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Chapter 1

Introduction to Organizational Culture


What is Culture in an Organization?
Organizational culture works a lot like this. Every company has its own unique personality, just
like people do. The unique personality of an organization is referred to as its culture. In groups of
people who work together, organizational culture is an invisible but powerful force that
influences the behavior of the members of that group. So, how do we define organizational
culture?
Meaning of Organization Culture
Organizational culture is a system of shared assumptions, values, and beliefs, which governs how
people behave in organizations. These shared values have a strong influence on the people in the
organization and dictate how they dress, act, and perform their jobs. Every organization develops
and maintains a unique culture, which provides guidelines and boundaries for the behavior of the
members of the organization. Let's explore what elements make up an organization's culture.
Characteristics of Organizational Culture
1. Innovation (Risk Orientation) - Companies with cultures that place a high value on
innovation encourage their employees to take risks and innovate in the performance of
their jobs. Companies with cultures that place a low value on innovation expect their
employees to do their jobs the same way that they have been trained to do them, without
looking for ways to improve their performance.
2. Attention to Detail (Precision Orientation) - This characteristic of organizational culture
dictates the degree to which employees are expected to be accurate in their work. A
culture that places a high value on attention to detail expects their employees to perform
their work with precision. A culture that places a low value on this characteristic does not.

3. Emphasis on Outcome (Achievement Orientation) - Companies that focus on results,


but not on how the results are achieved, place a high emphasis on this value of
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organizational culture. A company that instructs its sales force to do whatever it takes to
get sales orders has a culture that places a high value on the emphasis on outcome
characteristic.

4. Emphasis on People (Fairness Orientation) - Companies that place a high value on this
characteristic of organizational culture place a great deal of importance on how their
decisions will affect the people in their organizations. For these companies, it is important
to treat their employees with respect and dignity.

5. Teamwork (Collaboration Orientation) - Companies that organize work activities around


teams instead of individuals place a high value on this characteristic of organizational
culture. People who work for these types of companies tend to have a positive
relationship with their coworkers and managers.
6. Aggressiveness (Competitive Orientation) This Characteristic of organizational culture
dictates whether group members are expected to be assertive or easygoing when dealing
with companies they compete with in the market place. Companies with an aggressive
culture place high value on competitiveness and outperforming the competition at all
costs.

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LITERATURE REVIEW

Organizational culture is conceptualized as shared beliefs and values within the organization that helps
to shape the behavior patterns of employees (Kotter and Heskett, 1992).
Gordon and Cummins (1989) define organization culture as the drive that recognizes the efforts and
contributions of the organizational members and provides holistic understanding of what and how to be
achieved, how goals are interrelated, and how each employee could attain goals.
Hofstede (1990) summarizes organization culture as collective process of the mind that differentiates the
members of one group from the other one. Thus, we can deduce from above definitions that
organizational culture could be the means of keeping employees in line and acclimatizing them towards
organizational objectives.
Deal and Kennedy, (1982) recognizes the link between culture and organizational excellent
performances via its human resource development programmes. These cultural values and human
resource development programmes are consistent with organizational chosen strategies that led to
successful organizations. The organizational culture is outlined in Schein (1990) as overall phenomenon
of the organization such as natural settings, the rite and rituals, climate, values and programmes of the
company
e.g. performance management, training and development, recruitment and selection, etc. According to
Martins and Terblanche (2003), culture is deeply associated with values and beliefs shared by personnel
in an organization. Organizational culture relates the employees to Organizations values, norms, stories,
beliefs and principles and incorporates these assumptions into them as activity and behavioural set of
standards.

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OBJECTIVES OF THE STUDY


i. To understand the organizational culture and employee behavior
ii. To study the cross culture and trans culture of the organization
iii. To understand the problem handling in the organization

SCOPE AND LIMITATIONS OF THE STUDY


Scope:
The main emphasis is on inter-cultural and trans-cultural studies. Intra-cultural analysis is invited
where this contributes to an understanding of the issues, problems and practice of managing,
working and organizing across cultures.
Of particular relevance is the application of cross-cultural psychology, socio-cultural anthropology,
sociology, cross-cultural communication and related disciplines to cross-cultural management
issues and practice.
A cross-disciplinary approach is also encouraged. Contributions are expected principally from
those engaged in the international and cross-cultural areas of organizational behaviour,
organizational theory, human resource management, and management (with an emphasis on people
in organizations).

Limitations:
Slow to react to external/internal changes as systems are designed for
stability

Too many structural layers slow down and reduce communication

effectiveness
Authority Is maintained centrally, reducing the effectiveness of front-line
staff
Problems take too long to solve and keep recurring, wasting time and
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resources
Purposes are often in conflict (Ex: finance wants to save depts. need to
spend)
The structures and systems create problems by dividing and boxing
people

Most people are excluded from the decision-making and thinking

processes thereby limiting potential to change and adapt quickly

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RESEARCH METHODOLOGY
PRIMARY DATA
The Primary data for this project topic has been taken by interviewing the CEO of Fun and Joy at
work Company which helped in concluding the topic.

SECONDARY DATA
Secondary data has been collected from the internet and various Newspapers and Magazines

HYPOTHESIS
Organizational culture has no significance influence on the recruitment and selection activity of
an organization

RESEARCH INSTRUMENTS
Structured questionnaire was used in collecting primary data for the study, which was divided into
two sections.

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Chapter 2
Principles of Organizational Culture
Three dimensions of corporate culture affect its alignment: symbolic reminders (artifacts that are
entirely visible), keystone behaviors (recurring acts that trigger other behaviors and that are both
visible and invisible), and mind-sets (attitudes and beliefs that are widely shared but exclusively
invisible). Of these, behaviors are the most powerful determinant of real change. What people
actually do matters more than what they say or believe. And so to obtain more positive
influences from your cultural situation, you should start working on changing the most critical
behaviors the mind-sets will follow. Over time, altered behavior patterns and habits can
produce better results.
By adopting the following principles, an organization can learn to deploy and improve its culture
in a manner that will increase the odds of financial and operational success.
1. Work with and within your current cultural situations. Deeply embedded cultures cannot
be replaced with simple upgrades, or even with major overhaul efforts. Nor can your culture be
swapped out for a new one as though it were an operating system or a CPU. To a degree, your
current cultural situation just is what it is and it contains components that provide natural
advantages to companies as well as components that may act as brakes. Weve never seen a
culture that is all bad, or one that is all good. To work with your culture effectively, therefore,
you must understand it, recognize which traits are preeminent and consistent, and discern under
what types of conditions these traits are likely to be a help or a hindrance. Put another way,
theres both a yin and a yang to cultural traits.
2. Change behaviors, and mind-sets will follow. It is a commonly held view that behavioral
change follows mental shifts, as surely as night follows day. This is why organizations often try
to change mind-sets (and ultimately behavior) by communicating values and putting them in
glossy brochures. This technique didnt work well for Enron, where accounting fraud and
scandal were part of everyday practice, even as the companys espoused values of excellence,
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respect, integrity, and communication were carved into the marble floor of the atrium of its
global headquarters in
Neuroscience research suggests that people act their way into believing rather than thinking their
way into acting.
A telecommunications company was seeking to improve its customer service. Rather than trying
to influence mind-sets by, for example, posting signs urging employees to be polite to
disgruntled customers, or having employees undergo empathy training, the company focused on
what psychologists call a precursor behavior a seemingly innocuous behavior that reliably
precedes the occurrence of problem behavior. Leaders had noticed that poor teaming led to poor
customer service, so the company rolled out a plan to encourage better and more effective
teaming within call centers. To accomplish this, they set up regular design sessions for improving
practices. When employees felt they were part of a happy team, and sensed a greater level of
support from colleagues, they began treating their customers better.
3. Focus on a critical few behaviors. Conventional wisdom advocates a comprehensive
approach everybody should change everything thats not perfect! But companies must be
rigorously selective when it comes to picking behaviors. The key is to focus on what we call the
critical few, a small number of important behaviors that would have great impact if put into
practice by a significant number of people. Discern a few things people do throughout the
company that positively affect business performance for example, ways of starting meetings
or talking with customers. Make sure those are aligned with the companys overall strategy. Also
check that people feel good about doing these things, so that you tap into emotional commitment.
Then codify them: Translate those critical behaviors into simple, practical steps that people can
take every day. Next, select groups of employees who are primed for these few behaviors, those
who will respond strongly to the new behaviors and who are likely to implement and spread
them.
4. Deploy your authentic informal leaders. Authority, which is conferred by a formal position,
should not be confused with leadership. Leadership is a natural attribute, exercised and displayed
informally without regard to title or position in the organizational chart. Because authentic
informal leaders, who are found in every organization, are often not recognized as such, they are
frequently overlooked and underused when it comes to driving culture. It is possible to identify
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such leaders through interviews, surveys, and tools such as organizational network analysis,
which allow companies to construct maps of complex internal social relations by analyzing email
statistics and meeting records. Once identified, these leaders can become powerful allies who can
influence behavior through showing by doing. In fact, when companies map out their
organizations, they can identify leaders who exhibit different core leadership strengths
Pride builders are master motivators of other people, and catalysts for improvement around
them. Often found in the role of line manager, they understand the motivations of those with
whom they work. They know how to foster a sense of excellence among others. They can be
found at every level of a hierarchy; some of the most effective pride builders are close to the
front line, where they can interact directly with customers as well as employees. Pride builders
often have powerful insights about the culture and about what behaviors are likely to lead to
improvement.
Exemplars are role models. They bring vital behaviors or skills to life, and others pay attention
to them. They are well respected and are effective peer influencers in the middle and senior
management cohorts.
Networkers are hubs of personal communication within the organization. They know many
people, and communicate freely and openly with them. They serve as links among people who
might not otherwise share information or ideas. If you want to see an idea travel virally through
an enterprise, enlist your networkers.
Early adopters enthusiastically latch onto and experiment with new technologies, processes,
and ways of working. Involve them in your performance pilots, or whenever you are trying to
demonstrate impact quickly.
At one major oil company, an informal leader named Osama became known as the turbocollaborator. His role gave him very little formal influence. But when he began working at the
refinery, he walked the plant with the engineers, maintenance technicians, and operators, and
took copious notes. As a result, he knew everyone and developed relationships across disciplines.
5. Dont let your formal leaders off the hook. Most organizations tend to shunt culture into the
silo of human resources professionals. But leaders in all parts of the company are critical in
safeguarding and championing desired behaviors, energizing personal feelings, and reinforcing
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cultural alignment. The signaling of emotional commitment sets the tone for others to follow. If
staff members see a disconnect between the culture an organization promulgates and the one its
formal leadership follows, theyll disengage quickly from the advertised culture and simply
mimic their seniors behavior. The people at the top have to demonstrate the change they want to
see. Here, too, the critical few come into play. A handful of the right kind of leaders have to be
on board to start the process.
6. Link behaviors to business objectives. When people talk about feelings, motivations, and
values all of which are vital elements of strong cultures the conversation can often veer
into abstractions. It may then range far afield of what it takes to succeed in the market. Too many
employees walk away from culture-focused town halls or values discussions wondering how the
advice on how to be a better person actually translates into the work they do. To avoid this
disconnect, offer tangible, well-defined examples of how cultural interventions lead to improved
performance and financial outcomes. Select behaviors that are aimed specifically at improving
business performance and can be measured over time.
7. Demonstrate impact quickly. We live in an age of notoriously short attention spans. That
applies as much too organizational culture as it does to peoples media consumption habits.
When people hear about new high-profile initiatives and efforts, and then dont see any activity
related to them for several months, theyll disengage and grow cynical. Thats why it is
extremely important to showcase the impact of cultural efforts on business results as quickly as
possible. One effective method of doing so is to stage performance pilots that is, high-profile
demonstration projects. Pilots are relatively low-risk efforts that introduce specific behaviors that
can then be evaluated and assessed. They often rely on a dashboard that defines desired impacts,
the tactics used, and the specific metrics to be employed.
8. Use cross-organizational methods to go viral. Ideas can spread virally across organizational
departments and functions, as well as from the top down and from the bottom up. One powerful
way to spread ideas is through social media: blogs, Facebook or LinkedIn posts, and tweets
not from senior management, but from some of the authentic informal leaders mentioned in
Principle 4.
By now it is well established that social media can be more effective at spreading information,
news, and music than traditional modes of distribution. The same holds with critical behaviors.
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People are often more receptive to changes in the way we do things around here when those
changes are recommended or shared by friends, colleagues, and other associates. This kind of
credible social proof is more compelling than similar testimonials from someone whose job it is
to sell something.
9. Align programmatic efforts with behaviors. Weve emphasized the role that informal
leaders can play in helping ideas go viral. But its also important to match the new cultural
direction with existing ways of doing business. Informal mechanisms and cultural interventions
must complement and integrate with the more common formal organization components, not
work at cross-purposes. By providing the structure in which people work through disciplines
such as organization design, analytics, human resources, and lean process improvement the
formal organization provides a rational motivation for employee actions, while the informal
organization enables the emotional commitment that characterizes peak performance.
10. Actively manage your cultural situation over time. Companies that have had great success
working with culture we call them culture superstars actively monitor, manage, care for,
and update their cultural forces. Why? As we noted at the outset, when aligned with strategic and
operating priorities, culture can provide hidden sources of energy and motivation that can
accelerate changes faster than formal processes and programs. Even if you have a highly
effective culture today, it may not be good enough for tomorrow.

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Chapter 3

Introduction to organization culture at Fun and Joy at


Work
Fun and Joy at work has a very simple culture which the CEO Dr. R L Bhatia claims it to
practice a paternal structure at work. He is the sole owner of the organization and treats the
employee just like a family. It has a very traditional cum modern system of workplace practices.

CEO
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Research
Associuates

HRD

CSR

Research
Associates

Marketing

Research
Associates

Others :
Education,
Health &
Wellness,
Research
Real Estate

Associates

His priority of keeping the employees always happy and fulfilling their needs to the hearts
content has been his motto which has eventually resulted in good results at workplace and helped
achieved great success.

Characteristics of Organization Culture at FNJAW Fun and Joy at Work.

Exploring to Art, Science & Spirit of Creativity at work;


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Adding Value Through effective Management

Achieving Continuous Improvement

Applied Creativity & Innovation

Building an Agile Organization

Introducing : Inspiration Follows Aspiration

Building Pride

Inspiration At Work

Ambition & Aspiration At Work

Importance of Organization Culture


A common platform where individuals work in unison to earn profits as well as a
livelihood for themselves is called an organization. A place where individuals realize the
dream of making it big is called an organization. Every organization has its unique style
of working which often contributes to its culture. The beliefs, ideologies, principles and
values of an organization form its culture. The culture of the workplace controls the way
employees behave amongst themselves as well as with people outside the organization.

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The culture decides the way employees interact at their workplace. A healthy culture
encourages the employees to stay motivated and loyal towards the management.

The culture of the workplace also goes a long way in promoting healthy competition
at the workplace. Employees try their level best to perform better than their fellow
workers and earn recognition and appreciation of the superiors. It is the culture of the
workplace which actually motivates the employees to perform.

Every organization must have set guidelines for the employees to work
accordingly. The culture of an organization represents certain predefined policies which
guide the employees and give them a sense of direction at the workplace. Every
individual is clear about his roles and responsibilities in the organization and know how
to accomplish the tasks ahead of the deadlines.

No two organizations can have the same work culture. It is the culture of an
organization which makes it distinct from others. The work culture goes a long way in
creating the brand image of the organization. The work culture gives an identity to the
organization. In other words, an organization is known by its culture.

The organization culture brings all the employees on a common platform. The
employees must be treated equally and no one should feel neglected or left out at the
workplace. It is essential for the employees to adjust well in the organization culture for
them to deliver their level best.

The work culture unites the employees who are otherwise from different back grounds,
families and have varied attitudes and mentalities. The culture gives the employees a
sense of unity at the workplace.
Certain organizations follow a culture where all the employees irrespective of their
designations have to step into the office on time. Such a culture encourages the
employees to be punctual which eventually benefits them in the long run. It is the culture
of the organization which makes the individuals a successful professional.

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Every employee is clear with his roles and responsibilities and strives hard to
accomplish the tasks within the desired time frame as per the set guidelines.
Implementation of policies is never a problem in organizations where people follow a set
culture. The new employees also try their level best to understand the work culture and
make the organization a better place to work.

The work culture promotes healthy relationship amongst the employees. No one treats
work as a burden and molds himself according to the culture.

It is the culture of the organization which extracts the best out of each team
member. In a culture where management is very particular about the reporting system,
the employees however busy they are would send their reports by end of the day. No one
has to force anyone to work. The culture develops a habit in the individuals which makes
them successful at the workplace.

Chapter 4
Data Analysis
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A functional organization does segmentation based on functions viz strategy function; HR function; finance
function; manufacturing function or services function etc. . . . it all depends on the nature of the organization
or nature of its business . For example a bank will also have risk department or a collection department as
these are important functions. Likewise a bank may have service quality department and a manufacturing
company may have quality check department. Both may focus on quality.
Likewise a logistics company may have outward dispatch department or a logistics company may have jit just in time department. The jit may also be relevant to a manufacturing company. Business segmentation in
todays world is largely done by being customer centric. Anything that a customer likes and wants and how
quickly a customer can get it. Its like. Coms or e retailers selling online.
Structure is largely conventional and traditional. It certainly has hierarchy and levels. In a matrix
structure there may be direct reporting or a dotted lined reporting which may be dual in nature. Matrix
organizations are more modern and believe in multiple skilling. They have one objective of using multiple
skills for effective working and rationalizing manpower for maximum output.
Structure may exist in both types or may evolve in both types .it all depends on how it is balanced and
accepted internally. Culture eats strategy for breakfast.
Success Factors For Companys Business
- being customer centric
- Quality of production or service is crucial
- Leadership that adds value
- Commitment by human resources to build teams that succeed
- Agile leadership and relevant skills
The structure that operates in any company must adapt itself with the changes that take place in business
making its employees customer centric and business driven to succeed.
Cost leadership is certainly an important factor and plays a dominant role. If costs are not managed than an
organization may not survive. Balanced cost approach helps and organization to achieve its leadership
position
A structure may allow or support new technologies. If an organization believes that hi tech hi touch is a way
to manage it will make hi tech hi touch happen? Technology with human touch will help lead better and
more effectively .modern structures are highly tech driven. Facebook worldwide has 64 employees. The
belief by current organizations is that less is better and that what we need to do is get technology built into
the fabric of business. This will help business to evolve better and be futuristic.
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Customer care functions aid the process and help the process to happen. There may be head of customer care
and a few levels such as senior customer care executives. This bunch of people may be managed by a team
leader. The team leader can handle cluster.
Below them may be executives and trainees.
VALUE ADDITION IS THE crucial factor - staff can only help or aid in value addition. Through sales
business is generated and thru value additions skills are multiplied by employees. No sales is no business and
thus an organization will close down .the bottom line is to make it all happen using and integrated approach
to managing people process and change. After all targets are milestones and not an end of journey
Conflict Management is a part of any organization. Issues are resolved through direct approach or reaching
directly to the person.
Conflict Management is a part of any organization. Issues are resolved through direct approach or reaching
directly to the person
Scalability has everything to do with growth. Unless growth is sustainable it will not lead to positivity it is
therefore important that the structure and growth are intermeshed for a positive result, the two cannot be
isolated under any circumstances.
If necessary the structure is reviewed periodically business confidences may not allow so much time as
business gets limited to sales target and turnover. QSQT Quarter Se Quarter Tak
Turnaround strategy may be needed if there are continuous losses. If there is no loss staying to the input with
the structure is the best thing.

Appendix
Interview with the CEO of Fun and Joy at Work

Dr. R. L. Bhatia, Founder & CEO


1. How Is The Business Segmentation Done?
2. Is The Structure Conventional With Defined Hierarchy Or Is It A Matrix Type Organization?
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3. What Are The Success Factors For Company's Business And How Is The Structure Supporting
These Factors Cost Leadership A Success Factor?
4. How Is The Structure Supporting Acquiring New Technologies/Product Development?
5. If Customer Intimacy Is Top Most Priority How Are Customer Service/ Customer Care Function
Organized.
6. What the Measures of Effectiveness of a Structure?
7. How Are The Interface Issues Resolved?
8. Has The Structure Been Able To Support The Growth Of Organization - Has It Been Found
Effective For Scalability?
9. Has The Structure Been Reviewed And Updated Periodically?
10. Have You Felt The Need For A Turnaround Strategy?

Findings & Conclusion


This particular research undertaken is to analyse the impact of organisational culture upon
employee's behaviour. To understand the cultural impact on value expectancy behaviour of
members the study formulated many hypotheses. Among which the maior hypothesis is that
stronaer the oraanisational culture hiqher would be the member's value exuectancv behaviour.
The findings of the present research are in line with the major hypothesis formulated in the
research. Major findings thus can be illustrated as follows
1. The major finding of this research is that the stronger the organisational culture higher the
member's value expectancy behaviour. It is observed that when culture of the organisation is
strong, the members have high beliefs and attitude towards work values. Work is primary to
employees. Member's behaviour is ethically moulded, and oriented towards performance
excellence, work efficiency and productivity.

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2. The private sector has strong organisational culture compared to pubic sector. On the eight sub
variables of organisational culture selected for the study, the members of private sector perceive
a strong culture, compared to public sector. The private sector has high openness, high
confrontation, high trust, high authenticity, high proaction, high autonomy, high collaboration
and high experimentation. The results lead us to believe that the private sector has strong cultural
norms and practices with high centrality of work, positive relationship, high work pleasure, high
job affect, strong work norms, transparency, free flow of information and better opportunity for
innovation and performance. The finding of the public sector is opposite to the private sector.
3. The members of private sector highly perceive the expectancy behaviour, compared to public
sector. Members in private sector have high expectation to ability utilization, achievement,
advancement, aesthetics, altruism, authority, autonomy, creativity, economic reward, life style,
personal development, good physical activity, high prestige, high risk taking, more social
integration, more social relationship, more variety, good working conditions, stable peace of
mind, high comfort of life and greater dependency at work in private sector compared to public
sector. It is clear from this evidence that members in the private sector organization attaches high
importance to work values compared to public sector
. 4. The private sector organisation shows the elements of strong organisational culture. Members
in the private sector organisation have high value expectancy behaviour compared to public
sector. The high value expectancy behaviour indicates high importance attached to work. The
members in the private sector show high work behaviour, work relationship and work ethics
towards performance excellence, work efficiency and productivity.
5. The administrative members show high value expectancy behaviour compared to technical

members. The administrative members work is more dynamic, compared to technical members
that is more routine in its nature. The difference in the value expectancy behaviour is related to
the difference in the nature of work of administrative and technical members.

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Recommendations & Suggestions


Suggestions and Recommendations
1. The companies under the research should make special efforts to reduce attrition,
especially at the age group around thirty and also in Research and development
department.
2. Training and development activities should be used effectively for reducing
attrition (Sample training program is given in appendix) Coaching, counseling,
succession planning etc. can be used.
3. The companies under research need to review their performance appraisal
system. The objectives set should be revised. Their few objectives may be fulfilled,
but if the performance appraisal is creating negativities and increasing attrition, and

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thereby hampering the image of the company, a fresh look is worth it. The
companies may take the help of the consultants in this regard.
4. Considering the role and the positive impact of retention policy and exit
interviews, the same should be used strategically by the companies.
5. a) The companies under the research should have a strong policy and programs
for the following:

Participative Culture and participative decision making


Employee empowerment
Employee satisfaction
Positive attitude
Career advancement

b) Employee satisfaction survey should be conducted. Employee motivation and


morale survey should be conducted.
6. a) Employees should be oriented on Company productivity and profits (rupee
earned)

References

Corporate culture and innovative performance of a firm. Management of


Engineering & Technology, 2, 532-535
Kopelman, R. E., Brief, A. P., & Guzzo, R. A. (1990). The role of climate and culture in
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San
Francisco, CA: Jossey-Bass.
Denison, D. R. (1990). Corporate culture and organizational effectiveness. New York,
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Y: Wiley.
Bulach, C., Lunenburg, F. C., & Potter, L. (2012). Creating a culture for high-performing
schools: A comprehensive approach to school reform (2nd ed.). Lanham, MD: Rowman
& Littlefield.
Siehl, C. & Martin, J. (1998), Measuring Organizational Culture: Mixing Qualitative and
Quantitative Methods, in Jones, M.O, et al. (Eds), Inside Organizations:
Understanding the Human Dimension, Sage Publications, Newbury Park, CA, pp.
79-103.
Ittner, C.D. and Larcker, D.F. (1998). Innovations in Performance Measurement: trends
and
research implications, Journal of Management Accounting Research, Vol.10, 205-38

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