average of A 16 4.2
employees externally.
Avg.
Score
Average of A 11 5.0
members.
10
Average of A 5 4.6 Our organization is good at fulfilling their mission.
Average of A 9 4.6 My organization's culture follows the company's mission.
Avg
Score
Average of A 8 4.6
Average of A 11 4.4
members.
Average of A 19 4.1 Organisational policies are reviewed annually to assess effectiveness.
Avg
10- above Top 5 motivation indicators
Score
Average of A 8 4.8
Average of A 12 4.4
and people.
Scores of bottom 3 items of motivated employees with different experience bracket are as under –
Avg
0-1 year Bottom 3 indicators
Score
Average of A 22 2.2
Average of A 25 2.0
Avg
Score
Average of A 22 2.8
Average of A 6 2.0
operations.
11
Avg.
Score
Average of A 25 3.0
Average of A 6 2.5
operations.
Avg.
10- above Bottom 3 indicators
Score
Average of A 25 2.7
Average of A 22 2.6
Non-Motivated Employees:
Scores of Non-Motivated respondents were tabulated on two categories; management level and
experience in industry.
Management Level:
Scores of top 5 items of non-motivated employees in entry level are as under –

Avg.
Entry Level Top 5 motivation indicators
Score
People at all levels of the organisation are continuously trying to build
Average of A 25 3.8
or rebuild a 'better mouse-trap'.

Average of A 11 3.6
members.
Our HR department is creative in finding new ways to attract top

Average of A 20 3.6
talent among diverse groups.
12
Scores of top 5 items of non-motivated employees in middle level are as under –
Avg.
Middle Level Top 5 motivation indicators
Score

Average of A 6 3.1
operations.

Average of A 20 3.0
People at all levels of the organisation are continuously trying to build

Average of A 25 3.0
or rebuild a 'better mouse-trap'.
Scores of top 5 items of non-motivated employees in Senior level are as under –

Avg.
Senior Level Top 5 motivation indicators
Score

Average of A 6 3.3
operations.

Average of A 25 2.9

Average of A 11 2.5
members.
Similarly, 3 bottom items are also identified for above groups –

Avg.
Entry Level Bottom 3 indicators
Score
My organization shows respect for a diverse range of opinions,
Average of A 12 1.8
ideas, and people.
Average of A 7 1.2 I feel that my organization values my opinion.
In my organisation, change is viewed as a challenge and an

Average of A 18 1.0
opportunity.
13
Avg.
Middle Level Bottom 3 indicators
Score
Average of A 12 1.8
ideas, and people.

Average of A 18 1.7
opportunity.
Avg.
Senior Level Bottom 3 indicators
Score

Average of A 12 1.5
ideas, and people.

Average of A 18 1.3
opportunity.
Experience in Industry:
Scores of top 5 items of non-motivated employees with different experience bracket are as under –
Avg.
Score

Average of A 20 3.3

Average of A 11 3.2
members.

Average of A 6 3.1
operations.
14
Avg.
Score

Average of A 25 3.3

Average of A 6 3.1
operations.

Average of A 20 3.1
Avg
Score

Average of A 25 3.3

Average of A 6 3.0
operations.

Average of A 11 2.7
members.
Avg
10- above Top 5 motivation indicators
Score
Average of A 6 3.5
operations.

Average of A 22 2.5
Average of A 25 2.5 People at all levels of the organisation are continuously trying to
15
Scores of bottom 3 items of non-motivated employees with different experience bracket are as
under –
Avg
Score
Average of A 7 1.8 I feel that my organization values my opinion.

Average of A 18 1.8
opportunity.
Avg
Score
Average of A 12 1.5
and people.

Average of A 18 1.0
opportunity.
Avg.
Score
Average of A 23 2.0 My boss values new ideas and implements them quickly.

Average of A 12 1.7
and people.

Average of A 22 1.7
10- above Avg. Bottom 3 indicators

16
Score

Average of A 18 1.5
opportunity.
Average of A 23 1.5 My boss values new ideas and implements them quickly.
17
Chapter 4: Discussion
The major findings of the study are listed below –
1. It was surprising that none of the entry level respondent was found to be motivated enough.
2. The major areas which are found to be considered as important by the motivated people are
–
 My organization communicates effectively (written and verbal) and in a timely manner to

their employees.
 My organization has a current mission plan for everyone to view.
 My organization shares information with others who should know.
 My organization recognizes and celebrates successes of team members.
3. The major areas which are found to be considered as least important by the motivated
people are –
 My organization is diplomatic in how it handles all aspects of operations.

 My organization's structure is hierarchal in nature.
4. The major areas which are found to be considered as important by the non-motivated
people are –
 My organization shows respect for a diverse range of opinions, ideas, and people.
 My organization has a current mission plan for everyone to view.
 In my organisation, change is viewed as a challenge and an opportunity.
5. The major areas which are found to be considered as least important by the non-motivated
people are –
 My organization's structure is hierarchal in nature.

 Our HR department is creative in finding new ways to attract top talent among diverse
groups.
 People at all levels of the organisation are continuously trying to build or rebuild a 'better
mouse-trap'.
18
As is seen from above, organization structure does not have much of importance either for motive
people or non-motivated people. It does not make any positive or negative impact on drive of
employees.
It is supported by the correlation between motivation mean scores and individual organizational
structure and culture scores. The most important factors on correlation matrix are as below –
Correlation Item Item Description

score Code
My organization has a current mission plan for everyone to view.
0.84 A4
0.84 A 12 and people.
I feel that my organization values my opinion.

0.82 A7
My organization communicates effectively (written and verbal) and in a
0.79 A8 timely manner to their employees.
My organization recognizes and celebrates successes of team members.

0.78 A 11
Organizational policies are reviewed annually to assess effectiveness.
0.77 A 19
There is an openness to suggestions from people at all levels of the
0.76 A 21 organization.
In my organization, change is viewed as a challenge and an

0.74 A 18 opportunity.
My organization's culture follows the company's mission.

0.74 A9
My organization shares information with others who should know.
0.72 A 10
Performance evaluations in this organization measure an employee's
0.71 A 24 adaptation to change.
19
Appendix 1
Items and Scale information

SN Question/ Item Item Code Related to
Which category best describes your position within your
1 A1 Profile
organization?
2 Which industry best describes your organization? A2 Profile
3 How many years have you worked for your current organization? A3 Profile
4 My organization has a current mission plan for everyone to view. A4 Organization

5 Our organization is good at fulfilling their mission. A5 Organization
My organization is diplomatic in how it handles all aspects of Organization
6 A6
operations.
7 I feel that my organization values my opinion. A7 Organization
My organization communicates effectively (written and verbal) Organization

8 A8
and in a timely manner to their employees.
9 My organization's culture follows the company's mission. A9 Organization
My organization shares information with others who should Organization

10 A 10
know.
My organization recognizes and celebrates successes of team Organization
11 A 11
members.
My organization shows respect for a diverse range of opinions, Organization
12 A 12
ideas, and people.
13 I feel driven to make a difference in my workplace. A 13
14 I enjoy starting a new day at work. A 14
15 My organization's structure is hierarchal in nature. A 15 Organization
My organization will promote from within before looking for Organization

16 A 16
employees externally.
17 My organization's management team is diverse in nature. A 17 Organization
In my organisation, change is viewed as a challenge and an Organization

18 A 18
opportunity.
Organisational policies are reviewed annually to assess Organization
19 A 19
effectiveness.
Our HR department is creative in finding new ways to attract top Organization
20 A 20
There is an openness to suggestions from people at all levels of Organization
21 A 21
the organisation.
"We've always done it that way" is a philosophy that describes my Organization
22 A 22
23 My boss values new ideas and implements them quickly. A 23 Organization
20
Performance evaluations in this organisation measure an Organization
24 A 24
employee's adaptation to change.
25 A 25 Organization
Scale used:
A 5-point Likert scale was used for collecting responses from respondents.
Response Direct code rev. code
Strongly disagree 1 5
Somewhat disagree 2 4
Neither Agree nor Disagree 3 3
Somewhat Agree 4 2
Strongly Agree 5 1
Reverse coding was used for item no 6, 15 and 22.
21

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Assessing the impact of

Organization Culture and

(in alphabetical order)

Management level No of responses

Industry type No of responses

Scores of top 5 items of motivated employees in middle level are as under –

Scores of top 5 items of motivated employees in Senior level are as under –

Similarly, 3 bottom items are also identified for above groups –

Scores of top 5 items of non-motivated employees in entry level are as under –

Average of A 5 3.6 Our organization is good at fulfilling their mission.

My organization recognizes and celebrates successes of team

Our HR department is creative in finding new ways to attract top

Average of A 15 3.4 My organization's structure is hierarchal in nature.

My organization is diplomatic in how it handles all aspects of

Our HR department is creative in finding new ways to attract top

People at all levels of the organisation are continuously trying to build

Average of A 17 2.9 My organization's management team is diverse in nature.

Scores of top 5 items of non-motivated employees in Senior level are as under –

My organization is diplomatic in how it handles all aspects of

People at all levels of the organisation are continuously trying to

Average of A 5 2.5 Our organization is good at fulfilling their mission.

My organization recognizes and celebrates successes of team

Similarly, 3 bottom items are also identified for above groups –

Average of A 7 1.2 I feel that my organization values my opinion.

In my organisation, change is viewed as a challenge and an

In my organisation, change is viewed as a challenge and an

My organization shows respect for a diverse range of opinions,

In my organisation, change is viewed as a challenge and an

Average of A 15 3.3 My organization's structure is hierarchal in nature.

Our HR department is creative in finding new ways to attract top

My organization recognizes and celebrates successes of team

My organization is diplomatic in how it handles all aspects of

People at all levels of the organisation are continuously trying to

My organization is diplomatic in how it handles all aspects of

Our HR department is creative in finding new ways to attract top

Average of A 5 2.9 Our organization is good at fulfilling their mission.

People at all levels of the organisation are continuously trying to

Average of A 5 3.0 Our organization is good at fulfilling their mission.

My organization is diplomatic in how it handles all aspects of

My organization recognizes and celebrates successes of team

Average of A 15 3.3 My organization's structure is hierarchal in nature.

"We've always done it that way" is a philosophy that describes my

Average of A 5 2.0 Our organization is good at fulfilling their mission.

Average of A 7 1.8 I feel that my organization values my opinion.

In my organisation, change is viewed as a challenge and an

In my organisation, change is viewed as a challenge and an

My organization shows respect for a diverse range of opinions, ideas,

"We've always done it that way" is a philosophy that describes my

10- above Avg. Bottom 3 indicators

In my organisation, change is viewed as a challenge and an

The major findings of the study are listed below –

 My organization communicates effectively (written and verbal) and in a timely manner to

 My organization is diplomatic in how it handles all aspects of operations.

 My organization's structure is hierarchal in nature.

Correlation Item Item Description

I feel that my organization values my opinion.

My organization recognizes and celebrates successes of team members.

In my organization, change is viewed as a challenge and an

My organization's culture follows the company's mission.

Items and Scale information

4 My organization has a current mission plan for everyone to view. A4 Organization

My organization communicates effectively (written and verbal) Organization