ORGANIZATIONAL BEHAVIOR
TUTORIAL ASSIGNMENT
GROUP MEMBERS:
SYED MUHAMMAD AYOUB (13460)
SAIM AHEMAD ANSARI
TO:
SIR SARDAR TABREZ KHAN DURRANI
GLOBALIZATION ON ORGANIZATIONAL BEHAVIOR
ORANIZATIONAL BEHAVIOR
INTRODUCTION
Organizational Behavior is the identification, analyzing and application of knowledge about how
individuals and groups act in organizations. It interprets people-organization relationships in
terms of the person, group, organization, and whole social system. Objective of it is to build
better relationships by achieving people objectives, organizational objectives, and social
objectives. It encompasses a wide range of areas, such as human behavior, Training and
development, change management, leadership, teams, Group behavior etc.
In the study of organizational behavior is helpful in gaining a complete understanding of the
business. It is not the study of how organizations behave, but rather the study of individual
behavior in an organization. This includes the study of how individuals be have alone as well as
in groups.
The main focus of the organizational behavior is to obtain a greater understanding of those
factors which influence individual and group dynamics in an organization. Therefore individuals
and the groups and organizations to which they belong may become more efficient and effective.
Organizational behavior research is ultimately focused at providing human resource
management professionals with the information and techniques which they need to select, train,
and retain employees in a fashion which gives maximum benefit for the individual employee and
for the organization.
Organizational behavior is a modern interdisciplinary field. It draws most heavily from the
psychological and sociological sciences and it also looks to other scientific fields. The
interdisciplinary approach is used because the field of organizational behavior involves multiple
levels of analysis, which are necessary to understand behavior within organizations as people
influence their environment as well as people are influenced by their environment.
The business organization based on vales, missions , visions, objectives, goals and management
philosophy which drives formal or informal organizations towards culture & social environment
The culture decides the type of leadership, group dynamics, communication, within the business
organization. The employee perceives this as the quality of work type which leads their quantity
of motivation, which will benefited to employee performance, individual satisfaction, and
personal development and growth. The combination of all above elements will lead to build the
model that the organization operates from. Following are the main features of the organization
behavior. Organization behavior analyzing the relationship between organization, individual and
the group.
It more concern about people attitudes, perception, feelings, learning capabilities and specific
objectives goals.(Distinctly humanistic orientation)
It consists of different techniques, methods & theories to evaluate the performances.
(Multidisciplinary)
It provides vital answers to questions which arise when managing organization.
It analyses the factors influence the performance of a organization and describe the way of
improve the performance.
It uses the scientific method to analyze the performance which helps to identify the variables and
relationships.
It creates to achieve the path of business needs as it is concern in understanding of organization
processes and skills.
Factors Influence the Organization Behavior
The feathers of people at work- attitudes, individual Differences, attributes, roles of the people
and direction
The way people are motivated
Organizational commitment
Employment engagement process
The way organizations factions
Culture of the organization
Models of Organizational Behavior
There are four main models organizations operate out of, Autocratic, Custodial, Supportive, and
Collegial:
Autocratic - this model is power with the management. The employees are oriented towards
obedience and dependence on the boss. The performance result is minimal.
Custodial - this model is monetary resources with a managerial direction of wealth. The
employees in turn are leaning towards security and reimbursement and dependence on the
organization. The outcome is passive cooperation.
Supportive - this model is leadership with a managerial direction of support. The employees are
leaning towards job performance and contribution. The member of staff need that is met is status
and appreciation. The performance outcome is awakening drive.
Collegial - this model is related with a managerial direction of teamwork. The team also work
oriented towards responsible behavior and self-discipline. The performance result is moderate
Even though there are several models, most of the organizations used combination of above
models.
The organizational behavior does not depend upon deductions based on gut feelings whereas
trying to collect details, information for issue in a scientific manner under controlled situations.
It provides information for the findings so that the behavior of personnel and group could be
canalized as desired. Majority of psychologists, social scientists and have carried out research on
various aspects related to organization behavior. Job satisfaction and individual performance are
determinants of achievement of employee and organizational goals.
Organizations are set up to fulfill the requirement of the people. In modern competitive World,
the organizations should have growth & task-oriented which can achieve at the time of
productivity is ensured with zero defect in quality. Employee turnover and absenteeism has a
negative impact on efficiency and productivity. It is required to motivate & retained the skill
workers by enhancing the job satisfaction. In formal structure of organization all divisions have
to function in a coordinated manner to accomplish the organizational goals, vision and objectives.
Due to that it is require maintaining positive attitude towards work. Also it is more valuables for
managers to develop the suitable work culture by using authority, delegation of certain powers
to team members. Benchmarking, re-engineering, job re-design and empowerment are some of
the valuables factors.
LEADERSHIP
Leadership is most important aspect of organizational behavior which can be define as ability to
influence, motivate others to achieve the set of organizational objectives or goals. In today's
context the managers now are leaders of their groups, their divisions. Even though it may require
certain specialist knowledge, the human relations part of the management job. Currently People
have more flexibility and more options in their careers, which are themselves more fluid, so
keeping employee motivated is very important, due to that Leadership is also important in
attempting to minimize employee dissatisfaction. Leadership consists of the effective process of
delegation and empowerment.
Broad classification of leadership styles
There are several dimensions to leadership style and different ways of describing leadership
styles such as, bureaucratic, benevolent, charismatic, dictatorial, unitary consultative,
participative and abdicator. The different types of managerial leadership towards subordinate
staff can be classified in following heading.
Authoritarian style which focus on all interactions within the group move towards the manager
due to power is with the manager, in this style manager him selves exercises decision-making
and authority for determining policy, procedures and regulations for achieving set of objectives.
E.g.- The employees achieve the task will be given rewards & others who have not achieved
punishments. Chemanex group allocating certain objective to be achieved by each employee for
a given time, then evaluate the performance based on the task achieved. Evaluation as follows
Marks Category
81-100 Excellent
61-80 Good
41-60 Average
Employee who perform excellently, entitle 4 month bonus, good category 3 months, average
category 2.5monthe & less than average No bonus at all. It shows how above style is applicable
in today's context.
Democratic style leadership functions are shared with other staff of the group and the leader and
focus of power is more with the group as a whole and there is high integration within the group.
All members have a high decision-making, determination of policy and procedure. e.g.Janashakthi Insurance organize the foreign trips based on high performance team for the year
.Laissez-faire style manager are observing that subordinate of the team are working well
independently. The manager, enhance them freedom of doing the objectives to carry out they
think best and without interfering where as it is required to provide support if help is needed.
Whereas some confusion over this style, since the word of Genuine is emphasized since which is
contrasted with the manager who could not care, of results keeps away from the problem points
and manager does not want to get involved.
e.g.; Vertusa -Employee has given the freedom to achieve the certain task
Most of the organization having combinations of above styles & employees are not interest to
work under the 100% authoritarian style
There are 4 main types of leadership behavior available in accordance with goal path theory
Directive Leadership- Which consist of the way of directing to the subordinates to achieve the
goals by considering rules & regulations. Eg- This model applicable in the most of the government
organization (The Department head is giving the instructions for its subordinates achieve the task
with in the circulars or based on government rules & policies.
Supportive leadership which consist of open and reachable manner and displaying the
Needs and welfare of subordinate.
Participative leadership which consists of consult with their subordinates and the evaluation of
opinions and different ideas before the manager makes the final decision.
Achievement-oriented leadership consist of setting demanding goals for subordinates, looking
for development in their performance and show confidence in subordinates ability to perform
well.
Continuous Improvement
This consists of measuring the effectiveness of performances and which ensure opportunities for
the further improvements. Balance score card, Reward alignment and performance management
are the key methods of evaluating the performances
Every organization the leadership should delegate the authorities to subordinates by considering
the capability of the employees & leader should lead the team, motivated, review the outcome ,
continuous training & evaluate the performance.
GROUP BEHAVIOR
The basic character of a group is that its members regard themselves as belonging to the group.
Although there is no exact definition for 'group' it can be defined as follows.
'A set of people who interact with one another are psychologically aware of one another; and
perceive themselves to be a group.
Simply a group can be define as a set of people who share most following characteristics
A definable membership;
Group awareness;
Interdependence;
Common purpose;
Interaction; and
Ability to act in a unitary manner.
A social system contains all the people in system and their relationships to each other and to the
external world. It is a complex set of human relationships interacting in many ways. The behavior
of individual effect on the behavior of others directly or indirectly. Groups has basic feature of
the working style of any organization. Group Members as well as the managers must co-operate
each other to carry out works to achieve objectives of the organization as well as the individuals.
Group pressures influence over the performance of the organization as well as the individual
members of the organization. Group performance is directly related with the leadership which
influence the behavior of the group members. Pleasant working relationships and good
teamwork help to improve the morale of employees and work performance. Successful
teamwork is a basic feature of modern management practices such as total quality management,
empowerment, quality circles and change management. Teamwork is very important as it
increases the competitiveness power of the organization in following ways;
Increase the productivity
Improve quality
Encourage innovation
Motivate employees and improve their commitment
TRAINING & DEVELOPMENTS
Employee training is most important aspect in any organization. Employees are key assts of the
organization & there are is direct relationship with organizational performance & employee
performances. As a result of that employee should improve the skills, capabilities, and strength
to compete with technological & global changes. Due to that employee should develop following
skills,
Computer skills: employee should develop computer skills which is most important to negotiate
with global environment.
Customer service: In today customer satisfaction is most key area of business environment due
to high competition of global market, due to that it is required to give proper training.
Diversity: It consist of explanation about how people have different views and perspectives, and
includes methods to value diversity
Ethics: It consists of a view about social and corporate responsibility. Further, today's employees
bring a wide variety of values and morals to the organization.
Human relations: Presently organizational employees work under pressure & more stress on
work load. Therefore there may be lots of misunderstandings and conflicts. Proper training will
minimized the unnecessary conflict & misunderstandings.
Quality initiatives: It consist of basic training requirement about the quality concepts, Guidance
for qualities, & procedures e.g.; benchmarking, Total Quality Management, Quality Circles...
Safety: Safety training is more important especially for the employees undertaking risk jobs e.g.:
working with heavy equipment, chemicals, Fuel, gas or Electricity related employments
Most of the organization has given safety equipment’s when doing the risk operations
e.g. Hayley’s ADC PLC operating chemical related productions & employees are given safety
manual, safety equipment’s & proper training
Sexual harassment: This includes training about sexual harassment on inappropriate behavior.
Normally this is included in organizational policies.
Why training is important and Benefits from Employee by proper Training and Development
There are several sources that the employee can train & develop themselves. They can use
organizational policies, procedures, safety manuals, online information on training and
development. Employees are benefiting by proper training & developments. It may increase
moral, job satisfaction, motivation of employee, enhanced the productivity, efficiency of
employee resulting financial benefit to the organization, minimized the employee turnover, due
to the new technologies & methods enhanced the production capacity
Diversity
Diversity energizes customer service, employee motivation & improvement of moral of
employee, decision making & team performances. With rapid change of global market
employment relationships have also emerged from the changing work force, information
technology, and globalization factors. Currently most of the organization more concentrates on
corporate social responsibility to compete with standardization of values and ethics of other
organizations. Currently organizational behavior pushes the competitiveness.
GLOBALIZATION
Globalization is the increasing internationalization of national economies. The automobile
industry serves as a clear, well-understood example. At one time, imports of foreign cars into the
U.S. were relatively rare and were regarded as exotic. In the 21st century, many well-known
brands – Fiat-Chrysler, for instance – have management, manufacturing and sales divisions in
several countries. Some brands with American identities manufacture cars in Mexico and China;
brands with Japanese identities build some models entirely in the U.S. Today, nearly every car on
the road has components that originated in more than one country.
The inevitable result of this trend toward globalization is the increasing interdependence of
national economies. For example, in the spring of 2018, the Trump administration increased
tariffs on approximately $50 billion of Chinese goods. This precipitated similar tariff increases by
the Chinese government on American goods. As a result, stock markets worldwide fell sharply.
Globalization has a wide range impact on various fields, including political, social, economical
and cultural aspects. It is the means of bringing the world closer via the exchange of goods and
knowledge. Through organizational behavior perspective, globalization influences the structure
of organizations, roles of managers and interrelationship among employees. Globalization has
drove greater challenges, but at the same time bigger opportunities internationally. The
purpose of this paper is to discuss the challenges developed by globalization and how managers
respond to those challenges. Also the main opportunities created by globalization will be
analyzed, such as providing access to new technologies from around the world, which leads to
improve organizations performance and increase outputs. That will be followed by the
implications of globalization and how the consequences of it have affected companies that will
be supported by relevant examples.
IMPACT OF GLOBALIZATION ON ORGANIZATIONAL BEHAVIOR
Organization behavior is a subject that analyzes the behavior of people in group and attempt to
create efficient and effective business environment.
Globalization is the process that improves the interaction through integration of society, culture,
politics and business across the world. Globalization is the integration of any market with the
global economy.
In short, Globalization refers to the complex economic networks of international competition,
resource suppliers, and product markets.
Before the globalization national borders were perfectly insulated and businesses were free from
any foreign competition. Today world is a global village where multinationals are spreading their
business across the world. At the same time large pool of workforce are chasing down job
opportunities across national borders.
As globalization has fostered the thought of multiculturalism, the relationship between culture
and organizational behavior has become increasingly valued.
Today organizations become more global; workforce of an organization made up of people
belongs to different nation and different culture. This diversity in workforce has created a large
shift in organization behavior. Global organizations bring diverse people together. These diverse
persons have different values, beliefs, and ethics. Besides, there are gender, age, race, ethnicity
differences among them. Management of diverse people gives new roles to the leaders in the
organizations.
Cultural diversity is geared toward having a deep respect and understanding of the various
people in the organization. This aspect of the organization is strengthened by having feedback,
teamwork, team-building activities and interpersonal communication. During such engagements,
individuals are able to interact and appreciate each other’s culture; consequently, an
accommodating culture and organizational behavior is established within the organization.
The patterns of behavior in the organization are influenced by the nature of interactions and
degree of diversity within the organization. The business, therefore, should seek to create an
organizational culture that not only enhances the diversity of its workforce composition but also
boosts individual performance. The positive influences of cultural diversity not only enable the
organization to increase the scope of its reach — the business also receives favorable exposure
from every sector of the population due to its multicultural approach.
The modern world is smaller yet global market that undergoes rapid change. Today, we are
confronted with the scenario of a changing workforce that is multicultural and diverse in beliefs,
ethnicities and behaviors. For instance, in the United States one-quarter of the American
workforce is represented by minorities with this figure expected to grow in the future. Also,
women account for fifty percent of the paid workforce in the United States.
This diversity presents organizations with both opportunities and unique challenges. A diverse
workforce in a global market is great advantage, but while the benefits are obvious, there are
also various issues that diversity throws up, these issues need attention for work to take place in
peaceful and efficient manner.
In this modern world that has been shrunk through transport and communication it is paramount
for work teams to consist of employees with different traits and behaviors. It is the job of a
manager to effectively manage these varied individuals and mould the behaviors to bring about
harmony and benefit the organization keeping in mind the company’s core values and business
aims.
Globalization and Leadership: Leadership might be universal in terms of a kind of social process
but that the content of leadership was affected by the culture. Different cultures would lead to
different contents, styles and effectiveness of leadership. In most situations, leadership styles
might not reveal leaders’ personal will, but reflect the culture and tradition of the societies they
are in. Moreover, the effectiveness of leadership would also be influenced by local social context.
For example: Defining, measuring and rewarding performance in the same way does not work
well across functions, business units and occupations (See “Rewarding Performance: Guiding
Principles; Custom Strategies”). In a diversified workforce employees have varied beliefs, ethics,
values, priorities and perception. So to keep that diversified workforce as a whole unit,
compatible with the overall organizational strategy is huge challenge for leaders. Today in a
globalized scenario cross-cultural management must give more emphasis on 3R rule Recognize cultural difference
 Respect people’s right to differ
 Reconcile the issues differences create
Multi-cultural Team: Multicultural team can provide strategic advancement for an organization.
However some researchers argued that transnational team (cultural difference, electronic
communication, lack of monitoring etc.) reduces the salience of team identity which leads to
team-withholding behavior. However culturally diverse team, work as or more effectively as a
homogeneous team when leadership helps to prevent communication breakdown. In fact global
virtual teams are more effective when they impose formal temporal coordinating mechanism
and develop norms for meaningful participation. However there is a high chance that identities
become salient in a multicultural team when either most or very few of their fellow members
belongs to a particular country of origin. But highly heterogeneous teams sometimes outperform
moderately heterogeneous team because they avert subgroup fictionalization and faultiness.
The importance of organizational behavior (OB) has accentuated subse­quent to globalization
and the consequent changes in business practices. Since the term globalization has many
ramifications, we need to first under­stand its different dimensions and then try to attempt a
compact definition.
In the economic context, globalization is interpreted as a worldwide phenom­enon or process.
Some economic and monetary policies together facilitate the process of globalization. Some of
the economic dimensions of globalization are expansion of international trade, cross-border
labor migration, cross- border flow of investments, etc.
From the OB point of view, the biggest con­cern for globalization is the impact and influence of
multinational and transnational companies. Participation of these companies in trade,
invest­ment, and production, expanded the international communication and im­ported various
cross-cultural issues. Nowadays, even to operate locally, In­dian organizations need to track
these issues and regularly renew their busi­ness practices, changing the mind-sets of their
people.
Globalization has many dimensions. The most general is the economic globalization. OB studies
are now increasingly becoming complex due to the effect of globalization. Some of the important
areas of concern are changing technology with a sharp increase in cross-border technology
transfers, the mobility of organizations and people in the global world, the competition for
markets and customers on a global scale, etc.
Globalization can be taken to mean the increasing trend to interact beyond physical boundaries.
The causes of globalization include deregulation and privatization of public sectors in certain
countries, technological convergence, and increased competition. Furthermore, globalization has
taken many forms such as foreign investment and international partnerships.
From the perspective of business organiza­tions, there are three different types of
globalizations—multinationals, global, and international companies. The cascading effect of
globalization even transcends to the tasks or the operational environments of business
organiza­tions.
Changes in the operational environment not only require focus on new products or service
developments, but also on the skills and competency sets, attitudes, values, and cultures of the
people. Such changes are primarily at­tributable to the shift in the expectations of customers and
the behavior of competitors.
The consequential effect of globalization on organizations is an increase in alliances and
partnerships rather than on authority and control. This is characterized by the breakdown of tall
hierarchies, increase in use of teams, reorganization of functional departments into crossfunctional groups, reduction in centralized control, and allowing more local autonomy.
Another key aspect, from the perspective of a business organization, is the harvesting of the
knowledge of the people. This is facilitated by knowledge management practices, using various
tools, techniques, and values. Through knowledge management, organizations can acquire,
develop measure, distribute, and provide a return on their intellectual assets.
Globalization has also changed the nature of managerial work, requiring managers, in the
globalized era, to increase their judgmental power, use of persuasion and influence, shaping of
the behavior of the people, etc.
CASE STUDY
Impact of Organizational Citizenship Behavior on Organizational Effectiveness
Patiraj Kumaria, Shivani Thapliyalb
Professor, Department of Management Studies, Gurukul Kangri University,
Haridwar, India.
Abstract
Organizational effectiveness is among the most complex and least tackled concept in the
field of organizational behavior. In order to achieve and sustain organizational effectiveness, it
is very important for an organization to understand the need of employees‟ discretionary efforts
at the workplace. Earlier theories identified organizational effectiveness with increased
productivity, profitability, prompt services and good morale of employees. However an
organization can also be made effective by using such system which handles the employees
carefully and make them fully committed to organizational goals. In the absence of the
hardworking and dedicated employees, many organizations had not been where they are today.
It is most probable that the hardworking and dedicated employees were not only performing
their assigned duties or task but performing beyond the expectation of their employer to benefit
the organization as a whole. The extra role performance where an employee performs his duties
beyond the expectation of the employer has been termed as Organizational Citizenship Behavior
(OCB). The present study aims to examine the impact of organizational citizenship behavior on
organizational effectiveness in Jaiprakash Associate Ltd. (Cement Division), Noida. The study
adopted a correlational approach by considering organizational citizenship behavior as an
independent variable and organizational effectiveness as dependent variable. The sample of the
study consists of 40 employees. For analyzing the data, correlation and regression analysis have
been applied. Result shows that among the constructs of organizational citizenship behavior:
altruism, sportsmanship and civic virtue have the highest and significant correlation with
organizational effectiveness. The impact of organizational citizenship behavior on organizational
effectiveness is also found to be significant. The following paper is divided into five sections
where the first section introduces the concepts under study. The second section consists of
literature review which unfolds the studies conducted in the last six years on the relationship
between key variables and other variables. The third section explains the objectives of the
study and research methodology consisting of hypotheses, sampling technique and research
instrument used for the study. The fourth section is of data analysis and interpretation and the
last section is about conclusion and discussion. Keywords: Organizational Citizenship Behavior,
Organizational Effectiveness and Employee Performance
Introduction:
The nature of the present business scenario is much more unpredictable and complex than ever
before. After the introduction of liberalization, privatization and globalization, the competition
in the present business environment has increased in multifold. Today’s work pressures of
achieving the goals in the shortest time, demands from an employee to perform beyond the
requirements of his duties. When an employee performs his duties beyond the requirements of
an employer without expecting any reward in return it is known as discretionary behavior. For
the last two decades, discretionary behavior of employees has been a major construct in the
field of organizational behavior, thus it has received a great deal of attention in the past studies
(Organ & Ryan, 1995; Podsakoff, Mackenzie, Paine, & Bacharach, 2000). Discretionary behavior
and organizational citizenship behavior have been considered as synonyms for each other. Now
days, organizations have started attributing their success to its employees. In the absence
of hardworking and dedicated employees, many organizations had not been where they are
today. It is most probable that the hardworking and dedicated employees were not only
performing their assigned duties or task, but performing beyond the expectation of their
employer to benefit the organization as a whole. The extra role performance where an employee
performs his duties beyond the expectation of the employer has been termed as Organizational
Citizenship Behavior (OCB). Broman (2004) has defined OCB as “participating in activities or
actions that are not formally a part of the job description, but that benefit the organization as a
whole”. Organ (1988) considered organizational citizenship behavior as an important factor for
the survival of an organization. Achieving effectiveness is the ultimate goal of every business
entity. Employees are the main factor who distinguishes the effective organizations from the
ineffective ones by considering their organizations as their home. According to Scott et al
(2008), “effectiveness is the likelihood of achieving the intended objectives of an
activity, policy or other intervention”. Organizational effectiveness is the concept of how
effective an organization is in achieving its goals and objectives. Today’s organizations are facing
immense pressure to demonstrate their effective management, achieve more with fewer
resources and to provide greater accountability to improve their effectiveness.
Organizational effectiveness is not always about the profitability or productivity of the
organization. The sales numbers or volumes are just the fractions of the part of organizational
effectiveness. It is also about how well you are managing the people of your organization. The
present paper aims to examine the impact of organizational citizenship behavior on
organizational effectiveness in Jaiprakash Associate Ltd. (Cement Division), Noida
Concept of Organizational Citizenship Behavior (OCB) The concept of Organizational Citizenship
Behavior was first introduced by Bateman and Organ (1983). After Bateman and Organ, the
concept was refined and conceptualized by several researchers. According to Organ (1988)
organizational citizenship behaviors (OCB) can be defined as "individual behavior that is
discretionary, not directly or explicitly recognized by the formal reward system and that in the
aggregate promotes the effective functioning of the organization". These are supporting or
helping behavior, not prescribed by the organization and there is no reward or punishment for
this behavior. Organizational citizenship behavior is crucial for an organization’s success, so it is
very important for an organization to understand and engage its employees in OCBs. Organ
(1988) has determined five categories under OCB:
g one’s duties beyond requirement.
However it is empirically tested that managers had faced difficulties in differentiating
among the dimensions of OCB provided by Organ (1988). William and Anderson (1991),
proposed another conceptualization for OCB. These authors categorized OCB on the basis of
direction of the behavior: • OCBI: Behavior directed towards the benefit of another individual. •
OCBO: Behavior directed towards the benefit of organization. Organizations neither survive nor
prosper without its employees behaving as good citizens and engaged in all sort of positive
behavior. According to Organ (1990) the discretionary or extra-role behaviors are performed by
employees only when social-exchange contract dominates over the economic contract
between the employer and employee, thereby motivating the employees to exhibit extra role
behavior (Morrison 1996; Tsui, Pearce, Porter & Tripoli 1997). Concept of Organizational
Effectiveness (OE) The concept of organizational effectiveness was an innovation in science of
management. Organizational effectiveness is composed of two terminologies: organization and
effectiveness. Organization is generally defined as a group of two or more people working in
a structured manner to achieve some specific objectives. According to Scott et al (2008),
“effectiveness is the likelihood of achieving the intended objectives of an activity, policy
or other intervention”. By combining above definitions it can be said that organizational
effectiveness is the concept of how effectively an organization achieves its predefined goals
and how effectively it performed in the whole process of reaching its goals. Most of the people
think that effectiveness and efficiency are synonyms and can be used interchangeably yet each
of these terms have different meanings. Assuring the success of both of them is necessary as they
have an influence on each other. Organizational effectiveness is generally considered as an
abstract concept which is not easy to measure. For measuring organizational effectiveness, proxy
measures are used which represents organizational effectiveness. Organizational effectiveness is
not always about the profitability or productivity of the organization. The sales numbers or
volumes are just the fractions of the part of organizational effectiveness. It is also about how
well you are managing the people of your organization. Now the modern researchers are
favoring the use of multiple criteria for measuring organizational effectiveness. Apart from
using the financial or monetary values, variables associated with human element can also be used
for measuring organizational effectiveness. Khurana (2013) provided three important dimensions
i.e. Fairness in competition, organizational culture and job satisfaction for measuring
organizational effectiveness.
1. Fairness in Competition: Human capital is the major source of competitive advantage and in
order to get maximum of them it is important to treat them fairly. The elements of fairness are:
A) Procedural fairness
B) Distributive fairness
C) Interactional fairness
2. Organization Culture: According to Needle (2004), “organizational culture represents the
collective values, beliefs and principles of organizational members and is a product of such
factors as history, product, market, technology, and strategy, type of employees, management
style, and national culture”
3. Job Satisfaction: McPhee and Townsend (1992) defined job satisfaction as “a pleasurable or
positive emotional state, resulting from the perception of one’s job as fulfilling or allowing the
fulfillment of one’s important job values, providing these values are compatible with one’s
physical and psychological needs”.
In order to achieve maximum output it is important that our human capital should be treated
fairly, working in a positive organizational culture and must be satisfied with their job. It will
increase the employee productivity which will ultimately result in increasing the organizational
effectiveness.
Literature Review
Organizational Citizenship Behavior (OCB)
Leon and Finkelstein (2016) conducted a study to find out the relationship between
organizational citizenship behavior, citizenship motives and employee well-being. It was found
that the perception of organizational citizenship behavior as in role did not moderate the
relationship between OCB, citizenship motives and employee wellbeing. It was also reported
that OCB and citizenship motives were significantly associated with wellbeing.
Purba et. Al (2015) investigated the mediating role of affective commitment on the relationship
between personality and organizational citizenship behavior in a non-western culture. Data was
taken from the employees of an Indonesian cement factory. It was found that affective
commitment partially mediated the relationship between extraversion and organizational
citizenship behavior directed towards individual (OCB-I) and organizational (OCB-O). Affective
commitment was also found to partially mediate the relationship between emotional stability
and OCB-O.
Wei (2014) conducted a study to find the relationship between organizational citizenship
behavior and job performance considering human capital as the moderator of their relationship.
It was found that organizational citizenship behavior directed towards the organization as well
as to the individual has a positive effect on employees‟ job performance. It was also reported
that the experiential human capital lessen the positive effect of organizational citizenship
behavior on job performance.
Kataria et. al (2013) suggested that inclusion of organizational citizenship behavior enhanced
the relationship between employee engagement and organizational effectiveness. It has been
proved that OCB has a positive relationship with organizational effectiveness.
Paille (2012) examined the relationship between employee retention and organizational
citizenship behavior. The study suggested that relationship between citizenship behavior and
intention to search and between citizenship behavior and intention to leave were significantly
different.
Bush and Jiao (2011) conducted a study to find out the impact of OCB on performance evaluation
system and employee’s reaction and found that formally considering OCB in performance
evaluation had no significant impact on employee’s reactions in terms of satisfaction with the
performance rating.
Wei et al. (2010) investigated and found a significantly positive relationship between high
performance HR practices and organizational citizenship behavior. They also established a
relationship between psychological climate and OCB considering job satisfaction as a mediator.
Podsakoff and Mackenzie (2009) have suggested that organizational citizenship behavior has a
significant influence on performance quality and financial performance of an organization.
Organizational Effectiveness (OE)
Schoraj and Llaci (2015) conducted a study on motivation and its impact on organizational
effectiveness in Albanian organizations. It was found that financial remuneration of employees
contributed motivating employees. Communication between the supervisor and the subordinate
is also one of the factors which contribute most in motivating the employees. In Albanian
business organization, satisfaction at work does not make any contribution in motivating an
employee.
Khawaja et al. (2014) examined strategic human resource management and organizational
effectiveness in Pakistani organizations. According to the researchers, organizations need to
differentiate their performance and strategy from other organizations and by improving the
resources, organization can gain competitive advantage. Highly effective and efficient
organizations are considered as successful entities. Bartuseviciene and Sakalyte (2013) suggested
in their study that effective yet inefficient organization might survive but ineffective yet efficient
organization would bankrupt slowly.
Luxmi (2012) conducted a study on organizational effectiveness for employees in public and
private sector industry and concluded that except the work force satisfaction dimension,
private sector organizations were better than public sector in all dimensions of organizational
effectiveness.
Malik, Ghafoor and Naseer (2011) conducted a study in four cities of Pakistan and found that
employee performance and motivation had a significant impact on organizational effectiveness.
He also concluded that man and women were performing equally beyond their gender
differences and organizational effectiveness was the key component of organizational success.
Zheng (2010) suggested in his study that organizational effectiveness governed the extent to
which an organization perceives its goals or the policy objectives of the organization. There
were several approaches proposed by previous studies and one of them is resource based
approach according to which organizational effectiveness has several indicators such as
knowledge and technology, raw material, human resource (Anantadjaya, 2009), financial
resources (Anantadjaya, 2007; Henri, 2004) or the organization’s ability to respond to the
changes.
How Organizational Citizenship Behavior is related to Organizational Effectiveness:
Development of a Conceptual Model
On the basis of extensive literature and analysis of previous models we have proposed a model
depicting the relationship between organizational citizenship behavior and organizational
effectiveness.
Fig. 1 Model Depicting Conceptual Model of Relationship between Organizational Citizenship
Behavior and Organizational Effectiveness.
Organizational citizenship behavior (OCB) refers to “individual behavior that is discretionary, not
directly or explicitly recognized by the formal reward system, and in the aggregate promotes
the efficient and effective functioning of an organization” (Organ et al., 2006). Organizational
citizenship behavior has been studied extensively as it is very important for organizational
functioning. Employee’s extra role behavior enables managers to devote more time on strategic
activities, better utilization of organizational resources, making organizations a better place to
work and thereby resulting in smooth running of the business. Infact, employee retention
increased job satisfaction and lower absenteeism are some of the contributors of organizational
citizenship behavior towards organizational performance and effectiveness (Chughtai & Zafar,
2006; Podaskoff & Mackenzie, 1997). Organ (1988) has determined five categories under OCB:
• Civic virtue: It explains the willing participation of an employee for the company’s welfare.
• Altruism: It is helping other employees in organizational task.
• Conscientiousness: When an employee perform his duties beyond the job requirement.
• Courtesy: Treating others with respect
• Sportsmanship: Employee avoiding complaining behavior or have a high tolerance level.
Presently, the fully changed scenario of business is dominating the organizations and has
increased the need of valuable generation of employees, a new generation of employees
which are known as „organizational soldiers‟. These employees identify their organization as
their home and perform beyond the expectations of the employer for reaching the organizational
goal. Certainly these employees are the main factor which differentiates the effective
organizations from the ineffective ones.
Creating and designing effective organizations is very important (Handa & Adas, 1995). Katz and
Kahn (1966), defined organizational effectiveness as “the maximization of return to the
organization by all means”. Mott (1972) defined organizational effectiveness as “the ability of an
organization to mobilize its centers of power, for action, production and adaptation. Effective
organizations are those that tend to produce more and adapt more easily to environmental
and internal problems than do other similar organizations.” Khurana (2013) determined three
important dimensions i.e. Fairness in competition (Procedural fairness, distributive fairness and
interactional fairness) organizational culture and job satisfaction for measuring organizational
effectiveness.
Blakely et al. (2005) conducted a research and found that when employees perceive their
superior’s behavior as fair, the possibility of OCB increases. Bidarian and Jafari (2012) in a study
found a positive and significant relationship between procedural fairness and interactional
fairness. Organ (1990) explained the relationship between OCB and distributive justice using
Adams equity theory. Spector and Che (2014) also examined and found that distributive justice
is positively correlated with organizational citizenship behavior.
Darsana (2013) investigated the relationship between organizational culture, organizational
citizenship behavior and employee performance and found that the influence of OCB on
organizational culture is positive and significant. Effective organizations should have a culture
that encourages employees to exhibit organizational citizenship behavior.
On the basis of literature review, it has been found that employees who perform beyond
the job requirement, enjoy their work and are proud of their association with the organization.
And these feelings and contributions lead to job satisfaction (KO, 2008). Many studies support
the positive and significant relationship between OCB and job satisfaction (Feather& Rauter,
2004; Ko, 2008; Chang and Chang, 2010; Williams & Anderson, 1991).
Research methodology
The population, sample and sampling
The population under study is the employees of Jaiprakash Associate Ltd. (Cement Division),
Noida. Total of 50 questionnaires were distributed among full time employees and received 40
usable responses; response rate is 80%. Purposive sampling technique is used to collect data.
The Statistical Package for Social Science (SPSS) version 20 is used to test the hypotheses and to
determine the relative association between the variables under study.
Research tools
A) Organizational Citizenship Behavior: A scale with 24 items developed by Podsakoff and
colleagues (1990) based on Organ’s (1988) five dimensional taxonomy was used for
measuring Organizational Citizenship Behavior. The scale covered questions about five
important areas used to measure organizational citizenship behavior are as follows:
1. Altruism
2. Sportsmanship
3. Conscientiousness
4. Courtesy
5. Civic Virtue
The overall Organizational Citizenship Behavior measure exhibited adequate internal consistency
(α = 0.87).
B) Organizational Effectiveness: A scale with 15 items developed by Poonam Khurana (2013) was
used for measuring Organizational Effectiveness. The scale covered questions about three
important areas used to measure organizational effectiveness are as follows:
1. Fairness in competition
2. Organizational Culture
3. Job satisfaction
The overall Organizational Effectiveness measure exhibited adequate internal consistency (α =
0.77).
The Analysis of Data to find out the relationship between organizational citizenship behavior and
organizational effectiveness, Pearson’s moment correlation and to test the impact, linear
regression is applied.
Table 1: Correlation Matrix (N=40) 1 2 3 4 5 6
1. Altruism 1
2. Sportsmanship .705** 1
3. Conscientiousness .548** .549** 1
4. Courtesy .498** .385* .728** 1
5. Civic Virtue .715** .705** .716** .513** 1
6. Organizational Effectiveness .500** .529** .495** .410** .506** 1
Notes: *p =.05; **p=.01
Table 1 represents the Pearson’s correlation coefficient of the variables under study. According
to Table 1 there is a significant relationship between altruism and organizational effectiveness
with the calculated correlation value as 0.50 (significant at 0.01 level). Sportsmanship is also
found to be correlated with organizational effectiveness with the significance value as 0.529,
conscientiousness as 0.495, courtesy as 0.410 and civic virtue as 0.506 (all significant at 0.01
level). Hence the alternative hypotheses 1, 2, 3, 4 and 5 are accepted. Correlation between the
second dimension of organization citizenship behavior i.e. sportsmanship and organizational
effectiveness has been found to be most favorable (significant at 0.01 level).
Further, in order to know how much variance will be explained in organizational
effectiveness by organizational citizenship behavior, regression analysis was applied.
Table 2: Model Summary Table
Model R Square Adjusted R Square Std. Error of the Estimate 1 .574a .330 .312 4.409
Table 2 provides the R and R2 values. The R value represents the simple correlation value and is
0.574 which indicates a moderate degree of correlation between organizational citizenship
behavior and organizational effectiveness. The R2 value indicates how much of the total variation
in the dependent variable, i.e. organizational effectiveness, can be explained by the
independent variable which is organizational citizenship behavior. According to table 2, 33%
of the variation in organizational effectiveness can be explained by the organizational citizenship
behavior.
Conclusion Every organization is striving hard to achieve competitive advantage over others.
Presently the research in behavioral science has been dominated by the emergence of
organizational citizenship behavior as it is the key to success. Employees exhibiting such behavior
are also considered as the good soldiers of the organization and to survive in this competitive
environment every organization needs such soldiers. For achieving this, organizations need to
have a good understanding of the practices which gives rise to citizenship behavior. The
findings of the present study indicate that altruism, sportsmanship, conscientiousness, courtesy
and civic virtue are positively and significantly (p<0.05) correlated with organizational
effectiveness (table no. 1 of correlation matrix) which means hypotheses 1, 2, 3, 4, and 5 are
accepted. The correlation value of organizational citizenship behavior with organizational
effectiveness is 0.57 and statistically there is a significant relation between these two variables.
The positive impact of organization citizenship behavior on organizational effectiveness has
been supported by different studies (Castro, 2004; Turnip seed and Rassuli, 2005). Also
organizational citizenship behavior (OCB) has been considered to be one of the most
important factors influencing organizational effectiveness (Organ, Podsakoff & MacKenzie
2006). The overall correlation between organizational citizenship behavior and organizational
effectiveness is found to be 0.57 and 33% of the variation in organizational effectiveness can be
explained by organizational citizenship behavior (table no. 2 of model summary). The impact of
organizational citizenship behavior on organizational effectiveness is found to be significant
as shown in table no. 3. From the coefficients table no. 4 it was found that 1 percent change in
organizational citizenship behavior will bring 53.9 % of variation in organizational effectiveness.
From the above discussion it can be concluded that organizational citizenship behavior forms
an important factor in creating the overall effectiveness of an organization. In order to
achieve and sustain organizational effectiveness, it is very important for the managers and the
organization as a whole to understand the need of employees‟ discretionary efforts at the
workplace
Impact of Organizational Culture on Organizational
Performance: A Case Study of Telecom Sector
By Mashal Ahmed & Saima Shafiq
Islamia University of Bahawalpur, Pakistan
Abstract“The only thing of real importance that leaders do is to create and manage culture.” “If you do
not manage culture, it manages you, and you may not even be aware of the extent to
Which this is happening.” (Edgar Schein).Organizational Culture is one of the most important
Construct in management research. This exploratory study elaborates the impact of
Organizational culture on organizational performance. This study is conducted in different
Bahawalpur based franchises of telecom companies. The purpose of this study is to determine
The impact of organizational culture on organizational performance in order to know that how
Culture of an organization assist in enhancing the organizational performance. Balance score
Card is used to measure the organizational performance. Quantitative approach is adopted in
Which a questionnaire is used to collect the data. The questionnaire is adopted from a previous
Study. 22 questionnaires have been distributed to the research participants out of which 15
Questionnaire are returned to the researchers with complete information. The findings indicate
That all the dimension of the culture influence the different perspective of organizational
Performance.
Keywords: organizational culture, organizational performance, telecom companies.
I. Introduction
Organizational development has some particular features that can increase sustainability on
basis of effectiveness. The enhancement in performance contributes to employee commitment
while norms, values and objectives contribute in enhancing the culture of an organization (Awadh
& Saad, 2013). Most of us contribute a great part of their time in organizations. The study of
Geert Hofstede indicates that cultural differences among nations are found specifically on the
greatest level; that is on the level of values. By comparing cultural differences between
organizations are specifically identified on the basis of practices. In comparison with values,
practices are more tangible. “Organizational Culture can be defined as "the collective
programming of the mind that distinguishes the members of one organization from others".
(Hofstede, the Hofstede Center). Hofstede (1980) searches for distinctions among 160 000 IBM
employees in 50 various countries moreover in three regions of the world, in order to search
different elements of culture that can affect the organizational behavior. He provides reasons for
cultural differences that may exist in different regions, as well as the significance of international
awareness and multiculturalism for the individual cultural introspection. Cultural differences
reveal distinctions in thinking and social action, and even in "mental programs", some sort of
term Hofstede uses for expected behavior. Hofstede correlates culture to ethnic as well as
regional groups, but additionally to organizations, profession, family, to community as well as
subcultural groups, political systems and legal guidelines, This specific research acknowledged
systematic variations in national culture with four dimensions: power distance (PDI),
individualism (IDV), uncertainty avoidance (UAI) and masculinity (MAS) (Hofstede,
Wikipedia.org). In 1998 Hofstede O 21Global Journal of Management and Business Research
Volume XIV Issue III Version I Year ( ) A 2014 © 2014 Global Journals Inc. (US) and Bond
determined 5th dimension in which short and long term orientations of 23 countries are
identified. The Author α σ: Department of Management Science the Islamic University of
Bahawalpur, Pakistan. E-mail: mashal_wattoo@yahoo.co.in, saima_shafiq@ymail.com
organizational behavior which is related to practitioner’s values and beliefs is based on culture
elements and norms that influence personality and performance of organization. (Syndergaard,
1994) The cultural elements and personality effects behavior and sustainability of organization
(Schwartz, 1994) the strong relationship of culture has been identified in the model produced by
Hofstede in 1980 which represents the 38 countries research. Organizational performance is
comprised of the actual output or results of an organization as measured against its intended
outputs (or goals and objectives). One of the most important reasons that explain the interest in
organizational culture is the assumption that certain organizational cultures lead to an increase
in organizational performance. (Ilies & Gavrea). Organizational performance comprises the actual
productions as well as outcomes or outcomes of an organization which are measured against its
expected outcomes. According to (Kaplan & Norton, 1992) no single measure can provide a clear
performance target….so managers have to choose between financial and operational measures.
In this study Items from (Kaplan & Norton, 1992) balance score card are used to measure the
organizational performance. These dimensions of the Balance Score card include
1. Financial perspective;
2. Customer perspective;
3. Internal business perspective
4. Learning Perspective.
Organizational Culture is the most important variable that influences the organizational
performance. The purpose of this study is to examine the impact of organizational culture on
organizational performance in different franchises of Bahawalpur based Telecom Companies.
This finding can be useful to telecom companies and their managers when attempting to
understand the influence of organizational culture on organizational performance
II. Research Objectives
1. To explore the culture of telecom companies
2. To analyze the impact of organizational culture on organizational performance.
3. To understand the importance of organizational culture and organizational performance.
III. Literature Review
a) What is Culture?
Culture can be defined as a combination of values, sets, beliefs, communications and
simplification of behavior which gives direction to peoples. The basic idea of culture arrives
through sharing of learning processes which is based on the proper allocation of resources.
(Titiev, 1959) The mental ability of human which helps in enhancing thinking and decision making
depends on the organization culture (Pettigrew, 1979).According to (Schein, 1990) culture is a
collection of various values and behaviors that may be considered as a guide to success. As per
(Kotter & Heskett, 1992), culture is collection of beliefs, behaviors and values which society
contains normally. In simple we can say that culture is knowledge, explanations, values, beliefs,
communication and behaviors of many people, at the right time and right place. In present era
the concept of culture is used as a concept of organization (Kotter & Heskett, 1992).
Organizational culture may be consist of two important elements of social group; structural
stability of number of peoples and assimilation of an individual item in good standard (Schein,
Organizational culture, 1995).According to (Strewart, 2010), organization’s norms and values
have a great impact on those who are fully devoted to the organization. According to him norms
are unable to be seen but if the organizations want to increase the profits and productivity of the
employees norms comes first to be considered.
b) Organizational Performance
The notion of organizational performance is affiliated to the endurance and success of an
organization. In service organization as well as in manufacturing organizations the computation
of the organization performance is critical (Brynjolfson, 1993). A balance score card proposed by
(Kaplan & Norton, 1992) is used to measure the organization performance. The dimensions of
the balance score used in this study are financial perspective; customer perspective; internal
business perspective and learning perspective. Performance is a comprehensive measure that
can include productivity, quality, consistency, and so on. On the other side, performance
indicators may also involve (criterion-based) results, behaviors and (normative) relative
measures, concepts of education and training and instruments, involving management
development and leadership training for developing attitudes of performance management and
essential skills. (Richard, 2002). Balance Scorecard is the one of most critical tool which provides
help or frame work to ensure that the strategy is translated into rational set of performance
measurement (Kaplan & Norton, 1992).The performance measurement system assist in
enhancing organization association to achieve goals and objectives in a successful manner. (Ittner
& Larcker, 1998) The strategic planning that is based on development of objectives assist
organization to emphasize on non-financial or intangible assets. The quality, performance and
services associated with customers have financial features .The financial and non-financial
reward management system 2Global Journal of Management and Business Research a Volume
XIV Issue III Version I Year ( ) © 2014 Global Journals Inc. (US) 22 Year ( ) 1 2014 is possible through
the measurement and evaluation of performance measurement system (Kaplan & Norton, 2001).
According to (Chavan, 2009), (Johnsen, 2001) said that an essential element of the Balance
Scorecard technique is the feedback and learning part, where an organization is able to measure
,where organization is building its strategic capability, in the scenario of its current performance,
and possible dynamic business situations. This data makes the leadership capable to analyze that
whether the organization is on right track, and what, if there is need of any change. If there is
need of change, these need to be in the definition of the objectives, the path of the journey, or
to rebuild the initiatives developed to enhance the capability. Perspectives of balance score card
are discussed below (Chavan, 2009)
I. financial perspective
How should we appear to our shareholders to succeed financially? Measures are: return on
capital; improved shareholder value; and asset utilization.
ii. Customer perspective
How should we appear to our customers to achieve our vision? Measures are: Product/service
qualities; customer relations; Image and repute.
iii. Internal business processes
At what business processes we must excel to satisfy our shareholders and customers measures
are: produce products and services; deliver products and services; and “after-sales” services.
iv. Learning and growth perspective
How will we maintain our ability to change and improve to achieve our vision? Measures are:
employee capabilities; information system capabilities; motivation, empowerment and
alignment.
c) Understand Organizational Culture and Organizational Performance
In the organizations Culture can be learned and shared (Titiev, 1959). According to (Pettigrew,
1979) cultures of an organization is based on the systems that may help to define how employees
take decision and think. He also noted the different level of culture based on the multifaceted
set of beliefs, values and assumptions may define ways to organizations to do its business.
Organizational culture is the combination of values, beliefs, and norms which may impact the
way employees behave, think and feel in the organization (Schein, 2011). There are 4 functions
of organization culture: providing sense of identity to members, enhancing the commitment,
strengthening organizational values, and shaping behavior through a control mechanism (Nelson
& Quick, 2011). Performance is a measure that involves productivity, quality, consistency, and so
on. On the other side, performance indicators involve results and behaviors (criterion-based) and
education and training concepts and instruments involving management development and
leadership training for developing essentials skills and attitudes of performance management,
relative (normative) measures (Richard, 2002). The organization's performance is the function of
the basic returns to the Instillation of strong culture in the organization's systems which enable
it to perform its routines undoubtedly. This concept is important in permitting researchers and
managers to asses firms’ performance over time and matches their performance with the
competitors. In simple word, organizational performance is the most essential criterion in
managing and accessing the actions and environments of organizations
d) Methods of Learning Organizational Culture
(Brown, 1998) Has identified the following methods of learning the organization’s culture:
I. Arte facts
It refers to the total social and physically developed environment of an organization for example
office space, equipment’s, rules, systems and procedures.
ii. Language
It refers to basic ways in which the organization understands its world for example jokes, stories,
myths and legends.
iii. Behavior patterns
Behavior patterns are repetitive patterns of behavior which are characteristics of organizational
life. It includes rites, rituals, ceremonies and celebrations.
iv. Norms of Behavior
It refers to rules of behavior that determine what are considered to be suitable and unsuitable
responses from employees in different conditions. These norms grow over time when several
persons make a discussion with each other in order to reach at a decision on how they can handle
the organizational issues.
v. Heroes
Heroes help to attain success present role models and represent the organization to the people
outside of the organization. Heroes are the persons who influence other employees.
vi. Symbols and Symbolic action
These may be defines as words, objects, conditions, acts or features of the organization that are
important to organizational members. It includes corporate logos, policies and products.
vii. Believes, values and attitudes
Values are closely attached with moral standards and ethical standards; they examine what
people think should be done. Beliefs on the other side are what is true and what is not. Attitudes
relate belief 23Global Journal of Management and Business Research Volume XIV Issue III Version
I Year ( ) A 2014 © 2014 Global Journals Inc. (US) and values to emotions and feelings; they may
be thought as a learned inclination of responding consistently in a suitable and unsuitable way.
The Impact of Organizational Culture on Organizational Performance: A Case Study of Telecom
Sector
viii. Basic Assumptions
They are considered as an expected solution of a recognized problem. In the organization basic
assumptions direct organizational member’s feelings, emotions and perception about things.
ix. History
Culture is considered as a result of the historical process.
e) Dimensions of Organizational Culture
In order to describe results IBM employees of more than 50 countries were gathered in order to
perfectly analyze the organization culture on the basis of dimensions. (Hofstede, 1980) The four
dimensions of organization culture are as followed:
I. Power Distance
It refers to the extent to which people of a society accept the unbalanced distribution of power
frequently. Power distance refers to the extent in which a nation accepts the factors that
dissimilarity in its citizens’ mental and physical capabilities increase the inequalities for their
welfare.
ii. Individualism versus Collectivism Individualism:
It is a national culture quality that defines a flexible social framework in which people stress on
the protection of themselves and their family. Collectivism : A national culture quality which
define a close knit social framework in which people require from the others people of the group
to take care of them and protect them.
iii. Masculinity/Femininity
The masculinity represents a preference for achievement, heroism, assertiveness and material
reward for success. While femininity, stands for a preference for coordination, emotions, caring
for the weak and quality of life;
iv. Uncertainty Avoidance
A national culture quality that describes the extent to which a society feels threatened by
unknown situations and try to avoid them;
v. Long-term Versus Short-term Orientation Long-term Orientation:
A national culture quality which stresses the future, parsimony, and patience. Short-term
Orientation: A national culture quality which stresses the present and past, fulfilling social
responsibilities and respect for customs. Hofstede and Bond determined fifth dimension in which
23 countries long and short term orientation have been analyzed in 1998. The organizational
behavior is associated to professional values and beliefs based on culture factors and norms
which influence personality and productivity of organization.
f) Effect of Organizational Culture on Organizational Performance
Organizational culture has ability to increase job satisfaction, and awareness about problem
solving and organization performance (Kotter, 2012). If the organizational culture becomes
incompatible with the dynamic expectations of internal and/or external stakeholders, the
organization's success will decrease as it has happened with some organizations (Ernst, 2001).
Organization performance and organization culture are clearly affiliated (Kopelman, Brief, &
Guzzo, 1990), though the confirmation concerning the perfect nature of this relationship is
miscellaneous.
Research shows that the relation between many cultural qualities and high performance are not
persistent over time (Dension & Sorenson, 1990, 2002) we can say that the impact of
organizational culture on employee behavior and performance is based on 4 important ideas
(Bulach, Lunenburg, & Potter, 2012). Firstly, having knowledge of the organization culture
permits employees to understand the history and functioning of the organization. This
knowledge provides information about projected future behaviors. Secondly, organizational
culture raises devotion to the organization's philosophy and values. This commitment creates
shared feelings of achieving common goals. It means organizations can achieve greater success
only when employees share values.
Thirdly, organizational culture, with its norms, deal as a control mechanism to direct behaviors
toward expected behaviors and away from unfavorable behaviors. This can also be achieved by
recruiting, selecting, and retaining employees whose values match with the values of the
organization. This type of organizational culture may be linked directly to greater efficiency and
performance than others.
Conclusion
Result shows that Hofstede culture dimensions affect the organizational performance in telecom
companies. There several factors which influence the organizational performance but this
research consider the Hofstede culture dimensions only. Organizational culture plays an
important role in achieving the organizational objective. Result show that there is high
uncertainty avoidance in the organization, higher the uncertainty avoidance better will be
organizational performance. Results also indicate that is a difference between the power of the
manager and the employees. When there is a power distance employees seeks their problem
solved by the management. In this situation employees respect their supervisors by enhancing
the performance in return. Result shows that these companies are inclined toward collectivism
but there is also some element of competition which is in individualism. Collectivist workers are
more satisfied with their work and supervisor. Organization can provide reward to motivate
employees, which increase the performance of employees and also the performance of the
organization. It is also revealed from the result that managers are characteristised by masculinity
which indicates that they are result oriented and value the final outcome. The result indicates
that these companies have faith in their financial performance means they believe that there
financial performance is enhancing day by day. In customer service perspective it is clear that
these companies are trying to compete with each other due which less customer are satisfied. In
internal business perspective it is revealed that most of the workers agreed that their company
is productive. In learning perspective it is stated that these companies are already focusing and
competing on innovation and technology that why this dimension is not included in research.
X. Recommendations for Future Research T
this research consider only the dimensions of Hofstede which affect the organizational
performance future research needs to consider some other variables that affect the
organizational performance like working environment and job satisfaction. To get more accurate
results more respondents from franchises of other cities should be included. Future research
should enlarge the size of the population because more diverse participants will make significant
contribution to the results.
XI. Limitations of the Study
The current study has some limitations. The outcome of the study is not precisely accurate as the
sample size is too small. There is a lack of geographical coverage because this study has
considered only the Bahawalpur based franchises of telecom companies. Limited time span is
also another limitation of this study.
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