© 2021 JETIR October 2021, Volume 8, Issue 10 [Link].

org (ISSN-2349-5162)

A STUDY OF ORGANIZATIONAL CULTURE

AND EMPLOYEE PRODUCTIVITY IN
AUTOMOBILE INDUSTRY
Dr. Kamaljeet Bhatia
Principal
Radiant Institute of Management & Science, Indore

ABSTRACT

The primary objective of this paper is to determine the impact of organizational culture on the
employees' productivity in the automobile industry in Pithampur Dhār district. The objectives of the
study was to evaluate how organizational culture influences employee productivity performance and the
relationship between organizational culture, employee productivity performance in order to proffer
possible solutions that will help organizations build a culture that will have a positive impact on the
productivity of their employees. The data for the research was obtained from respondents who were
mainly staffs of Automobile industry. A total of 100 questionnaires were distributed but only 65 were
retrieved from the respondents. The data was analysed using “t” ratio was used in testing the hypotheses
From the findings; it was observed that majority of the respondents’ agree that organizational culture
does have an impact on productivity levels of employees. It was also discovered that the type of
organizational culture practiced in an organization can also determine the level of employee productivity
performance.
Keywords: Organisational culture; Employee productivity; and Automobile industries.

INTRODUCTION: -

Organizational Culture is a system of shared assumptions, values, and a belief, which governs, has
people behave in the organizations. These shared values have a simple insurance on the people in the
organizations and declare has they dress, act, and perform their jobs. Organization’s Culture is important
at the work place because it sets out the way in which employees complete the tasks, understand the
organizational events, objectives, and interact with each other in an organization. Culture, at the
workplace, is a very powerful force, which is consciously and deliberately cultivated and is passed on to
the incoming employees. It is the very thread that holds the organization together. The rules and
traditions of the culture have a great importance in any organization and have a great impact and
significant impact on the employee and the organization at large.

Organizational Culture (Independent Variable)

Impact of Organization Culture and Employee Productivity has been an important theoretical and
practical issue for the most HR practitioners and researchers. As per Deal and Kennedy, (1982)
Organizational Culture affects such outcomes as productivity, performance, commitments, self-
confidence, and ethical behaviour of the employees as well as they suggest that certain cultures will

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enable organizations to give a superior performance, which could not be achieved without them.
Therefore, such cultures “have shown a positive economic impact on firms.”

Culture can be expressed better by OCTAPACE

0 = Openness (Communication channel open in nature, free authority)

C = Co-operation (Cooperation between employer and employees)
T = Trust (Mutual trust among shareholders, management, & employees)
A = Authenticity (Willingness to acknowledge one‘s feeling)
P = Proactivity (Thinking ahead of times.)
A = Autonomy (Exchange of ideas, thoughts, information)
C = Collaboration (Team collaborations)
E =Experimentation (Creativity and Innovation)

Employee Productivity (Dependent Variable)

Employees’ Performance means job related activities expected from workers and how well those
activities were executed to fulfil the goals of an organization. In every organization, top management
assess the performance of staff members annually or quarterly, based on some parameters and by this
they identify the areas for improvements. Employees are the most valuable asset in any organization. A
successful and highly productive business can be achieved by engaging them in improving their
performance. None of the employees are equal in their work and they have different modes of working
in that field. Some have the highest capability regardless of the incentive while others may have an
occasional jump-start.

Five Major Practice

Source: Hazucha, J., Hezlett, S. and Schneider, R. (1993),

According to Armstrong and Baron (1998), performance management is a strategic and integrated
approach to delivering sustained success to organizations by improving the performance of the people
who work in them and by developing the capabilities of teams and individual contributors.
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Most of the reasons are found out in the organization in which employees don’t know what exactly the
management expects them to do and what they are supposed to do.
1. Incapacity 2. Fear 3. They are performing [Link]’t know what to do [Link]’t know how to do it
[Link]’t know why 7. Obstacles 8. Think their way is better 9. Think something is more important 10.
Consequences affect performance. Essential parameter to improve the employee performances includes
11. Entrepreneurial, managerial and technical skills, feedback Position descriptions and delegation
agreements 12. Documented system and Training [Link] communication, staff meeting, and
employee development meeting, priorities, and outcomes

REVIEW OF LITERATURE: -

Neetu (2015) stated that the study focused at three hierarchical levels, i.e., managerial, operator and
helper of manufacturing Organization. Global organization climate, Organizational commitment and
general health were taken as variable for the study. The study uses correlation design. 100 employees
were selected for the study. Data were presented and analyzed through correlation and multiple
regressions. The finding of the study shows that there are significant differences among three different
levels (Managers, operator and helpers). She said that manager and helper to be less conducive towards
the organizational climate than operators. According to her these type of perception create work load
and job pressure.

Peyman Akbari, Kamran Nazaril and Abedin Mahmoudi (2015) analysed the impact of knowledge
management; organizational innovation and the impact of strong and weak culture on employee’s
productivity. The study was conducted on the sample of 550 employees in Bistoon Petrochemical
Industry. Data were analysed through linear regression by SPSS software and showed that
organizational culture has a significant impact on employee productivity.

ShUpa, B, Bhatt (2015) studied about the Organizational health, its dimensions and find out the weak
areas of organization. For these purposes, Shilpa used the data of bank employees of Bhavnagar city.
ANNOVA and t-test applied for the outcome of the research. She said that organizations are found to be
healthy in terms of organizational health. This study suggested attitudinal change is need at all level of
staff in banks. For good organizational health remove obstacles, which are hurdles to create high level of
organizational health and develop the open culture. She concluded that in India Banks are important
financial institutions for achieving economic development and social upliftment. So in view of changing
scenario, organizational health assumes greater significance in a service oriented industry.

Dr. Darakhshan Alka and Sharma Anjum (2014) studied the relationship between organizational
cultures on the organizational performance in Jammu and Kashmir Bank of Rajouri District. The
objective of the research paper is to study the work culture of the organization, impact of work culture
on performance and the employee’s goal's achievement in the organization for this purpose 43 banks of
this district were selected. Stratified random techniques were used to select the participating banks and
80 questionnaires were distributed among employees only 70 responses are filled by them which were
used for the final analysis in the study. The data is collected by the primary data on the basis of
questionnaire and Non-parametric chi-square test, parametric t-test and Spss (16.0) version was used for
the analysis. This research paper has concluded that the maximum percentage of the employees can
achieve their goal by the healthy and strong culture in an organization. They concluded that
Organizational culture will leads to the productivity of the organization and the employees can achieve
their goal effectively and efficiently.
They also suggested the following things.

1. For the development and creation of proper organization, culture like development is a learning
process rather than a teaching process.
2. Growth takes place by striving process in which objectives are set.
3. Strength will be enhanced rather than weaknesses in a work culture.
4. The feeling of belongingness should be developed in the people who are attached with the
organization.
5. A faith, beliefs should be in the people who do better in the organization and people must adopt open
heart and mind who are willing to accept the new changes.
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OBJECTIVES OF THE STUDY:-

1. To study the factors which are essential for measuring the Employees Productivity.
2. To measure the Organizational Culture and Employees productivity in selected Automobile
Industries.
3. To compare Organizational Culture and Employees productivity in selected Automobile Industries.
4. To see the functional relationships between Organizational Culture and Employees productivity in
selected Automobile Industries.
5. To provide the practical suggestions for the improvement of Organizational Culture and employee’s
productivity in selected Automobile Industries.

HYPOTHESES OF THE STUDY:-

H01: There is no significant difference in Organization Culture between Eicher Motors & Bajaj Auto.
H02: There is no significant difference in Organization Culture between Eicher Motors &
Force Motors
H03: There is no significant difference in Organization Culture between Bajaj Auto & Force Motors.
H04: There is no significant difference in Employee Productivity between Eicher Motors & Bajaj Auto.
H05: There is no significant difference in Employee Productivity between Eicher Motors & Force
Motors.
H06: There is no significant difference in Employee Productivity between Bajaj Auto & Force Motors.

RESEARCH METHODOLOGY: -

It is the researcher’s plan of action for collecting data, answering questions and testing the hypotheses
generated. It provides the procedural outline for the conduct of any investigation. A descriptive survey
design was used for this research. This enables the researcher collect original data from a population too
large to observe directly.

SAMPLE AND SAMPLE SIZE:-

. The sample was drawn from three selected Automobile Units located around Dhar district of Madhya
Pradesh. Sampling Units Included Eicher Motors, Bajaj Auto and Force Motors. Questionnaire was
distributed to 100 person of the selected organization for collecting for primary data. Finally, 60
questionnaires were considered for the analysis. Data was collected through convenience sampling
method.

STATISTICAL TOOL: -

Primary data was collected through a questionnaire which had three sections. Section-I showed General
Information. Section-II measured Organizational Culture (OCTAPACE given by Dr. Udai Pareek)
which had 8 dimensions, while section-III measured Employees Productivity, Which was self-designed.

ANALYSIS AND INTERPRETATION: -

Table N0.01

Mean Score Analysis of Organizational Culture of Eicher Motors and Bajaj Auto

Organization N Mean S.D. “t“ Level of

Value Significance
Eicher 25 15.28 2.65
Industry Motors 2.388 Significance
Bajaj Auto 20 13.55 2.08

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The study observed that the computed significance value is less than at 5% level of significance. The
result was found significant at 95% level of significance, hence declared null hypothesis which is not
accepted and thus it can be said that there’s a significant difference between Organizational Culture of
Eicher Motors and Bajaj Auto.

.
Table N0.02

Mean Score Analysis of Organizational Culture of Eicher Motors and Force Motors

Organization N Mean S.D. “t“ Level of

Value Significance
Eicher 25 16.22 1.76
Industry Motors 4.495 Significance
Force Motors 15 18.60 1.35

The study observed that the computed significance value is less than at 5% level of significance. The
result was found significant at 95% level of significance, hence null hypothesis is not accepted and thus
it can be said that there’s a significant difference between Organizational Culture of Eicher Motors and
Force Motors.

Table N0.03

Mean Score Analysis of Organizational Culture of Bajaj Auto and Force Motors

Organization N Mean S.D. “t“ Level of

Value Significance
Bajaj Auto 20 14.56 1.32
Industry 0.1108 Not
Force Motors 15 14.51 1.48 Significance

The study observed that the computed significance value is greater than at 5% level of significance. The
result was not found significant at 95% level of significance, hence null hypothesis is accepted and thus
it can be said that there is not a significant difference between Organizational Culture of Bajaj Auto and
Force Motors. Hence it may be concluded that mean value of Bajaj Auto is nearly same of Force
Motors thus as the Organizational Culture of Bajaj Auto and Force Motors is not differed.

Table N0.04

Mean Score Analysis of Employee Productivity of Eicher Motors and Bajaj Auto

Organization N Mean S.D. “t“ Level of

Value Significance
Eicher 25 15.85 1.64
Industry Motors 2.850 Significance
Bajaj Auto 20 17.10 1.20

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The study observed that the computed significance value is less than at 5% level of significance. The
result was found significant at 95% level of significance, hence null hypothesis is not accepted and thus
it can be said that there’s a significant difference between Employee Productivity of Eicher Motors and
Bajaj Auto.

Table N0.05

Mean Score Analysis of Employee Productivity of Eicher Motors and Force Motors

Organization N Mean S.D. “t“ Level of

Value Significance
Eicher 25 15.40 1.27
Industry Motors 2.411 Significance
Force Motors 15 14.28 1.65

The study observed that the computed significance value is less than at 5% level of significance. The
result was found significant at 95% level of significance, hence null hypothesis is not accepted and thus
it can be said that there’s a significant difference between Employee Productivity of Eicher Motors and
Force Motors.

Table N0.06

Mean Score Analysis of Employee Productivity of Bajaj Auto and Force Motors

Organization N Mean S.D. “t“ Level of

Value Significance
Bajaj Auto 20 21.78 1.77
Industry 0.1075 Not
Force Motors 15 21.84 1.43 Significance

The study observed that the computed significance value is greater than at 5% level of significance. The
result was not found significant at 95% level of significance, hence null hypothesis is accepted and thus
it can be said that there is not a significant difference between Employee Productivity of Bajaj Auto and
Force Motors. Hence it may be concluded that mean value of Bajaj Auto is nearly same of Force
Motors thus as the Employee Productivity of Bajaj Auto and Force Motors is not differed.

FINDINGS: -

1. The results indicate that Organizational culture of Eicher Motors and Bajaj Auto are differs
significantly. Hence it may be concluded that organizational culture of Eicher Motors is better than
Bajaj Auto.
2. The results indicate that Organizational culture of Eicher Motors and Force Motors are differs
significantly. Hence it may be concluded that organizational culture of Force Motors. is better than
Eicher Motors.
3. The results indicate that Organizational culture of Bajaj Auto and Force Motors are not differs
significantly. Hence it may be concluded that organizational culture of Bajaj Auto and Force Motors are
same.
4. The results indicate that Employees Productivity of Eicher Motors and Bajaj Auto are differs
significantly. Hence it may be concluded that Employee belongs to Bajaj Auto is better than Eicher
Motors.
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5. The results indicate that Employees Productivity of Eicher Motors and Force Motors are differs
significantly. Hence it may be concluded that Employee belongs to Eicher Motors is better than Force
Motors.
6. The results indicate that Employees Productivity of Bajaj Auto and Force Motors are not differs
significantly. Hence it may be concluded that Employees Productivity of Eicher Motors and Bajaj Auto
are same.

LIMITATIONS:-

The present study has following limitations:

1. The study includes only four top automobile industries of Pithampur area of district Dhār.
2. The study has been restricted to Pithampur area only.
3. Sample of the study has been restricted to only selected automobile industries of Pithampur area only.
4. The sample size taken was small as that was dependent on easy availability and accessibility of staff.
5. The answer given by the respondents here is to be believed as true.
6. The study helps only to know the relationship between Organizational Culture and Employee
Productivity.
.
SUGGESTIONS:-

1. Highlight the lower and middle level of employees: Many a time’s lower and middle level of
employees playing a key role in organization and their contribution has hidden by some others. Make
time to honor them in front of their peers and private too.
2. Put some creativity in to reward: when employees achieve the target, a cash bonus may not always be
the best way to recognize the achievement. Keep in mind the value of a paid off, giving the time to catch
up on personal matters or enjoyment.
3. Show consistent respect and courtesy: Management understands the value of day to day recognition
and is appropriately trained in expressing genuine respect for work and effort.
4. Open Communication: Organization should take feedback from their employees regarding change
business environment, personnel, and promotional policies and solve their problems through proper
counselling and guidance through awareness programmes.
5. Coordination and Cooperation: Active promotion and positive relation among co-workers and
supervisory class is necessary.
6. Transparency: Transparency in assessment of individuals and provide opportunities for development.
7. Training and Development: Training programmes should be provided; it helps the employees to
achieve organizational goals as well as individual goals.
8. Employee Development: The major focus should be given to the employee development programme;
management must have council them which will improve employee performance.
9. Research and Development: This research provides the benefit of comparing business unit, job type,
and location that allows you to target solutions where they are needed.

REFRENCES: -

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