A Study On Organisational Culture And Its Impact On Employees Behaviour In Motion Education Pvt Ltd.docx

A STUDY ON ORGANISATIONAL CULTURE AND ITS IMPACT ON EMPLOYEES BEHAVIOUR IN MOTION EDUCATION PVT LTD BY

DIVYA A.V Reg.No:961217631017

A PROJECT REPORT Submitted to the

FACULTY OF MANAGEMENT STUDIES In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

ANNA UNIVERSITY CHENNAI – 600 025 JUNE 2019

Loyola INSTITUTE OF TECHNOLOGY AND SCIENCE, THOVALAI , KANYAKUMARI

CERTIFICATE This is to certify that the project entitled “ A STUDY ON ORGANISATIONAL CULTURE AND ITS IMPACT ON EMPLOYEES BEHAVIOUR IN MOTION EDUCATION PVT LTD” is done by DIVYA A.V (Reg. No:961217631017) student of Master of

Business

Administration during the academic year 2017-2019 is submitted for the evaluation on…………………………………….

Internal examiner Mrs.D.Amutha,M.Sc,M.S.,MBA.,M.Phil, Head of the Department, Department Of Management Studies, LITES, Thovalai .

External Examiner

DEPARTMENT OF MANAGEMENT STUDIES Loyola INSTITUTE OF TECHNOLOGY AND SCIECE, THOVALAI, KANYAKUMARI

CERTIFICATE This is to certify that the project entitled “A STUDY ON ORGANISATIONAL CULTURE AND ITS IMPACT ON EMPLOYEES BEHAVIOUR IN MOTION EDUCATION PVT LTD” is done by DIVYA A.V (Reg. No:961217631017) student of Master of

Business

Administration during the academic year 2016-2018 is submitted for the evaluation on…………………………………….

Signature of the guide

Signature of the HOD

Mrs.D.Amutha,M.Sc,M.S.,MBA.,M.Phil,

Mrs.D.Amutha,M.Sc,M.S.,MBA.,M.Phil,

Head of the Department,

Head of the Department,

Department Of Management Studies,

Department Of Management Studies,

LITES, Thovalai .

LITES, Thovalai .

ACKNOWLEDGEMENT

First I am very much greatful to God Almighty who helped me to complete the project work and I acknowledge with sincere gratitude to all those who helped me to do the project. I am grateful to our chairman Dr. M.T.NICHOLAS for his support, encouraging and motivating words. I sincerely thank to Mrs. D.AMUTHA, Head of the Department, Management Studies, who was being a source of encouragement by providing me to undertake the project and I express my deepest thanks to her valuable guidance throughout the project work. I also thank all other faculty members of the Department of Management Studies, Loyola Institute of Technology and Science, Thovalai for their support. My sincere thanks to my guide Mrs. D.AMUTHA for being a great source of inspiration and support. My heartfelt gratitude to the employees of the organization for providing valuable information for the study. I am very much thankful to my parents, family members and my friends for their encouragement and support to finalize this report.

DIVYA A.V

DECLARATION

I hereby declare that the project report titled “A STUDY ON ORGANISATIONAL CULTURE AND ITS IMPACT ON EMPLOYEES BEHAVIOUR IN MOTION EDUCATION PVT LTD” submitted in partial fulfillment for the award of Master of Business Administration, of the Anna University, Chennai, is a record of independent research work carried out by me under the guidance of Mrs.D.Amutha, Head of the Department, Department of Management Studies, Loyola Institute of Technology and Science. I also declare that this project report is the result of my own effort and has not been submitted earlier for the award of any other Degree/Diploma or Associate ship by Anna University or any other University.

Place: Date:

Signature

ABSTRACT Organizations are among the key units of the society. During their establishment and development, a specific kind of organizational culture eventually appears. The culture of an organization consists of the values and beliefs of the people in an organization. The organizational culture usually has values and beliefs that support the organizational goals. Every organization has a unique culture. Each organization’s culture differs from what it values most, what it expects and accepts from its employees, and how it gets things done. The purpose of organizational culture is to improve solidarity and cohesion, and to stimulate employees enthusiasm and creativity to improve the organization’s economic efficiency. In addition, organizational culture greatly influences employee behavior. The aim of this study is to find out how organizational culture affects employee behavior. It is important to understand that in order to improve the organization’s business management and let the organizational culture have the right impact on employees. The results of the study indicate that organizational culture mainly impacts motivation, promotes individual learning, affects communication, and improves organizational values, group decision making and solving conflicts.

TABLE OF CONTENTS SL.NO

PARTICULARS

PAGE NO

CHAPTER 1 INTRODUCTION 1.1

Introduction about the study

1

1.2

Industry profile

5

1.3

Company profile

8

1.4

Statement of the problem

11

1.5

Objectives of the study

11

1.6

Significance of the study

11

1.7

Scope of the study

12

1.8

Period of the study

12

1.9

Area of the study

12

1.10

Limitation of the study

12

1.11

Chapterization

12

CHAPTER 2 REVIEW OF LITERATURE 2.1

Introduction

13

2.2

Review of literature

13

2.3

Conclusion

24

CHAPTER 3 RESEARCH METHODOLOY 3.1

Introduction

25

3.2

Research design

25

3.3

Methods and instruments of collection

25

3.4

Sampling technique

26

3.5

Population size

26

3.6

Sample size

26

3.7

Statistical tools

26

CHAPTER 4 DATA ANALYSIS AND INTERPRETATION 4.1

Introduction

29

4.2

Analysis of data

29

CHAPTER 5 FINDINGS,SUGGESTIONSANDCONCLUSIONS 5.1

Findings

58

5.2

Suggestions

59

5.3

Conclusions

60

5.4

Bibliography

60

5.5

Appendix

61

LIST OF TABLES SL.NO 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28

TITLE Age of the respondents Gender of the respondents Marital status of the respondents Educational qualification of the respondents Monthly income of the respondents Opinion regarding recall of brand Opinion regarding consumption of Milma milk Opinion about Milma awareness Source of purchasing Milma products Opinion regarding customers awareness about the brand Best competitor of Milma Brand different from its competitors Availability of Milma milk Differentiating the factor of Milma brand Opinion regarding quality of milk Expectation of Milma Satisfaction towards Milma dairy products Satisfaction level towards new Milma products Comparitive to other brands Purchase towards Milma again Brand recommendation Brand recall Brand loyalty Customers stick to the same product if their price is increased Brand image Opinion regarding brand image of Milma milk Performance of Milma Relationship between quality and recommend the product

LIST OF CHARTS

PAGE NO 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56

CHAPTER 1 INTRODUCTION 1.1 INTRODUCTION ABOUT THE STUDY Organizational culture is defined as the underlying beliefs, assumptions, values and ways of interacting that contribute to the unique social and psychological environment of an organization. In a fundamental sense, a culture exists when people come to share a common frame of reference for interpreting and reacting towards one another and towards the world in which they live. This common frame of reference includes language, values, beliefs and interpretation of experiences. It is reflected in customs, folkways, communication and observable features of the community including rituals, rites, celebrations, legends, myths and heroic saga. The culture creates good working relationships and promotes ethical communication between employees. It also help employees in making decisions in the situations where there are no formal rules or policies, situations that haven’t been experienced yet. It affects the organization's productivity, performance and provides guidelines on customer care and service, product quality and safety, attendance and punctuality, concern for the environment. Organizational culture includes an organization's expectations, experiences, philosophy, and values that hold it together, and is expressed in its self-image, inner workings, interactions with the outside world, and future expectations. It is based on shared attitudes, beliefs, customs, and written and unwritten rules that have been developed over time and are considered valid. Also called corporate culture.

1.1.1 Characteristics of Organisational Culture Collective: It is assumed that cultures are not created by individuals alone, but as a result of collective actions. Belonging to a culture involves believing what the group believes and handling things the way they handle them. Emotional: The substance and forms of culture are filled with emotions as well as meanings, which is why they help to manage and overcome anxieties. Members of a group seldom doubt the core values and attitudes of the organisational culture.

Historic: Cultural phenomena are connected to the history of the organisation and its traditions and cannot be separated or changed rapidly. Symbolic: Symbols are on the one hand a specific type of cultural form, but on the other hand they are the most general and persuasive form of culture. Furthermore symbols are not directly seizable, but have to be interpreted in order to understand their meaning. Dynamic: Even though culture is connected to the organisation’s history it still is not static, but rather dynamic. Culture changes continually due to several factors. Diffuse: The more complex the circumstances are, the more diffuse the elements of organizational culture will get. Robbins and Judge (2011) examine seven basic characteristics of organisational culture: Innovation and risk taking; Attention to detail; Outcome, People orientation; Team orientation; Aggressiveness; and Stability.

1.1.2 Elements of Organizational Culture There are many possible elements of organizational culture. The above definition include following the elements of organizational culture. a) Organizational Values Values reflect what we feel is important. Organizations may have core values that reflect what is important in the organization. These values may be guiding principles of behaviour for all members in the organization. The core values may be stated on the organization's website. For example, an organization could state that their core values are creativity, humor, integrity, dedication, mutual respect, kindness and contribution to society. However, the true values can only be tested within the organization, through the employees, based on their collective opinion about the experience of the values. b) Ethics It is the code of moral principles and values that distinguishes the right behavior from wrong. Ethical values are different from rule of law which is dictated by the legal system of the country and have to be followed anyway. However, the laws themselves are based on some

moral principles and thus there is some natural overlap between ethics and the laws. The geographic location of the organization and the culture of the place also influence the ethics, this is particularly important for multi-national organization as well as domestic organization. Irrespective how an organization depicts its ethical values, they can be tested by the two criteria. Commitment: Whether the organization views its employees as resources required for business activities or it intends to invest in long term relationship with its employees; reflects the organization’s commitment to its employees. Commitment can be in various forms, maternity leave, life-work balance, unpaid leaves, it’s strategies for downsizing or globalization. Career: The ethical values are also echoed in organization’s interest and investment in the career development of its employees. Whether it values specialization and narrow career paths that runs the risk of being outdated along with technology or it values broad skill development and offers training in new technologies at its own cost. c) Organizational Beliefs Beliefs that are part of an organization's culture may include beliefs about the best ways to achieve certain goals such as increasing productivity and job motivation. For example, an organization may convey the belief that the expression of humor in the workplace is an effective way to increase productivity and job motivation. d) Empowerment The social culture and the structure of the organization influences the underlying values related to the amount of employee empowerment. e) Control/Decision Management by nature is about control, the difference is how it enforces it. Well defined guidance, job description and authority of taking decisions are formal methods of control, while team or collective decision making is a social or cultural method of control. The functional or divisional structure encourages formal control while process or network structures promote a culture of employee empowerment. f) Responsibility The authority of decision making is closely related to issue of responsibilities. The culture of responsibility is measured by observing whether the individuals are expected to take responsibility of their decisions or there is a collective responsibility in case of team decisions.

g) Organizational Norms Norms reflect the typical and accepted behaviours in an organization. They may reflect the values and beliefs of the organization. They may reflect how certain tasks are generally expected to be accomplished, the attributes of the work environment, the typical ways that people communicate in the organization and the typical leadership styles in the organization. For example, the work environment of a company may be described as relaxed, cheerful, and pleasant. Moreover, the organization may have a participative decision making processes in which many people in the organization are able to express their views concerning important decisions. Also, an organization may have many meetings to discuss ideas.

1.1.3 Importance of the Organizational Culture Organizational culture occupies an important concept for a few reasons. First, understanding the culture of an organization may be helpful for applicants. They may have a better idea about whether they would like to work for a company. Second, understanding the culture of an organization may help in training new employees. Third, understanding organizational culture may help leaders to identify possible sources of problems in the organization. Further organizational cultural signification be elaborated as under. 1. Organizational culture motivates to employees for new innovation, good product quality and creative thinking. 2. Responsiveness to customer needs and extraordinary devotion to customer services, so organizational culture is important for organization. 3. Organizational culture helps to face global competition, changing patterns of technology and environment. 4. Organizational culture teaches every members of organization how behave to stakeholder of organization through organizational behaviour. 5. A strong organizational culture provides many fruitful point of any organization. For example high moral in the employees, create a competitive environment in the organization. 6. Employees have company loyalty and give unmatched services to customers. Further, the importance of organizational culture may be dealt with leadership and change too. Organizational Culture and Leadership: There may be at least three ways in which leadership is important with respect to organizational culture. First, a leader of an organization may play an important role in identifying

the elements of the organization's culture. The leader could make a list of the organization's current values, beliefs and norms. Second, after identifying the current elements of the organization's culture, the leader can make evaluations of the elements of organizational culture that may be negative. The leader could make a list of the specific values, beliefs, and norms that may contribute to major problems in the organization (e.g., a lack of job motivation). Third, after identifying the possible negative elements, the leader could develop strategies to foster a positive organizational culture change. The leader could make a list of the elements of a more ideal culture, develop specific ways to communicate the changes and develop techniques to motivate people to adopt the new culture. Organizational Culture Change: There may be many reasons that is why the culture of an organization needs to be changed. These reasons may include lack of morale, lack of job motivation, lack of job meaning and changes in the business (e.g., the development of a new product) that would require a change in the way things are done in the organization. For example, there may be too much micro management in a company. It may be better if employees had more autonomy. This may increase morale. Sherman (1989) found that unit morale was positively correlated with automony. Because this finding is correlation, we cannot make causal conclusions. This process of culture change should involve all members of the organization. This process of culture change could involve surveys in which members describe specific elements of the organizational culture.

THE EFFECT OF ORGANIZATIONAL CULTURE ON PERFORMANCE The fact is that today, given the hyper-competitiveness, attaining and maintaining competitiveness becomes increasingly difficult and uncertain. The situation is very clear that the organization will succeed or it will simply disappear from the market. Failure is not something that organizations seek voluntarily; instead, it usually turns out that the cause of failure is the lack of understanding of the importance of significant external factors or unrealized profit from organizational resources and capacity.

Layers of Organisation Culture Cultural Symbols Shared Behaviours Cultural Values Shared Assumptions

Cultural Symbols are words, gestures and picture or other physical objects that carry a particular meaning within a culture. Shared Behaviours are norms in the organisation which are more vixsible snd somewhat easier to change than values. Cultural Values represents collective beliefs, assumptions and feelings about what things are good, normal, rational. And valuable. Shared Assumptions represent basic beliefs about reality, human nature, and the way things should be done.

METHOD OF MAINTAINING ORGANISATIONAL CULTURE

Methods of Maintaining Organisational Culture: What managers and team pay attention to Reactions to organisational crises Managerial role modeling Criteria for rewards Criteria for selection and promotion Organisational rites, ceremonies, stories

Recruitment of Employee who fit the culture

Removal of Organisational Culture

Employee

who Deviate from culture

the

1.2 INDUSTRY PROFILE