A STUDY ON INFLUENCE OF ORGANISATIONAL CULTURE ON JOB SATISFACTION, ORGANISATIONAL COMMITMENT AND TURNOVER

INTENTION IN EFOCUS INFORMATIX, CHENNAI

A first review report

NAME : JAYASH J ROLL NO : 1314MBA0517 REGISTRATION NO:68513200128

NEED FOR THE STUDY:

Every organization has its own culture. Since many employees spend 40 or more hours at their workplace, their organization’s culture obviously affects both their work lives as well as their personal lives. Organizational culture refers to the beliefs, ideologies, principles and values that the individuals of an organization share. This culture is a determining factor in the success of the organization.

A. Culture: “The belief systems and value orientations that influence customs, norms,

practices, and social institutions, including psychological processes (language, care

taking practices, media, educational systems) and organisations (media, educational

systems)” (APA, 2002).

B. Organisational Culture: “A pattern of shared basic assumptions that the group

learned as it solved its problems of external adaptation and internal integration, that has

worked well enough to be considered valid and, therefore, to be taught to new members

of the organisation as the correct way to perceive, think, and feel in relation to those

problems” (Schein, 1992, p. 12)

C. Job satisfaction: “An attitudinal variable that reflects how people feel about their

jobs overall as well as about various aspects of them” (Spector, 2003, p. 210).

D. Organisational commitment: “A multidimensional psychological state that

characterises the employee’s relationship with the organisation and has implications for

the decision to continue membership in the organisation” (Meyer & Allen, 1997, p. 11).

The multidimensional components are (1) affective (AC), (2) continuance (CC), and (3)

normative (NC) organisational commitment.

E. Turnover intention: “The intention to voluntarily change companies or to leave the

labour market altogether” (Karin & Birgit, 2007, p.711)

REVIEW OF LITERATURE:

The subject of organisational culture attracted a large amount of attention in the late

1980s and early 1990s as management scholars explored the reasons behind the failure

of U.S. firms in competing with their Japanese counterparts (Ojo, 2010).

An organisation’s culture is considered to be an important factor affecting organisational

Success or failure (Sawner, 2000).

It is frequently held accountable for organisationa ills and, on occasions, praised for creating positive qualities (Baker, 2004; Shani & Lau,2008).

In addition to organisation-level effects, the impact of organisational culture on

key employee attitudes is well documented (Cameron & Quinn, 2011).

Numerous studies have demonstrated the influence of organisational culture on job satisfaction andorganisational commitment (Cameron & Freeman, 1991; Goodman, Zammuto, & Gifford, 2001; Lok & Crawford, 2004; Peters & Waterman, 2004; San Park & Kim,2009).

Organisational scholars have extended the above-mentioned research stream internationally by studying attitudes from different cultural angles (Chen & Francesco, 2000; Viswesvaran & Deshpande, 1996; Walumbwa, Orwa, Wang, & Lawler, 2005).

While both researchers and practitioners have benefited from this cross-cultural

research, this stream of research in the Middle East has been limited (Dedoussis, 2004).

The application of theories and models developed in one part of the world in order to

understand phenomena that occur in another part of the world has been one of the most

difficult challenges in the field of international management (Denison, Haaland, &

Goelzer, 2003).

Discussions on the validity and applicability become even more critical

and relevant when set in a different cultural context. Much of the early concern about

this issue focused on the application of U.S. theories abroad (Hofstede, 1980).

However, several studies highlighted this problem in other contexts as in the Japanese theories of knowledge creation (Nonaka & Takeuchi, 1995), and quality control (Imai, 1986), and European models of organisational design and joint ventures (Doz, 1993; Taylor, 2003).

PRIMARY OBJECTIVE:

To study the demographic profile of respondents in Efocusinformatix, chennai

To examine the impact of individual factors on Job Satisfaction

Also, to examine the impact of Organization commitment and Job Satisfaction on Turnover Intention.

To validate the research model

SECONDARY OBJECTIVES:

1. Understand the old culture first

2. Support employees and teams who have ideas for a better culture and are willing to act on those ideas

3. Find the most effective subculture in the organization and use it as a model

4. Help employees and teams do their jobs more effectively

5. Use the vision of a new culture as a guide for change

6. Recognize that significant cultural change takes time

7. Live the new culture

RESEARCH METHODOLOGY

Research Design:

The study is of descriptive nature because it describes the current state of employees perception and its impact on Job Satisfaction, Organization Commitment and Turnover Intention.

Nature of Data:

The sources were collected from primary data.

Survey Instrument:

The questionnaire was two pages in length classified into two parts. Part1 consists of questions seeking information about demographics (such as gender, age, marital status, experience, department, qualification and Income level).The part II includes questions that aim at obtaining details such as Dominant characteristics, Organization Leadership, Management of Employees, Organization Glue, Strategic Emphases, Criteria of Success, Job Satisfaction, Organization Commitment and Turnover Intention. Most questions placed in the questionnaire required the respondents to assign a score rating on five point Likert scale.

Pilot Study:

Before conducting the pilot study, the research questionnaire was circulated among the group of employees for feedback. Their suggestions were incorporated on the modified questionnaire. The researcher met 25 employees and collected the responses on revised/modified questionnaire within the allotted time for pilot study. Based on the responses received the questionnaire was then pilot tested and refined. This procedure enhanced the relevance and accuracy of the questionnaire.

Population:

The study was conducted in efocusinformatix, chennai. The total populations of the study are the employees of various departments of efocusinformatix, chennai.

Sample Size:

The sample size of the study is 130.

Sampling method:

Simple random sampling was adopted. It is an approach in which each unit of population has an equal chance of being selected. (Uma Sekaran,2001)

Analytical method:

This study employed partial Least Square-Path Modeling (PLS-PM).

Reliability:

The table 1 revealed that all the constructs namely Dominant characteristics, Organization Leadership, Management of Employees, Organization Glue, Strategic Emphases, Criteria of Success, Job Satisfaction, Organisation Commitment and Turnover Intention exhibit adequate reliability with internal consistency values 0.74, 0.63, 0.61, 0.74, 0.72, 0.68, 0.69, 0.75 and 0.78 respectively which is greater than an alpha value of 0.60 (Nunnally, J.C.,& Berntein, I.H.1994).

Table - Reliability

Constructs Number of items Alpha value

Dominant Characteristics 04 0.74

Organization Leadership 04 0.63

Management of Employees 04 0.61

Organization Glue 04 0.74

Strategic Emphases 04 0.72

Criteria of success 04 0.68

Job Satisfaction 36 0.69

Organisation Commitment 18 0.75

Turnover Intention 05 0.78

Convergent Validity:

Convergent validity of all the constructs was examined using the measure of Average Variance Extracted (AVE) that is the average variance shared between a construct and its items (Fornell & Larcker, 1981). A construct with an AVE of over 0.5 is expected to have adequate convergent validity. In some cases, values up to 0.40 of AVE and are also considered to be acceptable if they are central to the model. (Chin et al 1999 & 2003)

The AVE of each of the study constructs is presented in Table 3. The AVE of each construct was over 0.4 with the lowest AVE being 0.47 and highest at 0.54. Therefore, convergent validity of the study constructs was verified.

Convergent Validity

Variables AVE value

Dominant Characteristics 0.51

Organization Leadership 0.48

Management of Employees 0.50

Organization Glue 0.52

Strategic Emphases 0.51

Criteria of Success 0.49

Job Satisfaction 0.53

Organisation Commitment 0.51

Turnover Intention 0.49

Research Model

Market Culture

Turnover Intention

Organizational Commitment

Hierarchy Culture

Adhocracy Culture

Clan Culture

Job Satisfaction

WORK DONE SO FAR:

1. Theoritical part of project has completed it may be update.

2. Review of literature successfully completed with help of so many researchers efficient reference.

3. Research methodology also completed and analyse the value using reliability(Nunnally, J.C.,& Berntein, I.H.1994 )and covergent validity(Chin et al 1999 & 2003)

WORK TO BE DONE :

Yet to complete the practical side of this project like questionarie and company authentication it may be complete before second review.

LIMITATIONS :

The concept of organisational culture provides several useful elements to the leadership and management of people in schools and colleges. The focus on the informal dimension is a valuable counter to the rigid and official components of the formal models. By stressing the values and beliefs of participants, culture reinforces the human aspects of management rather than their structural elements. However, this approach has three significant weaknesses (Bush 2003):

1 The notion of ‘organisational culture’ may simply be the imposition of the leaders’ values on other members of the organisation. The search for a monoculture may mean subordinating the values and beliefs of some participants to those of leaders or the dominant group. ‘Shared’ cultures may be simply the values of leaders imposed on less powerful people. Morgan (1997) refers to ‘a process of ideological 56 LEADING AND MANAGING PEOPLE IN

EDUCATION control’ and warns of the risk of ‘manipulation’:

Ideological manipulation and control is being advocated as an essential managerial strategy … such manipulation may well be accompanied by resistance, resentment and mistrust … where the culture controls rather than expresses human character, the metaphor may thus prove quite manipulative and totalitarian in its influence. (pp.150–1)

Prosser (1999, p.4) refers to the ‘dark underworld’ of school culture and links it to the concept of micropolitics: ‘The micro-political perspective recognized that formal powers, rules, regulations, traditions and rituals were capable of being subverted by individuals, groups or affiliations in schools’. Hargreaves (1999, p.60) uses the term ‘resistance group’ to refer to sub-units seeking to subvert leaders and their intended cultural change. However, this may simply be a legitimate attempt to enunciate the specific values of, for example, departmental culture.

2 The portrayal of culture may be unduly mechanistic, assuming that leaders can determine the culture of the organisation (Morgan 1997). While they have influence over the evolution of culture by espousing desired values, they cannot ensure the emergence of a monoculture. As we have seen, secondary schools and colleges may have several subcultures operating in departments and other sections. This is not necessarily dysfunctional because successful sub-units are vital components of thriving institutions, and successful middle-level leadership and management are increasingly regarded as essential to school and college effectiveness (Harris 2002; Briggs 2003).

In an era of self-managing schools and colleges in many countries, lay influences on policy are increasingly significant. Governing bodies often have the formal responsibility for major decisions and they share in the creation of institutional culture. This does not mean simple acquiescence to the values of the head or principal. Rather, there may be negotiation leading to the possibility of conflict and the adoption of policies inconsistent with the leader’s own values.

3 Hoyle (1986) argues that symbols may misrepresent the reality of the school or college. He suggests that schools may go through the appearance of change but the reality continues as before:

A symbol can represent something which is ‘real’ in the sense that it … acts as a surrogate for reality … there will be a mutual recognition by the parties concerned that the substance has not been evoked but they are nevertheless content to sustain the fiction that it has if there has been some symbolization of the substance … in reality the system carries on as formerly. (p.166)

Schein (1997, p.249) also warns against placing too much reliance on ritual.

When the only salient data we have are the rites and rituals that have survived over a period of time, we must, of course, use them as best we ORGANISATIONAL CULTURES 57can … however … it is difficult to decipher just what assumptions leaders have held that have led to the creation of particular rites and rituals.

EXPECTED DELIVERABLES:

The study was undertaken by relating the variable suggestion Organization Culture, Job satisfaction, Organization Commitment and Turnover Intention.

The objective study is exam in the impact of Organization culture on Job satisfaction and Organization Commitment and also their corresponding effect a sample 130 employees are taken and the result of analysis review that the organization culture influences job satisfaction not the Organization commitment it’s also review that Turnover Intention it infused by job satisfaction not by organization commitment

Dominant Characteristics (DC) not supported Job Satisfaction (JS)

Organizational Leadership (OL) supported Job Satisfaction (JS)

Management of Employees (ME) supported Job Satisfaction (JS)

Organization Glue (OG) supported Job Satisfaction (JS)

Strategic Emphases (SE) supported Job Satisfaction (JS)

Criteria of Success (CS) supported Job Satisfaction (JS)

Dominant Characteristics (DC) not supported Organization Commitment (OC)

Organizational Leadership (OL) not supported Organization Commitment (OC)

Management of Employees (ME) not supported Organization Commitment (OC)

Organization Glue (OG) supported Organization Commitment (OC)

Strategic Emphases (SE) not supported Organization Commitment (OC)

Criteria of Success (CS) not supported Organization Commitment (OC)

Job Satisfaction (JS) supported Turnover Intention (TI)

REFERENCES:

Oliver, Amparo;Cheyne, Alistair;Tomas, Jose M;Cox, Sue (2000) The effects of organizational culture ; Journal of Occupational and Organizational Psychology; Dec 2002; 75, ProQuest Research Library pg. 473 – 488

Baker, E., & Marshall. S. (1987). The Halden Report. Halden, Norway

Clarke, S. (2000). Organizational Culture,. Under-specified and overrated, International Journal of Management Reviews 2(1), 65-90.

Cox T., & Cox S (1993) Psychosocial and Organizational hazards at work: European occasional health series 5.Copenhagen: World Health Organization.

Zohar. D. (1980) Safety Climate in industrial organizations: Theoretical and applied implications, Journal of Applied Psychology, 65,96-102

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