INFLUENCE OF EMPLOYEE CULTURE TO THE ORGANIZATION

ABSTRACT
The research examines employees culture of the ABC Energy Limited (ABCEL) which expected
to be expand more by year 2020. This construct is used to explain the influence of employees
culture
and its consequence towards firm performance.
Design/methodology/approach
This study used qualitative survey research as its basic research design applied during
conducting the assessment. The methods used during survey are observation, interviews and
cognitive mapping of organization from employee. The information used classification of
organizational culture concept and SWOT method as data analysis. The specific research
question is: Does the stability of organization and firm performance is mediated by employees
culture?
Findings
Human resources development was the main key @ role to ensure the organization capable to
perform and stand in good shape.
Practical implications
This research provides a better understanding of the employees culture in helping the
organization to perform better. Good human capital will become the valuable assets to the
organizations.
Originality/value
Our studies provided the empirical test in understanding
employees culture in ABCEL organization towards developing a more
holistic energy firm in India.
Key words: Employees Culture; Human Resources; Observation
INTRODUCTION

Background Study
Culture is the collective mental programming of a group of people (Hofstede, 1980). Members of
different communities are able to distinguish themselves from one another because they are each
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programmed to think, feel and behave in particular ways. Values, on the other hand are defined
as a broad tendency to prefer certain states of affair over others. These are programmed into an
individual’s life during the socialization process that begins during childhood. In this study,
values are related to the initiation of firm activities.

This study based on a research conducted by Pavitra Mishra from Richard Ivey School of
Business Foundation, The University of Western Ontario, London, Ontarion, Canada under the
supervision of Professor Rajen Gupta. This research was published on 2011.

Problem statement
The background of this study was about the influences of the employee culture to the
performance of the organization. The aim of this study was to prove either the employee culture
effect the performance of particular organization or do not effect the performance of particular
organization.

LITERATURE REVIEW
Profile of Company
This study based on the research conducted by Pavitra Mishra about ABC Energy Limited
(ABCEL). ABCEL is a small Indian based energy firm headquarters in New Delhi which focused
on power generation. ABCEL was incorporated in March 2007 in Delhi with ABC Infra Private
Limited and XYG Private Limited as stakeholders. In September 2007, MNP Finance Limited
also joined ABCEL as an equity partner. ABCEL lead by Shivam Kumar as Chief Executive
Officer who’s responsible to propose organization changes to achieve growth target by 2015.
Base on that reason, he needs to expand the ABCEL employees gradually up to 150 persons by
2020. To achieve this target, Kumar need to know the culture of the employees and their effect to
the performance of ABCEL organization. To get the outcomes as soon as possible, he appointed
Srividya who had a research scholar from Management Development Institute.

Employee culture has been recognized as one of the important factors for firm’s growth and
development. High growth has been related with a firm’s employee culture. Thus, growth tends
to be a result of innovativeness, pro-activeness and risk-taking behavior on the part of the firm.
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Profile of respondents
This study used the employees of ABCEL as the respondents. As for June 2010, ABCEL had 12
employees distributed over four management ranks, including the director. The employees were
all male with the exception of two. 12 employees were 4 at entry level mainly transaction and
level work, 3 at middle management doing operational management levels, 2 at senior
management doing management control and related levels, 2 at senior tending to top
management doing management control plus strategic management levels and the last one at top
management positions. The male employees were normally dressed in smart casual whereas the
female employees were usually dressed in salwar suits as their attire.

Theoretical Framework For Culture Assessment

In this study, classification of organizational culture which done by Weber (1947) applied. Weber
proposed seven characteristics known as the classical attributes of bureaucracy which are the
rules, specialization, meritocracy, hierarchy, separate ownership, impersonality, and
accountability. All these were adopted by the organizations and were referred to as the hierarchy
culture of an organization. Hierarchy culture was accepted as the ideal form of organizational
culture until another form. Over a period of research time, a fourth form of organizational culture
came to existence. This was based on the understanding that the environment is very aggressive
and that organizations need to respond to changes quickly. It was called adhocracy to reflect its
temporary, specialized and dynamic nature.

These four forms of organizational culture have been cast into a framework known as the
Competing Values Framework of culture. It has been developed two dimensions which are:
i) stability, control-flexibility and discreation
ii) internal focus and integration-external focus and differentiation.
External Focus and Differentiation

The four quadrants represent the four cultures described above. The framework design as below:
Internal Focus and Integration

Flexibility and Discreation

Clan Adhocracy
Empowerment 3 Surprise and delight
Team building Creating new standards
Employee involvement Anticipating needs
Human resources development Continuous improvement
Open communication Finding creative solution
 Hierarchy Market
Error detection Measuring customer preferences
Measurement Improving productivity
Process control Creating external partnerships
Systemic problem solving Enhancing competitives
Quality tools

Stability and Control

RESEARCH METHODOLOGY
This study used qualitative survey research as its basic research design applied during
conducting the assessment. The methods used during survey are observation, interviews and
cognitive mapping of organization from employee. Cognitive maps are powerful instruments for
understanding the way individuals perceive entity. The employees have to drawn sketches to
reflect their visualization of organization.

In order to investigate the relationship between employee culture and performance of the
organization, Srividya utilized a qualitative survey data from 9 out of 12 employees. The
assessments cover the firm’s culture and the level, extent and process of formalization.

The participants of the research survey were required to respond to a set of questionnaire during
interview session which designed to observe the operationalise cultural influence. These
interview questions focus on stories and collective sense- making. The question as below:
Guiding Points For Interviews And Observations

1. What is the vision of the company?

2. What are the objectives/goals for the current year and how informed are the employees about
the same?

3. What are the projects executed by the firm?

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4. What kind of projects should be taken in the future?

5. How is training arranged for the employees?

6. How the opportunities for individual development and growth?

7. What is the performance appraisal system and do the employees have some concrete
suggestions to improve it?

8. What are performance yardsticks for the employees?

9. Is constructive criticism appreciated?

10. To what extent are individuals encouraged to innovate?

11. Who are the major competitors?

12. How do you differentiate between competitors and yourself?

13. How do you visualize the organization’s responsiveness to changes in the business
environment?

14. Is the emphasis on getting work done or on processes?

15. Is there clarity of the expected end result?

16. If there are differences between the management and the employee, how are they addressed
(open discussions, closed room/hierarchical, etc)?

17. Respect for hierarchy – is it a norm?

18. Is there an emphasis on holding people accountable for a particular task?

19. What is the process generally used for intra-office communication (cell phone, memo,
messenger, emails)?

20. Whats are the formal and informal activities carried out to increase interaction between the
employees?

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21. Is there awareness of events happening in other divisions of the organization or in sister
organizations that might impact systems and processes in ABCEL?

22. How are people encouraged to cooperate and coordinate within and across units (team-
building exercises, team-focused remunerations, etc)?

23. Is there clarity of people’s understanding about the interrelationship of their own jobs/own
units with those of others?

DATA COLLECTION
Interviews
Most of the employees give a good feedback about management during interviews session. They
satisfied with the way how the firm treats them in this organization. The relationship between
superior and employee was good and closed to each other. They work like a family members and
freedom to do work. Opportunity for develop personnel capabilities and skills always planned by
the organization. With these continuous planned training, every employee will firm with their
duties and responsibilities. This study also found that respect for individual also practiced in this
firm. The promoter/ top managers viewed as affinitive, empowering and humane.

Observation
This study observed that the punctuality was important in employee culture. Entry and exit time
recorded by the guard to ensure the employee obey the punctuality. The comfort seating plan is
needed to ensure the employees have good feel to perform their duties. Ambience created at
office give an impression of simple and tradition lifestyle. Social activity organized by firm able
to release the stress and able to developing the geniality among the employee in addition to build
up the confident level.
Cognitive maps (Sketches by the employees)
This study observe and analyze four drawing/sketches which already prepared by the employees.
The employees need to conceive ABCEL as any material or entity based on their perception of
the organization. All the drawing/sketches showed that the employees request the harmonious
and cheerful culture in the organization. The harmonious and cheerful culture will lead them to
perform better in the duties and be more responsibilities. The organization assumed to be a
protector for the employees in order to motivate them to give full commitment during running
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the firm organization. The good management will be the strength of the particular organization
and culture of the employees will become the main factor to ensure that organization will always
stand in good shape.

DATA ANALYSIS (Findings)

This study used the SWOT concept to analyze the data. SWOT means Strength, Weaknesses,
Opportunity and Threat. From this concept of analysis, this study able to digests some point of
positive and negative about the management of ABCEL organization. Base on the assessment of
culture conducted, the result as below:

STRENGTH WEAKNESSES

THREAT OPPORTUNITY

Strength
Discussion practice in the organization before making any decision is the best way to get the best
result. All hand are open and welcome to give their opinion to ensure the performance of firm in
good shape. The comfort seating plan in the office and transparency contribute a friendly
atmosphere between the superiors and subordinates. They are able to talk and discuss the simple
thing without need to standing up. Facilities in the office like Internet Protocol Messenger
(IPMSG) and internal telephone give the opportunity for each other to communicate without
hesitate including if they want to call the superiors to seek direction for urgent matters. Others
support facilities like binding, couriering documents, photocopying and shredding the waste
document will perform by the office boy. With this type of facilities, the employee able to
perform their core business smoothly without others silly matters.

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This study also found that the statutory personnel also important during run the organization.
These persons are responsible for statutory compliances as per stated in the Companies Act 1956.
Its important to ensure all the employees and supervisors obey the rule which already published
in the company act. Friendly conversation in the office and gathering event also able to build up
morale of the employee. These social or informal events organized to award and celebrate them
either for small or big achievement or successes. The involvement of CEO in this occasion is
very important to show that the superior always take part and associate with their subordinates.

Weaknesses
On the contra side, this study found a few issues which related to the management of ABCEL
organization. Because of no canteen facilities at the firm, most of the employees brought their
own home cooked food or we called pot luck to the office. Some of the workers also need to
walk out to have a lunch and this automatically was a waste time to the organization. Misuse
power of the superior in the organization was a bad issue in the organization. Besides that, this
organization does not have any human resources department and person. Because of that, the
employees does not have any sources to make the complaint or address any grievances. The
employees impress that the organization was not transparent in managing the firm organization.
The major effect will rise when the expert person left the firm, nobody capable to replace their
position because the organization not have any record about the specialization of the employees
and also no learning module kept by the firm organization.

Opportunity
The organization need to take the opportunity to improving the human resource management in
the firm to ensure have continuous specialize workers or employee in that firm. Make the
immediate management transformation and extent the formalization to sustain the organization.
Provide more facilities at the firm to give more comfort environment to the employees for
example make a formal canteen.

Threat
ABCEL need to compete with the others four major player company in this power plant sector.
No standby skilled workers in the organization if any one of older skill workers resigned.
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CONCLUSION AND SUGGESTION
Base on data collection and analysis for the ABCEL firm, we conclude that this firm have the
potential to become a world class-class energy power with operations in India and neighbouring
countries. However, to achieve this target, a lot of changes and transformation in term of
employees culture need to be done first. The first thing they need to do is develop the human
resources department as soon as possible. This department is important in determining good
human capital and capable of performing the task with good company. This department is also
responsible to record any training required and identified any problems of workers to be
forwarded to the higher authorities. Besides that, cooperation among workers and superiors
should more closely in ensuring that every idea to the development and progress of the
organization can be implemented well. The involvement of superiors in every ceremony to
celebrate the company's activities, especially the employees celebration in order to ensure the
moral of subordinates always awake. The company must provide an official work schedule
includes the start and end time to work every day. For employees who work overtime must be
compensated either in the form of gifts or overtime pay. Facilities available at the workplace
plays an important role in ensuring the momentum workers always at the highest level. With this
burning spirit, it can bring a company to greater heights.

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