Dissertation `1

DISSERTATION

On

“In the Perception of Employees: Impact of Organizational Culture on the Costing and Productivity of a Manufacturing Unit”

ByAditya kumarA0102210182

MBA(M&S) Class of 2012

Under the Supervision ofMr. Pradeep Narwal

Asst. ProfessorDepartment of Marketing

In Partial Fulfillment of Award of Master of Business Administration

AMITYBUSINESSSCHOOLAMITY UNIVERSITY UTTAR PRADESH

AMITY BUSINESS SCHOOL

DECLARATION

I, Aditya Kumar student of Masters of Business Administration(M&S) from Amity Business

School, Amity University Uttar Pradesh hereby declare that I have completed my Dissertation on

“In The Perception of Employees: Impact of Organizational Culture on the Costing and

Productivity of a Manufacturing Unit” as part of the course requirement.

I further declare that the information presented in this project is true and original to the best of

my knowledge.

Date: / / Aditya Kumar

Enroll. No: A0102210182

Place: Noida MBA(M&S) Class of 2012

AMITY UNIVERSITY UTTAR PRADESH

AMITY BUSINESS SCHOOL

CERTIFICATE

I, Pradeep Narwal hereby certify that Aditya Kumar student of Masters of Business

Administration(M&S) at Amity Business School, Amity University Uttar Pradesh has completed

his dissertation on “In The Perception of Employees: Impact of Organizational Culture on the

Costing and Productivity of a Manufacturing Unit”, under my guidance.

Mr. Pradeep Narwal

Assistant Professor

Department of marketing

ACKNOWLEDGEMENT

It gives me great pleasure to acknowledge and to express my gratitude to all those who have

helped me throughout this project.

I express sincere gratitude to my faculty guide Mr. Pradeep Narwal, Assistant Professor, Amity

Business School, who has encouraged me unreservedly in the completion of this project at every

step during the entire duration of the research work. He has provided me with sufficient help

persistently. He has been a motivation for me for the accomplishment of the research. His

guidance and support has motivated me to input my efforts into the research work and producing

better results.

Aditya Kumar

A0102210182

MBA-M&S

(Class of 2010-2012)

Table of Contents

Chapters Contents Page no.Chapter-1 Introduction 1

1.1 TEAM- The conceptual

framework

3

1.1.1 Characteristics of an effective

team

3

1.2 OCTAPACE- The conceptual

framework

4

1.2.1 Openness defined 4

1.2.2 Confrontation defined 5

1.2.3 Trust defined 5

1.2.4 Authenticity defined 6

1.2.5 Proaction defined 6

1.2.6 Autonomy defined 6

1.2.7 Collaboration defined 6

1.2.8 Experimentation defined 7

1.3 Purpose of study 7

1.4 Rationale of study 8

1.5 Objective of study 8

Chapter-2 Literature review 9-11

Chapter-3 Research methodology 12-19

Chapter-4 Data analysis and findings 20-44

Chapter-5 Results and outcomes 45-49

References and annexure 50-53

List of tables

Table no. Table name Page no.4.1 Relation between performance

and free interaction.21

4.2 Relation between performance and genuine sharing of information feelings and thoughts in the meeting.

22

4.3 Relationship between

performance and free

discussion and communication

between seniors and

subordinates.

23

4.4 Relationship between performance and deep analysis of a problem.

24


performance and passing back

the buck tactfully on others.

25

4.6 Relationship between performance and the tendency to surface the problem.

26

4.7 Relationship between performance and interpersonal contact and support amongst employees.

28

4.8 Relationship between performance and “confiding in seniors without fear of their

28

misusing trust.

4.9 Relationship between performance and the tendency to fend oneself when the chips are down.

29


performance and the congruity

between expressed behavior

and the feelings.

30


performance and tactfulness,

smartness and manipulation to

get things done.

31


performance and the tendency

of owing up mistakes.

32


performance and the

encouragement of

subordinates.

33


performance and considering

both positive and negative

aspects.

34


performance and “prevention

is better than cure”.

35


performance and employes

taking independent action in

jobs.

36


performance and “close

supervision and directing

employees on action.”.

37


performance and “obeying and

checking with seniors rather

than acting on one’s own”.

38


performance and “team work

and team spirit”.

39


performance and “accepting

and appreciating help offered

by others”.

40


performance and “employees

involvement in developing

organizational mission and

goals” .

41

4.22 Relaitonship between

performance and “employees

trying out innovative ways of

42

solving problems”.

4.23 Relationship between performance and “thinking out and doing new things tones up organizational vitality”.

43


performance and

experimentation.

44

1

CHAPTER-1

introduction

CHAPTER 1: INTRODUCTION

2

Manufacturing is a crucial component of the foundation that maintains the security, health, and

wealth of any country. The nation with resolve and ability to do efficiently, prosper and grow.

One of the most important measure to determine the factory performance is, the factory cycle

time. Which means delivering the right product at right place at right time.

Over past 50 years over 50 management and manufacturing fads and fashions have been

proposed for achieving improved organizational and factory performance. Almost all of them

have failed to meet the desired standards. Today the performance measure of the manufacturing

units (load-adjusted cycle-time efficiency) remains more or less the same as it was half a century

ago.

Although the goods produced in the factories have evolved in terms of sophistication, reliability,

the time spent in their complete production remains almost the same with only 5-20% decrement.

So due to this reason there is enormous scope for improvement in the running of almost any

manufacturing unit in any country.

Lean manufacturing, six sigma, reengineering, theory of constraint are the works done

previously in this field which can improve the performance of any manufacturing unit when and

if applied properly. These techniques are mostly related to technical aspect of production.

Other aspect of production which is responsible for the success of any organization is human

factor, without which no software is of any use, and forget about softwares, no machine would

even work. The success of any business depends on appropriate, effective, well-communicated,

HR and business practices, where the importance of team effectiveness and organizational

culture cannot be neglected.

This project is dedicated to find out how team effectiveness and positive organizational culture

would affect the cost and productivity of any manufacturing unit. So if a relationship between the

performance of the employees and organizational culture can be established with the help of this

research it would mean that organizational culture has an impact on productivity and costing of

any manufacturing unit.

3

For this purpose two HR tools would be used viz. Team Effectiveness Assessment Measure

(TEAM) and OCTAPACE.

The TEAM is used for assessing team effectiveness in an organization while OCTAPASE is

used for assessing the organizational culture.

1.1 TEAM: THE CONCEPTUAL FRAMEWORK

The importance of team was first revealed by the results of the famous Hawthorn studies in the

1930s. However, it was McGregor who gave special attention to teams. Likert (1961) during the

same period focused attention on teams as important elements of humanization of organizations.

Both of them listed a large number of characteristics of effective work groups or teams. Dyer has

summarized 11 characteristics of a team suggested McGregor, and 24 characteristics of an

effective work group as suggested by Likert. The following table lists 10 main characteristics of

effective teams, covering suggestions given both by McGregor and Likert.

1.1.1 CHARACTERISTICS OF EFFECTIVE WORK TEAMS

(McGregor and Likert)

1. Commitment and inspiring goals

2. Role clarity

3. Self-disclosure(excluding confrontation)

4. Openness to feedback

5. Competence

6. Creativity with constructive conformity

7. Collaboration/ support/ trust

8. Congruence between individual and group goals

9. Supportive leadership

10. Management of power

Team effectiveness can be understood in terms of three main characteristics of team functioning:

clarity of roles of different team members cohesion, trust and closeness (amongst members of the

4

team), confrontation i.e. solving problems as they arise rather than shying away from them; and

collaboration, i.e. working together, giving and receiving help to each other. The four main

characterstics of team empowerment are: clarity of rules of different members of the team,

autonomy of the team, support provided to the team in terms of resources, etc. and accountability

of the team to achieve the goals to which a commitment has been made.

Using the concept of power an effective team can be described as the one in which power is

shared (widely distributed), and the members use more persuasive rather than coercive power.

Effective team can also be understood as the one in which people give their openions and

comments without hesitation, listen to and examine others openions, comments, and feedback

given by colleagues at all levels; and are sensitive to the needs of others(called perceptiveness).

1.2 OCTAPACE: THE CONCEPTUAL FRAMEWORK

The OCTAPACE profile is a 40-item instrument that gives the profile of organization’s ethos in

eight values. These values are openness, confrontation, trust, authenticity, proaction, autonomy,

collaboration and experimentation.

In addition to checking the items on the extent of their importance or sharing in the organization,

the respondent can also check how much he should be valued, or how much the beliefs are

useful. Thus both present as well as desired and ideal profiles can be obtained.

1.2.1 OPENNESS: Openness can be defined as a spontaneous expression of feelings and

thoughts, and sharing of these without defensiveness. Openness is in both directions, receiving

and giving. Both these may relate to ideas (including suggestions), feedback (including

criticism), and feelings. For example, openness means receiving without reservation, and taking

steps to encourage more feedback and suggestions from customers, colleagues and others.

Similarly, it means giving, without hesitation, ideas, information, feedback, feelings etc.

openness may also mean spatial openness, in terms of accessibility.

The willingness to share and the openness results in greater clarity of objectives and free

interaction among people. As a result of openness, there should be more unbiased performance

5

feedback. Indicators of openness in an organization will be productive meetings and improved

implementation of systems and innovations.

1.2.2 CONFRONTATION: Confrontation can be defined as facing rather than shying away

from problems. It also implies deeper analysis if interpersonal problems. All this involves taking

up challenges. The term confrontation is being used with some reservation and means putting up

a front as contrasted with putting one’s back(escaping)

to a problem. A better term would be confrontation and exploration (CE) to the problem.

We can use the term confrontation in this sense of confrontation and exploration, i.e. facing the

problem and working jointly with others to find a solution to the problem. The outcome of

confrontation will be better role clarity, improved problem solving, and willingness to deal with

problems and with ‘difficult’ employees and customer. There will be willingness of teams to

discuss and resolve sensitive issues. The indicators, which are also outcomes, can be improved

by periodical discussions with clients, bold action, and not postponing sticky matters.

1.2.3 TRUST: Trust is not used in the moral sense. It is reflected in maintaining the

confidentiality of information shared by others, and in not misusing it. It is also reflected in a

sense of assurance that others will help when such help is needed and will honor mutual

commitments and obligations. Trust is also reflected in accepting what other person says at face

value, and not searching for ulterior motives. Trust is an extremely important ingredient in the

institution building processes.

The outcome of trust includes higher empathy, timely support, reduced stress, and reduction and

simplification of forms and procedures. Such simplification is an indicator of trust and of

reduced paper work effective delegation and higher productivity.

1.2.4 AUTHENTICITY: Authenticity is the congruence between what one feels, says and does.

It is reflected in owning up one’s mistakes, and in unreserved sharing of feelings.

Authenticity is closer to openness. The outcome of authenticity in an organization is reduced

distortion in communication. This can be seen in the correspondence between members in an

organization.

6

1.2.5 PROACTION: Proaction means taking the initiative, preplanning, and taking preventive

action, and calculating the pay-off of an attractive course before taking action. The proact con be

contrasted with the term react. In the latter, action is in response to (and in th pattern of) an act

from some source, while in the former the action is taken independent of the source. For

example, if a person shouts at his friend’s accusation he shows reative behavior. However, if he

does not use this pattern but responds calmly and suggests that they discuss the problem together,

he is showing proactive behavior. Proactivity gives initiative to the person to start a new process

or set a new pattern of behavior. Proactivity involves unusual behavior. In this sense proactivity

means freeing from oneself from, and taking action beyond immediate concerns. A person

showing proactivity functions at all the three levels of feeling, thinking and action.

1.2.6 AUTONOMY: Autonomy is using and giving freedom to plan and act in one’s own

sphere. It means respecting and encouraging others and role autonomy. It develops mutual

respect and is likely to result in willingness to take on responsibility, individual initiative, better

succession planning. The main indicator of autonomy is effective delegation in organization and

reduction in references made to senior people for approval of planned actions.

1.2.7 COLLABORATION: Collaboration is giving help to, and asking for help from, others. It

means working together (individuals and groups) to solve problems and team spirit.

The outcome of collaboration includes timely help, team work, sharing of experiences, improved

communication and improved resource sharing. The indication could be productivity reports,

more meetings, and involvement of staff, more joint decisions, better resource utilization and

higher quality of meetings.

1.2.8 EXPERIMENTING: Experimenting means using and encouraging innovative approaches

to solve problems; using feedback for improving, taking a fresh look a things, and encouraging

creativity. We are so caught up with our daily tasks that we often only use traditional, tried and

tested ways of dealing with problems.

While these methods save time and energy, they also blind us from perceiving the advantage of

new ways of solving a problem. The more we work under pressure, the less is our inclination to

try a different approach as the risk seems to be too high. And yet complex problems require new

7

approaches to their solutions. Organizational learning does not imply repetitive action; it implies

applying past experience to current problems to reach beyond.

This can be called creativity. Other terms such as innovations, experimentations, new

approaches, etc. also convey the same meaning.

There are several aspects of creativity in an organization. Creativity is reflected in new

suggestions generated by employees, attempts at improving upon various ways of working,

trying out a new idea to which one has been exposed, innovating new methods, and thinking

about a problem while ignoring so called constraints. The last one is also called lateral thinking,

i.e. thinking aimed at generating alternatives. There is enough evidence that such thinking

contributes towards the development of new products, new methods and new processes.

1.3 Purpose of study

The main purpose of the study is to study the relationship between the organizational culture

with the productivity and costing of a manufacturing. The present research will mainly focus on

human as a factor of productivity. The present study will focus on parameters like Openness,

confrontation, trust etc. and also other characteristics of a team, and determine to what extent

these factors can affect the productivity, performance and thus costing of an organization.

1.4 Rationale for research

There has been a lot of researches in the direction of improving the efficiency of a manufacturing

unit and reducing the cost of production using different techniques like Lean manufacturing, six

sigma, reengineering, theory of constraints these researches mainly aims at improving the

efficiency of a manufacturing firm by improving the technical aspects of production like

processes, techniques etc., but till date there no research has been which can relate the team

effectiveness and organizational culture with the costing of a manufacturing unit. This research

aims at establishing the relationship between the positivity in the organizational and productivity

and performance and also costing with special reference to the manufacturing units.

8

1.5 Objective of research

1. To study how culture of an organization can affect the costing of a manufacturing firm.

2. To study how organizational culture can affect the productivity of a manufacturing firm.

9

CHAPTER-2

Literature review

CHAPTER 2: LITERATURE REVIEW

10

1. Shen-Wen Cheng(2008),”Cost effective software architecture-based self-adaptation”.

Carnegie Mellon University.

In today’s scenario, the systems must have ability to self-adapt to the changes in their

environment. But the existing systems require human oversight or are limited in the kinds of

system and set of quality-of-service concerns they address. This approach uses software

architecture models and architectural styles to overcome the limitations of the existing

systems. The target system and its environment is monitored by the engineering approach

and framework of mechanism provided by the approach. It reflects the observations into a

system’s architectural model, detect scope of improvement select a course of action and

effect the changes in a close loop. The infrastructure provided is general and reusable with

well-defined customization points which allows the engineers to systematically customize the

approach to particular systems and concerns.

2. R.Y. Chang, A. Podgurski and J. yang (2007), “Finding what’s not there: a new

approach to revealing neglected conditions in software.”, “Proc. ACM Int’l symp.

Software Testing and Analysis”, p 163-173.

Neglected conditions are an important but difficult to find class of software defects. This

paper presents an approach to reveal the neglected conditions that integrates static program

analysis and advanced data mining techniques to discover implicit conditional rules in a code

base and to discover rule violations that indicate neglected conditions. In this approach the

user is required to indicate minimal constraints on the context of the rules to be sought, rather

than specific rule templates, and to permit this generality, rules are modelled as graph minors

of program dependence graphs, and both frequent itemset mining and frequent sub-graph

mining algorithms are employed to identify candidate rules. The results are reported, of an

empirical evaluation of the approach in which it was used to discover conditional rules and

neglect conditions in ~25,000 lines of source code.

11

3. M. Brunett, C. Cook and G. Rothermel (2004), “End-user Software Engineering.”,

“Communications of ACM”, p 53-58 vol. 47 issue 9.

Today the end-user programming has become the most common form of programming, but

still there has been a little investigation into the dependability of the programs end users

create. This is of critical importance and very problematic because the dependability of these

programs are very important, as in certain cases, errors in end-user programs, such as

formula errors in spread sheets, have cost millions of dollars. So here this problem is being

dealt by developing a software engineering paradigm viable for the end-user programming,

an approach called end-user software engineering.

4. Beeman, Don R. Sharkey, Thomas W (1987), “The Use and Abuse of Corporate

Politics”, “Business Horizons” p26 vol. 30 issue 2.

One of the most difficult circumstances for a manager is to be suddenly transported into a

significant position in a highly politicized organization. In a very short time, the manager will

be wondering whether such a situation can be anything except a no-win situation. This article

explains the foundations of political behavior, identifies highly political situations, and

provides the new manager with the tools to deal with negative political behaviors. A new

manager is in a situation when entering a new job, with high levels of complexity and

competition. One of the first assessments the new manager must make is the intensity of the

political behavior in the new organization.

12

CHAPTER-3

RESEARCH METHODS

AND

PROCEDURE

CHAPTER 3: RESEARCH METHODS AND PROCEDURE

13

This chapter aims at understanding the research methodology which will be used in this research

project, establishing a framework for collection, analysis and interpretation of primary and

secondary data.

3.1 RESEARCH DESIGN

Research needs a design or a structure before data collection or analysis can commence. A

research design is not just a work plan. The function of a research design is to ensure that the

evidence obtained enables us to answer the initial question as unambiguously as possible. Both

exploratory and descriptive research will be used in this project to identify the problem areas,

analyze those problems and then to find solution to those problems.

Exploratory research

Exploratory research is the type of research which is used to gain background information, to

define terms, to clarify exploratory problems and develop hypotheses, to establish research

priorities, to know the boundaries in which we have to conduct the research and to develop

questions to be answered.

Here, an intensive secondary research from diverse sources such as journals, articles, books and

internet will be conducted to analyze what are the factors that add to the cost wherever the

human factor plays a role in an organizations working, specifically in manufacturing units in

India. Literature review was done thoroughly to know all these factors and their impact on the

success and efficiency of manufacturing units and how these factors related to Team-

effectiveness and organizational culture can affect the costing of a manufacturing unit. All these

factors will be taken to next level of exploratory research which will help in restricting and

selecting only the important questions and issues.

Descriptive research

Descriptive research is a type of research which is also known as statistical research. It describes

data and characteristics about the population or phenomenon being studied. Descriptive research

14

answers the questions who, what, where, when, why and how. Descriptive research deals with

everything that can be counted and studied.

After selecting a suitable population and drawing a representative sample from this population, a

survey will be conducted with the help of a structured questionnaire for collection of primary

data to find the answers to the questions formed by exploratory research.

3.2 CLEAR STATEMENT OF RESEARCH QUESTIONS

Issues related to the how team-effectiveness and organizational culture can affect the

productivity and thus the costing of an organization is a matter of debate all across the world. To

what extent can efforts made towards improving the teams and making organizational culture

increase the efficiency of the organizations and how much is it worthwhile to spend money and

resources in this area is still a big question. Against the above background, following questions

have been framed:

i. What impact does team effectiveness has on the costing and productivity of a

manufacturing unit?

To find answer to this question, the relationship between the factors like commitment and

inspiring goals, role clarity, self-disclosure, openness to feedback, competence, creativity

with constructive conformity, collaboration, congruence between individual and group

goals, supportive leadership, management of power and performance of the teams will be

studied. If these factors have a relation with the performance of the team that would mean

these factors can also affect the costing of an organization.

ii. Can culture of an organization have an impact on the costing and productivity of a

manufacturing unit?

To find answer to the above research questions, relationship of values of organizational

ethos like openness, confrontation, trust, authenticity, proaction, autonomy, collaboration

and experimenting and performance of a manufacturing unit would be studied. If these

15

values have a relationship with the performance of a manufacturing unit, it would mean

that Organizational Culture can affect the costing of a manufacturing unit.

3.2 DESCRIPTION OF POPULATION, SAMPLE AND SAMPLING DESIGN

Population

The first step in good sample design is to ensure that the specification of the target population is

as clear and complete as possible to ensure that all elements within the population are

represented.

In the light of the above research questions, there was a need of a specific population which

fulfills certain basic criteria. According to the topic the appropriate set of population which needs

to be considered would be the employees who work in different teams to perform their respective

tasks in any manufacturing firm. The information thus gathered was then compared to ascertain

the role of organizational culture in the making a high and a low performing teams, the costing

and also the productivity of manufacturing units.

Sample size

Keeping in view the time and cost factor and the scale of the research, following sample sizes

has been decided for the above set of population:

Sample size: 120

Sampling design

After deciding sample size, the type of sampling is decided. Sampling design depends upon the

different type of requirements related to research such as whether we like to select respondents

randomly, with our convenience or small sample representing whole population. Depending on

these types of requirements, sampling can be of various types such as Cluster sampling,

Convenience sampling, Judgment sampling, Quota sampling, Simple random sampling and

Systematic sampling.

16

Keeping in view the characteristics of the population and availability of time and resources,

following sampling design was chosen:

Simple random sampling will be used for data collection process. First any two manufacturing

units were selected from where the sample would be chosen. The reason for choosing two

different manufacturing units is that it would simply give better and more accurate results and

comparison than samples collected from a single unit. Then a simple random sampling was done

to select the required number of respondents out of the total number of teams working in the

organizations. Respondents from our convenience will be taken considering the time factor.

3.3 DATA COLLECTION PROCEDURES

After deciding the sample size and type of sampling to be used, next step is to decide about the

data collection procedures.

There are various procedures by which primary data can be collected are:

1. Observation: Observation involves gathering of data relating to the selected research by

viewing and/or listening.

2. Interviewing: Interviewing involves face-to-face conversation between the interviewer and the

respondent.

3. Mail survey: Mailing is used for collecting data by getting questionnaires completed by

respondents.

4. Experimentation: Experimentation involves a study of independent variables under controlled

conditions. Experiment may be conducted in a laboratory or in field in a natural setting.

5. Simulation: Simulation involves creation of an artificial situation similar to the actual life

situation.

6. Projective technique: Projective methods aim at drawing inferences on the characteristics of

respondents by presenting to them stimuli.

Methods to be used in this project to collect Primary data:

17

Keeping in view the attributes of the sample chosen by us, the data was collected by structured

Questionnaire and Interviews. Respondents were approached personally and were requested to

provide the required details. Questionnaires were also filled by getting the required information

if the respondent was not having appropriate time to fill it. The respondents were interviewed

personally using OCTAPACE and were asked to rate their organization according to their

perception based on the parameters given in the questionnaire. After 20 days the same set of

population was again asked to fill the same questionnaire, but this time, in a slightly different

way i.e. the same set of respondents were asked to rate the parameters in the questionnaire

according to their impact on the productivity and costing of an organization.

These methods have advantages over the other methods which are:

The distinctive feature of this method is that the questionnaire is self-administered by the

respondents themselves and the responses are recorded by them, and not by the

investigator.

Questionnaire can be sent to the educated and willing respondents via mails and social

networking sites and the data can be collected in lesser time duration as compared to

other methods.

Interviewing is one of the major methods of data collection. It may be defined as two-

way systematic conversation between an investigator and an informant, initiated for

obtaining information relevant to as a specific study.

Interview is often superior to other data-gathering methods. People are usually more

willing to talk than to write.

Interview can add flesh to statistical information. It enables the investigator to grasp the

behavioral context of the data furnished by the respondents.

It permits the investigator to seek clarifications and brings to the forefront those

questions, that, for one reason or another, respondents do not want to answer.

3.4 INSTRUMENTATION

18

Structured Questionnaires comprising of close ended questions will be used as research

instruments.

Features of the Questionnaire:

Well structured

Close ended questions

Softwares used for analysis will be IBM SPSS and MS Excel.

3.5 DESCRIPTION OF HOW DATA WILL BE ANALYZED

Data analysis and interpretation tools and techniques are decided keeping in view the nature and

type of data collected. So in this research, following softwares will be used according to the type

of analysis required. Two main softwares which will be used for data analysis are:

IBM SPSS 19.0

Microsoft Excel

IBM SPSS 19.0 will be used for complex testing like checking validity, correlation etc. which

will not be possible with other simple softwares or manually.

MS Excel will be used for simpler analysis part which can be done easily with it.

3.6 Limitation

Research is based on the sample size of 100 respondents which may not be the true

representation of the entire population.

There may be a possibility of biasdness on the part of some respondents, but much care

has been taken to make this report unbiased.Some of the respondents may not give the

answers with their full enthusiasm.

19

Some respondents might not give the correct information due to their lack of interest and

shortage of time.

Time constraint- Time limit restricts detailed survey work for this particular topic of

research.

All the information, which is taken, is based on primary and secondary data that has its

own limitations.

3.7 Hypothesis testing

Hypothesis is used to establish whether the difference exhibited by random samples can be

inferred to the population from which the samples have originated.

Steps involved in hypothesis testing:

1. State the hypothesis of interest.

2. Determine the appropriate test statistic.

3. Specify the level of statistical significance.

4. Determine the decision rule for rejecting or not rejecting the null hypothesis.

5. Collect the data and perform the needed calculations.

6. Decide to reject or not to reject the null hypothesis.

Null hypothesis: There is no correlation between costing and productivity of

manufacturing units and the organizational culture.

Alternative hypothesis: There is a correlation between the costing and productivity of

manufacturing units and team-effectiveness and organizational culture.

20

CHAPTER-4

DATA ANALYSIS

4.1 RELATION BETWEEN PERFROMANCE AND FREE INTERACTION, RESPECT FOR EACH OTHER FEELINGS, COMPETENCE AND SENSE OF JUDGEMENT.

21

Correlations

Free interaction

amongst

employees at

the work place. Performance

Free interaction amongst

employees at the work

place.

Pearson Correlation 1 -.052

Sig. (2-tailed) .575

Performance Pearson Correlation -.052 1


Table 4.1: Correlation between performance and free interaction between employees at the work place.

INTERPRETATION:

There is a negative relationship between interaction amongst employees and performance. This means that if free interaction increases among the employees the productivity of the firm would decrease and thus the costing would increase.

4.2 RELATION BETWEEN PERFORMANCE AND GENUINE SHARING OF INFORMATION FEELINGS AND THOUGHTS IN THE MEETING.

22

Correlations

Genuine sharing

of information,

feelings and

thoughts in

meetings. Performance

Genuine sharing of

information, feelings and

thoughts in meetings.



performance Pearson Correlation -.060 1


Table 4.2: Correlation between performance and genuine sharing of information,

feelings and thoughts in meetings.

Interpretation:

There was negative relationship between performance and genuine sharing of information and

feelings in a meeting, meaning that if genuine sharing of information in the meetings would be

shared it would decrease the productivity and increase the cost of manufacturing firm.

4.3 RELATIONSHIP BETWEEN PERFORMANCE AND FREE DISCUSSION AND

COMMUNICATION BETWEEN SENIORS AND SUBORDINATES.

23

Correlations

Free discussion

and

communication

between seniors

and

subordinates. performance

Free discussion and

communication between

seniors and subordinates.

Pearson Correlation 1 .135


performance Pearson Correlation .135 1


Table 4.3: Correlation between performance and free discussion and communication

between seniors and subordinates.

Interpretation:There is a positive relationship between performance and free discussion and communication and discussion between seniors and subordinates. So if free communication and discussion increases the productivity increases and thus the costing decreases.

4.4 RELATIONSHIP BETWEEN PERFORMANCE AND DEEP ANALYSIS OF A PROBLEM.

24

Correlations

Going deeper

rather than

doing surface

level analysis of

interpersonal

problems. performance

Going deeper rather than

doing surface level analysis

of interpersonal problems.





Table 4.4: Correlation between performance and deep analysis of problem.

Interpretation:The positive relationship between performance and deep analysis of interpersonal problems, this means that if the tendency to deeply analyze the problem is encouraged the productivity will increase and thus the cost will decrease.

4.5 Relationship between performance and passing back the buck tactfully on others.

25

Correlations

Pass back the

buck tactfully

when there is a

problem. performance

Pass back the buck tactfully

when there is a problem.





Table 4.5: Correlation between performance and the tendency to pass the buck on

each other when a problem arises.

Interpretation:The relationship between performance and the tendency of passing the buck on others when there is a problem is negative. That means if this tendency increases the productivity of the firm will decrease and the costing would go up.

4.6 Relationship between performance and the tendency to surface the problem.

26

Correlations

Surfacing

problem is not

enough, we

should find the

solutions. performance

Surfacing problem is not

enough, we should find the

solutions.

Pearson Correlation 1 -.195*


performance Pearson Correlation -.195* 1


Table 4.6: Correlation between performance and the tendency to surface the

problem.

Interpretation:

There is a negative relationship between the tendency to surface the problem and performance. So if this tendency of surfacing problem, in an organization increases, the productivity will decrease and the cost would go higher.

4.7 Relationship between performance and interpersonal contact and support amongst employees.

27

Correlations

Interpersonal

contact and

support amongst

employees. performance

Interpersonal contact and

support amongst employees.

Pearson Correlation 1 +0.176


performance Pearson Correlation +0.176


Table 4.7: Correlation between performance and interpersonal contact and support

amongst the employees.

Interpretation:There is a positive relationship between interpersonal contact and support among employees and the performance of a team. So if the interpersonal contact and support increases the productivity also increases and the cost decreases.

4.8 RELATIONSHIP BETWEEN PERFORMANCE AND “CONFIDING IN SENIORS WITHOUT FEAR OF THEIR MISUSING TRUST.

28

Correlations

Confiding in

seniors without

fear of their

misusing trust. performance

Confiding in seniors without

fear of their misusing trust.

Pearson Correlation 1 0.27


performance Pearson Correlation 0.27 1


Table 4.8: Correlation between performance and trust in seniors.

Interpretation:

There is a positive relationship between the tendency to confide in seniors and performance. Is this tendency in a team increases it will increase the productivity and reduce the cost.

4.9 RELATIONSHIP BETWEEN PERFORMANCE AND THE TENDENCY TO FEND ONESELF WHEN THE CHIPS ARE DOWN.

29

Correlations

When chips are

down you have

to fend yourself performance

When chips are down you

have to fend yourself



Performance Pearson Correlation .038 1


Table 4.9: Correlation between performance and the tendency of employees to fend

themselves when the chips are down.

Interpretation:There is a positive relationship between the performance and the tendency of team members to fend themselves when there is a problem. This means that people believe if they will do so the productivity would increase and the cost would decrease.

4.10 RELATIONSHIP BETWEEN PERFORMANCE AND THE CONGRUITY

BETWEEN EXPRESSED BEHAVIOR AND THE FEELINGS.

30

Correlations

Congruity

between

feelings and

expressed

behavior. performance

Congruity between feelings

and expressed behavior.





Table 4.10: Correlation between performance and congruity between feelings and

expressed behavior.

Interpretation:

The relationship between the performance and congruity between feelings and expressed

behavior is positive. So the productivity will be positively affected if there would be congruity

between the actual feelings and the expressed behavior and thus the cost would decrease.

4.11 RELATIONSHIP BETWEEN PERFORMANCE AND TACTFULNESS,

SMARTNESS AND MANIPULATION TO GET THINGS DONE.

31

Correlations

Tactfulness,

smartness and

even a little

manipulation to

get things performance

Tactfulness, smartness and

even a little manipulation to

get things





Table 4.11: Correlation between performance and the tendency to use tactfulness,

smartness, and manipulation to get the things done.

Interpretation:

There is a negative relationship between performance and tactfulness, smartness and the

tendency to manipulate things. So this means manipulating things would decrease the

productivity of the firm and increase the cost.

4.12 Relationship between performance and the tendency of owing up mistakes.

32

Correlations

Owning up

mistakes made. performance

Owning up mistakes made. Pearson Correlation 1 0.24


performance Pearson Correlation 0.24 1


Table 4.12: Correlation between performance and the tendency to owning up

mistakes made.

Interpretation:

There is a positive relationship between performance and the tendency to owe up mistakes made. So this

means that with an increase in this tendency the productivity would increase and cost would be decreased.

4.13 RELATIONSHIP BETWEEN PERFORMANCE AND THE ENCOURAGEMENT

OF SUBORDINATES TO THINK ABOUT THEIR DEVELOPMENT AND TAKE

ACTION IN THAT DIRECTION, BY THE SENIORS.

33

Correlations

Seniors

encouraging

their

subordinates to

think about their

development

and take action

in that direction. performance

Seniors encouraging their

subordinates to think about

their development and take

action in that direction.



perfromance Pearson Correlation .170 1


Table 4.13: Correlation between performance and encouragement from seniors to

the subordinates to think about their development and take action in that direction.

Interpretation:

The relationship between the performance and encouragement of subordinates to think about

their development and take action in that direction, by seniors, is positive. This means on such

encouragement the productivity of the firm increases.

4.14 Relationship between performance and the habit of considering both positive and

negative aspects before taking any action.

34

Correlations

Considering

both positive

and negative

aspects before

taking action. Performance

Considering both positive

and negative aspects before

taking action.



performance Pearson Correlation +0.23 1


Table 4.14: Correlation between performance and the practice of considering both

positive and negative aspects before taking an action.

Interpretation:

There is a positive relationship between performance and the tendency to consider both positive

and negatives before taking any action. This increases the productivity of an organization and

reduces the cost of it.

4.15 Relationship between performance and “prevention is better than cure”.

35

Correlations

Prevention is

better than cure. performance.

Prevention is better than

cure.



Performance Pearson Correlation +0.147 1


Table 4.15: Correlation between performance and “prevention is better than cure”.

Interpretation:

There is a positive relationship between performance and “prevention is better than cure”. So if

this is practiced in a team the productivity would increase and the cost would be reduced.

4.16 RELATIONSHIP BETWEEN PERFORMANCE AND EMPLOYES

TAKING INDEPENDENT ACTION IN JOBS.

36

Correlations

Employees

taking

independent

action relating to

their jobs. performance

Employees taking

independent action relating

to their jobs.





Table 4.16: Correlation between performance and freedom to employees to take

independent actions in job.

Interpretation:The relationship between performance and tendency of employees to take independent actions in their jobs is negative. This means that if the employees take independent action related to their jobs the productivity of the organization might be adversely affected.

4.17 RELATIONSHIP BETWEEN PERFORMANCE AND “CLOSE SUPERVISION

AND DIRECTING EMPLOYEES ON ACTION.”.

37

Correlations

Close

supervision of,

and directing

employees on,

action. performance

Close supervision of, and

directing employees on,

action.





Table 4.17: Correlation between performance and close supervision and directing of

employees on action.

Interpretation:

There is a negative relationship between performance and close supervision and directing

employees on action. So if the employees are kept under supervision and direction. It would

decrease their productivity and thus cost.

4.18 RELATIONSHIP BETWEEN PERFORMANCE AND “OBEYING AND

CHECKING WITH SENIORS RATHER THAN ACTING ON ONE’S OWN”.

38

Correlations

Obeying and

checking with

seniors rather

than acting on

one’s own.

Obeying and checking with

seniors rather than acting on

one’s own.



one’s own.





one’s own.

Pearson Correlation -.176 1


Table 4.18: Correlation between performance and the practice to obey and check

with seniors rather than acting on one’s own discretion.

Interpretation:

There was a negative relationship between the tendency of subordinates, to check with seniors

rather than acting on one’s own. If this tendency is encourages it would negatively affect the

productivity of the firm.

4.19 RELATIONSHIP BETWEEN PERFORMANCE AND “TEAM WORK

AND TEAM SPIRIT”.

39

Correlations

team work and

team spirit. performance

team work and team spirit. Pearson Correlation 1 +0.399


Table 4.19: Correlation between performance and feeling of team work and team

spirit.

Interpretation:

There is a positive relationship between the performance and the feeling of team work and team

spirit within a team. So if this feeling increases the productivity of teams in an organization.

4.20 THE RELATIONSHIP BETWEEN PERFORMANCE AND “ACCEPTING

AND APPRECIATING HELP OFFERED BY OTHERS”.

40

Correlations

Accepting and

appreciating

help offered by

others. Performance

Accepting and appreciating

help offered by others.


Performance Pearson Correlation +0.237 1

.

Table 4.20: Correlation between performance and practice of accepting and

appreciating help from others.

Interpretation:

There is a positive relationship between performance and the tendency to accept and appreciate

helps offered by others in an organization. So if such culture is promoted in an organization the

productivity would go up.

4.21 RELATIONSHIP BETWEEN PERFORMANCE AND “EMPLOYEES

INVOLVEMENT IN DEVELOPING ORGANIZATIONAL MISSION AND

GOALS” .

41

Correlations

Employee’s

involvement in

developing

organizational

mission and

goals

contributes to

productivity. Performance

Employees involvement in

developing organizational

mission and goals

contributes to productivity.



Performance Pearson Correlation -.256 1


Table 4.21: Correlation between performance and employees involvement in

developing organizational mission and goals.

Interpretation:

There is a negative relationship between employee’s involvement in developing organizational

mission and goals. So if the involvement of employees in developing organizational missions

and goals increases the productivity would go down and the costing would go up.

4.22 RELAITONSHIP BETWEEN PERFORMANCE AND “EMPLOYEES

TRYING OUT INNOVATIVE WAYS OF SOLVIGN PROBLEMS”.

42

Correlations

Employees

trying out

innovative ways

of solving

problems. Performance

Employees trying out

innovative ways of solving

problems.



Perfroamance Pearson Correlation -.031 1


Table 4.22: Correlation between performance and practice of employees to try out

new and innovative ways to solve a problem.

Interpretation:

The relationship between performance and the tendency of employees to try out new and

innovative ways of solving problems is negative. So if this reduces the productivity of an

organization and thus increases the cost of it.

4.23 RELATIONSHIP BETWEEN PERFORMANCE AND “THINKING OUT

AND DOING NEW THINGS TONES UP ORGANIZATIONAL VITALITY”.

43

Correlations

Thinking out and

doing new

things tones up

organizational

vitality. performance

Thinking out and doing new

things tones up

organizational vitality.



Table 4.23: Correlation between performance and the practice of thinking out and

doing new things in organization.

Interpretation:

There is a negative relationship between the two variables. So doing things out of the box, would

decrease the productivity of the firm and thus increase the costing.

4.24 RELATIONSHIP BETWEEN PERFORMANCE AND

EXPERIMENTATION.

44

Correlations

In today’s

competitive

situation

consolidation

and stability are

more important

than

experimentation performance

In today’s competitive

situation consolidation and

stability are more important

than experimentation.





Table 4.24: Correlation between performance and stability and consolidation of a business.

Interpretation:

The relationship between the two variables is positive. So for consistent performance and

consolidation of business stability is more preferable rather than experimentation.

Result for hypothesis

Null hypothesis was that “There is no correlation between costing of manufacturing units and

team-effectiveness and organizational culture”, but results showed that the team-effectiveness

and organizational culture have relationship with the performance of any manufacturing unit,

thus indirectly it also has relationship with the costing of manufacturing units. So, the null

hypothesis is rejected.

45

CHAPTER-5

Results and outcomes

FINDINGS:

Free interaction amongst the employees decreased the performance of the team.

Managers at different levels didn’t want their subordinates to interact much at the work

place.

Employees believed that if they genuinely share thoughts and feelings in meetings, it

would negatively affect their performance. They were reluctant in sharing feelings with

each other and specially their seniors in the meetings

46

Free discussion and communication was considered to be vital for the performance of an

organization. Employees wanted a culture of free discussion and communication in their

organization.

Deep analysis of problems was considered to be vital for good and consistent

performance in the long run. In general, the employees were of opinion that if the

problems were surfaced it would create a problem in future.

The culture of passing the buck on each other hindered the performance of an

organization.

Interpersonal support and contact among employees is vital for the performance of an

organization.

For the performance of a team in an organization, feeling of trust and confidence between

the seniors and the subordinates is very important.

It was found that employees believed that if the performance is low they have to fend

themselves.

People believed that within a team if there is a congruity between expressed behaviors

and actual feelings, it would increase the performance of the team.

People think that using tactfulness and manipulation for getting things done would

adversely affect the performance of a team.

The culture of owing up mistakes in an organization was vital for the performance of an

organization.

Managers at different levels were of the opinion that too much freedom to their

employees to take independent actions relating to their jobs would decrease the

performance of their team.

At the same time, the employees didn’t like the tendency of their seniors to over

supervise them and direct them from time to time.

Employees wanted they should be given some freedom so as to handle certain problems

on their own. They found it useless to check out with their seniors, for every small

problem.

Performance showed highest degree of correlation with team work and team spirit.

People believed that team work and team spirit was the most vital thing for the

performance of an organization.

47

Managers at different level believed that the employees should not be involved in setting

organizational goals and missions, as it would decrease the performance of the teams.

The managers believed that although experimentation and innovation in doing things is

important, too much of it would risk the stability of an organization, which would be a

threat to the organizations existence in today’s competitive world.

CONCLUSIONS:

Too much of interaction among employees in a manufacturing firm can reduce the

performance of the unit. It can thus increase the cost related to time factor and per unit

cost due to decreased productivity.

Employees are afraid to come up openly regarding their true feelings about any problem

or issue in front of their seniors in meetings. They tend to manipulate things in the

meetings as they feel that frank expression of feelings might become a threat in future.

This could result in employees hiding very important facts about low performances of

teams or actual potential of a particular team in terms of productivity and thus the

problem may continue to persist for a long time, adversely affecting the profitability.

If there is a culture of trust and amicability in an organization, the processes flow

smoothly, saves time and energy, increases the performance of the teams as well as

reduces the cost related to time factor and wastage.

Greater coordination and effectiveness in teams would result into better productivity due

to increase in performance hence greater profitability of the firm. This would further

reduce the cost per unit.

Fixed cost factor can only be overcome with the help higher productivity levels in a

manufacturing unit. To realize economies of scale, team work and coordination is of

great importance.

Feeling of trust, confidence and mutual understanding between the seniors and

subordinates can increase the profitability of a firm by motivating the employees for

higher performance and timely redressing of their grievances which could hinder work

flow.

Giving employees a degree of freedom regarding decision making on their own to some

extent may prevent delays in complexities of routine nature.

48

The involvement of employees in setting goals and missions of an organization might not

prove to be a very wise decision as the employees might seek their own comfort in setting

the goals and missions of their organization and neglecting the organizational needs and

objectives.

Experimentation and innovation is not always considered good as going by already set

rules and methods of solving a problem reduces time required for solving it and also the

chances of errors.

Recommendations:

Too much of interaction among employees in a manufacturing firm can reduce the

productivity of the unit and thus the cost related to time and wastage. So at the work

place it should be kept minimum.

The culture of an organization should be made favorable in order to make people share

their genuine feelings in the meetings.

The feeling of trust should be encouraged between the seniors and subordinates.

The seniors should motivate their subordinates to work towards their own development

and should try to introduce training programs for the same, as this would drastically

increase the performance of the employees.

A degree of freedom should be given to the employees for making independent decisions,

to some extent, as it is vital for smooth working of an organization.

The involvement of employees in setting goals and missions of an organization might not

prove to be a very wise decision as the employees might seek their own comfort in setting

the goals and missions of their organization and neglecting the organizational needs and

objectives.

For routine problems experimentation is not favorable as it increases the time and energy

consumed and decreases the productivity. This would increase the costing of an

organization.

49

50

annexure

OCTAPACE questionnaire:

Your name: …………………………… Designation: ……………………………….

Write 4 if it is highly valued;

3 if it is given a fairly high value;

2 if it is given a fairly low value;

1 if it is given a very low value.

51

I. Openness:

1. ___ Free interaction amongst employees, each respecting other’s feelings,

competence and sense of judgement.

2. ___Genuine sharing of information, feelings and thoughts in meetings.

3. ___Free discussion and communication between seniors and subordinates.

II. Confrontation:

4. ___Going deeper rather than doing surface level analysis of interpersonal

problems.

5. ___Pass back the buck tactfully when there is a problem.

6. ___Surfacing problem is not enough, we should find the solutions.

III. Trust:

7. ___Interpersonal contact and support amongst employees.

8. ___confiding in seniors without fear of their misusing trust.

9. ___When chips are down you have to fend yourself.

IV. Authenticity:

10. ___Congruity between feelings and expressed behavior.

11. ___Tactfulness, smartness and even a little manipulation to get things

done.

12. ___Owning up mistakes made.

V. Proaction:

13. ___Seniors encouraging their subordinates to think about their

development and take action in that direction.

14. ___Considering both positive and negative aspects before taking action.

15. __3_Prevention is better than cure.

VI. Autonomy:

16. ___Employees taking independent action relating to their jobs.

17. ___Close supervision of, and directing employees on, action.

18. ___Obeying and checking with seniors rather than acting on one’s own.

VII. Collaboration:

52

19. ___team work and team spirit.

20. ___Accepting and appreciating help offered by others.

21. ___Employees involvement in developing organizational mission and

goals contributes to productivity.

VIII. Experimentation:

22. ___Employees trying out innovative ways of solving problems.

23. ___Thinking out and doing new things tones up organizational vitality.

24. ___In today’s competitive situation consolidation and stability are more

important than experimentation.

REFERENCES

Shen-Wen Cheng(2008),”Cost effective software architecture-based self-adaptation”. Carnegie

Mellon University.

R.Y. Chang, A. Podgurski and J. yang (2007), “Finding what’s not there: a new approach to

revealing neglected conditions in software.”, “Proc. ACM Int’l symp. Software Testing and

Analysis”, p 163-173.

53

M. Brunett, C. Cook and G. Rothermel (2004), “End-user Software Engineering.”,

“Communications of ACM”, p 53-58 vol. 47 issue 9.

Beeman, Don R. Sharkey, Thomas W (1987), “The Use and Abuse of Corporate Politics”,

“Business Horizons” p26 vol. 30 issue 2

Dissertation `1

Documents

carnegie mellon university

aditya kumar student

amity business school

acm intl symp

developing organizational mission

simple random sampling

revealing neglected conditions

user software engineering